Cascade Microtech (CSCD) 8-K Cascade Microtech Reports Fourth Quarter and 2007 Year End Results

Exhibit 99.1

Cascade Microtech Reports Fourth Quarter and 2007 Year End Results

Record Annual Revenue of $89.9 million, Up 6 % over 2006 and Diluted EPS of $0.07

Fourth Quarter Revenue of $22.0 million, Up 3% from Q3 of 2007 and Loss per share of $0.01

PORTLAND, Ore.—(BUSINESS WIRE)—February 12, 2008—Cascade Microtech (NASDAQ:CSCD), today reported financial results for the fourth quarter and year ended December 31, 2007.

Highlights for the fourth quarter include:

• Revenue of $22.0 million, up 3% over Q3 of 2007

• $15.5 million Engineering Products division revenue, down 1% from Q3 of 2007

• $6.5 million Production Products division revenue, up 15% over Q3 of 2007

• Loss per share of $0.01 compared to a Loss per share of $0.02 for Q3 of 2007

“Overall revenue grew in the fourth quarter of 2007 due to increased bookings and shipments in our Pyramid Products Group. Revenue in our Engineering Products Division was slightly lower sequentially,” said Geoff Wild, CEO of Cascade Microtech. “We have seen some improvement in bookings in both divisions in the fourth quarter compared to the third quarter but we continue to be cautious about market conditions in the first half of 2008,” added Mr. Wild.

Revenue for the fourth quarter was $22.0 million, a decrease of 3% over $22.6 million in the fourth quarter of 2006. Net loss for the fourth quarter was $140,000 and loss per share was $0.01, compared to net income of $926,000 and diluted earnings per share of $0.08 for the fourth quarter of 2006.

Financial Outlook

Based on the current backlog and anticipated bookings, Cascade anticipates that first quarter 2008 revenues will be in the range of $20.0 million to $22.0 million; and that earnings per share will be in the range of a loss of $0.02 to diluted earnings per share of $0.02, subject to any change in the provision for income taxes.

Conference Call

The company will host a conference call beginning at 5 p.m. EST (2 p.m. PST) on February 12, 2008, to discuss its results for the fourth quarter and year ended December 31, 2007.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page ofwww.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: 52474851; International: 617-801-6888.)

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 in the paragraph above captioned “Financial Outlook” 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 integration of our acquisitions, a material assessment by a tax authority 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.

Contact: Cascade Microtech, Inc. Steven Sipowicz, Chief Financial Officer, 503 601-1000

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended									Year to Date Ended December 31,
	December 31, 2007			September 30, 2007			December 31, 2006			2007			2006
Sales	$	21,992		$	21,343		$	22,605		$	89,922		$	84,852
Cost of sales		11,741			11,355			12,679			48,369			47,367
Stock-based compensation		83			100			111			432			443
Gross profit		10,168			9,888			9,815			41,121			37,042
Operating expenses:
Research and development (includes $107, $86, $75, $361, $305 respectively, of stock-based compensation)		2,759			2,723			2,570			11,241			8,949
Selling, general and administrative (includes $399, $385, $280, $1,553, $1,134 respectively, of stock-based compensation)		6,872			6,748			6,780			27,723			24,819
Amortization of purchased intangibles		649			667			130			1,977			130
Total operating expenses		10,280			10,138			9,480			40,941			33,898
Income (loss) from operations		(112	)		(250	)		335			180			3,144
Other income (expense):
Interest income		306			330			420			1,457			1,615
Interest expense		(1	)		—			(1	)		(2	)		(1	)
Other, net		(63	)		(101	)		28			(119	)		347
Total other income (expense)		242			229			447			1,336			1,961
Income (loss) before income taxes		130			(21	)		782			1,516			5,105
Provision (benefit) for income taxes		270			195			(144	)		586			1,495
Net income (loss)	$	(140	)	$	(216	)	$	926		$	930		$	3,610
Net income per share:
Basic	$	(0.01	)	$	(0.02	)	$	0.08		$	0.07		$	0.31
Diluted	$	(0.01	)	$	(0.02	)	$	0.08		$	0.07		$	0.30
Shares used in computing net income per share:
Basic		12,855			12,799			11,664			12,550			11,482
Diluted		12,855			12,799			12,084			12,840			11,959

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	December 31, 2007		September 30, 2007		December 31, 2006
Assets
Current assets:
Cash and cash equivalents	$	4,900	$	2,780	$	5,260
Marketable securities		24,521		29,428		38,534
Accounts receivable, net		18,195		18,494		17,642
Inventories		18,608		17,316		15,094
Prepaid expenses and other		1,874		2,514		2,055
Deferred income taxes		2,729		2,236		2,042
Total current assets		70,827		72,768		80,627
Long-term investments		4,836		3,598		9,662
Fixed assets, net		14,575		14,365		6,818
Deferred income tax		—		—		682
Goodwill		17,310		16,225		1,295
Purchased intangible assets, net		15,042		15,690		2,610
Other assets		2,691		2,504		2,092
	$	125,281	$	125,150	$	103,786
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt and capital leases	$	13	$	6		—
Accounts payable		5,158		6,647		6,013
Deferred revenue		1,102		531		1,184
Accrued liabilities		5,589		4,529		5,026
Total current liabilities		11,862		11,713		12,223
Long-term debt and capital leases		51		24		—
Deferred income tax		3,114		3,839		—
Deferred revenue		481		589		199
Other long-term liabilities		2,168		1,977		1,171
Total liabilities		17,676		18,142		13,593
Stockholders’ equity:
Common stock		79,697		78,986		63,261
Unrealized holding gain (loss) on investments		45		19		(1	)
Retained earnings		27,863		28,003		26,933
Total stockholders’ equity		107,605		107,008		90,193
	$	125,281	$	125,150	$	103,786