Cascade Microtech Reports Third Quarter 2014 Results

BEAVERTON, OR -- (Marketwired) -- Oct 28, 2014 -- Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the third quarter ended September 30, 2014.

Financial Summary

Results for the quarter ended September 30, 2014 were as follows:

  • Total revenue of $33.5 million, compared to $33.5 million for Q2 2014 and $28.2 million for Q3 2013.
    • Systems revenue of $19.4 million, a decrease of $2.4 million, or 11.1%, from Q2 2014, and an increase of $1.9 million, or 10.9%, over Q3 2013.
    • Probes revenue of $14.1 million, an increase of $2.4 million, or 20.9%, from Q2 2014, and an increase of $3.4 million, or 31.5%, over Q3 2013.
    • Q3 2014 set a new revenue record for our Probes segment.
  • Gross margin of 52.3%, up from 50.8% in Q2 2014 and 47.6% in Q3 2013.
    • Systems gross margin of 42.0%, down from 46.5% in Q2 2014 and 42.7% in Q3 2013.
    • Probes gross margin of 66.5%, up from 58.9% in Q2 2014 and 55.6% in Q3 2013.
    • Q3 2014 represents record gross margin performance for our Probes segment and overall business.
  • Income from operations of $3.6 million, an increase of $0.7 million, or 23.4%, over Q2 2014, and an increase of $2.0 million, or 130.0%, over Q3 2013.
    • Q3 2014 set a new record for operating profitability.
  • GAAP net income of $2.2 million, or $0.13 per diluted share, compared to $1.8 million, or $0.11 per diluted share, for Q2 2014, and $1.7 million, or $0.11 per diluted share, for Q3 2013.
  • Non-GAAP net income of $0.15 per diluted share, compared to $0.13 per diluted share for Q2 2014, and $0.16 per diluted share for Q3 2013.
  • Depreciation, amortization and stock-based compensation expenses totaled $2.2 million, compared to $2.4 million for Q2 2014 and $1.5 million for Q3 2013.
  • Adjusted EBITDAS of $5.5 million, compared to $5.1 million for Q2 2014 and $3.7 million for Q3 2013.
    • Q3 2014 set a new record for adjusted EBITDAS.
  • Total cash and investments of $31.4 million, an increase of $1.1 million over quarter Q2 2014.
  • Book-to-bill ratio of 1.14 to 1.

"The third quarter of 2014 set a number of new records for Cascade Microtech, including gross margins, income from operations, adjusted EBITDAS, and Probes revenue, which grew sequentially over 20%. These records reflect our ongoing progress towards achieving our Success Model. All of our product lines posted book-to-bill ratios greater than one, which positions us for a strong fourth quarter," said Michael Burger, President and CEO.

Financial Outlook

For the fourth quarter of 2014 we are projecting revenue in the range of $35.0 million to $38.0 million, with diluted GAAP earnings per share in the range of $0.12 to $0.18, and non-GAAP earnings per share in the range of $0.15 to $0.21. Our guidance assumes a tax rate of 36%, consistent foreign currency exchange rates and no significant one-time charges.

We will host a conference call beginning at 5:00 p.m. EDT (2:00 p.m. PDT) on Tuesday, October 28, 2014, to discuss our results for the quarter ended September 30, 2014.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com/investors. If you are interested in participating in the call, the live dial-in number is 877-415-3186, or international 857-244-7329, participant Passcode: 60945388. A replay will be available after 10:00 p.m. EDT at the same internet address. (For a telephone replay available after 10:00 p.m. EDT, dial: 888-286-8010, international: 617-801-6888, Passcode: 43467652).

Forward-Looking Statements

The statements in this release regarding progress towards the Success Model, our expectations relating to the fourth quarter of 2014, and statements under "Financial Outlook" regarding projected revenue, GAAP earnings per share, and non-GAAP earnings per share, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts," and "continue" or other derivations of these or other comparable terms are "forward-looking" statements within the meaning of the Securities Litigation Reform act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based in part on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including: changes in demand for the Company's products; changes in product mix; potential delays and other factors affecting the timing of new product introductions; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; potential failure of expected market opportunities to materialize; changes in foreign exchange rates; our ability or delay in integrating acquired businesses; and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013. In addition, such statements could be affected by general industry and market conditions and growth rates and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company's earnings release contains Non-GAAP financial measures, which are defined below and reconciled to GAAP financial measures in a table later in this release:

  • Non-GAAP net income is defined as GAAP net income before certain items (adjustments) such as restructuring, facility move and project costs, acquisition-related expenses, the amortization of intangibles and discrete tax items that we believe are either not representative of our ongoing operating performance or effect the comparability of results over time. Non-GAAP net income should not be construed as a substitute for net income as defined by GAAP. However, we regard non-GAAP net income as a complement to GAAP net income in assessing our financial performance over time and in the future.
  • Adjusted EBITDAS is defined as income from continuing operations before depreciation and amortization and stock-based compensation and certain other items (adjustments) such as restructuring, facility move and project costs, and acquisition-related expenses that we believe are not representative of our ongoing operating performance. Adjusted EBITDAS should not be construed as a substitute for net income from continuing operations or net cash provided by (used in) operating activities (all as determined in accordance with GAAP) for the purpose of analyzing our operating performance, financial position and cash flows, as adjusted EBITDAS is not defined by GAAP. However, we regard adjusted EBITDAS as a complement to net income from continuing operations and other GAAP financial performance measures, by including an indirect measure of operating cash flow.

About Cascade Microtech, Inc.

Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in precision contact, electrical measurement and test of integrated circuits (ICs), optical devices and other small structures. For technology businesses and scientific institutions that need to evaluate small structures, Cascade Microtech delivers access to electrical data from wafers, ICs, IC packages, circuit boards and modules, MEMS, 3D TSV, LED devices and more. Cascade Microtech's leading-edge stations, probes, probe cards, advanced thermal subsystems and integrated systems deliver precision accuracy and superior performance both in the lab and during production manufacturing of high-speed and high-density semiconductor chips. For more information, visit www.cascademicrotech.com.

                                                                            
                          CASCADE MICROTECH,  INC.                                                      
                                                            AND  SUBSIDIARIES                                                            
                                                                                                                                                        
                            Condensed  Consolidated  Statements  of  Operations                              
                                      (in  thousands,  except  per  share  data)                                        
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
    
                                                      Three  Months  Ended                        Nine  Months  Ended  
                                      ----------------------------------            September  30,      
                                    September  30,  June  30,    September  30,  -------------------
                                            2014                2014                2013              2014                2013      
                                      ----------    ----------    ----------    ---------    ---------
                                                                                                                                                        
Revenue                        $      33,473    $      33,452    $      28,197    $  100,735    $    85,975  
Cost  of  sales                    15,953            16,466            14,779          49,956          46,739  
                                      ----------    ----------    ----------    ---------    ---------  
Gross  profit                      17,520            16,986            13,418          50,779          39,236  
                                                                                                                                                        
Operating                                                                                                                                      
  expenses:                                                                                                                                    
    Research  and                                                                                                                            
      development                    3,554              3,428              2,750          10,223            7,900  
    Selling,  general                                                                                                                    
      and                                                                                                                                            
      administrative            10,352            10,630              9,097          31,412          26,207  
                                      ----------    ----------    ----------    ---------    ---------  
                                              13,906            14,058            11,847          41,635          34,107  
                                      ----------    ----------    ----------    ---------    ---------  
                                                                                                                                                        
Income  from                                                                                                                                  
  operations                          3,614              2,928              1,571            9,144            5,129  
                                                                                                                                                        
Other  income                                                                                                                                
  (expense):                                                                                                                                  
    Interest  income,                                                                                                                    
      net                                          16                      7                    18                  25                  40  
    Other,  net                          (235)                (56)                  87              (360)            (269)
                                      ----------    ----------    ----------    ---------    ---------  
                                                  (219)                (49)                105              (335)            (229)
                                      ----------    ----------    ----------    ---------    ---------  
                                                                                                                                                        
Income  before                                                                                                                              
  income  taxes                      3,395              2,879              1,676            8,809            4,900  
                                                                                                                                                        
Income  tax  expense                                                                                                                    
  (benefit)                            1,188              1,051                    (7)          3,182                284  
                                      ----------    ----------    ----------    ---------    ---------  
                                                                                                                                                        
Net  income                  $        2,207    $        1,828    $        1,683    $      5,627    $      4,616  
                                      ==========    ==========    ==========    =========    =========  
                                                                                                                                                        
Net  income  per                                                                                                                            
  share:                                                                                                                                          
    Basic                        $          0.13    $          0.11    $          0.12    $        0.35    $        0.32  
    Diluted                    $          0.13    $          0.11    $          0.11    $        0.34    $        0.31  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  computing  net                                                                                                                            
  income  per  share:                                                                                                                    
    Basic                                16,357            16,255            14,453          16,286          14,339  
    Diluted                            16,851            16,751            14,797          16,775          14,688  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    CASCADE  MICROTECH,  INC.                                                      
                                                            AND  SUBSIDIARIES                                                            
                                                                                                                                                        
                                      Condensed  Consolidated  Balance  Sheets                                        
                                                              (in  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                September  30,    December  31,  
                                        Assets                                                    2014                      2013          
                                                                                              --------------    ------------  
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                        $              29,717    $          17,172  
    Marketable  securities                                                                  1,703                  4,278  
    Restricted  cash                                                                                      -                  1,082  
    Accounts  receivable,  net                                                          22,332                26,520  
    Inventories                                                                                    26,215                24,884  
    Deferred  income  taxes                                                                  2,262                  2,268  
    Prepaid  expenses  and  other                                                        4,961                  2,147  
                                                                                              --------------    ------------  
        Total  current  assets                                                              87,190                78,351  
                                                                                                                                                        
Fixed  assets,  net                                                                              7,537                  6,403  
Goodwill                                                                                              13,309                14,471  
Purchased  intangible  assets,  net                                              13,658                16,937  
Deferred  income  taxes                                                                      1,553                  1,235  
Other  assets                                                                                        1,191                  1,114  
                                                                                              --------------    ------------  
                                                                                                                                                        
                                                                                              $            124,438    $        118,511  
                                                                                              ==============    ============  
                                                                                                                                                        
                                                                                                                                                        
          Liabilities  and  Shareholders'  Equity                                                                      
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Accounts  payable                                                          $                7,259    $            7,229  
    Deferred  revenue                                                                            2,316                  2,555  
    Accrued  liabilities                                                                    10,279                  8,859  
                                                                                              --------------    ------------  
        Total  current  liabilities                                                    19,854                18,643  
                                                                                                                                                        
Deferred  revenue                                                                                    309                      548  
Other  long-term  liabilities                                                          1,845                  2,119  
                                                                                              --------------    ------------  
                                                                                                                                                        
        Total  liabilities                                                                    22,008                21,310  
                                                                                                                                                        
Shareholders'  equity:                                                                                                              
    Common  stock                                                                                109,813              108,070  
    Accumulated  other  comprehensive  income                                                                        
      (loss)                                                                                            (2,023)                    118  
    Accumulated  deficit                                                                    (5,360)            (10,987)
                                                                                              --------------    ------------  
                                                                                                                                                        
        Total  shareholders'  equity                                                102,430                97,201  
                                                                                              --------------    ------------  
                                                                                                                                                        
                                                                                              $            124,438    $        118,511  
                                                                                              ==============    ============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    CASCADE  MICROTECH,  INC.                                                      
                                                            AND  SUBSIDIARIES                                                            
                                                                                                                                                        
                      Reconciliation  of  GAAP  to  Non-GAAP  Financial  Measures                        
                                    (in  thousands,  except  per  share  amounts)                                    
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                          
                                                      Three  Months  Ended                        Nine  Months  Ended    
                                      ----------------------------------            September  30,        
                                    September  30,  June  30,  September  30,  --------------------  
Non-GAAP  Net                    2014                  2014              2013              2014              2013      
  Income                        ----------    ----------    ----------    ---------    ---------

GAAP  net  income      $          2,207  $          1,828  $          1,683  $        5,627  $        4,616  
                                                                                                                                                        
Adjustments  to  net                                                                                                                    
  income:                                                                                                                                        
  Restructuring                      (191)                249                      -                  58                112  
  Acquisition  and                                                                                                                        
    acquisition                                                                                                                              
    related                                (100)              (457)                627              (557)              627  
  Amortization  of                                                                                                                        
    intangibles                          752                  780                  264            2,317                735  
  Income  tax  effect                                                                                                                    
    of  non-GAAP                                                                                                                              
    adjustments                        (161)              (209)                (64)            (661)            (117)
  Discrete  tax                                                                                                                              
    items                                          -                      -                (127)                  -              (127)
                                    -----------  -----------  -----------  ----------  ----------  
Non-GAAP  net                                                                                                                                
  income                      $          2,507  $          2,191  $          2,383  $        6,784  $        5,846  
                                    ===========  ===========  ===========  ==========  ==========  
                                                                                                                                                        
GAAP  net  income                                                                                                                          
per  diluted  share  $            0.13  $            0.11  $            0.11  $          0.34  $          0.31  
                                    ===========  ===========  ===========  ==========  ==========  
Non-GAAP  net                                                                                                                                
  income  per                                                                                                                                  
  diluted  share        $            0.15  $            0.13  $            0.16  $          0.40  $          0.40  
                                    ===========  ===========  ===========  ==========  ==========  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  diluted  share                                                                                                                            
  calculations                    16,851            16,751            14,797          16,775          14,688  
                                                                                                                                                        
                                                                                                                                                        
  
                                                  Three  Months  Ended                        Nine  Months  Ended  
                                    -----------------------------------          September  30,
EBITDAS  and            September  30,    June  30,  September  30,---------------------
  Adjusted  EBITDAS          2014                2014              2013                2014              2013  
                                    -----------  -----------  -----------  ----------  ----------
GAAP  Income  from                                                                                                                        
  operations              $          3,614  $          2,928  $          1,571  $        9,144  $        5,129  
                                                                                                                                                        
Adjustments:                                                                                                                                
  Depreciation                          824                  799                  882            2,452            2,787  
  Amortization  of                                                                                                                        
    intangibles                          752                  780                  264            2,317                735  
  Stock-based                                                                                                                                
    compensation                        648                  821                  343            1,918            1,215  
                                    -----------  -----------  -----------  ----------  ----------  
EBITDAS                                  5,838              5,328              3,060          15,831            9,866  
                                                                                                                                                        
Adjustments:                                                                                                                                
  Restructuring                      (191)                249                      -                  58                112  
  Acquisition  and                                                                                                                        
    acquisition                                                                                                                              
    related                                (100)              (457)                627              (557)              627  
                                    -----------  -----------  -----------  ----------  ----------  
Adjusted  EBITDAS    $          5,547  $          5,120  $          3,687  $      15,332  $      10,605  
                                    ===========  ===========  ===========  ==========  ==========  
                                                                                                                                                        
                                                                            Three  Months  Ending  December  31,  2014  
                                                                          --------------------------------------  
                                                                                    Low  Range                    High  Range          
                                                                                    Guidance                        Guidance            
                                                                          ------------------    ------------------  
Forward-looking  non-GAAP  net  income                                                                                  
GAAP  net  income                                            $                        2,000    $                        3,000  
Adjustments:                                                                                                                                
    Amortization  of  intangibles                                              752                                  752  
    Income  tax  effect  of  non-GAAP                                                                                          
      adjustments                                                                          (269)                              (269)
                                                                          ------------------    ------------------  
Non-GAAP  net  income                                    $                        2,483    $                        3,483  
                                                                          ==================    ==================  
                                                                                                                                                        
GAAP  net  income  per  diluted  share        $                          0.12    $                          0.18  
                                                                          ==================    ==================  
Non-GAAP  net  income  per  diluted                                                                                          
  share                                                              $                          0.15    $                          0.21  
                                                                          ==================    ==================  
                                                                                                                                                        
                                                                                                                                                        
Shares  used  in  diluted  share                                                                                                
  calculations                                                                        16,950                            16,950  
 

FOR MORE INFORMATION, CONTACT:

Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1280 





Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy