Exhibit 99.1
Press Release
Cascade Microtech Reports Continued Revenue Growth and Record Earnings in First Quarter 2005 Results
Quarterly revenues of $18.7 million, Up 35% over the prior year and EPS of $0.21
PORTLAND, Ore.—(BUSINESS WIRE)—April 26, 2005—Cascade Microtech (NASDAQ:CSCD), today reported financial results for the first quarter ended March 31, 2005.
Highlights for the first quarter include:
• Revenues of $18.7 million, up 1% sequentially and 35% year over year
• Increased gross margin to 49.1% compared with 47.0% in the prior quarter and 42.5% in the first quarter of 2004
• EPS of $0.21 per diluted share compared to $0.19 for the prior quarter and $0.05 for the first quarter of 2004
• Cash and investments of $47.8 million
“We are pleased to report strong revenue growth and record earnings for our first quarter of 2005,” said Eric Strid, CEO of Cascade Microtech. “We experienced stronger growth than expected in the first quarter. The Engineering Products Division had year over year revenue growth of 31% and our Production Probe Card Division achieved a year over year growth of 86%. We believe we continue to gain market share in our 300-mm engineering probe stations and our advanced logic probe cards.”
Revenue for the first quarter was $18.7 million, an increase of 35% over $13.8 million in the first quarter of the prior year. Net income for the first quarter was $2.5 million and diluted earnings per share were $0.21, compared to net income of $0.3 million and diluted earnings per share of $0.05 for the first quarter of 2004.
Gross margin for the first quarter increased to 49.1%, up from 47.0% sequentially and from 42.5% in the first quarter of 2004.
At March 31, 2005, the Company had cash and investments of $47.8 million.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that second quarter 2005 revenues will be in the range of $17.5 million to $18.8 million compared to $15.1 million in the second quarter of 2004 and that diluted earnings per share will be in the range of $0.11 to $0.15 on 11.7 million shares compared to $0.15 on 8.3 million shares in the second quarter of 2004.
About Cascade Microtech
Cascade Microtech, Inc. is a worldwide leader in the design, development and manufacture of advanced wafer probing solutions for the precise electrical measurement and test of semiconductor integrated circuits. The Company’s probing solutions enable high speed testing of high-performance semiconductors during both the design and manufacturing phases of semiconductor production. Many of the world’s leading semiconductor manufacturers use our technology. For more information visit the Company’s website at www.cascademicrotech.com.
Forward-Looking Statements
The statements in this release regarding the Company’s financial outlook as to revenue and diluted earnings per share in the second quarter of 2005 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 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 raters 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. EST (2 p.m. PST) on April 26, 2005 to discuss its results for the first quarter ended March 31, 2005.
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. EST at this same internet address. (For a telephone replay, dial (888) 286-8010 passcode: 35855162)
Contact: | Cascade Microtech, Inc. |
| Steven Sipowicz, Chief Financial Officer, 503 601-1000 |
| Ellen Payne, Marketing, 503 601-1000 |
Cascade Microtech, Inc.
Consolidated Balance Sheets
(In thousands, except share per value)
| | March 31, | | December 31, | |
| | 2005 | | 2004 | |
| | (Unaudited) | | | |
Assets | | | | | |
Current Assets: | | | | | |
Cash and cash equivalents | | $ | 1,311 | | $ | 2,033 | |
Short-term marketable securities | | 42,182 | | 41,714 | |
Accounts receivable, net | | 14,905 | | 13,640 | |
Inventories, net | | 10,828 | | 10,180 | |
Prepaid expenses and other | | 2,005 | | 1,579 | |
Deferred income taxes | | 1,776 | | 1,552 | |
Total Current Assets | | 73,007 | | 70,698 | |
| | | | | |
Long-term marketable securities | | 4,303 | | 2,779 | |
Fixed assets, net | | 3,786 | | 4,008 | |
Deferred income taxes | | 229 | | 65 | |
Other assets, net | | 1,533 | | 1,466 | |
Total Assets | | $ | 82,858 | | $ | 79,016 | |
| | | | | |
Liabilities and Shareholders’ Equity | | | | | |
Current Liabilities: | | | | | |
Current portion of long-term debt and capital leases | | $ | 20 | | $ | 21 | |
Accounts payable | | 4,270 | | 3,951 | |
Deferred revenue | | 578 | | 579 | |
Accrued liabilities | | 3,813 | | 2,609 | |
Total Current Liabilities | | 8,681 | | 7,160 | |
| | | | | |
Long-term debt and capital leases | | 8 | | 14 | |
Deferred revenue | | 307 | | 282 | |
Other long-term liabilities | | 1,275 | | 1,372 | |
Total Liabilities | | 10,271 | | 8,828 | |
| | | | | |
Shareholders’ Equity: | | | | | |
Common stock | | 109 | | 109 | |
Additional paid-in capital | | 55,324 | | 55,402 | |
Deferred stock-based compensation | | (269 | ) | (310 | ) |
Unrealized holding (losses) on investments | | (76 | ) | (17 | ) |
Retained earnings | | 17,499 | | 15,004 | |
Total Shareholders’ Equity | | 72,587 | | 70,188 | |
Total Liabilities and Shareholders’ Equity | | $ | 82,858 | | $ | 79,016 | |
See accompanying Notes to Consolidated Financial Statements.
Cascade Microtech, Inc.
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
| | For the Quarter Ended March 31, | |
| | 2005 | | 2004 | |
| | | | | |
Revenue | | $ | 18,661 | | $ | 13,834 | |
| | | | | |
Cost of sales | | 9,490 | | 7,935 | |
Deferrred stock-based compensation | | 12 | | 19 | |
Gross profit | | 9,159 | | 5,880 | |
| | | | | |
Operating expenses: | | | | | |
Research and development | | 1,639 | | 1,389 | |
Selling, general and administrative | | 4,599 | | 3,787 | |
Deferred stock compensation | | 29 | | 101 | |
| | 6,267 | | 5,277 | |
| | | | | |
Income from operations | | 2,892 | | 603 | |
| | | | | |
Other income (expense): | | | | | |
Interest income | | 212 | | 26 | |
Interest expense | | (16 | ) | (131 | ) |
Other, net | | 24 | | 171 | |
| | 220 | | 66 | |
| | | | | |
Income before income taxes | | 3,112 | | 669 | |
Provision for income taxes | | 617 | | 296 | |
Net income | | 2,495 | | 373 | |
Accretion of redeemable stock and loss on redemption | | — | | 38 | |
Net income attributed to common shareholders | | $ | 2,495 | | $ | 335 | |
| | | | | |
Basic net income per share attributed to common shareholders | | $ | 0.23 | | $ | 0.07 | |
| | | | | |
Diluted net income per share attributed to common shareholders | | $ | 0.21 | | $ | 0.05 | |
| | | | | |
Shares used in per share calculations: | | | | | |
Basic | | 10,864 | | 5,138 | |
Diluted | | 11,703 | | 8,254 | |
See accompanying Notes to Consolidated Financial Statements.
