Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial
results for the second quarter ended June 30, 2013.
Financial summary
Results for the quarter ended June 30, 2013 were as follows:
- Total revenue of $30.3 million, up 10.3% compared to $27.5
million for Q1 2013, and up 9.7% compared to $27.6 million for Q2
2012.
- Systems revenue of $19.8 million, an increase of $2.1 million,
or 12.1%, over Q1 2013, and an increase of $1.9 million, or 10.5%,
over Q2 2012.
- Probes revenue of $10.5 million, an increase of $0.7 million,
or 7.1%, over Q1 2013, and an increase of $0.8 million, or 8.1%,
over Q2 2012.
- Q2 2013 sets a new revenue record for our Probes segment.
- Gross margin of 47.1%, up from 42.0% in Q1 2013, and 46.1% in
Q2 2012.
- Q2 2013 represents our best gross margin performance in over 5
years.
- Income from operations of $2.5 million, an increase of $1.5
million, or 141.8%, over Q1 2013, and an increase of $0.3 million,
or 11.3%, over Q2 2012.
- Depreciation, amortization and stock-based compensation
expenses totaled $1.7 million.
- Net income of $2.2 million, or $0.15 per share, compared to
$0.7 million, or $0.05 per share, for Q1 2013, and $2.2 million, or
$0.15 per share, for Q2 2012.
- Total cash and investments of $28.8 million, an increase of
$3.9 million over Q1 2013, and an increase of $8.9 million over Q2
2012.
- Book-to-bill ratio of 0.89 to 1.
"We are pleased by the overall results of the second quarter and
with the growth in revenue, gross margin and income from operations
compared to both the prior quarter of 2013 and the second quarter
of last year. Our performance in the second quarter was driven by
strong demand for both our Systems and Probe products. The demand
for 300mm systems has remained strong and we are excited about the
expected impact our new products will have on the second half of
2013," said Michael Burger, President and CEO.
"We are also excited about our recently announced acquisition of
the Reliability Test Products (RTP) business from Aetrium
Incorporated. This acquisition strengthens our Systems product
portfolio and accelerates our strategy of delivering Integrated
Measurement Solutions to our customer base. We believe the addition
of this new product line will better enable us to meet the
technical challenges of our customers. In addition, we believe the
existing customers of Aetrium's RTP business will benefit from
Cascade Microtech's service and support network, strong commitment
to customer satisfaction, and technology leadership," added Mr.
Burger. The acquisition of the RTP business was an asset purchase
for $1.9 million in cash, and contingent consideration of up to
$1.5 million payable between 9 and 18 months from the date of
acquisition. The contingencies include a $0.5 million holdback and
a $1.0 million earn out subject to the achievement of certain
milestones.
Financial outlook
For the third quarter of 2013, before acquisition related costs,
and assuming consistent foreign currency rates, revenue is expected
to be in the range of $28.0 million to $31.0 million, and earnings
per share are expected to be in the range of $0.08 to $0.12 on a
fully-diluted basis. Due to the mid-quarter timing of the
acquisition, the revenue from the RTP business is not expected to
be meaningful in the third quarter. Third quarter earnings guidance
listed above is before one-time costs of purchasing and integrating
the RTP business, which are estimated between $0.7 million and $0.9
million during the quarter.
We will host a conference call beginning at 2:00 p.m. PDT (5:00
p.m. EDT) on Thursday, August 1, 2013, to discuss our results for
the quarter ended June 30, 2013.
A simultaneous audio cast of the conference call may be accessed
online from the investor relations page of
www.cascademicrotech.com. If you are interested in participating in
the call, the live dial-in number is 800 884-5695 or international
617 786-2960, participant Passcode: 54893309. A replay will be
available after 7:00 p.m. EDT at the same internet address. (For a
telephone replay available after 7:00 p.m. EDT, dial: 888 286-8010,
international: 617 801-6888, Passcode: 88055847.)
Forward-Looking Statements
The statements in this release regarding the Company's financial
outlook as to anticipated revenue and earnings per share for the
third quarter of 2013, strong demand for our products, including
300mm systems, and the impact our new products will have on the
results for the second half of 2013, the impact of the RTP
acquisition, including accelerating our delivery of Integrated
measurement Solutions to our customers, and other statements
identified by terminology such as "will," "should," "expects,"
"estimates," "predicts," and "continue" or other derivations of
these or other comparable terms 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; changes in product
mix; potential delays and other factors affecting the timing of new
product introductions; the timing of shipments and customer orders;
constraints on supplies of components; excess or shortage of
production capacity; potential failure of expected market
opportunities to materialize; changes in foreign exchange rates;
our ability or delay in integrating acquired businesses; 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 for the year ended December 31, 2012. 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. (NASDAQ: CSCD) is a worldwide leader in
the precise contact, electrical measurement and test of integrated
circuits (ICs), optical devices 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, ICs, IC packages, circuit boards and
modules, MEMS, 3D TSV, LED devices and more. Cascade Microtech's
leading-edge stations, probes, probe-cards and integrated systems
deliver precision accuracy and superior performance both in the lab
and during production manufacturing of high-speed and high-density
semiconductor chips. For more information visit
www.cascademicrotech.com.
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------
Year to Date Ended
June 30, March 31, June 30, June 30,
--------------------
2013 2013 2012 2013 2012
--------- --------- --------- --------- ---------
Revenue $ 30,307 $ 27,471 $ 27,638 $ 57,778 $ 55,181
Cost of sales 16,032 15,928 14,897 31,960 30,489
--------- --------- --------- --------- ---------
Gross profit 14,275 11,543 12,741 25,818 24,692
--------- --------- --------- --------- ---------
Operating expenses:
Research and
development 2,694 2,456 2,438 5,150 5,217
Selling, general and
administrative 9,064 8,046 8,042 17,110 15,953
--------- --------- --------- --------- ---------
11,758 10,502 10,480 22,260 21,170
--------- --------- --------- --------- ---------
Income from operations 2,517 1,041 2,261 3,558 3,522
--------- --------- --------- --------- ---------
Other income
(expense):
Interest income, net 2 20 9 22 19
Other, net (112) (244) (45) (356) (452)
--------- --------- --------- --------- ---------
(110) (224) (36) (334) (433)
--------- --------- --------- --------- ---------
Income before income
taxes 2,407 817 2,225 3,224 3,089
Income tax expense 221 70 52 291 176
--------- --------- --------- --------- ---------
Net income $ 2,186 $ 747 $ 2,173 $ 2,933 $ 2,913
========= ========= ========= ========= =========
Net income per share:
Basic $ 0.15 $ 0.05 $ 0.15 $ 0.21 $ 0.21
Diluted $ 0.15 $ 0.05 $ 0.15 $ 0.20 $ 0.20
Shares used in
computing net income
per share:
Basic 14,342 14,227 14,158 14,283 14,173
Diluted 14,652 14,599 14,350 14,626 14,332
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, December 31,
Assets 2013 2012
------------ ------------
Current assets:
Cash and cash equivalents $ 23,769 $ 17,927
Marketable securities 5,030 5,322
Restricted cash - 1,069
Accounts receivable, net 21,585 21,087
Inventories 22,241 24,277
Prepaid expenses and other 2,340 2,503
------------ ------------
Total current assets 74,965 72,185
Fixed assets, net 7,093 8,271
Purchased intangible assets, net 1,296 1,610
Goodwill 976 990
Other assets 1,736 2,224
------------ ------------
$ 86,066 $ 85,280
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,954 $ 5,900
Deferred revenue 1,245 3,526
Accrued liabilities 6,386 6,640
------------ ------------
Total current liabilities 13,585 16,066
Deferred revenue 542 356
Other long-term liabilities 2,154 2,940
------------ ------------
Total liabilities 16,281 19,362
------------ ------------
Stockholders' equity:
Common stock 92,229 91,039
Accumulated other comprehensive income (loss) (972) (716)
Accumulated deficit (21,472) (24,405)
------------ ------------
Total stockholders' equity 69,785 65,918
------------ ------------
$ 86,066 $ 85,280
============ ============
FOR MORE INFORMATION, CONTACT: Jeff A. Killian Cascade
Microtech, Inc. (503) 601-1280
(NASDAQ:CSCD)
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