SOURCE: Cascade Microtech

Cascade Microtech

October 30, 2012 16:05 ET

Cascade Microtech Reports Third Quarter 2012 Results

Quarterly Revenue of $27.4 Million; Operating Income $1.8 Million; Quarterly EPS of $0.10

BEAVERTON, OR--(Marketwire - Oct 30, 2012) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the third quarter ended September 30, 2012.

Financial summary from the third quarter:

Operating results for the quarter ended September 30, 2012 were as follows:

  • Quarterly revenue of $27.4 million.
    • Compared to the same quarter of 2011, revenue increased 15%, with growth posted in all product lines.
    • Compared to Q2 2012, revenue was down less than 1%.
    • Probes segment set an all time quarterly record of $10.0 million in Q3 2012.
  • Gross margin of 45%, compared to 46% in Q2 2012, down slightly due to product mix.
    • Probes segment gross margin of 55% was similar to the prior quarter.
    • Systems segment gross margin declined from 41% in Q2 2012 to 39% in Q3 2012.
  • Operating expenses were similar to Q2 2012 at $10.5 million.
    • Research and development expenses increased by $0.3 million. Increased new product development expenses were offset by $0.2 million of government research grants.
    • Selling, general and administrative expenses decreased by $0.4 million due primarily to lower selling costs, stock-based compensation expenses and amortization.
  • Income from operations of $1.8 million, a decrease of $0.5 million from Q2 2012.
  • Depreciation, amortization and stock-based compensation expenses for Q3 2012 totaled $1.4 million.
  • Net income of $1.5 million, or $0.10 per diluted share.
  • Book-to-bill ratio as of September 30, 2012 of .9 to 1.
  • Cash and investments increased $4.2 million from Q2 2012 and totaled $24.1 million due to continued income from operations and working capital changes.

"Cascade Microtech posted continued good financial results in the third quarter of 2012 with revenue in-line with guidance, and earnings per share at the top end of our guidance at $0.10. This level of profitability was achieved after we increased our investments in R&D for our new product development, and we are on track to announce our third new product, with prototyping planned for completion in the fourth quarter. 2012 has shown a marked improvement over 2011 for Cascade Microtech, and we expect this to continue through Q4," said Michael Burger, President and CEO.

Financial outlook

For the fourth quarter of 2012, revenue is expected to be in the range of $27.0 million to $30.0 million. GAAP earnings per share guidance is being raised from the previous quarter and is expected to be in the range of $0.08 to $0.12 on a fully-diluted basis, assuming no significant one-time charges or changes in foreign currency rates. The EPS guidance includes continued investments in new product development costs including the prototyping of new systems, as previously announced.

The company will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Tuesday, October 30, 2012, to discuss its results for the quarter ended September 30, 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 866-783-2138 or international 857-350-1597, participant Passcode: 53057327. A replay will be available after 7:00 p.m. EDT at the same internet address. (For a telephone replay available after 7:00 p.m. EDT, dial: 888-286-8010, international: 617-801-6888, Passcode: 37205971).

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to anticipated revenue and earnings per share for the fourth quarter of 2012, our planned new product announcement in the fourth quarter, and our continued improvement through Q4 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                  
      September 30,       June 30,       September 30,       Year to Date Ended September 30,  
      2012       2012       2011       2012       2011  
                                         
Revenue   $ 27,414     $ 27,638     $ 23,750     $ 82,595     $ 77,312  
Cost of sales     15,210       14,897       14,942       45,699       47,599  
Gross profit     12,204       12,741       8,808       36,896       29,713  
                                         
Operating expenses:                                        
  Research and development     2,778       2,438       3,175       7,995       8,937  
  Selling, general and administrative     7,675       8,042       9,648       23,628       26,081  
      10,453       10,480       12,823       31,623       35,018  
                                         
Income (loss) from operations     1,751       2,261       (4,015 )     5,273       (5,305 )
                                         
Other income (expense):                                        
  Interest income, net     7       9       20       26       51  
  Other, net     (109 )     (45 )     435       (561 )     251  
      (102 )     (36 )     455       (535 )     302  
                                         
Income (loss) from continuing operations before income taxes 1,649       2,225       (3,560 )     4,738       (5,003 )
                                         
Income tax expense (benefit)     153       52       (9 )     329       239  
                                         
Net income (loss) from continuing operations     1,496       2,173       (3,551 )     4,409       (5,242 )
Loss from discontinued operations     -       -       (1,777 )     -       (2,004 )
Net income (loss)   $ 1,496     $ 2,173     $ (5,328 )   $ 4,409     $ (7,246 )
                                         
Basic net income (loss) per share:                                        
  Continuing operations     0.11       0.15       (0.24 )     0.31       (0.36 )
  Discontinued operations     -       -       (0.12 )     -       (0.14 )
    $ 0.11     $ 0.15     $ (0.36 )   $ 0.31     $ (0.50 )
                                         
Diluted net income (loss) per share:                                        
  Continuing operations     0.10       0.15       (0.24 )     0.31       (0.36 )
  Discontinued operations     -       -       (0.12 )     -       (0.14 )
    $ 0.10     $ 0.15     $ (0.36 )   $ 0.31     $ (0.50 )
                                         
Shares used in computing net income (loss) per share:                                        
  Basic     14,162       14,158       14,713       14,169       14,618  
  Diluted     14,377       14,350       14,713       14,359       14,618  
                                           
                                           
                                           
   
   
CASCADE MICROTECH, INC.  
AND SUBSIDIARIES  
               
Condensed Consolidated Balance Sheets  
(in thousands)  
(unaudited)  
               
               
    September 30,       December 31,  
Assets   2012       2011  
               
Current assets:              
  Cash and cash equivalents $ 19,450     $ 10,656  
  Marketable securities   3,521       2,656  
  Restricted cash   1,087       1,470  
  Accounts receivable, net   18,309       23,882  
  Inventories   26,345       23,607  
  Prepaid expenses and other   2,357       4,086  
    Total current assets   71,069       66,357  
               
Long-term investments   -       1,834  
Fixed assets, net   8,506       9,003  
Purchased intangible assets, net   1,766       2,329  
Goodwill   964       971  
Other assets   2,232       2,570  
               
  $ 84,537     $ 83,064  
               
               
Liabilities and Shareholders' Equity              
               
Current liabilities:              
  Accounts payable   6,726       6,033  
  Deferred revenue   3,618       5,516  
  Accrued liabilities   6,792       7,745  
    Total current liabilities   17,136       19,294  
               
Deferred revenue   408       225  
Other long-term liabilities     3,301       4,248  
               
    Total liabilities   20,845       23,767  
               
Shareholders' equity:              
  Common stock   90,963       90,853  
  Accumulated other comprehensive loss   (1,176 )     (1,052 )
  Accumulated deficit   (26,095 )     (30,504 )
               
    Total shareholders' equity   63,692       59,297  
               
  $ 84,537     $ 83,064  
               
               

Contact Information

  • FOR MORE INFORMATION, CONTACT:

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