PORTLAND, OR, Oct 28 (MARKET WIRE) --
Cascade Microtech (NASDAQ: CSCD) today reported financial results for the
third quarter ended September 30, 2008.
Highlights for the Third Quarter 2008 include:
-- Revenues of $21.1 million, up 9% sequentially but down 1% from Q3 last
year.
-- $14.5 million in probe station and engineering probe revenue, up 12%
sequentially but down 8% from Q3 last year.
-- $6.6 million in probe card and socket revenue, up 3% sequentially and
up 18% over Q3 last year.
-- Loss per share was $(0.10) compared to a loss per share of $(0.14)
sequentially and loss per share of $(0.02) from Q3 last year.
-- The loss for the third quarter 2008 includes severance charges of
$490,000 related to a previously announced restructuring of the Company
along functional lines.
"During the quarter we took steps to restructure our business and
reduce our cost structure. However, in common with an emerging consensus
in the industry, we do not expect a short-term rebound in market
conditions, and our fourth quarter guidance reflects this view," said
Geoff Wild, CEO of Cascade Microtech. "During this period, we shall
continue to closely manage our expenses and conserve cash but still make
the necessary investments to position the business for a market
recovery," added Mr. Wild.
Revenue for the third quarter was $21.1 million, net loss for the quarter
was $1.3 million and loss per share was $(0.10), compared to revenue of
$19.3 million, net loss of $1.9 million and loss per share of $(0.14) for
the second quarter of 2008.
Financial Outlook
Based on the current backlog, anticipated bookings and the current malaise
in the economic environment, Cascade anticipates that fourth quarter 2008
revenues will be in the range of $15.0 million to $19.0 million and that
diluted earnings per share will be in the range of a loss of $(0.12) to
$(0.25).
In view of the current turbulent economic environment and the decline in
Cascade's stock price, the fair value of one or more of its reporting
units may have been, or may be in the future, reduced below its carrying
value. As a result, Cascade is currently conducting an analysis to
determine if there has been an impairment of goodwill and intangibles
that could result in a non-cash charge which, if necessary, would be
reflected in the company's third quarter results and reported in the
company's Quarterly Report on Form 10-Q. As of September 30, 2008, prior
to any impact from an impairment charge, Cascade's total goodwill balance
was $17.4 million and its purchased intangible asset balance was $13.2
million.
About Cascade Microtech
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,
integrated circuits (ICs), IC packages, circuit boards and modules, MEMs,
biological structures, 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. Information about
Cascade Microtech can be found on the Web at www.cascademicrotech.com.
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook
as to revenue and earnings in the fourth quarter of 2008 and the comments
by Mr. Wild 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, the results of our goodwill
and intangibles impairment analysis 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.
The company will host a conference call beginning at 5 p.m. EDT (2 p.m.
PDT) on October 28, 2008 to discuss its results for the third quarter
ended September 30, 2008 and its outlook for the fourth quarter of 2008.
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 7 p.m. EDT at this same internet address. (For a
telephone replay, dial (888) 286-8010 passcode: 57322304;
International:
617-801-6888.)
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------ September 30
September 30 June 30 September 30 -----------------
2008 2008 2007 2008 2007
--------- -------- --------- -------- --------
Sales $ 21,128 $ 19,287 $ 21,343 $ 61,174 $ 67,930
Cost of sales 12,068 10,889 11,455 33,933 36,977
--------- -------- --------- -------- --------
Gross profit 9,060 8,398 9,888 27,241 30,953
--------- -------- --------- -------- --------
Operating expenses:
Research and
development 2,308 2,826 2,723 8,040 8,482
Selling, general and
administrative 7,739 7,335 6,748 21,953 20,851
Amortization of
purchased intangibles 582 649 667 1,879 1,328
--------- -------- --------- -------- --------
Total operating
expenses 10,629 10,810 10,138 31,872 30,661
--------- -------- --------- -------- --------
Income (loss) from
operations (1,569) (2,412) (250) (4,631) 292
--------- -------- --------- -------- --------
Other income (expense):
Interest income, net 221 227 330 711 1,150
Other, net (369) (183) (101) (113) (56)
--------- -------- --------- -------- --------
Total other income
(expense), net (148) 44 229 598 1,094
--------- -------- --------- -------- --------
Income (loss) before
income taxes (1,717) (2,368) (21) (4,033) 1,386
Provision (benefit) for
income taxes (426) (510) 195 (868) 316
--------- -------- --------- -------- --------
Net income (loss) $ (1,291) $ (1,858) $ (216) $ (3,165) $ 1,070
========= ======== ========= ======== ========
Net income (loss) per
share-Basic and
Diluted
Basic $ (0.10) $ (0.14) $ (0.02) $ (0.24) $ 0.09
Diluted $ (0.10) $ (0.14) $ (0.02) $ (0.24) $ 0.08
Shares used in
computing net
income (loss) per
share:
Basic 13,108 13,046 12,799 13,047 12,447
Diluted 13,108 13,046 12,799 13,047 12,755
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2008 and December 31, 2007
September 30, December 31,
Assets 2008 2007
------------- -------------
Current assets:
Cash and cash equivalents $ 4,422 $ 4,900
Marketable securities 25,521 24,521
Accounts receivable, net 16,890 18,195
Inventories 19,494 18,608
Prepaid expenses and other 1,141 1,874
Assets held for sale 562 -
Deferred income taxes 3,071 2,729
------------- -------------
Total current assets 71,101 70,827
Long-term investments 5,039 4,836
Fixed assets, net 13,799 14,575
Goodwill 17,406 17,310
Purchased intangible assets, net 13,163 15,042
Other assets 2,820 2,691
------------- -------------
$ 123,328 $ 125,281
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt and
capital leases $ 16 $ 13
Accounts payable 4,773 5,158
Deferred revenue 905 1,102
Accrued liabilities 3,984 5,589
------------- -------------
Total current liabilities 9,678 11,862
Long-term debt and capital leases 59 51
Deferred income tax 3,064 3,114
Deferred revenue 413 481
Other long-term liabilities 2,380 2,168
------------- -------------
Total liabilities 15,594 17,676
------------- -------------
Stockholders' equity:
Common stock 83,028 79,697
Unrealized holding gain on investments 8 45
Retained earnings 24,698 27,863
------------- -------------
Total stockholders' equity 107,734 107,605
------------- -------------
$ 123,328 $ 125,281
============= =============
Contact:
Cascade Microtech, Inc.
Steven Sipowicz
Chief Financial Officer
503 601-1000
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