Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial
results for the third quarter ended September 30, 2012.
Financial summary from the third
quarter:
Operating results for the quarter ended September 30, 2012 were
as follows:
- Quarterly revenue of $27.4 million.
- Compared to the same quarter of 2011, revenue increased 15%,
with growth posted in all product lines.
- Compared to Q2 2012, revenue was down less than 1%.
- Probes segment set an all time quarterly record of $10.0
million in Q3 2012.
- Gross margin of 45%, compared to 46% in Q2 2012, down slightly
due to product mix.
- Probes segment gross margin of 55% was similar to the prior
quarter.
- Systems segment gross margin declined from 41% in Q2 2012 to
39% in Q3 2012.
- Operating expenses were similar to Q2 2012 at $10.5 million.
- Research and development expenses increased by $0.3 million.
Increased new product development expenses were offset by $0.2
million of government research grants.
- Selling, general and administrative expenses decreased by $0.4
million due primarily to lower selling costs, stock-based
compensation expenses and amortization.
- Income from operations of $1.8 million, a decrease of $0.5
million from Q2 2012.
- Depreciation, amortization and stock-based compensation
expenses for Q3 2012 totaled $1.4 million.
- Net income of $1.5 million, or $0.10 per diluted share.
- Book-to-bill ratio as of September 30, 2012 of .9 to 1.
- Cash and investments increased $4.2 million from Q2 2012 and
totaled $24.1 million due to continued income from operations and
working capital changes.
"Cascade Microtech posted continued good financial results in
the third quarter of 2012 with revenue in-line with guidance, and
earnings per share at the top end of our guidance at $0.10. This
level of profitability was achieved after we increased our
investments in R&D for our new product development, and we are
on track to announce our third new product, with prototyping
planned for completion in the fourth quarter. 2012 has shown a
marked improvement over 2011 for Cascade Microtech, and we expect
this to continue through Q4," said Michael Burger, President and
CEO.
Financial outlook
For the fourth quarter of 2012, revenue is expected to be in the
range of $27.0 million to $30.0 million. GAAP earnings per share
guidance is being raised from the previous quarter and is expected
to be in the range of $0.08 to $0.12 on a fully-diluted basis,
assuming no significant one-time charges or changes in foreign
currency rates. The EPS guidance includes continued investments in
new product development costs including the prototyping of new
systems, as previously announced.
The company will host a conference call beginning at 2:00 p.m.
PDT (5:00 p.m. EDT) on Tuesday, October 30, 2012, to discuss its
results for the quarter ended September 30, 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 866-783-2138 or international
857-350-1597, participant Passcode: 53057327. 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: 37205971).
Forward-Looking Statements
The statements in this release regarding the Company's financial
outlook as to anticipated revenue and earnings per share for the
fourth quarter of 2012, our planned new product announcement in the
fourth quarter, and our continued improvement through Q4 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
---------------------------------
September June September Year to Date Ended
30, 30, 30, September 30,
---------------------
2012 2012 2011 2012 2011
--------- --------- --------- --------- ---------
Revenue $ 27,414 $ 27,638 $ 23,750 $ 82,595 $ 77,312
Cost of sales 15,210 14,897 14,942 45,699 47,599
--------- --------- --------- --------- ---------
Gross profit 12,204 12,741 8,808 36,896 29,713
Operating
expenses:
Research and
development 2,778 2,438 3,175 7,995 8,937
Selling,
general and
administrative 7,675 8,042 9,648 23,628 26,081
--------- --------- --------- --------- ---------
10,453 10,480 12,823 31,623 35,018
--------- --------- --------- --------- ---------
Income (loss)
from operations 1,751 2,261 (4,015) 5,273 (5,305)
Other income
(expense):
Interest
income, net 7 9 20 26 51
Other, net (109) (45) 435 (561) 251
--------- --------- --------- --------- ---------
(102) (36) 455 (535) 302
--------- --------- --------- --------- ---------
Income (loss) from
continuing
operations before
income taxes 1,649 2,225 (3,560) 4,738 (5,003)
Income tax
expense
(benefit) 153 52 (9) 329 239
--------- --------- --------- --------- ---------
Net income
(loss) from
continuing
operations 1,496 2,173 (3,551) 4,409 (5,242)
Loss from
discontinued
operations - - (1,777) - (2,004)
--------- --------- --------- --------- ---------
Net income
(loss) $ 1,496 $ 2,173 $ (5,328) $ 4,409 $ (7,246)
========= ========= ========= ========= =========
Basic net income
(loss) per
share:
Continuing
operations 0.11 0.15 (0.24) 0.31 (0.36)
Discontinued
operations - - (0.12) - (0.14)
--------- --------- --------- --------- ---------
$ 0.11 $ 0.15 $ (0.36) $ 0.31 $ (0.50)
========= ========= ========= ========= =========
Diluted net
income (loss)
per share:
Continuing
operations 0.10 0.15 (0.24) 0.31 (0.36)
Discontinued
operations - - (0.12) - (0.14)
--------- --------- --------- --------- ---------
$ 0.10 $ 0.15 $ (0.36) $ 0.31 $ (0.50)
========= ========= ========= ========= =========
Shares used in
computing net
income (loss)
per share:
Basic 14,162 14,158 14,713 14,169 14,618
Diluted 14,377 14,350 14,713 14,359 14,618
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
Assets 2012 2011
------------------------------------------ -------------- --------------
Current assets:
Cash and cash equivalents $ 19,450 $ 10,656
Marketable securities 3,521 2,656
Restricted cash 1,087 1,470
Accounts receivable, net 18,309 23,882
Inventories 26,345 23,607
Prepaid expenses and other 2,357 4,086
-------------- --------------
Total current assets 71,069 66,357
Long-term investments - 1,834
Fixed assets, net 8,506 9,003
Purchased intangible assets, net 1,766 2,329
Goodwill 964 971
Other assets 2,232 2,570
-------------- --------------
$ 84,537 $ 83,064
============== ==============
Liabilities and Shareholders' Equity
------------------------------------------
Current liabilities:
Accounts payable 6,726 6,033
Deferred revenue 3,618 5,516
Accrued liabilities 6,792 7,745
-------------- --------------
Total current liabilities 17,136 19,294
Deferred revenue 408 225
Other long-term liabilities 3,301 4,248
-------------- --------------
Total liabilities 20,845 23,767
-------------- --------------
Shareholders' equity:
Common stock 90,963 90,853
Accumulated other comprehensive loss (1,176) (1,052)
Accumulated deficit (26,095) (30,504)
-------------- --------------
Total shareholders' equity 63,692 59,297
-------------- --------------
$ 84,537 $ 83,064
============== ==============
FOR MORE INFORMATION, CONTACT: Jeff A. Killian Cascade
Microtech, Inc. (503) 601-1280