SOURCE: Cascade Microtech

Cascade Microtech

February 10, 2009 16:05 ET

Cascade Microtech Reports Fourth Quarter and 2008 Year End Results

Revenue of $76.6 Million, Down 15% From 2007 and Net Loss of $34.6 Million; Fourth Quarter Results Include a Non-Cash Impairment Charge of $27.7 Million

PORTLAND, OR--(Marketwire - February 10, 2009) - Cascade Microtech (NASDAQ: CSCD) today reported financial results for the fourth quarter and year ended December 31, 2008.

Fourth quarter results include:

--  Revenue of $15.4 million, down 27% from Q3 of 2008
--  $27.7 million non-cash impairment charge made up of a goodwill
    impairment of $17.4 million and other intangibles impairment of $10.3
    million
--  Severance costs of $450,000
--  Net loss of $31.4 million or $2.39 per share for Q408, compared to a
    net loss of $1.3 million or $0.10 per share for Q308
--  Cash and investment balances increased slightly to $35.0 million
    

"During the fourth quarter, we continued to see deterioration in market conditions and, in common with the rest of the industry, experienced a difficult quarter. As previously announced, we continued our restructuring program in the fourth quarter in order to bring our costs more in line with current market expectations," said Geoff Wild, CEO of Cascade Microtech. "During this difficult period, we shall focus on expense management and cash conservation but still make prudent investments to position the business for a market recovery," added Mr. Wild.

Revenue for the fourth quarter was $15.4 million, a decrease of 30% from $22.0 million in the fourth quarter of 2007. Net loss for the fourth quarter was $31.4 million (which includes a non-cash impairment charge of $27.7 million) and loss per share was $2.39, compared to a net loss of $140,000 and loss per share of $0.01 for the fourth quarter of 2007.

Financial Outlook

Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that first quarter 2009 revenues will be in the range of $11.0 million to $14.0 million. The Company has suspended earnings per share guidance in view of the uncertainty of the mix of revenue and the potential range of outcomes.

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the first quarter of 2009 and the comments by Mr. Wild 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 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.

The company will host a conference call beginning at 5 p.m. EST (2 p.m. PST) on February 10, 2009 to discuss its results for the fourth quarter and year ended December 31, 2008.

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 7 p.m. EST at this same internet address. (For a telephone replay available after 7 p.m. EST dial: 888-286-8010, international: 617-801-6888, passcode: 83074521)

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
                     -------------------------------  Year to Date Ended
                     December   September  December       December 31,
                        31,        30,        31,     --------------------
                       2008       2008       2007       2008       2007
                     ---------  ---------  ---------  ---------  ---------

Sales                $  15,387  $  21,128  $  21,992  $  76,561  $  89,922
Cost of sales           10,544     12,068     11,824     44,477     48,801
                     ---------  ---------  ---------  ---------  ---------

     Gross profit        4,843      9,060     10,168     32,084     41,121
                     ---------  ---------  ---------  ---------  ---------

Operating expenses:
  Research and
   development           2,433      2,308      2,759     10,473     11,241
  Selling,
   general and
   administrative        7,341      7,739      6,872     29,311     27,723
  Amortization of
   purchased
   intangibles             582        582        649      2,461      1,977
  Impairment
   charges              27,701          -          -     27,701          -
                     ---------  ---------  ---------  ---------  ---------

     Total operating
      expenses          38,057     10,629     10,280     69,946     40,941
                     ---------  ---------  ---------  ---------  ---------

     Income (loss)
      from operations  (33,214)    (1,569)      (112)   (37,862)       180
                     ---------  ---------  ---------  ---------  ---------

Other income
 (expense):
   Interest
    income, net            151        221        305        862      1,455
   Other, net              272       (369)       (63)       176       (119)
                     ---------  ---------  ---------  ---------  ---------

     Total other
      income
      (expense)            423       (148)       242      1,038      1,336
                     ---------  ---------  ---------  ---------  ---------

     Income (loss)
      before income
      taxes            (32,791)    (1,717)       130    (36,824)     1,516

Provision (benefit)
 for income taxes       (1,379)      (426)       270     (2,247)       586
                     ---------  ---------  ---------  ---------  ---------

     Net income
      (loss)         $ (31,412) $  (1,291) $    (140) $ (34,577) $     930
                     =========  =========  =========  =========  =========

     Net income
      (loss) per
      share:
       Basic         $   (2.39) $   (0.10) $   (0.01) $   (2.65) $    0.07
       Diluted       $   (2.39) $   (0.10) $   (0.01) $   (2.65) $    0.07

     Shares used in
      computing net
      income (loss)
      per share:
       Basic            13,142     13,108     12,855     13,071     12,550
       Diluted          13,142     13,108     12,855     13,071     12,840




                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

                  Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)



                                              December  September December
                                                 31,       30,       31,
                Assets                          2008      2008      2007
                                              --------  --------- ---------

Current assets:
     Cash and cash equivalents                $  3,750  $   4,422 $   4,900
     Marketable securities                      28,795     25,521    24,521
     Accounts receivable, net                   12,801     16,890    18,195
     Inventories                                19,079     19,494    18,608
     Prepaid expenses and other                  1,367      1,141     1,874
     Income taxes receivable                     1,003          -         -
     Deferred income taxes                          99      3,071     2,729
     Assets held for sale                          400        562         -
                                              --------  --------- ---------
          Total current assets                  67,294     71,101    70,827

Long-term investments                            2,465      5,039     4,836
Fixed assets, net                               13,580     13,799    14,575
Goodwill                                             -     17,406    17,310
Purchased intangible assets, net                 2,425     13,163    15,042
Deferred income taxes                              237          -         -
Other assets                                     2,455      2,820     2,691
                                              --------  --------- ---------

                                              $ 88,456  $ 123,328 $ 125,281
                                              ========  ========= =========


       Liabilities and Stockholders' Equity

Current liabilities:
     Current portion of long-term debt and
      capital leases                          $     19  $      16 $      13
     Accounts payable                            4,110      4,773     5,158
     Deferred revenue                            1,120        905     1,102
     Accrued liabilities                         3,776      3,984     5,589
                                              --------  --------- ---------

          Total current liabilities              9,025      9,678    11,862

Long-term debt and capital leases                   62         59        51
Deferred income taxes                                -      3,064     3,114
Deferred revenue                                   313        413       481
Other long-term liabilities                      2,356      2,380     2,168
                                              --------  --------- ---------

          Total liabilities                     11,756     15,594    17,676
                                              --------  --------- ---------

Stockholders' equity:
     Common stock                               83,345     83,028    79,697
     Unrealized holding gain on investments         69          8        45
     Retained earnings (deficit)                (6,714)    24,698    27,863
                                              --------  --------- ---------

          Total stockholders' equity            76,700    107,734   107,605
                                              --------  --------- ---------

                                              $ 88,456  $ 123,328 $ 125,281
                                              ========  ========= =========

Contact Information

  • FOR MORE INFORMATION, CONTACT:

    Steven Sipowicz
    Cascade Microtech, Inc.
    (503) 601-1000