Published: November 02, 2010
Cascade Microtech Reports Third Quarter 2010 Results
Third Quarter Revenue of $25.3 Million -- All Time Company Record; Return to Positive Operating Income
Cascade Microtech (NASDAQ: CSCD) today
reported financial results for the third quarter ended September 30, 2010.
Highlights from the third quarter:
-- Revenue of $25.3 million, up 7.8% over Q2 2010 and up 80.9% over Q3
2009.
-- Revenue growth driven by Systems products in the high power and
high brightness LED markets
-- Gross margin of 41.2%, up from 35.5% in Q2 2010 and 39.3% in Q3 2009.
-- Both product segments generated gross margins in excess of 40% in
Q3 2010.
-- Income from operations of $0.1 million, up $3.1 million over Q2 2010
and $1.8 million over Q3 2009.
-- First quarter of operating profit since Q2 2007.
-- Net loss of $0.4 million or $0.02 per share for Q3 2010, compared to a
net loss of $2.9 million or $0.20 per share for Q2 2010, and a net loss
of $1.4 million or $0.11 per share for Q3 2009.
-- Q3 2010 financial results include approximately $0.1 million of
acquisition charges related to the acquisition of the SUSS
Microtech Test Division on January 27, 2010. Q2 2010 results
include approximately $0.6M in acquisition and restructuring
charges.
-- Book to Bill ratio of .91 for Q3 of 2010.
"Cascade's continued revenue growth and return to operating profitability
in Q3 of 2010 is a strong testimonial to the value of Cascade's enhanced
product portfolio, our core competencies, and our ability to integrate the
Systems business rapidly and efficiently," said Michael Burger, president
and CEO of Cascade Microtech. "In our probe and sockets segment, during Q3
of 2010 our gross margins improved and we announced value added products
and services to our customers. Additionally, in Q4 of 2010 we have
evaluated our facility requirements to support our businesses and have
initiated plans to consolidate the two System manufacturing sites, combine
our Production Probe and Engineering Probe manufacturing areas, and close
two sales and service offices in the US. These facility plans are scheduled
to be completed in 2011, while supporting our growing businesses. These
changes are important to Cascade as we continue to invest in key
technologies and markets, while creating an efficient cost base. In
summary, the improvements in Q3 reflect the speed and commitment to deliver
strong financial results. We remain focused on the execution of our plan to
provide increased value to our customers and improving profitability for
our shareholders."
Financial Outlook
Based on the current backlog, anticipated bookings and the current market
environment, Cascade anticipates that fourth quarter 2010 revenues will be
in the range of $24.0 million to $27.0 million.
The company will host a conference call beginning at 2 p.m. PDT (5 p.m.
EDT) on November 2, 2010, to discuss its results for the third quarter
ended September 30, 2010.
A simultaneous audio cast of the conference call may be accessed online
from the investor relations page of www.cascademicrotech.com. A replay will
be available after 8 p.m. EDT at this same internet address. (For a
telephone replay available after 8 p.m. EDT dial: 888-286-8010,
international: 617-801-6888, passcode: 60717658).
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook as
to revenue in the fourth quarter of 2010 and the comments by Mr. Burger 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, product mix, the timing of shipments and customer
orders, constraints on supplies of components, excess or shortage of
production capacity, difficulties or unexpected costs or delays in the
integration of the operations, employees, products, sales channels,
strategies, and technologies of the acquired business; the potential
failure of the expected market opportunity to materialize; the potential
inability to realize expected benefits and synergies; potential diversion
of management's attention from our existing business as well as that of the
acquired business; potential adverse effects on relationships with our
existing suppliers, customers or partners 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. 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
electrical measurement and test of integrated circuits (ICs) and other
small structures. For technology businesses and scientific institutions
that need to evaluate small structures, Cascade Microtech delivers access
to, and extraction of, electrical data from wafers, ICs, IC packages,
circuit boards and modules, MEMS, electro-optic devices and more. Cascade
Microtech's leading-edge semiconductor production test consumables include
unique probe cards and test sockets that reduce manufacturing costs 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
September June September September 30,
30, 30, 30, --------------------
2010 2010 2009 2010 2009
--------- --------- --------- --------- ---------
Revenue $ 25,273 $ 23,439 $ 13,971 $ 68,671 $ 38,056
Cost of sales 14,850 15,120 8,478 44,543 23,927
--------- --------- --------- --------- ---------
Gross profit 10,423 8,319 5,493 24,128 14,129
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 3,038 3,041 2,095 9,545 5,906
Selling, general
and administrative 7,075 8,073 4,971 25,004 15,552
Amortization of
purchased
intangibles 200 200 144 580 435
--------- --------- --------- --------- ---------
Total operating
expenses 10,313 11,314 7,210 35,129 21,893
--------- --------- --------- --------- ---------
Income (loss)
from operations 110 (2,995) (1,717) (11,001) (7,764)
--------- --------- --------- --------- ---------
Other income
(expense):
Interest income,
net 9 13 68 54 269
Other, net (431) 542 226 23 111
--------- --------- --------- --------- ---------
Total other
income
(expense) (422) 555 294 77 380
--------- --------- --------- --------- ---------
Loss before
income taxes (312) (2,440) (1,423) (10,924) (7,384)
Income tax expense
(benefit) 41 413 (4) (318) (224)
--------- --------- --------- --------- ---------
Net loss $ (353) $ (2,853) $ (1,419) $ (10,606) $ (7,160)
========= ========= ========= ========= =========
Basic and diluted
net loss per
share $ (0.02) $ (0.20) $ (0.11) $ (0.75) $ (0.54)
Shares used in
basic and
diluted per
share
calculations 14,361 14,307 13,325 14,232 13,291
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
Assets 2010 2009
------------- -------------
Current assets:
Cash and cash equivalents $ 11,363 $ 19,471
Marketable securities 8,174 13,383
Accounts receivable, net 18,315 10,877
Inventories 21,282 16,624
Prepaid expenses and other 1,172 763
Taxes receivable 2,545 2,589
Deferred income taxes 529 13
Assets available for sale 146 -
------------- -------------
Total current assets 63,526 63,720
Long-term investments - 750
Fixed assets, net 10,565 12,010
Purchased intangible assets, net 3,346 1,858
Goodwill 1,011 -
Deferred income taxes - 220
Other assets 2,885 2,386
------------- -------------
$ 81,333 $ 80,944
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of capital leases $ 13 $ 11
Accounts payable 5,341 3,765
Deferred revenue 2,491 1,071
Accrued liabilities 5,119 2,087
------------- -------------
Total current liabilities 12,964 6,934
Capital leases, net of current portion 21 29
Deferred revenue 13 56
Deferred income taxes 708 -
Other long-term liabilities 2,775 2,540
------------- -------------
Total liabilities 16,481 9,559
------------- -------------
Stockholders' equity:
Common stock 90,409 85,719
Accumulated other comprehensive income
(loss) (588) 29
Accumulated deficit (24,969) (14,363)
------------- -------------
Total stockholders' equity 64,852 71,385
------------- -------------
$ 81,333 $ 80,944
============= =============
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