Cascade Microtech Reports Third Quarter 2013 Results

BEAVERTON, OR -- (Marketwired) -- Oct 30, 2013 -- Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the third quarter ended September 30, 2013.

Financial summary

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

  • Total revenue of $28.2 million, compared to $30.3 million for Q2 2013 and $27.4 million for Q3 2012.
    • Systems revenue of $17.5 million, a decrease of $2.3 million, or 11.8%, from Q2 2013, and an increase of $0.1 million, or 0.4%, over Q3 2012.
    • Probes revenue of $10.7 million, an increase of $0.2 million, or 2.3%, over Q2 2013, and an increase of $0.7 million, or 7.2%, over Q3 2012.
    • Q3 2013 sets a new revenue record for our Probes segment.
  • Gross margin of 47.6%, up from 47.1% in Q2 2013, and 44.5% in Q3 2012.
    • Q3 2013 represents our best gross margin performance in over 8 years.
  • Income from operations of $1.6 million, a decrease of $0.9 million, or 37.6%, from Q2 2013, and a decrease of $0.2 million, or 10.3%, from Q3 2012.
  • Depreciation, amortization and stock-based compensation expenses totaled $1.5 million, compared to $1.7 million for Q2 2013 and $1.4 million for Q3 2012.
  • Net income of $1.7 million, or $0.11 per diluted share, compared to $2.2 million, or $0.15 per diluted share, for Q2 2013, and $1.5 million, or $0.10 per diluted share, for Q3 2012.
    • Q3 2013 includes acquisition related expenses of $0.6 million, or $0.04 per diluted share, related to our previously announced acquisitions of the Reliability Test Products division (RTP) on July 31, 2013 and ATT Advanced Temperature Test Systems GmbH (ATT Systems) on October 1, 2013.
    • Q3 2013 also includes expenses of $0.2 million, or $0.01 per diluted share, related to the operations of RTP since the date of acquisition.
  • Total cash and investments of $32.2 million, an increase of $3.4 million over June 30, 2013, and an increase of $8.1 million over September 30, 2012.
    • Q3 2013 includes a reduction in cash of $1.9 million paid for the acquisition of RTP.
  • Book-to-bill ratio of 1.06 to 1.

"We are very excited by the recent acquisitions of RTP on July 31, 2013 and ATT Systems on October 1, 2013, and how we believe these moves will accelerate our strategic plans and expand our markets," said Michael Burger, President and CEO. "In addition, our third quarter results achieved revenue within our guidance range, a book-to-bill in excess of one-to-one, and a 47.6% gross margin. After adjusting for the acquisition related expenses discussed above, our adjusted EPS for Q3 2013 exceeded the upper end of guidance. Finally, with a positive book-to-bill and good momentum, we believe we are well positioned for the fourth quarter of 2013 and beyond."

Financial outlook

For the fourth quarter of 2013, assuming consistent tax and foreign currency exchange rates, we are projecting revenue to be in the range of $34.0 million to $38.0 million including RTP and ATT Systems. Before restructuring and acquisition transactional costs which are estimated between $0.3 million and $0.4 million, and the incremental amortization expenses related to the ATT Systems acquisition which are currently estimated between $0.6 million and $0.8 million, earnings per share is expected to be in the range of $0.17 to $0.21 per share on a fully diluted basis. As previously announced, approximately 1.6 million shares were issued on October 1, 2013 in conjunction with the acquisition of ATT Systems and the final purchase accounting determination is underway which may adjust the expected amortization listed above.

We will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Wednesday, October 30, 2013, to discuss our results for the quarter ended September 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 for the fourth quarter of 2013, strong demand for our products, including Probes, and the impact our acquisitions will have on the results for the fourth quarter of 2013 and beyond, 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)                                                                  
                                                                                                                Year  to  Date  Ended    
                                                        Three  Months  Ended                          September  30,        
                                          --------------------------------      -------------------  
                                          September      June  30,      September                                              
                                            30,  2013          2013            30,  2012          2013              2012      
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Revenue                          $      28,197    $    30,307    $      27,414    $    85,975    $    82,595  
Cost  of  sales                      14,779          16,032            15,210          46,739          45,699  
                                          ---------      --------      ---------      --------      --------  
Gross  profit                        13,418          14,275            12,204          39,236          36,896  
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Operating  expenses:                                                                                                                  
    Research  and                                                                                                                            
      development                      2,750            2,694              2,778            7,900            7,995  
    Selling,  general                                                                                                                    
      and                                                                                                                                            
      administrative                9,097            9,064              7,675          26,207          23,628  
                                          ---------      --------      ---------      --------      --------  
                                                11,847          11,758            10,453          34,107          31,623  
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Income  from                                                                                                                                  
  operations                            1,571            2,517              1,751            5,129            5,273  
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Other  income                                                                                                                                
  (expense):                                                                                                                                  
    Interest  income,                                                                                                                    
      net                                            18                    2                      7                  40                  26  
    Other,  net                                87              (112)              (109)            (269)            (561)
                                          ---------      --------      ---------      --------      --------  
                                                      105              (110)              (102)            (229)            (535)
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Income  before                                                                                                                              
  income  taxes                        1,676            2,407              1,649            4,900            4,738  
                                                                                                                                                        
Income  tax  expense                                                                                                                    
  (benefit)                                    (7)              221                  153                284                329  
                                          ---------      --------      ---------      --------      --------  
                                                                                                                                                        
Net  income                    $        1,683    $      2,186    $        1,496    $      4,616    $      4,409  
                                          =========      ========      =========      ========      ========  
                                                                                                                                                        
Net  income  per                                                                                                                            
  share:                                                                                                                                          
    Basic                          $          0.12    $        0.15    $          0.11    $        0.32    $        0.31  
    Diluted                      $          0.11    $        0.15    $          0.10    $        0.31    $        0.31  
                                                                                                                                                        
Shares  used  in                                                                                                                            
  computing  net                                                                                                                            
  income  per  share:                                                                                                                    
    Basic                                  14,453          14,342            14,162          14,339          14,169  
    Diluted                              14,797          14,652            14,377          14,688          14,359  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                    CASCADE  MICROTECH,  INC.                                                      
                                                            AND  SUBSIDIARIES                                                            
                                                                                                                                                        
                                      Condensed  Consolidated  Balance  Sheets                                        
                                                              (in  thousands)                                                              
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                              September  30,      December  31,  
                                      Assets                                                      2013                      2012          
                                                                                              -------------      ------------  
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash  and  cash  equivalents                                    $                26,926    $            17,927  
    Marketable  securities                                                                5,258                    5,322  
    Restricted  cash                                                                                    -                    1,069  
    Accounts  receivable,  net                                                        18,410                  21,087  
    Inventories                                                                                  23,445                  24,277  
    Prepaid  expenses  and  other                                                      2,643                    2,503  
                                                                                              -------------      ------------  
        Total  current  assets                                                            76,682                  72,185  
                                                                                                                                                        
Fixed  assets,  net                                                                            6,528                    8,271  
Purchased  intangible  assets,  net                                              2,521                    1,610  
Goodwill                                                                                              1,655                        990  
Other  assets                                                                                      1,571                    2,224  
                                                                                              -------------      ------------  
                                                                                                                                                        
                                                                                          $                88,957    $            85,280  
                                                                                              =============      ============  
                                                                                                                                                        
                                                                                                                                                        
        Liabilities  and  Shareholders'  Equity                                                                        
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Accounts  payable                                                      $                  5,972    $              5,900  
    Deferred  revenue                                                                          1,383                    3,526  
    Accrued  liabilities                                                                    6,415                    6,640  
                                                                                              -------------      ------------  
        Total  current  liabilities                                                  13,770                  16,066  
                                                                                                                                                        
Deferred  revenue                                                                                  485                        356  
Other  long-term  liabilities                                                        2,085                    2,940  
                                                                                              -------------      ------------  
                                                                                                                                                        
        Total  liabilities                                                                  16,340                  19,362  
                                                                                              -------------      ------------  
                                                                                                                                                        
Shareholders'  equity:                                                                                                              
    Common  stock                                                                                92,642                  91,039  
    Accumulated  other  comprehensive  loss                                    (236)                    (716)
    Accumulated  deficit                                                                (19,789)              (24,405)
                                                                                              -------------      ------------  
                                                                                                                                                        
        Total  shareholders'  equity                                                72,617                  65,918  
                                                                                              -------------      ------------  
                                                                                                                                                        
                                                                                          $                88,957    $            85,280  
                                                                                              =============      ============  
                                                                                                                                                        
 

FOR MORE INFORMATION, CONTACT:

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





Review Article Be the first to review this article
CST Webinar Series

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
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Principal Circuit Design Engineer for Rambus 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