Hittite Microwave Corp. reported revenue for the fourth quarter ended December 31, 2013 of $68.8 million, comparable with $68.5 million for the fourth quarter of 2012 and $68.7 million for the third quarter of 2013.
Net income for the quarter was $16.5 million, or $0.53 per diluted share, a decrease of 6.7 percent compared with $17.7 million, or $0.57 per diluted share, for the fourth quarter of 2012, and a decrease of 11.8 percent compared with $18.7 million, or $0.60 per diluted share, for the third quarter of 2013.
In a release on February 6, the Company noted that for the fourth quarter of 2013, revenue from customers in the United States was $28.4 million, or 41.3 percent of the company's total revenue, and revenue from customers outside the United States was $40.4 million, or 58.7 percent of total revenue. Gross margin was 67.3 percent for the fourth quarter of 2013, compared with 73.3 percent for the fourth quarter of 2012 and 71.2 percent for the third quarter of 2013. Operating income for the fourth quarter of 2013 was $25.0 million, or 36.3 percent of revenue, compared with $28.0 million, or 40.8 percent of revenue, for the fourth quarter of 2012 and $28.0 million, or 40.7 percent of revenue, for the third quarter of 2013. Total cash and marketable securities at December 31, 2013 was $472.5 million, an increase of $15.2 million for the quarter.
"In the fourth quarter we were able to meet our revenue targets despite challenges in some of our markets," said Rick Hess, President and CEO. "The decrease in profitability in the quarter was primarily the result of gross margins that in the aggregate were on the low end of our range, due to an unfavorable mix in products and markets, as well as several military development contracts that carry relatively low margins. These contracts, while less profitable in the near term, provide important opportunities for growth through future production contracts at higher margin levels. We are confident that our innovation and engineering leadership will continue to drive our business growth."
For the full year 2013, revenue was $273.8 million, a 3.6 percent increase from $264.4 million for 2012. Net income for the year was $70.9 million, or $2.28 per diluted share, an increase of 3.4 percent from $68.6 million, or $2.22 per diluted share, for 2012. Net bookings for 2013 were $267.1 million, compared with $264.2 million for 2012. Backlog at December 31, 2013 was $60.5 million compared with $67.2 million at December 31, 2012.
The Company additionally announced that its Board of Directors has approved the initiation of a quarterly cash dividend, and has declared a dividend of $0.15 per share, payable on March 27, to shareholders of record as of the close of business on March 4. Future dividend declarations, as well as record and payment dates, are subject to board approval.
"Our operating model provides the financial foundation to support both a dividend and our growth plans," said Hess. "The Board's decision to initiate a quarterly dividend reflects our confidence in our financial position and in our future prospects. We are pleased that we can provide a regular quarterly dividend while maintaining a strong balance sheet."
The Company expects revenue for the first quarter ending March 31, to be in the range of $67.5 million to $69.5 million and net income to be in the range of $15.3 million to $16.5 million, or $0.49 to $0.53 per diluted share.
Hittite Microwave Corp. is a designer and manufacturer of high performance integrated circuits, or ICs, modules, subsystems and instrumentation for technically demanding digital, RF, microwave and millimeterwave applications covering DC to 110 GHz.
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