Hittite Microwave Corp. (HITT, Financial) filed Quarterly Report for the period ended 2012-06-30.
Hittite Microwave Corp has a market cap of $1.6 billion; its shares were traded at around $50.99 with a P/E ratio of 22.1 and P/S ratio of 6.1. Hittite Microwave Corp had an annual average earning growth of 14.7% over the past 5 years.
Revenue. In the six months ended June 30, 2012, our revenue decreased $7.0 million, or 5.2%, to $128.7 million, compared with $135.8 million in the corresponding period of 2011. Revenue from sales to customers outside the United States accounted for 52.3% of our total revenue in the six months ended June 30, 2012, compared with 54.8% in the corresponding period of 2011. Our revenue decrease was primarily attributable to a $6.4 million decrease in sales to the cellular market, a $4.0 million decrease in sales to the military market, a $2.5 million decrease in sales to the microwave and millimeterwave communications market and a $0.9 million decrease in sales to the broadband market, which were partially offset by a $4.5 million increase in sales to the test and measurement market, a $1.7 million increase in sales to the space market and a $0.6 million increase in sales to the fiber optics market. The decrease in sales to the cellular and microwave and millimeterwave communications markets reflects weaker demand for our products used in infrastructure projects by our telecommunications customers. The decrease in sales to the military market reflects our completion of a systems contract in 2011, as well as lower pricing on certain military programs, partially offset by increased volume. We believe that the growth in sales to the test and measurement and space markets reflects increased market share due to the broader range of our product offerings and increased market acceptance of products we introduced in prior years.
Research and development expense. In the six months ended June 30, 2012, our research and development expense increased $5.4 million, or 28.8%, to $24.2 million, and represented 18.8% of our revenue, compared with $18.8 million, or 13.8% of our revenue, in the corresponding period of 2011. The increase in our research and development expense was primarily attributable to a $2.1 million increase in personnel costs, a $1.3 million increase in supplies and materials, a $0.7 million increase in equipment costs, a $0.5 million increase in professional fees and a $0.8 million increase in other costs. The increase in costs was primarily due to the growth of our engineering organization, including the opening of our new design centers in Virginia and Egypt in the second half of 2011, and costs of translation of certain existing products to other GaAs foundries.
Sales and marketing expense. In the six months ended June 30, 2012, our sales and marketing expense increased $0.7 million, or 6.5%, to $11.6 million, and represented 9.0% of our revenue, compared with $10.9 million, or 8.0% of our revenue, in the corresponding period of 2011. The increase in our sales and marketing expense was primarily attributable to a $0.9 million increase in personnel cost and a $0.1 million increase in commissions, partially offset by a $0.2 million decrease in depreciation expense and a $0.1 million decrease in travel and other costs. The increase in personnel costs primarily related to the growth of our sales organization.
As of June 30, 2012, we held $375.4 million of cash and cash equivalents. Cash provided by our operations was $27.7 million in the six months ended June 30, 2012, of which the principal components were our net income of $33.2 million and non-cash charges of $13.5 million, partially offset by a net increase in operating assets and liabilities of $15.4 million and a net increase in deferred taxes of $3.5 million. The increase in net operating assets and liabilities includes an increase in inventory of $16.5 million primarily related to the advance purchases of wafers from one of our foundries, a $0.8 million net decrease in income taxes payable, due to the timing of tax payments and receipts, a $0.6 million increase in other assets and a $0.6 million decrease in accrued expenses, partially offset by a $1.6 million increase in accounts payable, due to the timing of disbursements, a $1.3 million decrease in accounts receivable, related to the timing of customer shipments and collections, and a $0.2 million increase in deferred revenue and customer advances.
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Hittite Microwave Corp has a market cap of $1.6 billion; its shares were traded at around $50.99 with a P/E ratio of 22.1 and P/S ratio of 6.1. Hittite Microwave Corp had an annual average earning growth of 14.7% over the past 5 years.
Highlight of Business Operations:
Revenue. In the three months ended June 30, 2012, our revenue decreased $3.1 million, or 4.6%, to $65.4 million, compared with $68.5 million in the corresponding period of 2011. Revenue from sales to customers outside the United States accounted for 53.3% of our total revenue in the three months ended June 30, 2012, compared with 54.3% in the corresponding period of 2011. Our revenue decrease was primarily attributable to a $4.1 million decrease in sales to the cellular market, a $1.7 million decrease in sales to the military market and a $0.5 million decrease in sales to the broadband market, which were partially offset by a $2.4 million increase in sales to the test and measurement market and a $1.2 million increase in sales to the space market. The decrease in sales to the cellular market reflects weaker demand for our products used in infrastructure projects by our telecommunications customers. The decrease in sales to the military market primarily relates to our completion of a systems contract in 2011, as well as lower pricing on certain military programs partially offset by increased volume. We believe that the growth in sales to the test and measurement and space markets reflects increased market share due to the broader range of our product offerings and increased market acceptance of products we introduced in prior years.Revenue. In the six months ended June 30, 2012, our revenue decreased $7.0 million, or 5.2%, to $128.7 million, compared with $135.8 million in the corresponding period of 2011. Revenue from sales to customers outside the United States accounted for 52.3% of our total revenue in the six months ended June 30, 2012, compared with 54.8% in the corresponding period of 2011. Our revenue decrease was primarily attributable to a $6.4 million decrease in sales to the cellular market, a $4.0 million decrease in sales to the military market, a $2.5 million decrease in sales to the microwave and millimeterwave communications market and a $0.9 million decrease in sales to the broadband market, which were partially offset by a $4.5 million increase in sales to the test and measurement market, a $1.7 million increase in sales to the space market and a $0.6 million increase in sales to the fiber optics market. The decrease in sales to the cellular and microwave and millimeterwave communications markets reflects weaker demand for our products used in infrastructure projects by our telecommunications customers. The decrease in sales to the military market reflects our completion of a systems contract in 2011, as well as lower pricing on certain military programs, partially offset by increased volume. We believe that the growth in sales to the test and measurement and space markets reflects increased market share due to the broader range of our product offerings and increased market acceptance of products we introduced in prior years.
Research and development expense. In the six months ended June 30, 2012, our research and development expense increased $5.4 million, or 28.8%, to $24.2 million, and represented 18.8% of our revenue, compared with $18.8 million, or 13.8% of our revenue, in the corresponding period of 2011. The increase in our research and development expense was primarily attributable to a $2.1 million increase in personnel costs, a $1.3 million increase in supplies and materials, a $0.7 million increase in equipment costs, a $0.5 million increase in professional fees and a $0.8 million increase in other costs. The increase in costs was primarily due to the growth of our engineering organization, including the opening of our new design centers in Virginia and Egypt in the second half of 2011, and costs of translation of certain existing products to other GaAs foundries.
Sales and marketing expense. In the six months ended June 30, 2012, our sales and marketing expense increased $0.7 million, or 6.5%, to $11.6 million, and represented 9.0% of our revenue, compared with $10.9 million, or 8.0% of our revenue, in the corresponding period of 2011. The increase in our sales and marketing expense was primarily attributable to a $0.9 million increase in personnel cost and a $0.1 million increase in commissions, partially offset by a $0.2 million decrease in depreciation expense and a $0.1 million decrease in travel and other costs. The increase in personnel costs primarily related to the growth of our sales organization.
As of June 30, 2012, we held $375.4 million of cash and cash equivalents. Cash provided by our operations was $27.7 million in the six months ended June 30, 2012, of which the principal components were our net income of $33.2 million and non-cash charges of $13.5 million, partially offset by a net increase in operating assets and liabilities of $15.4 million and a net increase in deferred taxes of $3.5 million. The increase in net operating assets and liabilities includes an increase in inventory of $16.5 million primarily related to the advance purchases of wafers from one of our foundries, a $0.8 million net decrease in income taxes payable, due to the timing of tax payments and receipts, a $0.6 million increase in other assets and a $0.6 million decrease in accrued expenses, partially offset by a $1.6 million increase in accounts payable, due to the timing of disbursements, a $1.3 million decrease in accounts receivable, related to the timing of customer shipments and collections, and a $0.2 million increase in deferred revenue and customer advances.
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