SOURCE: Cascade Microtech

Cascade Microtech

May 04, 2011 16:05 ET

Cascade Microtech Reports First Quarter 2011 Results

First Quarter Revenue of $27.8 Million; EPS $0.01

BEAVERTON, OR--(Marketwire - May 4, 2011) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the first quarter ended March 31, 2011.

"Even though the industry typically experiences softness in the first quarter of the year, Cascade Microtech's first quarter 2011 revenue set another all time quarterly record, which was the third record in a row. As we previously communicated, the Company is executing on growing the business and strategically investing in R&D, while we consolidate our facilities and further rationalize our cost structure. With all of these activities, we continued to generate income from operations, build cash and investments, and post a net income of $0.01 earnings per share in Q1 2011," said Michael Burger, president and CEO of Cascade Microtech. "Cascade Microtech continues to execute on our growth opportunities as we work to lower our cost structure and position the Company to achieve our success model in the near term."

Financial summary from the first quarter:

--  Revenue in Q1 2011 of $27.8M, an increase of 2.6% over Q4 2010.
    --  Third consecutive quarter of record revenue.
    --  Systems revenue grew 5.1% over Q4 2010.
--  Gross margin of 40.3%, down from 44.1% in Q4 2010.
    --  Gross margins impacted by factory rationalization and product mix.
--  Operating margins of 0.7%, down from 2.4% in Q4 2010.
    --  Increased investment in research and development supported product
        development roadmap.
    --  Decrease in selling, general and administrative expenses driven by
        lower sales channel costs.
--  Net income of $0.1M or $0.01 per share for Q1 2011, compared to a net
    income of $0.3M or $0.02 per share for Q4 2010.
    --  Both Q1 2011 and Q4 2010 financial results include approximately
        $0.3M of charges primarily related to our ongoing factory
        rationalization.
--  Book-to-bill ratio of 0.93 for Q1 of 2011.

Financial outlook

Based on the current backlog, anticipated bookings, and normal seasonal patterns of the industry, Cascade Microtech anticipates that Q2 2011 revenues will be in the range of $26.0M to $29.0M.

The company will host a conference call beginning at 2 p.m. PDT (5 p.m. EDT) on Wednesday, May 4, 2011, to discuss its results for the first quarter ended March 31, 2011.

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: 11321041).


Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the second quarter of 2011 and the comments by Mr. Burger 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; 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 acquired businesses; potential failure of the expected market opportunities to materialize; the potential inability to realize expected benefits and synergies of acquisitions and the potential diversion of management's attention from our existing business as well as that of acquired businesses; potential adverse effects of acquisitions 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, ICs, IC packages, circuit boards and modules, MEMS, 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
                                                    December
                                     -------------------------------------
                                      March 31,   December 31,   March 31,
                                         2011         2010         2010
                                     -----------  -----------  -----------

Revenue                              $    27,845  $    27,128  $    19,959
Cost of sales                             16,617       15,171       14,573
                                     -----------  -----------  -----------
    Gross profit                          11,228       11,957        5,386
                                     -----------  -----------  -----------

Operating expenses:
  Research and development                 3,207        3,067        3,466
  Selling, general and
   administrative                          7,611        8,042        9,856
  Amortization of purchased
   intangibles                               203          203          180
                                     -----------  -----------  -----------
    Total operating
     expenses                             11,021       11,312       13,502
                                     -----------  -----------  -----------

    Income (loss) from
     operations                              207          645       (8,116)
                                     -----------  -----------  -----------

Other income (expense):
  Interest income, net                        19           16           32
  Other, net                                 (17)         (61)         (88)
                                     -----------  -----------  -----------
    Total other income
     (expense)                                 2          (45)         (56)
                                     -----------  -----------  -----------

    Income (loss) before
     income taxes                            209          600       (8,172)

Income tax expense (benefit)                 103          333         (772)
                                     -----------  -----------  -----------

    Net income (loss)                $       106  $       267  $    (7,400)
                                     ===========  ===========  ===========

    Basic net income
     (loss) per share:               $      0.01  $      0.02  $     (0.53)
    Diluted net income
     (loss) per share:               $      0.01  $      0.02  $     (0.53)

    Shares used in per
     share calculations:
      Basic                               14,528       14,446       14,025
      Diluted                             14,947       15,261       14,025







                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

                  Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)



                                              March 31,      December 31,
                  Assets                         2011            2010
                                            --------------  --------------

Current assets:
  Cash and cash equivalents                 $       17,085  $       21,871
  Marketable securities                              2,498             870
  Restricted cash                                    1,975           1,704
  Accounts receivable, net                          20,358          19,718
  Inventories                                       22,137          20,764
  Prepaid expenses and other                         1,551             934
  Taxes receivable                                       -           1,059
  Deferred income taxes                                 39              39
                                            --------------  --------------
    Total current assets                            65,643          66,959

Long-term marketable securities                      3,258               -
Fixed assets, net                                   10,233           9,973
Purchased intangible assets, net                     2,939           3,142
Goodwill                                             1,063             985
Deferred income taxes                                  695             665
Other assets                                         2,656           2,821
                                            --------------  --------------

                                            $       86,487  $       84,545
                                            ==============  ==============


    Liabilities and Stockholders' Equity

Current liabilities:
  Accounts payable                                   7,792           6,384
  Deferred revenue                                   3,326           3,338
  Accrued liabilities                                5,356           6,293
                                            --------------  --------------
    Total current liabilities                       16,474          16,015

Deferred revenue                                       117             109
Other long-term liabilities                          2,778           2,815
                                            --------------  --------------

    Total liabilities                               19,369          18,939
                                            --------------  --------------

Stockholders' equity:
  Common stock                                      91,404          91,112
  Accumulated other comprehensive income
   (loss)                                              310            (804)
  Accumulated deficit                              (24,596)        (24,702)
                                            --------------  --------------

    Total stockholders'
     equity                                         67,118          65,606
                                            --------------  --------------

                                            $       86,487  $       84,545
                                            ==============  ==============