SOURCE: Cascade Microtech

Cascade Microtech

October 30, 2013 15:53 ET

Cascade Microtech Reports Third Quarter 2013 Results

Revenue of $28.2 Million; Gross Margin 47.6%

BEAVERTON, OR--(Marketwired - Oct 30, 2013) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the third quarter ended September 30, 2013.

Financial summary

Results for the quarter ended September 30, 2013 were as follows:

  • Total revenue of $28.2 million, compared to $30.3 million for Q2 2013 and $27.4 million for Q3 2012. 
    • Systems revenue of $17.5 million, a decrease of $2.3 million, or 11.8%, from Q2 2013, and an increase of $0.1 million, or 0.4%, over Q3 2012. 
    • Probes revenue of $10.7 million, an increase of $0.2 million, or 2.3%, over Q2 2013, and an increase of $0.7 million, or 7.2%, over Q3 2012. 
    • Q3 2013 sets a new revenue record for our Probes segment.
  • Gross margin of 47.6%, up from 47.1% in Q2 2013, and 44.5% in Q3 2012. 
    • Q3 2013 represents our best gross margin performance in over 8 years.
  • Income from operations of $1.6 million, a decrease of $0.9 million, or 37.6%, from Q2 2013, and a decrease of $0.2 million, or 10.3%, from Q3 2012.
  • Depreciation, amortization and stock-based compensation expenses totaled $1.5 million, compared to $1.7 million for Q2 2013 and $1.4 million for Q3 2012. 
  • Net income of $1.7 million, or $0.11 per diluted share, compared to $2.2 million, or $0.15 per diluted share, for Q2 2013, and $1.5 million, or $0.10 per diluted share, for Q3 2012. 
    • Q3 2013 includes acquisition related expenses of $0.6 million, or $0.04 per diluted share, related to our previously announced acquisitions of the Reliability Test Products division (RTP) on July 31, 2013 and ATT Advanced Temperature Test Systems GmbH (ATT Systems) on October 1, 2013.
    • Q3 2013 also includes expenses of $0.2 million, or $0.01 per diluted share, related to the operations of RTP since the date of acquisition. 
  • Total cash and investments of $32.2 million, an increase of $3.4 million over June 30, 2013, and an increase of $8.1 million over September 30, 2012.
    • Q3 2013 includes a reduction in cash of $1.9 million paid for the acquisition of RTP. 
  • Book-to-bill ratio of 1.06 to 1.

"We are very excited by the recent acquisitions of RTP on July 31, 2013 and ATT Systems on October 1, 2013, and how we believe these moves will accelerate our strategic plans and expand our markets," said Michael Burger, President and CEO. "In addition, our third quarter results achieved revenue within our guidance range, a book-to-bill in excess of one-to-one, and a 47.6% gross margin. After adjusting for the acquisition related expenses discussed above, our adjusted EPS for Q3 2013 exceeded the upper end of guidance. Finally, with a positive book-to-bill and good momentum, we believe we are well positioned for the fourth quarter of 2013 and beyond."

Financial outlook

For the fourth quarter of 2013, assuming consistent tax and foreign currency exchange rates, we are projecting revenue to be in the range of $34.0 million to $38.0 million including RTP and ATT Systems. Before restructuring and acquisition transactional costs which are estimated between $0.3 million and $0.4 million, and the incremental amortization expenses related to the ATT Systems acquisition which are currently estimated between $0.6 million and $0.8 million, earnings per share is expected to be in the range of $0.17 to $0.21 per share on a fully diluted basis. As previously announced, approximately 1.6 million shares were issued on October 1, 2013 in conjunction with the acquisition of ATT Systems and the final purchase accounting determination is underway which may adjust the expected amortization listed above.

We will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Wednesday, October 30, 2013, to discuss our results for the quarter ended September 30, 2013.

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 800 884-5695 or international 617 786-2960, participant Passcode: 54893309. 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: 88055847).

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to anticipated revenue for the fourth quarter of 2013, strong demand for our products, including Probes, and the impact our acquisitions will have on the results for the fourth quarter of 2013 and beyond, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts," and "continue" or other derivations of these or other comparable terms 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; our ability or delay in integrating acquired businesses; 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, 2012. 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)  
                                Year to Date Ended     
      Three Months Ended       September 30,  
      September       June 30,       September          
      30, 2013       2013       30, 2012       2013       2012  
                                         
Revenue   $ 28,197     $ 30,307     $ 27,414     $ 85,975     $ 82,595  
Cost of sales     14,779       16,032       15,210       46,739       45,699  
Gross profit     13,418       14,275       12,204       39,236       36,896  
                                         
Operating expenses:                                        
  Research and development     2,750       2,694       2,778       7,900       7,995  
  Selling, general and administrative     9,097       9,064       7,675       26,207       23,628  
      11,847       11,758       10,453       34,107       31,623  
                                         
Income from operations     1,571       2,517       1,751       5,129       5,273  
                                         
Other income (expense):                                        
  Interest income, net     18       2       7       40       26  
  Other, net     87       (112 )     (109 )     (269 )     (561 )
      105       (110 )     (102 )     (229 )     (535 )
                                         
Income before income taxes     1,676       2,407       1,649       4,900       4,738  
                                         
Income tax expense (benefit)     (7 )     221       153       284       329  
                                         
Net income   $ 1,683     $ 2,186     $ 1,496     $ 4,616     $ 4,409  
                                         
Net income per share:                                        
  Basic   $ 0.12     $ 0.15     $ 0.11     $ 0.32     $ 0.31  
  Diluted   $ 0.11     $ 0.15     $ 0.10     $ 0.31     $ 0.31  
                                         
Shares used in computing net income per share:                                        
  Basic     14,453       14,342       14,162       14,339       14,169  
  Diluted     14,797       14,652       14,377       14,688       14,359  
                                         
   
   
CASCADE MICROTECH, INC.  
AND SUBSIDIARIES  
                 
Condensed Consolidated Balance Sheets  
(in thousands)  
(unaudited)  
                 
                 
      September 30,       December 31,  
Assets     2013       2012  
                 
Current assets:                
  Cash and cash equivalents   $ 26,926     $ 17,927  
  Marketable securities     5,258       5,322  
  Restricted cash     -       1,069  
  Accounts receivable, net     18,410       21,087  
  Inventories     23,445       24,277  
  Prepaid expenses and other     2,643       2,503  
    Total current assets     76,682       72,185  
                 
Fixed assets, net     6,528       8,271  
Purchased intangible assets, net     2,521       1,610  
Goodwill     1,655       990  
Other assets     1,571       2,224  
                 
    $ 88,957     $ 85,280  
                 
                 
Liabilities and Shareholders' Equity                
                 
Current liabilities:                
  Accounts payable   $ 5,972     $ 5,900  
  Deferred revenue     1,383       3,526  
  Accrued liabilities     6,415       6,640  
    Total current liabilities     13,770       16,066  
                 
Deferred revenue     485       356  
Other long-term liabilities     2,085       2,940  
                 
    Total liabilities     16,340       19,362  
                 
Shareholders' equity:                
  Common stock     92,642       91,039  
  Accumulated other comprehensive loss     (236 )     (716 )
  Accumulated deficit     (19,789 )     (24,405 )
                   
    Total shareholders' equity     72,617       65,918  
                 
    $ 88,957     $ 85,280  
                 

Contact Information

  • FOR MORE INFORMATION, CONTACT:

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