Cascade Microtech Reports Fourth Quarter and 2012 Results

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) -- 02/05/13 --  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              
                          -----------------------------  Year to Date Ended 
                          December  September  December     December 31,    
                             31,       30,        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 
                                =============  =============  ============= 

  
FOR MORE INFORMATION, CONTACT: 
Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1280