SOURCE: Cascade Microtech
Cascade Microtech Reports Third Quarter 2008 Results
Revenues of $21.1 Million, Up 9% Sequentially and Loss per Share of 10 Cents
PORTLAND, OR--(Marketwire - October 28, 2008) - Cascade Microtech (
Highlights for the Third Quarter 2008 include:
-- Revenues of $21.1 million, up 9% sequentially but down 1% from Q3 last
year.
-- $14.5 million in probe station and engineering probe revenue, up 12%
sequentially but down 8% from Q3 last year.
-- $6.6 million in probe card and socket revenue, up 3% sequentially and
up 18% over Q3 last year.
-- Loss per share was $(0.10) compared to a loss per share of $(0.14)
sequentially and loss per share of $(0.02) from Q3 last year.
-- The loss for the third quarter 2008 includes severance charges of
$490,000 related to a previously announced restructuring of the Company
along functional lines.
"During the quarter we took steps to restructure our business and reduce our cost structure. However, in common with an emerging consensus in the industry, we do not expect a short-term rebound in market conditions, and our fourth quarter guidance reflects this view," said Geoff Wild, CEO of Cascade Microtech. "During this period, we shall continue to closely manage our expenses and conserve cash but still make the necessary investments to position the business for a market recovery," added Mr. Wild.
Revenue for the third quarter was $21.1 million, net loss for the quarter was $1.3 million and loss per share was $(0.10), compared to revenue of $19.3 million, net loss of $1.9 million and loss per share of $(0.14) for the second quarter of 2008.
Financial Outlook
Based on the current backlog, anticipated bookings and the current malaise in the economic environment, Cascade anticipates that fourth quarter 2008 revenues will be in the range of $15.0 million to $19.0 million and that diluted earnings per share will be in the range of a loss of $(0.12) to $(0.25).
In view of the current turbulent economic environment and the decline in Cascade's stock price, the fair value of one or more of its reporting units may have been, or may be in the future, reduced below its carrying value. As a result, Cascade is currently conducting an analysis to determine if there has been an impairment of goodwill and intangibles that could result in a non-cash charge which, if necessary, would be reflected in the company's third quarter results and reported in the company's Quarterly Report on Form 10-Q. As of September 30, 2008, prior to any impact from an impairment charge, Cascade's total goodwill balance was $17.4 million and its purchased intangible asset balance was $13.2 million.
About Cascade Microtech
Cascade Microtech, Inc. (
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook as to revenue and earnings in the fourth quarter of 2008 and the comments by Mr. Wild 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 results of our goodwill and intangibles impairment analysis 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.
The company will host a conference call beginning at 5 p.m. EDT (2 p.m. PDT) on October 28, 2008 to discuss its results for the third quarter ended September 30, 2008 and its outlook for the fourth quarter of 2008.
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. EDT at this same internet address. (For a telephone replay, dial (888) 286-8010 passcode: 57322304; International: 617-801-6888.)
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------ September 30
September 30 June 30 September 30 -----------------
2008 2008 2007 2008 2007
--------- -------- --------- -------- --------
Sales $ 21,128 $ 19,287 $ 21,343 $ 61,174 $ 67,930
Cost of sales 12,068 10,889 11,455 33,933 36,977
--------- -------- --------- -------- --------
Gross profit 9,060 8,398 9,888 27,241 30,953
--------- -------- --------- -------- --------
Operating expenses:
Research and
development 2,308 2,826 2,723 8,040 8,482
Selling, general and
administrative 7,739 7,335 6,748 21,953 20,851
Amortization of
purchased intangibles 582 649 667 1,879 1,328
--------- -------- --------- -------- --------
Total operating
expenses 10,629 10,810 10,138 31,872 30,661
--------- -------- --------- -------- --------
Income (loss) from
operations (1,569) (2,412) (250) (4,631) 292
--------- -------- --------- -------- --------
Other income (expense):
Interest income, net 221 227 330 711 1,150
Other, net (369) (183) (101) (113) (56)
--------- -------- --------- -------- --------
Total other income
(expense), net (148) 44 229 598 1,094
--------- -------- --------- -------- --------
Income (loss) before
income taxes (1,717) (2,368) (21) (4,033) 1,386
Provision (benefit) for
income taxes (426) (510) 195 (868) 316
--------- -------- --------- -------- --------
Net income (loss) $ (1,291) $ (1,858) $ (216) $ (3,165) $ 1,070
========= ======== ========= ======== ========
Net income (loss) per
share-Basic and
Diluted
Basic $ (0.10) $ (0.14) $ (0.02) $ (0.24) $ 0.09
Diluted $ (0.10) $ (0.14) $ (0.02) $ (0.24) $ 0.08
Shares used in
computing net
income (loss) per
share:
Basic 13,108 13,046 12,799 13,047 12,447
Diluted 13,108 13,046 12,799 13,047 12,755
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited, in thousands)
September 30, 2008 and December 31, 2007
September 30, December 31,
Assets 2008 2007
------------- -------------
Current assets:
Cash and cash equivalents $ 4,422 $ 4,900
Marketable securities 25,521 24,521
Accounts receivable, net 16,890 18,195
Inventories 19,494 18,608
Prepaid expenses and other 1,141 1,874
Assets held for sale 562 -
Deferred income taxes 3,071 2,729
------------- -------------
Total current assets 71,101 70,827
Long-term investments 5,039 4,836
Fixed assets, net 13,799 14,575
Goodwill 17,406 17,310
Purchased intangible assets, net 13,163 15,042
Other assets 2,820 2,691
------------- -------------
$ 123,328 $ 125,281
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt and
capital leases $ 16 $ 13
Accounts payable 4,773 5,158
Deferred revenue 905 1,102
Accrued liabilities 3,984 5,589
------------- -------------
Total current liabilities 9,678 11,862
Long-term debt and capital leases 59 51
Deferred income tax 3,064 3,114
Deferred revenue 413 481
Other long-term liabilities 2,380 2,168
------------- -------------
Total liabilities 15,594 17,676
------------- -------------
Stockholders' equity:
Common stock 83,028 79,697
Unrealized holding gain on investments 8 45
Retained earnings 24,698 27,863
------------- -------------
Total stockholders' equity 107,734 107,605
------------- -------------
$ 123,328 $ 125,281
============= =============
Cascade Microtech, Inc.
Steven Sipowicz
Chief Financial Officer
503 601-1000