SOURCE: Cascade Microtech

Cascade Microtech

February 09, 2011 16:05 ET

Cascade Microtech Reports Fourth Quarter and 2010 Results

Fourth Quarter Revenue of $27.1 Million -- All-Time Company Record; EPS $0.02

BEAVERTON, OR--(Marketwire - February 9, 2011) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the fourth quarter and year ended December 31, 2010.

Highlights from the fourth quarter:

--  Revenue of $27.1M exceeded guidance, and increased 7.3% over Q3 2010.
       -- Probes and Sockets grew 17.8% over Q3 2010 driven by the newly
          introduced S-Technology Production Probe Card.
--  Gross margin of 44.1%, up from 41.2% in Q3 2010.
       -- Both product segments improved gross margins over Q3 2010.
       -- Income from operations of $0.6M, up $0.5M over Q3 2010.
--  Net income of $0.3M or $0.02 per share for Q4 2010, compared to a net
    loss of $0.4M or $0.02 per share for Q3 2010.
       -- First quarterly net income since Q2 2007.
       -- Q4 2010 financial results include approximately $0.3M of
          restructuring and acquisition related charges.
       -- Q3 2010 includes approximately $0.1M in restructuring and
          acquisition related charges.
--  Book to Bill ratio of 1.05 for Q4 of 2010.

"Cascade's fourth quarter of 2010 reflects revenue growth across all product lines, resulting in an all-time quarterly revenue record for the company. Cascade has posted seven quarters of consecutive revenue growth. The revenue growth, coupled with improving gross margins resulted in $0.02 earnings per share in the fourth quarter. This is a significant milestone in achieving Cascade's success model," said Michael Burger, president and CEO of Cascade Microtech. "Our recent technology introductions are well positioned with our customer base as we enter 2011. Cascade continues to execute on our growth opportunities as well as our cost structure initiatives as announced last quarter."

Financial Outlook

Based on the current backlog, anticipated bookings, and normal seasonal patterns of the industry, Cascade anticipates that first quarter 2011 revenues will be in the same range as the Q4 2010 outlook of $24.0M to $27.0M.

The company will host a conference call beginning at 2 p.m. PST (5 p.m. EST) on Wednesday, February 9, 2011, to discuss its results for the fourth quarter ended December 31, 2010.

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: 11321041).

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the first 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
                     -------------------------------     Year Ended                    
                     December   September  December      December 31,
                        30,        31,        31,    --------------------
                       2010       2010       2009       2010       2009
                     ---------  ---------  ---------  ---------  ---------
Revenue              $  27,128  $  25,273  $  15,485  $  95,799  $  53,541
Cost of sales           15,171     14,850      9,913     59,714     33,840
                     ---------  ---------  ---------  ---------  ---------
    Gross profit        11,957     10,423      5,572     36,085     19,701
                     ---------  ---------  ---------  ---------  ---------

Operating expenses:
  Research and
   development           3,067      3,038      2,466     12,612      8,372
  Selling, general and
   administrative        8,042      7,075      6,172     33,046     21,724
  Amortization of
   purchased
   intangibles             203        200        132        783        567
                     ---------  ---------  ---------  ---------  ---------

    Total operating
     expenses           11,312     10,313      8,770     46,441     30,663
                     ---------  ---------  ---------  ---------  ---------

    Income (loss) from
     operations            645        110     (3,198)   (10,356)   (10,962)
                     ---------  ---------  ---------  ---------  ---------

Other income
 (expense):
  Interest income, net      16          9         45         70        314
  Other, net               (61)      (431)       (18)       (38)        93
                     ---------  ---------  ---------  ---------  ---------

    Total other income
     (expense)             (45)      (422)        27         32        407
                     ---------  ---------  ---------  ---------  ---------

    Income (loss) before
     income taxes          600       (312)    (3,171)   (10,324)   (10,555)

Income tax expense
 (benefit)                 333         41     (2,682)        15     (2,906)
                     ---------  ---------  ---------  ---------  ---------

    Net income(loss) $     267  $    (353) $    (489) $ (10,339) $  (7,649)
                     =========  =========  =========  =========  =========

    Net income (loss)
     per share-Basic
     and Diluted
        Basic        $    0.02  $   (0.02) $   (0.04) $   (0.72) $   (0.57)
        Diluted      $    0.02  $   (0.02) $   (0.04) $   (0.72) $   (0.57)

    Shares used in
     computing net
     income (loss)
     per share:
        Basic           14,446     14,361     13,405     14,286     13,319
        Diluted         15,261     14,361     13,405     14,286     13,319





                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

                  Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)



                                                December 31,  December 31,
                Assets                              2010          2009
                                                ------------  ------------

Current assets:
  Cash and cash equivalents                     $     21,871  $     19,471
  Marketable securities                                  870        13,383
  Restricted cash and cash equivalents                 1,704             -
  Accounts receivable, net                            19,718        10,877
  Inventories                                         20,764        16,624
  Prepaid expenses and other                             788           763
  Taxes receivable                                     1,059         2,589
  Deferred income taxes                                   39            13
  Assets available for sale                              146             -
                                                ------------  ------------
         Total current assets                         66,959        63,720

Long-term investments                                      -           750
Fixed assets, net                                      9,973        12,010
Purchased intangible assets, net                       3,142         1,858
Goodwill                                                 985             -
Deferred income taxes                                    665           220
Other assets                                           2,821         2,386
                                                ------------  ------------

                                                $     84,545  $     80,944
                                                ============  ============


        Liabilities and Stockholders' Equity

Current liabilities:
  Current portion of capital leases             $         13  $         11
  Accounts payable                                     6,384         3,765
  Deferred revenue                                     3,338         1,071
  Accrued liabilities                                  6,280         2,087
                                                ------------  ------------
         Total current liabilities                    16,015         6,934

Capital leases, net of current portion                    18            29
Deferred revenue                                         109            56
Other long-term liabilities                            2,797         2,540
                                                ------------  ------------

         Total liabilities                            18,939         9,559
                                                ------------  ------------

Stockholders' equity:
  Common stock                                        91,112        85,719
  Accumulated other comprehensive income (loss)         (804)           29
  Accumulated deficit                                (24,702)      (14,363)
                                                ------------  ------------

         Total stockholders' equity                   65,606        71,385
                                                ------------  ------------

                                                $     84,545  $     80,944
                                                ============  ============