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
============== ==============