-- 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. (
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