SOURCE: Cascade Microtech

Cascade Microtech

February 09, 2010 16:05 ET

Cascade Microtech Reports Fourth Quarter and 2009 Year End Results

Fourth Quarter Revenue of $15.5 Million, up 11% Sequentially; Tax Benefit Improves Fourth Quarter EPS Loss to 4 Cents

PORTLAND, OR--(Marketwire - February 9, 2010) - Cascade Microtech (NASDAQ: CSCD) today reported financial results for the fourth quarter and year ended December 31, 2009.

Fourth quarter results include:

--  Revenue of $15.5 million, up 11% over Q3 of 2009 and up 1% over Q4 of
    2008
--  Net loss of $0.5 million or $0.04 per share for Q409, compared to a net
    loss of $1.4 million or $0.11 per share for Q309
--  Fourth quarter results include $2.7 million tax benefit reflecting tax
    law changes
--  Cash and investment balances decreased by $1.5 million to $33.6 million
--  Results do not include the acquisition of Suss MicroTech Test Systems
    division announced on January 27, 2010.

"During the fourth quarter, we saw an increase in bookings and revenues to levels last seen in 2008. Our focus in 2010 is on achieving continued revenue growth and leveraging our earnings model," said Dr. F. Paul Carlson, Chairman and CEO of Cascade Microtech. "Our previously announced acquisition of the Suss MicroTech Test Systems division in January is a key strategic move for Cascade Microtech which strengthens our product portfolio and should enable us to leverage the combined resources and competencies in 2010 and beyond."

Revenue for the fourth quarter of 2009 was $15.5 million, up 11% from $14.0 million in the third quarter of 2009 and up 1% from $15.4 million in the fourth quarter of 2008. Net loss for the fourth quarter of 2009 was $0.5 million and loss per share was $0.04, compared to a net loss of $1.4 million and loss per share of $0.11 for the third quarter of 2009. The loss for the fourth quarter of 2008 was $31.4 million, which included a non-cash impairment charge of $27.7 million.

Financial Outlook

Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that first quarter 2010 revenues, which includes anticipated revenues from the acquisition of Suss MicroTech Test Systems division from the acquisition date will be in the range of $19.0 million to $23.0 million.

The company will host a conference call beginning at 5 p.m. EST (2 p.m. PST) on February 9, 2010, to discuss its results for the fourth quarter and year ended December 31, 2009.

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. EST at this same internet address. (For a telephone replay available after 8 p.m. EST dial: 888-286-8010, international: 617-801-6888, passcode: 51263034)

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the first 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 and mechanical 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 electrical data from wafers, integrated circuits (ICs), IC packages, circuit boards and modules, MEMS, biological structures, 3D TSV, LED devices and more. Cascade Microtech's leading-edge semiconductor production test products 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
                     -------------------------------
                                                      Year to Date Ended
                     December  September   December       December 31,
                        31,        30,        31,     --------------------
                       2009       2009       2008       2009       2008
                     ---------  ---------  ---------  ---------  ---------
Sales                $  15,485  $  13,971  $  15,387  $  53,541  $  76,561
Cost of sales            9,913      8,478     10,544     33,840     44,477
                     ---------  ---------  ---------  ---------  ---------

     Gross profit        5,572      5,493      4,843     19,701     32,084
                     ---------  ---------  ---------  ---------  ---------

Operating expenses:
  Research and
   development           2,466      2,095      2,433      8,372     10,473
  Selling, general and
   administrative        6,172      4,971      7,341     21,724     29,311
  Amortization of
   purchased
   intangibles             132        144        582        567      2,461
  Impairment charges         -          -     27,701          -     27,701
                     ---------  ---------  ---------  ---------  ---------

     Total operating
      expenses           8,770      7,210     38,057     30,663     69,946
                     ---------  ---------  ---------  ---------  ---------

     Loss from
      operations        (3,198)    (1,717)   (33,214)   (10,962)   (37,862)
                     ---------  ---------  ---------  ---------  ---------

Other income
 (expense):
  Interest income, net      45         68        151        314        862
  Other, net               (18)       226        272         93        176
                     ---------  ---------  ---------  ---------  ---------

     Total other income
      (expense)             27        294        423        407      1,038
                     ---------  ---------  ---------  ---------  ---------

     Loss before income
      taxes             (3,171)    (1,423)   (32,791)   (10,555)   (36,824)

Income tax benefit       2,682          4      1,379      2,906      2,247
                     ---------  ---------  ---------  ---------  ---------

     Net loss        $    (489) $  (1,419) $ (31,412) $  (7,649) $ (34,577)
                     =========  =========  =========  =========  =========

     Basic and diluted
      net loss per
      share          $   (0.04) $   (0.11) $   (2.39) $   (0.57) $   (2.65)

     Shares used in
      basic and diluted
      per share
      calculations      13,405     13,325     13,142     13,319     13,071




                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

                  Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)


                                                December 31,  December 31,
                        Assets                      2009          2008
                                                 ------------  ------------
Current assets:
  Cash and cash equivalents                     $     19,471  $      3,750
  Marketable securities                               13,383        28,795
  Accounts receivable, net                            10,877        12,801
  Inventories                                         16,624        19,079
  Prepaid expenses and other                             763         1,367
  Income taxes receivable                              2,589         1,003
  Deferred income taxes                                   13            99
  Assets held for sale                                     -           400
                                                ------------  ------------
     Total current assets                             63,720        67,294

Long-term investments                                    750         2,465
Fixed assets, net                                     12,010        13,580
Purchased intangible assets, net                       1,858         2,425
Deferred income taxes                                    220           237
Other assets                                           2,386         2,455
                                                ------------  ------------

                                                $     80,944  $     88,456
                                                ============  ============


         Liabilities and Stockholders' Equity

Current liabilities:
  Current portion of long-term debt and capital
   leases                                       $         11  $         19
  Accounts payable                                     3,765         4,110
  Deferred revenue                                     1,071         1,120
  Accrued liabilities                                  2,087         3,776
                                                ------------  ------------
     Total current liabilities                         6,934         9,025

Capital leases, net of current portion                    29            62
Deferred revenue                                          56           313
Other long-term liabilities                            2,540         2,356
                                                ------------  ------------

     Total liabilities                                 9,559        11,756
                                                ------------  ------------

Stockholders' equity:
  Common stock                                        85,719        83,345
  Unrealized holding gain on investments                  29            69
  Accumulated deficit                                (14,363)       (6,714)
                                                ------------  ------------

     Total stockholders' equity                       71,385        76,700
                                                ------------  ------------

                                                $     80,944  $     88,456
                                                ============  ============