Cascade Microtech Reports Second Quarter 2013 Results

Cascade Microtech Reports Second Quarter 2013 Results 
Revenue of $30.3 Million; Income From Operations of $2.5 Million; EPS
of $0.15 
BEAVERTON, OR -- (Marketwired) -- 08/01/13 --  Cascade Microtech,
Inc. (NASDAQ: CSCD) today reported financial results for the second
quarter ended June 30, 2013. 
Financial summary 
Results for the quarter ended June 30, 2013 were as follows: 


 
--  Total revenue of $30.3 million, up 10.3% compared to $27.5 million for
    Q1 2013, and up 9.7% compared to $27.6 million for Q2 2012.
    --  Systems revenue of $19.8 million, an increase of $2.1 million, or
        12.1%, over Q1 2013, and an increase of $1.9 million, or 10.5%,
        over Q2 2012.
    --  Probes revenue of $10.5 million, an increase of $0.7 million, or
        7.1%, over Q1 2013, and an increase of $0.8 million, or 8.1%, over
        Q2 2012.
    --  Q2 2013 sets a new revenue record for our Probes segment.
--  Gross margin of 47.1%, up from 42.0% in Q1 2013, and 46.1% in Q2 2012.
    --  Q2 2013 represents our best gross margin performance in over 5
        years.
--  Income from operations of $2.5 million, an increase of $1.5 million,
    or 141.8%, over Q1 2013, and an increase of $0.3 million, or 11.3%,
    over Q2 2012.
--  Depreciation, amortization and stock-based compensation expenses
    totaled $1.7 million.
--  Net income of $2.2 million, or $0.15 per share, compared to $0.7
    million, or $0.05 per share, for Q1 2013, and $2.2 million, or $0.15
    per share, for Q2 2012.
--  Total cash and investments of $28.8 million, an increase of $3.9
    million over Q1 2013, and an increase of $8.9 million over Q2 2012.
--  Book-to-bill ratio of 0.89 to 1.

  
"We are pleased by the overall results of the second quarter and with
the growth in revenue, gross margin and income from operations
compared to both the prior quarter of 2013 and the second quarter of
last year. Our performance in the second quarter was driven by strong
demand for both our Systems and Probe products. The demand for 300mm
systems has remained strong and we are excited about the expected
impact our new products will have on the second half of 2013," said
Michael Burger, President and CEO. 
"We are also excited about our recently announced acquisition of the
Reliability Test Products (RTP) business from Aetrium Incorporated.
This acquisition strengthens our Systems product portfolio and
accelerates our strategy of delivering Integrated Measurement
Solutions to our customer base. We believe the addition of this new
product line will better enable us to meet the technical challenges
of our customers. In addition, we believe the existing customers of
Aetrium's RTP business will benefit from Cascade Microtech's service
and support network, strong commitment to customer satisfaction, and
technology leadership," added Mr. Burger. The acquisition of the RTP
business was an asset purchase for $1.9 million in cash, and
contingent consideration of up to $1.5 million payable between 9 and
18 months from the date of acquisition. The contingencies include a
$0.5 million holdback and a $1.0 million earn out subject to the
achievement of certain milestones. 
Financial outlook 
For the third quarter of 2013, before acquisition related costs, and
assuming consistent foreign currency rates, revenue is expected to be
in the range of $28.0 million to $31.0 million, and earnings per
share are expected to be in the range of $0.08 to $0.12 on a
fully-diluted basis. Due to the mid-quarter timing of the
acquisition, the revenue from the RTP business is not expected to be
meaningful in the third quarter. Third quarter earnings guidance
listed above is before one-time costs of purchasing and integrating
the RTP business, which are estimated between $0.7 million and $0.9
million during the quarter. 
We will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m.
EDT) on Thursday, August 1, 2013, to discuss our results for the
quarter ended June 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 and earnings per share for the
third quarter of 2013, strong demand for our products, including
300mm systems, and the impact our new products will have on the
results for the second half of 2013, the impact of the RTP
acquisition, including accelerating our delivery of Integrated
measurement Solutions to our customers, 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)                                 
                                                                            
                                                                            
                             Three Months Ended                             
                      -------------------------------                       
                                                        Year to Date Ended  
                       June 30,  March 31,   June 30,        June 30,       
                                                       -------------------- 
                         2013       2013       2012       2013       2012   
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Revenue               $  30,307  $  27,471  $  27,638  $  57,778  $  55,181 
Cost of sales            16,032     15,928     14,897     31,960     30,489 
                      ---------  ---------  ---------  ---------  --------- 
Gross profit             14,275     11,543     12,741     25,818     24,692 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Operating expenses:                                                         
  Research and                                                              
   development            2,694      2,456      2,438      5,150      5,217 
  Selling, general and                                                      
   administrative         9,064      8,046      8,042     17,110     15,953 
                      ---------  ---------  ---------  ---------  --------- 
                         11,758     10,502     10,480     22,260     21,170 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Income from operations    2,517      1,041      2,261      3,558      3,522 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Other income                                                                
 (expense):                                                                 
  Interest income, net        2         20          9         22         19 
  Other, net               (112)      (244)       (45)      (356)      (452)
                      ---------  ---------  ---------  ---------  --------- 
                           (110)      (224)       (36)      (334)      (433)
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Income before income                                                        
 taxes                    2,407        817      2,225      3,224      3,089 
                                                                            
Income tax expense          221         70         52        291        176 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Net income            $   2,186  $     747  $   2,173  $   2,933  $   2,913 
                      =========  =========  =========  =========  ========= 
                                                                            
Net income per share:                                                       
  Basic               $    0.15  $    0.05  $    0.15  $    0.21  $    0.21 
  Diluted             $    0.15  $    0.05  $    0.15  $    0.20  $    0.20 
                                                                            
Shares used in                                                              
 computing net income                                                       
 per share:                                                                 
  Basic                  14,342     14,227     14,158     14,283     14,173 
  Diluted                14,652     14,599     14,350     14,626     14,332 
                                                                            
                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
                   Condensed Consolidated Balance Sheets                    
                               (in thousands)                               
                                (unaudited)                                 
                                                                            
                                                                            
                                                   June 30,    December 31, 
                      Assets                         2013          2012     
                                                 ------------  ------------ 
                                                                            
Current assets:                                                             
  Cash and cash equivalents                      $     23,769  $     17,927 
  Marketable securities                                 5,030         5,322 
  Restricted cash                                           -         1,069 
  Accounts receivable, net                             21,585        21,087 
  Inventories                                          22,241        24,277 
  Prepaid expenses and other                            2,340         2,503 
                                                 ------------  ------------ 
      Total current assets                             74,965        72,185 
                                                                            
Fixed assets, net                                       7,093         8,271 
Purchased intangible assets, net                        1,296         1,610 
Goodwill                                                  976           990 
Other assets                                            1,736         2,224 
                                                 ------------  ------------ 
                                                                            
                                                 $     86,066  $     85,280 
                                                 ============  ============ 
                                                                            
                                                                            
       Liabilities and Stockholders' Equity                                 
                                     
                                       
Current liabilities:                                                        
  Accounts payable                               $      5,954  $      5,900 
  Deferred revenue                                      1,245         3,526 
  Accrued liabilities                                   6,386         6,640 
                                                 ------------  ------------ 
      Total current liabilities                        13,585        16,066 
                                                                            
Deferred revenue                                          542           356 
Other long-term liabilities                             2,154         2,940 
                                                 ------------  ------------ 
                                                                            
      Total liabilities                                16,281        19,362 
                                                 ------------  ------------ 
                                                                            
Stockholders' equity:                                                       
  Common stock                                         92,229        91,039 
  Accumulated other comprehensive income (loss)          (972)         (716)
  Accumulated deficit                                 (21,472)      (24,405)
                                                 ------------  ------------ 
                                                                            
      Total stockholders' equity                       69,785        65,918 
                                                 ------------  ------------ 
                                                                            
                                                 $     86,066  $     85,280 
                                                 ============  ============ 

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