SOURCE: Cascade Microtech

Cascade Microtech

May 04, 2010 16:05 ET

Cascade Microtech Reports First Quarter 2010 Results

First Quarter Revenue of $20.0 Million, up 29% Sequentially

BEAVERTON, OR--(Marketwire - May 4, 2010) - Cascade Microtech (NASDAQ: CSCD), today reported financial results for the first quarter ended March 31, 2010.

Highlights from the first quarter:

--  Cascade successfully closed the previously announced acquisition of
    SUSS MicroTec Test Division on January 27, 2010. First quarter
    financial results include approximately 2 months of operations of the
    SUSS MicroTec Test Division.
--  Revenue of $20.0 million, up 29% over Q4 of 2009 and up 74% over Q1 of
    2009.
--  Book to Bill ratio was well above 1.
--  Net loss of $7.4 million or $0.53 per share for Q1 of 2010, compared
    to a net loss of $0.5 million or $0.04 per share for Q4 of 2009. Q1 of
    2010 financial results include approximately $3.8 million in
    acquisition and restructuring charges.
--  Cash and investment balances decreased by $11.0 million to $22.6
    million due primarily to the acquisition and increase in working
    capital needs to support the backlog.

"During the first quarter, we completed our previously announced acquisition of the SUSS MicroTec Test Division," said Dr. F. Paul Carlson, Chairman and CEO of Cascade Microtech. "The integration of the acquisition is going extremely well and based on the strong bookings in the first quarter together with the strong pipeline, the merger of these two companies has been well received by our customers. Our focus continues to be on achieving further revenue growth and leveraging our earnings model to return to profitability in the second half of 2010."

Backlog at Q1 of 2010 is significantly higher than backlog at Q4 2009. The increase in backlog was driven by the strong order flow during Q1 2010 and the backlog obtained from the acquisition.

As stated above, revenue for the first quarter of 2010 was $20.0 million, up 29% from $15.5 million in the fourth quarter of 2009 and up 74% from $11.5 million in the first quarter of 2009. Net loss for the first quarter of 2010 was $7.4 million and loss per share was $0.53, compared to a net loss of $0.5 million and loss per share of $0.04 for the fourth quarter of 2009 and a net loss of $2.1 million and loss per share of $0.31 for the first quarter of 2009.

The operating loss for the first quarter of 2010 includes approximately $3.8 million in acquisition-related and restructuring costs.

Financial Outlook

Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that second quarter 2010 revenues will be in the range of $21 million to $25 million.

The company will host a conference call beginning at 5 p.m. EDT (2 p.m. PDT) on May 4, 2010, to discuss its results for the first quarter ended March 31, 2010.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com. A replay will be available after 8 p.m. EDT at this same internet address. (For a telephone replay available after 8 p.m. EDT dial: 888-286-8010, international: 617-801-6888, passcode: 68235295)

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the second quarter of 2010 and the comments by Dr. Carlson 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, product mix, the timing of shipments and customer orders, constraints on supplies of components, excess or shortage of production capacity, difficulties or unexpected costs or delays in the integration of the operations, employees, products, sales channels, strategies, and technologies of the acquired business; the potential failure of the expected market opportunity to materialize; the potential inability to realize expected benefits and synergies; potential diversion of management's attention from our existing business as well as that of the acquired business; potential adverse effects on relationships with our existing suppliers, customers or partners 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. 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 electrical measurement and test of integrated circuits (ICs) and other small structures. For technology businesses and scientific institutions that need to evaluate small structures, Cascade Microtech delivers access to, and extraction of, electrical data from wafers, integrated circuits (ICs), IC packages, circuit boards and modules, MEMS, biological structures, electro-optic devices and more. Cascade Microtech's leading-edge semiconductor production test consumables include unique probe cards and test sockets that reduce manufacturing costs 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
                                        ----------------------------------
                                         March 31, December 31,  March 31,
                                           2010        2009        2009
                                        ----------  ----------  ----------

Revenue                                 $   19,959  $   15,485  $   11,469
Cost of sales                               14,573       9,913       7,614
                                        ----------  ----------  ----------

     Gross profit                            5,386       5,572       3,855
                                        ----------  ----------  ----------

Operating expenses:
  Research and development                   3,466       2,466       1,993
  Selling, general and administrative        9,856       6,172       5,395
  Amortization of purchased
   intangibles                                 180         132         146
                                        ----------  ----------  ----------

     Total operating expenses               13,502       8,770       7,534
                                        ----------  ----------  ----------

     Loss from operations                   (8,116)     (3,198)     (3,679)
                                        ----------  ----------  ----------

Other income (expense):
  Interest income, net                          32          45          98
  Other, net                                   (88)        (18)       (555)
                                        ----------  ----------  ----------

     Total other income (expense)              (56)         27        (457)
                                        ----------  ----------  ----------

     Loss before income taxes               (8,172)     (3,171)     (4,136)

Income tax expense (benefit)                  (772)     (2,682)         29
                                        ----------  ----------  ----------

     Net loss                           $   (7,400) $     (489) $   (4,165)
                                        ==========  ==========  ==========

     Basic and diluted net loss per
      share                             $    (0.53) $    (0.04) $    (0.31)

     Shares used in basic and diluted
      per share calculations                14,025      13,405      13,240




                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

                  Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)


                                                    March 31,  December 31,
                     Assets                           2010        2009
                                                    ----------  ----------
Current assets:
  Cash and cash equivalents                         $   10,761  $   19,471
  Marketable securities                                 11,885      13,383
  Accounts receivable, net                              13,409      10,877
  Inventories                                           22,498      16,624
  Prepaid expenses and other                             1,400         763
  Income taxes receivable                                3,114       2,589
  Deferred income taxes                                    528          13
                                                    ----------  ----------
      Total current assets                              63,595      63,720

Long-term investments                                        -         750
Fixed assets, net                                       11,895      12,010
Purchased intangible assets, net                         3,757       1,858
Goodwill                                                 1,035           -
Deferred income taxes                                        -         220
Other assets                                             3,201       2,386
                                                    ----------  ----------

                                                    $   83,483  $   80,944
                                                    ==========  ==========


            Liabilities and Stockholders' Equity

Current liabilities:
  Current portion of capital leases                 $       11  $       11
  Accounts payable                                       5,479       3,765
  Deferred revenue                                       1,348       1,071
  Accrued liabilities                                    5,980       2,087
                                                    ----------  ----------
      Total current liabilities                         12,818       6,934

Capital leases, net of current portion                      26          29
Deferred revenue                                            27          56
Deferred income taxes                                      726           -
Other long-term liabilities                              2,856       2,540
                                                    ----------  ----------

      Total liabilities                                 16,453       9,559
                                                    ----------  ----------

Stockholders' equity:
  Common stock                                          89,385      85,719
  Other comprehensive (expense) income                    (592)         29
  Accumulated deficit                                  (21,763)    (14,363)
                                                    ----------  ----------

      Total stockholders' equity                        67,030      71,385
                                                    ----------  ----------

                                                    $   83,483  $   80,944
                                                    ==========  ==========