Hittite Microwave Corporation Q1 2009 Earnings Call Transcript

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2009-04-23 19:19:13.0

Tags: Call Transcript, Business, Earnings, Research & Development, Corporate Governance, Business Operations, Corporate Law, Seeking Alpha, Hittite Microwave Corp.

Question-and-Answer Session

Operator

(Operator instructions) We will hear first from Aalok Shah with D. A. Davidson & Company.

Ben PappasD. A. Davidson & Company

Hi. This is Ben Pappas for Aalok Shah. Just a couple of questions real quickly. On the operating expenses through 2009, when they come back, you indicated, they are going be increasing through the year. Are they going to come back hard in any one particular quarter, or are they just kind of increase in a linear fashion?

Stephen Daly

I think they'll come back into a more linear fashion.

Ben PappasD. A. Davidson & Company

The R&D cuts that we saw this quarter, were those actual cuts or they more a push outs?

Stephen Daly

Primarily push outs.

Ben PappasD. A. Davidson & Company

Okay, and then could you talk about actual a couple of things, one is your turns expectations for Q2, and then if you could give any color in the auto and space segments? You had indicated you're seeing growth there. Any color that would be helpful?

Stephen Daly

The turns business in Q2 will be in the range of 50% of our total business, which is a typical range for Hittite. And regarding our automotive business, it ticked up just incrementally, primarily because of custom production, or I'll say, steady state production orders that we have that we ramped up last year, and they are continuing in a nice steady state fashion. Regarding the space business, we see tremendous demand on our product line across a wide range of OEMs, and we had a great year last year in this market segment and we're starting this year also with strong bookings in that area, but also, we think the revenue will follow very nicely.

Ben PappasD. A. Davidson & Company

Okay, thanks. And then one last question. Any thoughts as to when or if you're going to re-op [ph] on the stock repurchase?

Stephen Daly

We're certainly looking at that right now. As Bill noted, we did begin back in May of last year, when we finished the first segment of that plan, which was the $1.7 million buyback, and the Board and I are looking at the next steps at this point.

Ben PappasD. A. Davidson & Company

Okay. Great. Thanks so much, guys.

Operator

We'll hear next from Tore Svanberg with Thomas Weisel Partners.

 

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