Hittite Microwave Corporation Reports Financial Results for the Third Quarter of 2009

"We are pleased with our third quarter performance," said Stephen Daly, Chairman and CEO. "The continued acceptance of our products allowed us to deliver strong quarterly results. We are also pleased to announce that we introduced 21 new products and recently launched two new product lines. The product line expansion and the continued growth of our product portfolio will enhance our ability to penetrate our target markets."

For the third quarter of 2009, revenue from customers in the United States was $17.8 million, or 43.0% of the company's total revenue, and revenue from customers outside the United States was $23.7 million, or 57.0% of total revenue. Gross margin was 72.0% for the third quarter as compared with 72.5% for the third quarter of 2008 and 70.4% for the second quarter of 2009. Operating income for the third quarter was $18.3 million, or 44.1% of revenue. Total cash and cash equivalents at the end of the third quarter of 2009 was $215.2 million, an increase of $17.2 million for the quarter.

Business Outlook

The company expects revenue for the fourth quarter ending December 31, 2009 to be in the range of $42.5 million to $43.5 million and net income to be in the range of $11.3 million to $12.3 million, or $0.38 to $0.41 per diluted share.

Webcast and Taped Replay

The company will host a conference call to discuss its financial results at 5:00 p.m. ET today. A live webcast of the call will be available online on the Hittite Microwave website. To listen to the live webcast, go to the Investors page of the Hittite Microwave web site at www.hittite.com and click on the Webcast link located under News & Events. A telephonic replay of the call also will be available for one week after the live call by dialing (303) 590-3030, access code 4160203. Following the call, a webcast replay will also be available by visiting the Investors page at www.hittite.com.

About Hittite Microwave Corporation

Hittite Microwave is an innovative designer and developer of high-performance integrated circuits, or ICs, modules, subsystems and instrumentation for technically demanding radio frequency, or RF, microwave and millimeterwave applications. Products include amplifiers, attenuators, data converters, dielectric resonator oscillators, frequency dividers and detectors, frequency multipliers, high speed digital logic, interface, limiting amplifiers, mixers and converters, modulators and demodulators, oscillators, passives, phase lock loop (PLL), PLL with integrated VCOs, phase shifters, power detectors, sensors, switches, synthesizers, transimpedance amplifiers and variable gain amplifiers. Hittite's products are used in a variety of applications and end markets including automotive, broadband, cellular infrastructure, fiber optic, microwave and millimeterwave communications, military, space, and test and measurement. The company utilizes radio frequency integrated circuits (RFIC), monolithic microwave integrated circuits (MMIC), multi-chip modules (MCM) and microwave integrated circuit (MIC) technologies. The company is headquartered in Chelmsford, MA.

"Safe Harbor Statement" under the Private Securities Litigation Reform Act of 1995

Statements in this press release regarding Hittite Microwave Corporation that do not relate to historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, any statements regarding our expectations as to future levels of revenue, net income and earnings per share. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties and are only predictions, and actual future events and results may differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of the recent recession, the related disruption in credit markets and weak macro-economic conditions on demand for our products; our ability to effectively manage our costs and expenses in response to fluctuations in our growth rate; market acceptance of our new products; our ability accurately to assess end market requirements; our success in maintaining the business of our significant customers; our ability to keep pace with new semiconductor processes; risks related to our dependence on third-party suppliers; regulatory, operational, financial and political risks inherent in operating internationally; competition within the semiconductor industry; product returns and warranty claims; the possibility that intellectual property claims initiated by or against us could be costly or have adverse outcomes; and other risks and uncertainties that are discussed under "Risk Factors" in our Quarterly Report on Form 10-Q for the three months ended June 30, 2009, as filed with the Securities and Exchange Commission.

Hittite Microwave Corporation
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
                                            September 30, 2009   December 31, 2008
Assets
Current assets:
Cash and cash equivalents                   $         215,171    $        180,856
Accounts receivable, net                              19,549              27,650
Inventories                                           17,788              13,981
Deferred costs                                        110                 139
Income taxes receivable                               1,935               20
Prepaid expenses and other current assets             1,086               1,127
Deferred taxes                                        7,161               6,206
Total current assets                                  262,800             229,979
Property and equipment, net                           20,293              17,927
Other assets                                          5,769               7,178
Total assets                                $         288,862    $        255,084
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                            $         3,308      $        2,778
Accrued expenses                                      6,553               6,836
Deferred revenue and customer advances                4,859               3,471
Total current liabilities                             14,720              13,085
Long-term income taxes payable                        4,948               4,689
Deferred taxes                                        712                 381
Total liabilities                                     20,380              18,155
Total stockholders' equity                            268,482             236,929
Total liabilities and stockholders' equity  $         288,862    $        255,084

Hittite Microwave Corporation
Condensed Consolidated Statements of Operations (unaudited)
(In thousands except per-share data)
                                      Three Months Ended September 30,    Nine Months Ended September 30,
                                      2009              2008              2009               2008
Revenue                               $    41,469       $    45,528       $    119,337       $    133,858
Cost of revenue                            11,623            12,504            34,238             38,588
Gross profit                               29,846            33,024            85,099             95,270
                                           72.0   %          72.5   %          71.3    %          71.2    %
Operating expenses:
Research and development                   5,609             6,404             16,877             17,978
Sales and marketing                        3,778             3,988             10,881             12,021
General and administrative                 2,185             2,117             7,179              6,282
Total operating expenses                   11,572            12,509            34,937             36,281
Income from operations                     18,274            20,515            50,162             58,989
                                           44.1   %          45.1   %          42.0    %          44.1    %
Interest and other income, net             78                738               363                2,617
Income before income taxes                 18,352            21,253            50,525             61,606
Provision for income taxes                 6,367             7,555             17,769             21,396
Net income                            $    11,985       $    13,698       $    32,756        $    40,210
Earnings per share:
Basic                                 $    0.41         $    0.45         $    1.12          $    1.31
Diluted                               $    0.40         $    0.44         $    1.10          $    1.29
Weighted Average Shares Outstanding:
Basic                                      29,438            30,464            29,372             30,654
Diluted                                    29,933            30,907            29,816             31,176

SOURCE: Hittite Microwave Corporation

Hittite Microwave Corporation 
William W. Boecke, 978-250-3343 
V.P. and Chief Financial Officer