Cascade Microtech Reports Second Quarter 2013 Results

BEAVERTON, OR -- (Marketwired) -- Aug 01, 2013 -- Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the second quarter ended June 30, 2013.

Financial summary

Results for the quarter ended June 30, 2013 were as follows:

  • Total revenue of $30.3 million, up 10.3% compared to $27.5 million for Q1 2013, and up 9.7% compared to $27.6 million for Q2 2012.
    • Systems revenue of $19.8 million, an increase of $2.1 million, or 12.1%, over Q1 2013, and an increase of $1.9 million, or 10.5%, over Q2 2012.
    • Probes revenue of $10.5 million, an increase of $0.7 million, or 7.1%, over Q1 2013, and an increase of $0.8 million, or 8.1%, over Q2 2012.
    • Q2 2013 sets a new revenue record for our Probes segment.
  • Gross margin of 47.1%, up from 42.0% in Q1 2013, and 46.1% in Q2 2012.
    • Q2 2013 represents our best gross margin performance in over 5 years.
  • Income from operations of $2.5 million, an increase of $1.5 million, or 141.8%, over Q1 2013, and an increase of $0.3 million, or 11.3%, over Q2 2012.
  • Depreciation, amortization and stock-based compensation expenses totaled $1.7 million.
  • Net income of $2.2 million, or $0.15 per share, compared to $0.7 million, or $0.05 per share, for Q1 2013, and $2.2 million, or $0.15 per share, for Q2 2012.
  • Total cash and investments of $28.8 million, an increase of $3.9 million over Q1 2013, and an increase of $8.9 million over Q2 2012.
  • Book-to-bill ratio of 0.89 to 1.

"We are pleased by the overall results of the second quarter and with the growth in revenue, gross margin and income from operations compared to both the prior quarter of 2013 and the second quarter of last year. Our performance in the second quarter was driven by strong demand for both our Systems and Probe products. The demand for 300mm systems has remained strong and we are excited about the expected impact our new products will have on the second half of 2013," said Michael Burger, President and CEO.

"We are also excited about our recently announced acquisition of the Reliability Test Products (RTP) business from Aetrium Incorporated. This acquisition strengthens our Systems product portfolio and accelerates our strategy of delivering Integrated Measurement Solutions to our customer base. We believe the addition of this new product line will better enable us to meet the technical challenges of our customers. In addition, we believe the existing customers of Aetrium's RTP business will benefit from Cascade Microtech's service and support network, strong commitment to customer satisfaction, and technology leadership," added Mr. Burger. The acquisition of the RTP business was an asset purchase for $1.9 million in cash, and contingent consideration of up to $1.5 million payable between 9 and 18 months from the date of acquisition. The contingencies include a $0.5 million holdback and a $1.0 million earn out subject to the achievement of certain milestones.

Financial outlook

For the third quarter of 2013, before acquisition related costs, and assuming consistent foreign currency rates, revenue is expected to be in the range of $28.0 million to $31.0 million, and earnings per share are expected to be in the range of $0.08 to $0.12 on a fully-diluted basis. Due to the mid-quarter timing of the acquisition, the revenue from the RTP business is not expected to be meaningful in the third quarter. Third quarter earnings guidance listed above is before one-time costs of purchasing and integrating the RTP business, which are estimated between $0.7 million and $0.9 million during the quarter.

We will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Thursday, August 1, 2013, to discuss our results for the quarter ended June 30, 2013.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com. If you are interested in participating in the call, the live dial-in number is 800 884-5695 or international 617 786-2960, participant Passcode: 54893309. A replay will be available after 7:00 p.m. EDT at the same internet address. (For a telephone replay available after 7:00 p.m. EDT, dial: 888 286-8010, international: 617 801-6888, Passcode: 88055847.)

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to anticipated revenue and earnings per share for the third quarter of 2013, strong demand for our products, including 300mm systems, and the impact our new products will have on the results for the second half of 2013, the impact of the RTP acquisition, including accelerating our delivery of Integrated measurement Solutions to our customers, 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, 2012. 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.

About Cascade Microtech, Inc.

Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in the precise 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 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                                                          
                                            -------------------------------                                              
                                                                                                                Year  to  Date  Ended    
                                              June  30,    March  31,      June  30,                June  30,              
                                                                                                              --------------------  
                                                  2013              2013              2012              2013              2012      
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Revenue                              $    30,307    $    27,471    $    27,638    $    57,778    $    55,181  
Cost  of  sales                        16,032          15,928          14,897          31,960          30,489  
                                            ---------    ---------    ---------    ---------    ---------  
Gross  profit                          14,275          11,543          12,741          25,818          24,692  
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Operating  expenses:                                                                                                                  
    Research  and                                                                                                                            
      development                        2,694            2,456            2,438            5,150            5,217  
    Selling,  general  and                                                                                                            
      administrative                  9,064            8,046            8,042          17,110          15,953  
                                            ---------    ---------    ---------    ---------    ---------  
                                                  11,758          10,502          10,480          22,260          21,170  
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Income  from  operations        2,517            1,041            2,261            3,558            3,522  
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Other  income                                                                                                                                
  (expense):                                                                                                                                  
    Interest  income,  net                2                  20                    9                  22                  19  
    Other,  net                              (112)            (244)              (45)            (356)            (452)
                                            ---------    ---------    ---------    ---------    ---------  
                                                      (110)            (224)              (36)            (334)            (433)
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Income  before  income                                                                                                                
  taxes                                        2,407                817            2,225            3,224            3,089  
                                                                                                                                                        
Income  tax  expense                    221                  70                  52                291                176  
                                            ---------    ---------    ---------    ---------    ---------  
                                                                                                                                                        
Net  income                        $      2,186    $          747    $      2,173    $      2,933    $      2,913  
                                            =========    =========    =========    =========    =========  
                                                                                                                                                        
Net  income  per  share:                                                                                                              
    Basic                              $        0.15    $        0.05    $        0.15    $        0.21    $        0.21  
    Diluted                          $        0.15    $        0.05    $        0.15    $        0.20    $        0.20  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  computing  net  income                                                                                                              
  per  share:                                                                                                                                  
    Basic                                    14,342          14,227          14,158          14,283          14,173  
    Diluted                                14,652          14,599          14,350          14,626          14,332  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    CASCADE  MICROTECH,  INC.                                                      
                                                            AND  SUBSIDIARIES                                                            
                                                                                                                                                        
                                      Condensed  Consolidated  Balance  Sheets                                        
                                                              (in  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                      June  30,        December  31,  
                                            Assets                                                  2013                    2012          
                                                                                                  ------------    ------------  
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                            $          23,769    $          17,927  
    Marketable  securities                                                                  5,030                  5,322  
    Restricted  cash                                                                                      -                  1,069  
    Accounts  receivable,  net                                                          21,585                21,087  
    Inventories                                                                                    22,241                24,277  
    Prepaid  expenses  and  other                                                        2,340                  2,503  
                                                                                                  ------------    ------------  
            Total  current  assets                                                          74,965                72,185  
                                                                                                                                                        
Fixed  assets,  net                                                                              7,093                  8,271  
Purchased  intangible  assets,  net                                                1,296                  1,610  
Goodwill                                                                                                    976                      990  
Other  assets                                                                                        1,736                  2,224  
                                                                                                  ------------    ------------  
                                                                                                                                                        
                                                                                                  $          86,066    $          85,280  
                                                                                                  ============    ============  
                                                                                                                                                        
                                                                                                                                                        
              Liabilities  and  Stockholders'  Equity                                                                  
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Accounts  payable                                                              $            5,954    $            5,900  
    Deferred  revenue                                                                            1,245                  3,526  
    Accrued  liabilities                                                                      6,386                  6,640  
                                                                                                  ------------    ------------  
            Total  current  liabilities                                                13,585                16,066  
                                                                                                                                                        
Deferred  revenue                                                                                    542                      356  
Other  long-term  liabilities                                                          2,154                  2,940  
                                                                                                  ------------    ------------  
                                                                                                                                                        
            Total  liabilities                                                                16,281                19,362  
                                                                                                  ------------    ------------  
                                                                                                                                                        
Stockholders'  equity:                                                                                                              
    Common  stock                                                                                  92,229                91,039  
    Accumulated  other  comprehensive  income  (loss)                    (972)                  (716)
    Accumulated  deficit                                                                  (21,472)            (24,405)
                                                                                                  ------------    ------------  
                                                                                                                                                        
            Total  stockholders'  equity                                              69,785                65,918  
                                                                                                  ------------    ------------  
                                                                                                                                                        
                                                                                                  $          86,066    $          85,280  
                                                                                                  ============    ============  
                                                                                                                                                        
 

FOR MORE INFORMATION, CONTACT:

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





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