Exhibit 99.1
FOR MORE INFORMATION, CONTACT:
Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1000
Cascade Microtech Reports First Quarter 2010 Results
First Quarter Revenue of $20.0 million, up 29% Sequentially
BEAVERTON, Ore.—(MARKETWIRE)—May 4, 2010—Cascade Microtech (NASDAQ:CSCD), today reported financial results for the first quarter ended March 31, 2010.
Highlights from the first quarter:
| | • | | Cascade successfully closed the previously announced acquisition of SUSS MicroTec Test Division on January 27, 2010. First quarter financial results include approximately 2 months of operations of the SUSS MicroTec Test Division. |
| | • | | Revenue of $20.0 million, up 29% over Q4 of 2009 and up 74% over Q1 of 2009. |
| | • | | Book to Bill ratio was well above 1. |
| | • | | Net loss of $7.4 million or $0.53 per share for Q1 of 2010, compared to a net loss of $0.5 million or $0.04 per share for Q4 of 2009. Q1 of 2010 financial results include approximately $3.8 million in acquisition and restructuring charges. |
| | • | | Cash and investment balances decreased by $11.0 million to $22.6 million due primarily to the acquisition and increase in working capital needs to support the backlog. |
“During the first quarter, we completed our previously announced acquisition of the Suss MicroTec Test Division,” said Dr. F. Paul Carlson, Chairman and CEO of Cascade Microtech. “The integration of the acquisition is going extremely well and based on the strong bookings in the first quarter together with the strong pipeline, the merger of these two companies has been well received by our customers. Our focus continues to be on achieving further revenue growth and leveraging our earnings model to return to profitability in the second half of 2010.”
Backlog at Q1 of 2010 is significantly higher than backlog at Q4 2009. The increase in backlog was driven by the strong order flow during Q1 2010 and the backlog obtained from the acquisition.
As stated above, revenue for the first quarter of 2010 was $20.0 million, up 29% from $15.5 million in the fourth quarter of 2009 and up 74% from $11.5 million in the first quarter of 2009. Net loss for the first quarter of 2010 was $7.4 million and loss per share was $0.53, compared to a net loss of $0.5 million and loss per share of $0.04 for the fourth quarter of 2009 and a net loss of $2.1 million and loss per share of $0.31 for the first quarter of 2009.
The operating loss for the first quarter of 2010 includes approximately $3.8 million in acquisition-related and restructuring costs.
Financial Outlook
Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that second quarter 2010 revenues will be in the range of $21 million to $25 million.
The company will host a conference call beginning at 5 p.m. EDT (2 p.m. PDT) on May 4, 2010, to discuss its results for the first quarter ended March 31, 2010.
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 available after 8 p.m. EDT dial: 888-286-8010, international: 617-801-6888, passcode: 68235295)
Forward-Looking Statements
The statements in this release regarding the Company’s financial outlook as to revenue in the second quarter of 2010 and the comments by Dr. Carlson 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, difficulties or unexpected costs or delays in the integration of the operations, employees, products, sales channels, strategies, and technologies of the acquired business; the potential failure of the expected market opportunity to materialize; the potential inability to realize expected benefits and synergies; potential diversion of management’s attention from our existing business as well as that of the acquired business; potential adverse effects on relationships with our existing suppliers, customers or partners 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, Inc.
Cascade Microtech, Inc. (NasdaqGM:CSCD -News) 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. For more information visitwww.cascademicrotech.com.
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CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
| | | | | | | | | | | | |
| | | Three Months Ended | |
| | | March 31, | | | December 31, | | | March 31, | |
| | | 2010 | | | 2009 | | | 2009 | |
Revenue | | $ | 19,959 | | | $ | 15,485 | | | $ | 11,469 | |
Cost of sales | | | 14,573 | | | | 9,913 | | | | 7,614 | |
| | | | | | | | | | | | |
Gross profit | | | 5,386 | | | | 5,572 | | | | 3,855 | |
| | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Research and development | | | 3,466 | | | | 2,466 | | | | 1,993 | |
Selling, general and administrative | | | 9,856 | | | | 6,172 | | | | 5,395 | |
Amortization of purchased intangibles | | | 180 | | | | 132 | | | | 146 | |
| | | | | | | | | | | | |
Total operating expenses | | | 13,502 | | | | 8,770 | | | | 7,534 | |
| | | | | | | | | | | | |
Loss from operations | | | (8,116 | ) | | | (3,198 | ) | | | (3,679 | ) |
| | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | |
Interest income, net | | | 32 | | | | 45 | | | | 98 | |
Other, net | | | (88 | ) | | | (18 | ) | | | (555 | ) |
| | | | | | | | | | | | |
Total other income (expense) | | | (56 | ) | | | 27 | | | | (457 | ) |
| | | | | | | | | | | | |
Loss before income taxes | | | (8,172 | ) | | | (3,171 | ) | | | (4,136 | ) |
Income tax expense (benefit) | | | (772 | ) | | | (2,682 | ) | | | 29 | |
| | | | | | | | | | | | |
Net loss | | $ | (7,400 | ) | | $ | (489 | ) | | $ | (4,165 | ) |
| | | | | | | | | | | | |
Basic and diluted net loss per share | | $ | (0.53 | ) | | $ | (0.04 | ) | | $ | (0.31 | ) |
Shares used in basic and diluted per share calculations | | | 14,025 | | | | 13,405 | | | | 13,240 | |
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| | | | | | | | |
| | | March 31,
2010 | | | December 31,
2009 | |
| Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 10,761 | | | $ | 19,471 | |
Marketable securities | | | 11,885 | | | | 13,383 | |
Accounts receivable, net | | | 13,409 | | | | 10,877 | |
Inventories | | | 22,498 | | | | 16,624 | |
Prepaid expenses and other | | | 1,400 | | | | 763 | |
Income taxes receivable | | | 3,114 | | | | 2,589 | |
Deferred income taxes | | | 528 | | | | 13 | |
| | | | | | | | |
Total current assets | | | 63,595 | | | | 63,720 | |
| | |
Long-term investments | | | — | | | | 750 | |
Fixed assets, net | | | 11,895 | | | | 12,010 | |
Purchased intangible assets, net | | | 3,757 | | | | 1,858 | |
Goodwill | | | 1,035 | | | | — | |
Deferred income taxes | | | — | | | | 220 | |
Other assets | | | 3,201 | | | | 2,386 | |
| | | | | | | | |
| | $ | 83,483 | | | $ | 80,944 | |
| | | | | | | | |
| | |
| Liabilities and Stockholders’ Equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of capital leases | | $ | 11 | | | $ | 11 | |
Accounts payable | | | 5,479 | | | | 3,765 | |
Deferred revenue | | | 1,348 | | | | 1,071 | |
Accrued liabilities | | | 5,980 | | | | 2,087 | |
| | | | | | | | |
Total current liabilities | | | 12,818 | | | | 6,934 | |
| | |
Capital leases, net of current portion | | | 26 | | | | 29 | |
Deferred revenue | | | 27 | | | | 56 | |
Deferred income taxes | | | 726 | | | | — | |
Other long-term liabilities | | | 2,856 | | | | 2,540 | |
| | | | | | | | |
Total liabilities | | | 16,453 | | | | 9,559 | |
| | | | | | | | |
| | |
Stockholders’ equity: | | | | | | | | |
Common stock | | | 89,385 | | | | 85,719 | |
Other comprehensive (expense) income | | | (592 | ) | | | 29 | |
Accumulated deficit | | | (21,763 | ) | | | (14,363 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 67,030 | | | | 71,385 | |
| | | | | | | | |
| | $ | 83,483 | | | $ | 80,944 | |
| | | | | | | | |
