SOURCE: Cascade Microtech

Cascade Microtech

February 05, 2013 16:05 ET

Cascade Microtech Reports Fourth Quarter and 2012 Results

Record Annual Revenue of $113.0 Million; Record Quarterly Revenue of $30.4 Million; Record Annual Income From Operations of $7.6 Million; Quarterly Income From Operations of $2.3 Million; Annual EPS of $0.42; Quarterly EPS of $0.12

BEAVERTON, OR--(Marketwire - Feb 5, 2013) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the fourth quarter and year ended December 31, 2012.

Financial summary:

Operating results for the year ended December 31, 2012 were as follows:

  • Annual revenue of $113.0 million, up 8.0% compared to $104.6 million in 2011.
    • Record annual revenue for Engineering Probes of $17.3 million, up 10.1% compared to $15.7 million in 2011.
    • Record annual revenue for Production Probes of $21.3 million, up 62.8% compared to $13.1 million in 2011.
  • Gross margin of 44.2% compared to 39.6% in 2011 with year-on-year improvement in all product segments based upon increased revenue and manufacturing efficiencies.
  • Operating expenses of $42.4 million, down 7.0% compared to $45.6 million in 2011.
  • Income from operations of $7.6 million, up $11.8 million compared to a loss of $4.2 million in 2011.
  • Net income of $6.1 million, up $11.9 million compared to a loss of $5.8 million in 2011.
  • Earnings per diluted share of $0.42, up $0.68 compared to a loss per share from continuing operations of $0.26 in 2011.
  • Annual Book-to-Bill ratio of 0.99 to 1.
  • Total cash, investments and restricted cash increased $7.7 million during 2012 and totaled $24.3 million at year end.

Operating results for the quarter ended December 31, 2012 were as follows:

  • Quarterly revenue of $30.4 million, up 11.2% compared to $27.3 million in the fourth quarter of 2011 and up 10.8% from $27.4 million in the third quarter of 2012.
    • Record quarterly revenue for Systems of $20.7 million, up 4.1% compared to $19.9 million in the fourth quarter of 2011 and up 19.0% compared to $17.4 million in the third quarter of 2012.
  • Gross margin of 43.0%, compared to 42.9% in the fourth quarter of 2011, and 44.5% in the third quarter of 2012.
    • Probes gross margin of 51.9%, compared to 45.4% in the fourth quarter of 2011, and 54.8% in the third quarter of 2012, due primarily to volume changes.
  • Operating expenses of $10.8 million, up 1.7% compared to $10.6 million in the fourth quarter of 2011, and up 3.0% when compared to $10.5 million in the third quarter of 2012.
  • Income from operations of $2.3 million, up 105% compared to $1.1 million in the fourth quarter of 2011, and up 30.4% compared to $1.8 million in the third quarter of 2012.
  • Net income of $1.7 million, up 17.0% compared to $1.4 million in the fourth quarter of 2011, and up 13.0% compared to $1.5 million in the third quarter of 2012.
  • Earnings per diluted share of $0.12, up $0.02 when compared to $0.10 in both the fourth quarter of 2011 and the third quarter of 2012.
  • Quarterly Book-to-Bill ratio of 0.98 to 1.

"In 2012, Cascade Microtech executed on our new product roadmap and outgrew the semiconductor capital equipment industry while setting new records for annual revenue and profitability. We have been able to secure a number of new design wins in our production probes market and have seen strong adoption of our new system products launched in 2012. This coupled with our nearly 8,000 installed systems globally, has continued to strengthen our customer position. Due to our scalable infrastructure, we believe that modest revenue improvement will provide significant leverage to the bottom line. We believe we are well positioned for the market to recover in 2013," said Michael Burger, President and CEO.

Financial outlook

Based upon the industry's seasonality, for the first quarter of 2013 revenue is expected to be in the range of $26.0 million to $29.0 million. GAAP earnings per share guidance is expected to be in the range of $0.06 to $0.10 on a fully-diluted basis, assuming no significant one-time charges or changes in foreign currency rates.

The company will host a conference call beginning at 2:00 p.m. PST (5:00 p.m. EST) on Tuesday, February 5, 2013, to discuss its results for the quarter and year ended December 31, 2012.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com. If you are interested in participating in the call, the live dial-in number is 866-700-7441 or international 617-213-8839, participant Passcode: 24414538. A replay will be available after 7:00 p.m. EST at the same internet address. (For a telephone replay available after 7:00 p.m. EST, dial: 888-286-8010, international: 617-801-6888, Passcode: 44990773).

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to anticipated revenue and earnings per share for the first quarter of 2013, our customer position, potential results from our scalable infrastructure, and future growth 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; potential delays and other factors affecting the timing of new product introductions; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; potential failure of expected market opportunities to materialize; changes in foreign exchange rates; 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 for the year ended December 31, 2011. 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 contact, electrical measurement and test of integrated circuits (ICs), optical devices and other small structures. For technology businesses and scientific institutions that need to evaluate small structures, Cascade Microtech delivers access to electrical data from wafers, ICs, IC packages, circuit boards and modules, MEMS, 3D TSV, LED devices and more. Cascade Microtech's leading-edge stations, probes, probe-cards and integrated systems deliver precision accuracy and superior performance both in the lab and during production manufacturing 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 31,     September 30,     December 31,     Year to Date Ended December 31,  
    2012     2012     2011     2012     2011  
                                         
Revenue   $ 30,368     $ 27,414     $ 27,298     $ 112,963     $ 104,610  
Cost of sales     17,313       15,210       15,595       63,012       63,194  
Gross profit     13,055       12,204       11,703       49,951       41,416  
                                         
Operating expenses:                                        
  Research and development     3,022       2,778       2,870       11,017       11,807  
  Selling, general and administrative     7,749       7,675       7,718       31,377       33,799  
      10,771       10,453       10,588       42,394       45,606  
                                         
Income (loss) from operations     2,284       1,751       1,115       7,557       (4,190 )
                                         
Other income (expense):                                        
  Interest income, net     26       7       41       52       92  
  Other, net     (240 )     (109 )     229       (801 )     480  
      (214 )     (102 )     270       (749 )     572  
                                         
Income (loss) from continuing operations before income taxes     2,070       1,649       1,385       6,808       (3,618 )
                                         
Income tax expense     380       153       (59 )     709       180  
                                         
Net income (loss) from continuing operations     1,690       1,496       1,444       6,099       (3,798 )
Loss from discontinued operations     -       -       -       -       (2,004 )
Net income (loss)   $ 1,690     $ 1,496     $ 1,444     $ 6,099     $ (5,802 )
                                         
Basic net income (loss) per share:                                        
  Continuing operations     0.12       0.11       0.10       0.43       (0.26 )
  Discontinued operations     -       -       -       -       (0.14 )
    $ 0.12     $ 0.11     $ 0.10     $ 0.43     $ (0.40 )
                                         
Diluted net income (loss) per share:                                        
  Continuing operations     0.12       0.10       0.10       0.42       (0.26 )
  Discontinued operations     -       -       -       -       (0.14 )
    $ 0.12     $ 0.10     $ 0.10     $ 0.42     $ (0.40 )
                                         
Shares used in computing net income (loss) per share:                                        
  Basic     14,223       14,162       14,478       14,182       14,583  
  Diluted     14,428       14,377       14,550       14,390       14,583  
                                         
   
CASCADE MICROTECH, INC.  
AND SUBSIDIARIES  
                   
Condensed Consolidated Balance Sheets  
(in thousands)  
(unaudited)  
                   
                   
    December 31,     September 30,     December 31,  
Assets   2012     2012     2011  
                         
Current assets:                        
  Cash and cash equivalents   $ 17,927     $ 19,450     $ 10,656  
  Marketable securities     5,322       3,521       2,656  
  Restricted cash     1,069       1,087       1,470  
  Accounts receivable, net     21,087       18,309       23,882  
  Inventories     24,277       26,345       23,607  
  Prepaid expenses and other     2,503       2,357       4,086  
    Total current assets     72,185       71,069       66,357  
                         
Long-term investments     -       -       1,834  
Fixed assets, net     8,271       8,506       9,003  
Purchased intangible assets, net     1,610       1,766       2,329  
Goodwill     990       964       971  
Other assets     2,224       2,232       2,570  
                         
    $ 85,280     $ 84,537     $ 83,064  
                         
                         
Liabilities and Stockholders' Equity                        
                         
Current liabilities:                        
  Accounts payable     5,900       6,726       6,033  
  Deferred revenue     3,526       3,618       5,516  
  Accrued liabilities     6,640       6,792       7,745  
    Total current liabilities     16,066       17,136       19,294  
                         
Deferred revenue     356       408       225  
Other long-term liabilities     2,940       3,301       4,248  
                         
    Total liabilities     19,362       20,845       23,767  
                         
Stockholders' equity:                        
  Common stock     91,039       90,963       90,853  
  Accumulated other comprehensive income (loss)     (716 )     (1,176 )     (1,052 )
  Accumulated deficit     (24,405 )     (26,095 )     (30,504 )
                           
    Total stockholders' equity     65,918       63,692       59,297  
                         
    $ 85,280     $ 84,537     $ 83,064  

Contact Information

  • FOR MORE INFORMATION, CONTACT:

    Jeff A. Killian
    Cascade Microtech, Inc.
    (503) 601-1280