Cascade Microtech (CSCD) 8-K Cascade Microtech Reports First Quarter 2009 Results

Exhibit 99.1

Contact: Cascade Microtech, Inc.

Steven Sipowicz,

Chief Financial Officer

503 601-1000

Cascade Microtech Reports First Quarter 2009 Results

Revenue of $11.5 million, Down 25 % from Q4 2008 and Down 45% from Q1 2008

PORTLAND, Ore.—(MARKET WIRE)—April 28, 2009—Cascade Microtech (NasdaqGM:CSCD-News), today reported financial results for the first quarter ended March 31, 2009.

First quarter results include:

• Revenue of $11.5 million, down 25% sequentially and down 45% from Q108

• Net loss of $4.2 million or $0.31 per share for Q109, compared to a net loss of $31.4 million or $2.39 per share in Q408, which included a $27.7 million impairment charge

• Cash and investment balances were lower by $1.6 million from Q408 to $33.4 million

“As expected, the first quarter of 2009 was a difficult quarter for Cascade and the semiconductor markets overall. Revenue and bookings declined during the first quarter but the effects of our cost savings initiatives have mitigated the effect on our cash balances,” said Geoff Wild, CEO of Cascade Microtech. “We are aware that bookings in the market place seem to be improving, particularly in probes and sockets, which would lead us to believe that first quarter bookings may have been a trough and should improve over the remainder of 2009,” added Mr. Wild.

Financial Outlook

Based on the current backlog and anticipated bookings, Cascade anticipates that second quarter 2009 revenues will be in the range of $11 million to $14 million. The Company suspended earnings per share guidance in the fourth quarter of 2008 in view of the uncertainty of the mix of revenue and the potential range of outcomes.

The company will host a conference call beginning at 5 p.m. EDT (2 p.m. PDT) on April 28, 2009, to discuss its results for the first quarter of 2009.

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 8 p.m. EDT at this same internet address. (For a telephone replay, dial (888) 286-8010 passcode: 82068759; International: 617-801-6888.)

Forward-Looking Statements

The statements in this release, specifically the comments above made by Mr. Wild and 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 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

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 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.

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	March 31, 2009			December 31, 2008
Assets
Current assets:
Cash and cash equivalents	$	4,512		$	3,750
Marketable securities		25,694			28,795
Accounts receivable, net		11,093			12,801
Inventories		19,303			19,079
Prepaid expenses and other		856			1,367
Income taxes receivable		990			1,003
Deferred income taxes		92			99
Assets held for sale		—			400
Total current assets		62,540			67,294
Long-term investments		3,235			2,465
Fixed assets, net		14,021			13,580
Purchased intangible assets, net		2,279			2,425
Deferred income taxes		257			237
Other assets		2,535			2,455
	$	84,867		$	88,456
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt and capital leases	$	18		$	19
Accounts payable		4,625			4,110
Deferred revenue		1,500			1,120
Accrued liabilities		2,838			3,776
Total current liabilities		8,981			9,025
Long-term debt and capital leases		53			62
Deferred revenue		265			313
Other long-term liabilities		2,407			2,356
Total liabilities		11,706			11,756
Stockholders’ equity:
Common stock		83,955			83,345
Unrealized holding gain on investments		85			69
Accumulated deficit		(10,879	)		(6,714	)
Total stockholders’ equity		73,161			76,700
	$	84,867		$	88,456

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	March 31, 2009			December 31, 2008			March 31, 2008
Sales	$	11,469		$	15,387		$	20,759
Cost of sales		7,614			10,544			10,976
Gross profit		3,855			4,843			9,783
Operating expenses:
Research and development		1,993			2,433			2,906
Selling, general and administrative		5,395			7,341			6,879
Amortization of purchased intangibles		146			582			648
Impairment charges		—			27,701			—
Total operating expenses		7,534			38,057			10,433
Loss from operations		(3,679	)		(33,214	)		(650	)
Other income (expense):
Interest income, net		98			151			263
Other, net		(555	)		272			439
Total other income (expense)		(457	)		423			702
Income (loss) before income taxes		(4,136	)		(32,791	)		52
Provision (benefit) for income taxes		29			(1,379	)		68
Net loss	$	(4,165	)	$	(31,412	)	$	(16	)
Basic and diluted net loss per share	$	(0.31	)	$	(2.39	)	$	—
Shares used in basic and diluted per share calculations		13,240			13,142			12,985