Exhibit 99.1
FOR MORE INFORMATION, CONTACT:
Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1000
Cascade Microtech Reports Third Quarter 2010 Results
Third Quarter Revenue of $25.3 Million – All Time Company Record;
Return to Positive Operating Income
BEAVERTON, Ore.—(MARKETWIRE)—November 2, 2010—Cascade Microtech (NASDAQ:CSCD) today reported financial results for the third quarter ended September 30, 2010.
Highlights from the third quarter:
| • | Revenue of $25.3 million, up 7.8% over Q2 2010 and up 80.9% over Q3 2009. |
| – | Revenue growth driven by Systems products in the high power and high brightness LED markets |
| • | Gross margin of 41.2%, up from 35.5% in Q2 2010 and 39.3% in Q3 2009. |
| – | Both product segments generated gross margins in excess of 40% in Q3 2010. |
| • | Income from operations of $0.1 million, up $3.1 million over Q2 2010 and $1.8 million over Q3 2009. |
| – | First quarter of operating profit since Q2 2007. |
| • | Net loss of $0.4 million or $0.02 per share for Q3 2010, compared to a net loss of $2.9 million or $0.20 per share for Q2 2010, and a net loss of $1.4 million or $0.11 per share for Q3 2009. |
| – | Q3 2010 financial results include approximately $0.1 million of acquisition charges related to the acquisition of the SUSS Microtech Test Division on January 27, 2010. Q2 2010 results include approximately $0.6M in acquisition and restructuring charges. |
| • | Book to Bill ratio of .91 for Q3 of 2010. |
“Cascade’s continued revenue growth and return to operating profitability in Q3 of 2010 is a strong testimonial to the value of Cascade’s enhanced product portfolio, our core competencies, and our ability to integrate the Systems business rapidly and efficiently,” said Michael Burger, president and CEO of Cascade Microtech. “In our probe and sockets segment, during Q3 of 2010 our gross margins improved and we announced value added products and services to our customers. Additionally, in Q4 of 2010 we have evaluated our facility requirements to support our businesses and have initiated plans to consolidate the two System manufacturing sites, combine our Production Probe and Engineering Probe manufacturing areas, and close two sales and service offices in the US. These facility plans are scheduled to be completed in 2011, while supporting our growing businesses. These changes are important to Cascade as we continue to invest in key technologies and markets, while creating an efficient cost base. In summary, the improvements in Q3 reflect the speed and commitment to deliver strong financial results. We remain focused on the execution of our plan to provide increased value to our customers and improving profitability for our shareholders.”
Financial Outlook
Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that fourth quarter 2010 revenues will be in the range of $24.0 million to $27.0 million.
The company will host a conference call beginning at 2 p.m. PDT (5 p.m. EDT) on November 2, 2010, to discuss its results for the third quarter ended September 30, 2010.
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 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: 60717658).
Forward-Looking Statements
The statements in this release regarding the Company’s financial outlook as to revenue in the fourth quarter of 2010 and the comments by Mr. Burger 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, ICs, IC packages, circuit boards and modules, MEMS, 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 | ||||||||||||||||||||
| September 30, 2010 | June 30, 2010 | September 30, 2009 | Year to Date Ended September 30, | |||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||
Revenue | $ | 25,273 | $ | 23,439 | $ | 13,971 | $ | 68,671 | $ | 38,056 | ||||||||||
Cost of sales | 14,850 | 15,120 | 8,478 | 44,543 | 23,927 | |||||||||||||||
Gross profit | 10,423 | 8,319 | 5,493 | 24,128 | 14,129 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 3,038 | 3,041 | 2,095 | 9,545 | 5,906 | |||||||||||||||
Selling, general and administrative | 7,075 | 8,073 | 4,971 | 25,004 | 15,552 | |||||||||||||||
Amortization of purchased intangibles | 200 | 200 | 144 | 580 | 435 | |||||||||||||||
Total operating expenses | 10,313 | 11,314 | 7,210 | 35,129 | 21,893 | |||||||||||||||
Income (loss) from operations | 110 | (2,995 | ) | (1,717 | ) | (11,001 | ) | (7,764 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||||
Interest income, net | 9 | 13 | 68 | 54 | 269 | |||||||||||||||
Other, net | (431 | ) | 542 | 226 | 23 | 111 | ||||||||||||||
Total other income (expense) | (422 | ) | 555 | 294 | 77 | 380 | ||||||||||||||
Loss before income taxes | (312 | ) | (2,440 | ) | (1,423 | ) | (10,924 | ) | (7,384 | ) | ||||||||||
Income tax expense (benefit) | 41 | 413 | (4 | ) | (318 | ) | (224 | ) | ||||||||||||
Net loss | $ | (353 | ) | $ | (2,853 | ) | $ | (1,419 | ) | $ | (10,606 | ) | $ | (7,160 | ) | |||||
Basic and diluted net loss per share | $ | (0.02 | ) | $ | (0.20 | ) | $ | (0.11 | ) | $ | (0.75 | ) | $ | (0.54 | ) | |||||
Shares used in basic and diluted per share calculations | 14,361 | 14,307 | 13,325 | 14,232 | 13,291 | |||||||||||||||
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| September 30, 2010 | December 31, 2009 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,363 | $ | 19,471 | ||||
Marketable securities | 8,174 | 13,383 | ||||||
Accounts receivable, net | 18,315 | 10,877 | ||||||
Inventories | 21,282 | 16,624 | ||||||
Prepaid expenses and other | 1,172 | 763 | ||||||
Taxes receivable | 2,545 | 2,589 | ||||||
Deferred income taxes | 529 | 13 | ||||||
Assets available for sale | 146 | — | ||||||
Total current assets | 63,526 | 63,720 | ||||||
Long-term investments | — | 750 | ||||||
Fixed assets, net | 10,565 | 12,010 | ||||||
Purchased intangible assets, net | 3,346 | 1,858 | ||||||
Goodwill | 1,011 | — | ||||||
Deferred income taxes | — | 220 | ||||||
Other assets | 2,885 | 2,386 | ||||||
| $ | 81,333 | $ | 80,944 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of capital leases | $ | 13 | $ | 11 | ||||
Accounts payable | 5,341 | 3,765 | ||||||
Deferred revenue | 2,491 | 1,071 | ||||||
Accrued liabilities | 5,119 | 2,087 | ||||||
Total current liabilities | 12,964 | 6,934 | ||||||
Capital leases, net of current portion | 21 | 29 | ||||||
Deferred revenue | 13 | 56 | ||||||
Deferred income taxes | 708 | — | ||||||
Other long-term liabilities | 2,775 | 2,540 | ||||||
Total liabilities | 16,481 | 9,559 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 90,409 | 85,719 | ||||||
Accumulated other comprehensive income (loss) | (588 | ) | 29 | |||||
Accumulated deficit | (24,969 | ) | (14,363 | ) | ||||
Total stockholders’ equity | 64,852 | 71,385 | ||||||
| $ | 81,333 | $ | 80,944 | |||||