Hittite Microwave Corp. (HITT, Financial) filed Quarterly Report for the period ended 2011-09-30.
Hittite Microwave Corp. has a market cap of $1.67 billion; its shares were traded at around $53.12 with a P/E ratio of 19.3 and P/S ratio of 6.7. Hittite Microwave Corp. had an annual average earning growth of 21.2% over the past 5 years.
Sales and marketing expense. In the three months ended September 30, 2011, our sales and marketing expense increased $0.9 million, or 20.0%, to $5.4 million, and represented 8.0% of our revenue, compared with $4.5 million, or 7.1% of our revenue, in the corresponding period of 2010. The increase in our sales and marketing expense was primarily attributable to a $0.5 million increase in personnel costs, a $0.3 million increase in commissions and a $0.1 million increase in travel and other costs. The increase in personnel costs related primarily to the growth of our worldwide direct sales and marketing organization. We expect sales and marketing expense will increase as we hire additional personnel, continue to expand our worldwide sales and marketing activities and, to the extent that our revenue increases, pay additional commissions.
Research and development expense. In the nine months ended September 30, 2011, our research and development expense increased $4.8 million, or 20.8%, to $27.9 million, and represented 13.7% of our revenue, compared with $23.1 million, or 12.9% of our revenue, in the corresponding period of 2010. The increase in our research and development expense was attributable to a $3.2 million increase in personnel costs, a $0.7 million increase in depreciation and amortization, a $0.9 million increase in equipment costs, a $0.5 million increase in occupancy costs and a $0.5 million increase in travel and other costs. The increase in personnel costs was primarily due to the growth of our engineering organization, including the acquisition of Arctic Silicon Devices in January 2011. These increases were partially offset by $0.8 million related to funding received from various foreign government research and development incentive programs and a $0.2 million decrease in supplies and materials.
Sales and marketing expense. In the nine months ended September 30, 2011, our sales and marketing expense increased $2.3 million, or 16.3%, to $16.3 million, and represented 8.0% of our revenue, compared with $14.1 million, or 7.9% of our revenue, in the corresponding period of 2010. The increase in our sales and marketing expense was primarily attributable to a $1.4 million increase in personnel costs, a $0.3 million increase in travel costs, a $0.3 million increase in professional fees, a $0.2 million increase in occupancy costs and a $0.1 million increase in depreciation and other costs. The increase in personnel costs related primarily to the growth of our worldwide direct sales and marketing organization.
As of September 30, 2011, we held $351.1 million of cash and cash equivalents. Cash provided by our operations was $73.9 million in the nine months ended September 30, 2011, of which the principal components were our net income of $63.4 million and non-cash charges of $18.1 million, partially offset by a net increase in operating assets and liabilities of $4.3 million and a net increase in deferred taxes of $3.3 million. The net increase in operating assets and liabilities includes an increase in inventory of $6.8 million, related to the growth of our business, and a $7.3 million decrease in deferred revenue and customer advances, due to product shipments under contracts with advanced billings. These increases were partially offset by a decrease in accounts receivable of $1.5 million, related to the timing of customer shipments, a $3.5 million net decrease in taxes receivable, due to the timing of tax payments and receipts, and a $5.2 million increase in accounts payable and accrued expenses, due to the growth of our business and the timing of disbursements.
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Hittite Microwave Corp. has a market cap of $1.67 billion; its shares were traded at around $53.12 with a P/E ratio of 19.3 and P/S ratio of 6.7. Hittite Microwave Corp. had an annual average earning growth of 21.2% over the past 5 years.
Highlight of Business Operations:
Research and development expense. In the three months ended September 30, 2011, our research and development expense increased $0.8 million, or 9.6%, to $9.1 million, and represented 13.4% of our revenue, compared with $8.3 million, or 12.9% of our revenue, in the corresponding period of 2010. The increase in our research and development expense was primarily attributable to a $1.1 million increase in personnel costs, a $0.2 million increase in equipment costs, and a $0.3 million increase in travel and other costs, partially offset by $0.8M related to funding received from various foreign government research and development incentive programs. The increase in personnel costs was primarily due to the growth of our engineering organization, including the acquisition of Arctic Silicon Devices in January 2011. We believe that a significant amount of research and development activity will be required for us to remain competitive in the future. As a result, we expect our research and development expense to increase as we add personnel and other costs to invest in the development of new products and, to a lesser extent, to support the translation of certain existing products to other GaAs foundries. Included within our expected increase in research and development expense are the costs associated with the opening of our new design centers in Virginia and Egypt.Sales and marketing expense. In the three months ended September 30, 2011, our sales and marketing expense increased $0.9 million, or 20.0%, to $5.4 million, and represented 8.0% of our revenue, compared with $4.5 million, or 7.1% of our revenue, in the corresponding period of 2010. The increase in our sales and marketing expense was primarily attributable to a $0.5 million increase in personnel costs, a $0.3 million increase in commissions and a $0.1 million increase in travel and other costs. The increase in personnel costs related primarily to the growth of our worldwide direct sales and marketing organization. We expect sales and marketing expense will increase as we hire additional personnel, continue to expand our worldwide sales and marketing activities and, to the extent that our revenue increases, pay additional commissions.
Research and development expense. In the nine months ended September 30, 2011, our research and development expense increased $4.8 million, or 20.8%, to $27.9 million, and represented 13.7% of our revenue, compared with $23.1 million, or 12.9% of our revenue, in the corresponding period of 2010. The increase in our research and development expense was attributable to a $3.2 million increase in personnel costs, a $0.7 million increase in depreciation and amortization, a $0.9 million increase in equipment costs, a $0.5 million increase in occupancy costs and a $0.5 million increase in travel and other costs. The increase in personnel costs was primarily due to the growth of our engineering organization, including the acquisition of Arctic Silicon Devices in January 2011. These increases were partially offset by $0.8 million related to funding received from various foreign government research and development incentive programs and a $0.2 million decrease in supplies and materials.
Sales and marketing expense. In the nine months ended September 30, 2011, our sales and marketing expense increased $2.3 million, or 16.3%, to $16.3 million, and represented 8.0% of our revenue, compared with $14.1 million, or 7.9% of our revenue, in the corresponding period of 2010. The increase in our sales and marketing expense was primarily attributable to a $1.4 million increase in personnel costs, a $0.3 million increase in travel costs, a $0.3 million increase in professional fees, a $0.2 million increase in occupancy costs and a $0.1 million increase in depreciation and other costs. The increase in personnel costs related primarily to the growth of our worldwide direct sales and marketing organization.
As of September 30, 2011, we held $351.1 million of cash and cash equivalents. Cash provided by our operations was $73.9 million in the nine months ended September 30, 2011, of which the principal components were our net income of $63.4 million and non-cash charges of $18.1 million, partially offset by a net increase in operating assets and liabilities of $4.3 million and a net increase in deferred taxes of $3.3 million. The net increase in operating assets and liabilities includes an increase in inventory of $6.8 million, related to the growth of our business, and a $7.3 million decrease in deferred revenue and customer advances, due to product shipments under contracts with advanced billings. These increases were partially offset by a decrease in accounts receivable of $1.5 million, related to the timing of customer shipments, a $3.5 million net decrease in taxes receivable, due to the timing of tax payments and receipts, and a $5.2 million increase in accounts payable and accrued expenses, due to the growth of our business and the timing of disbursements.
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