Cascade Microtech Reports Fourth Quarter and 2013 Results
February 05 2014 - 3:05PM
Marketwired
Cascade Microtech Reports Fourth Quarter and 2013 Results
Record Annual Revenue of $120.0 Million; Record Quarterly
Revenue of $34.0 Million; Record Quarterly Bookings of $38.9
Million
BEAVERTON, OR--(Marketwired - Feb 5, 2014) - Cascade Microtech,
Inc. (NASDAQ: CSCD) today reported financial results for the fourth
quarter and year ended December 31, 2013.
Financial summary
Results for the year ended December 31, 2013 were as
follows:
- Total revenue of $120.0 million, compared to $113.0 million for
2012.
- Systems revenue of $79.2 million, an increase of $4.8 million,
or 6.5%, over 2012.
- Probes revenue of $40.8 million, an increase of $2.2 million,
or 5.7%, over 2012.
- 2013 set new revenue records for both of our segments and
includes $5.0 million in annual revenue related to current year
acquisitions.
- Gross margin of 45.6%, up from 44.2% in 2012.
- 2013 cost of sales includes acquisition-related expenses of
$0.5 million, or 0.4% of revenue, with no comparable expenses for
2012.
- Income from operations of $7.3 million, a decrease of $0.2
million, or 3.0%, from 2012.
- 2013 operating expense includes acquisition-related and
restructuring expenses of $1.1 million with no comparable expenses
for 2012.
- 2013 includes depreciation, amortization and stock-based
compensation expenses of $6.8 million, compared to $6.1 million for
2012.
- Net income of $13.4 million, or $0.89 per diluted share,
compared to $6.1 million, or $0.42 per diluted share, for
2012.
- 2013 includes a net tax benefit of $6.3 million, or $0.42 per
diluted share, related primarily to the release of valuation
allowance on deferred tax assets, compared to a net tax expense of
$0.7 million, or $0.05 per diluted share, for 2012.
- Adjusted EBITDAS of $15.8 million compared to $13.6 million for
2012.
- Annual book-to-bill ratio of 1.02 to 1.
Results for the quarter ended December 31, 2013 were as
follows:
- Total revenue of $34.0 million, compared to $28.2 million for
Q3 2013 and $30.4 million for Q4 2012.
- Systems revenue of $24.2 million, an increase of $6.7 million,
or 38.2%, over Q3 2013, and an increase of $3.4 million, or 16.5%,
over Q4 2012.
- Probes revenue of $9.9 million, a decrease of $0.8 million, or
7.9%, from Q3 2013, and an increase of $0.2 million, or 2.4%, over
Q4 2012.
- Q4 2013 set a new revenue record for our Systems segment and
includes $4.9 million in quarterly revenue related to current year
acquisitions.
- Gross margin of 45.5%, down from 47.6% in Q3 2013, and up from
43.0% in Q4 2012.
- Q4 2013 cost of sales includes acquisition-related expenses of
$0.5 million, or 1.4% of revenue, with no comparable expenses for
either Q3 2013 or Q4 2012.
- Income from operations of $2.2 million, an increase of $0.6
million, or 40.3%, from Q3 2013, and a decrease of $0.1 million, or
3.5%, from Q4 2012.
- Q4 2013 operating expense includes acquisition-related and
restructuring expenses of $0.4 million, compared to $0.6 million
for Q3 2013, and no comparable expenses for Q4 2012.
- Q4 2013 includes depreciation, amortization and stock-based
compensation expenses of $2.1 million compared to $1.5 million for
both Q3 2013 and Q4 2012.
- Net income of $8.8 million, or $0.53 per diluted share,
compared to $1.7 million, or $0.11 per diluted share, for Q3 2013,
and $1.7 million, or $0.12 per diluted share, for Q4 2012.
- Q4 2013 includes a net tax benefit of $6.6 million, or $0.40
per diluted share, related primarily to the release of valuation
allowance on deferred tax assets. Net tax expense was near
zero in Q3 2013 and $0.4 million, or $0.03 per diluted share, for
Q4 2012.
- Q4 2013 includes intangible amortization expenses of $0.6
million, or $0.03 per diluted share, related to our acquisition of
Advanced Temperature Test Systems GmbH (ATT Systems) on October 1,
2013.
- Q4 2013 includes $0.9 million, or $0.05 per diluted share, of
previously mentioned acquisition-related and restructuring
charges.
- Adjusted EBITDAS of $5.2 million, compared to $3.7 million for
Q3 2013, and $3.8 million for Q4 2012.
- Quarterly book-to-bill ratio of 1.14 to 1.
Adjusted EBITDAS is a non-GAAP financial measure. Please
see "Non-GAAP Financial Measures" below and the attached
supplemental schedule for a reconciliation of GAAP to non-GAAP
financial measures.
"We are very excited about 2014 based upon the results for the
fourth quarter and the full year of 2013," said Michael Burger,
President and CEO. "Our historical products prior to recent
acquisitions outperformed the semi-conductor capital equipment
market this year, and we've accelerated our growth with the
acquisitions closed in the second half of 2013. We set annual
and quarterly records for revenue and bookings, while improving our
profitability. The markets we serve have been expanded with
the addition of Reliability Test Products and ATT Systems, together
with our new product introductions that continue to gain
traction. Finally, in the fourth quarter, our adjusted EBITDAS
increased to 15.2% of revenue and reflects progress towards our
success model of 20%. Cascade Microtech is well positioned as we
enter 2014."
Financial outlook
Based upon industry seasonality, and assuming consistent foreign
currency rates, we are projecting revenue for the first quarter of
2014 to be in the range of $31.0 million to $34.0 million, with an
adjusted EBITDAS in the range of $3.0 million to $5.0 million.
We will host a conference call beginning at 2:00 p.m. PST (5:00
p.m. EST) on Wednesday, February 5, 2014, to discuss our results
for the quarter ended December 31, 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 877-546-5021
or international 857-244-7553, participant passcode: 56070753. A
replay will be available after 6:00 p.m. PST (9:00 p.m. EST) at the
same internet address. (For a telephone replay available after
6:00 p.m. PST (9:00 p.m. EST), dial: 888-286-8010, international:
617-801-6888, passcode: 13911804).
Forward-Looking Statements
The statements in this release regarding our financial outlook
as to anticipated revenue and adjusted EBITDAS for the first
quarter of 2014, demand for our new and existing products, our
growth, 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 our
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 our 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
our Securities and Exchange Commission filings and reports,
including our 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 we do not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this release.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in
accordance with U.S. generally accepted accounting principles
(GAAP), the Company's earnings release contains Non-GAAP financial
measures which are defined below and reconciled to GAAP financial
measures in the attached supplemental schedule. Adjusted
EBITDAS is defined as operating income from continuing operations
before depreciation and amortization and stock-based compensation
and certain other items (adjustments) such as restructuring,
facility move and project costs, and acquisition-related expenses
that we believe are not representative of our ongoing operating
performance. Adjusted EBITDAS should not be construed as a
substitute for net income from continuing operations or net cash
provided by (used in) operating activities (all as determined in
accordance with GAAP) for the purpose of analyzing our operating
performance, financial position and cash flows, as adjusted EBITDAS
is not defined by GAAP. However, we regard adjusted EBITDAS as a
complement to net income from continuing operations and other GAAP
financial performance measures, including an indirect measure of
operating cash flow.
About Cascade Microtech, Inc.
Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in
precision 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, advanced thermal
subsystems 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.
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CASCADE MICROTECH, INC. |
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AND SUBSIDIARIES |
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Condensed Consolidated Statements of Operations |
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(in thousands, except per share data) |
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(unaudited) |
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Three Months Ended |
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December 31, |
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September 30, |
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December 31, |
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Year Ended December 31, |
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2013 |
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2013 |
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2012 |
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2013 |
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2012 |
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Revenue |
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$ |
34,035 |
|
|
$ |
28,197 |
|
|
$ |
30,368 |
|
|
$ |
120,010 |
|
|
$ |
112,963 |
|
Cost of sales |
|
|
18,547 |
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|
|
14,779 |
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|
|
17,313 |
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|
|
65,286 |
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|
|
63,012 |
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Gross profit |
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|
15,488 |
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|
|
13,418 |
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|
13,055 |
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54,724 |
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49,951 |
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Operating expenses: |
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Research and development |
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3,061 |
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2,750 |
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3,022 |
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10,961 |
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|
|
11,017 |
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Selling, general and administrative |
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|
10,223 |
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|
|
9,097 |
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|
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7,749 |
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|
|
36,430 |
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31,377 |
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|
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|
13,284 |
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|
|
11,847 |
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|
10,771 |
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47,391 |
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42,394 |
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Income from operations |
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2,204 |
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|
1,571 |
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|
|
2,284 |
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|
|
7,333 |
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|
|
7,557 |
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Other income (expense): |
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Interest income, net |
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4 |
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18 |
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26 |
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44 |
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52 |
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Other, net |
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(27 |
) |
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|
87 |
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|
|
(240 |
) |
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|
(296 |
) |
|
|
(801 |
) |
|
|
|
(23 |
) |
|
|
105 |
|
|
|
(214 |
) |
|
|
(252 |
) |
|
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(749 |
) |
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Income before income taxes |
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2,181 |
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1,676 |
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2,070 |
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7,081 |
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6,808 |
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|
|
|
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Income tax expense (benefit) |
|
|
(6,621 |
) |
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(7 |
) |
|
|
380 |
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|
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(6,337 |
) |
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|
709 |
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Net income |
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$ |
8,802 |
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$ |
1,683 |
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$ |
1,690 |
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$ |
13,418 |
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$ |
6,099 |
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Net income per share: |
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Basic |
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$ |
0.54 |
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$ |
0.12 |
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$ |
0.12 |
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$ |
0.91 |
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$ |
0.43 |
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Diluted |
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$ |
0.53 |
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$ |
0.11 |
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$ |
0.12 |
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$ |
0.89 |
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$ |
0.42 |
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Shares used in computing net income per share: |
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Basic |
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|
16,173 |
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|
|
14,453 |
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|
|
14,223 |
|
|
|
14,792 |
|
|
|
14,182 |
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Diluted |
|
|
16,634 |
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|
|
14,797 |
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|
14,428 |
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|
15,150 |
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|
14,390 |
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CASCADE MICROTECH, INC. |
|
AND SUBSIDIARIES |
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|
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Condensed Consolidated Balance Sheets |
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(in thousands) |
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(unaudited) |
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|
December 31, |
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December 31, |
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Assets |
|
2013 |
|
|
2012 |
|
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Current assets: |
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Cash and cash equivalents |
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$ |
17,172 |
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$ |
17,927 |
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Marketable securities |
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|
4,278 |
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|
5,322 |
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Restricted cash |
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|
1,082 |
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|
1,069 |
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Accounts receivable, net |
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|
26,518 |
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|
|
21,087 |
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Inventories |
|
|
23,803 |
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|
|
24,277 |
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Deferred income taxes |
|
|
2,268 |
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|
|
218 |
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|
Prepaid expenses and other |
|
|
2,147 |
|
|
|
2,285 |
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|
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Total
current assets |
|
|
77,268 |
|
|
|
72,185 |
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|
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Fixed assets, net |
|
|
6,403 |
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|
|
8,271 |
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Purchased intangible assets, net |
|
|
16,937 |
|
|
|
1,610 |
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Goodwill |
|
|
14,471 |
|
|
|
990 |
|
Deferred income taxes |
|
|
1,235 |
|
|
|
396 |
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Other assets, net |
|
|
1,116 |
|
|
|
1,828 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
117,430 |
|
|
$ |
85,280 |
|
|
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
7,229 |
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$ |
5,900 |
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Deferred revenue |
|
|
1,474 |
|
|
|
3,526 |
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Accrued liabilities |
|
|
8,659 |
|
|
|
6,640 |
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|
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Total
current liabilities |
|
|
17,362 |
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|
|
16,066 |
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|
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|
|
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Deferred revenue |
|
|
548 |
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|
|
356 |
|
Other long-term liabilities |
|
|
2,119 |
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|
|
2,940 |
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|
|
|
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|
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Total
liabilities |
|
|
20,029 |
|
|
|
19,362 |
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|
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Shareholders' equity: |
|
|
|
|
|
|
|
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Common stock |
|
|
108,070 |
|
|
|
91,039 |
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Accumulated other comprehensive income (loss) |
|
|
318 |
|
|
|
(716 |
) |
Accumulated deficit |
|
|
(10,987 |
) |
|
|
(24,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity |
|
|
97,401 |
|
|
|
65,918 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
117,430 |
|
|
$ |
85,280 |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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CASCADE MICROTECH, INC. |
AND SUBSIDIARIES |
|
|
|
|
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Reconcilation of GAAP and Non-GAAP Financial
Measures |
EBITDAS and Adjusted EBITDAS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
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|
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|
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|
|
|
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Three Months Ended |
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Year Ended December 31, |
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
2,204 |
|
$ |
1,571 |
|
$ |
2,284 |
|
$ |
7,333 |
|
$ |
7,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,661 |
|
|
1,146 |
|
|
1,222 |
|
|
5,183 |
|
|
4,629 |
|
Stock-based compensation |
|
|
399 |
|
|
343 |
|
|
323 |
|
|
1,614 |
|
|
1,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAS |
|
$ |
4,264 |
|
$ |
3,060 |
|
$ |
3,829 |
|
$ |
14,130 |
|
$ |
13,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
115 |
|
|
- |
|
|
- |
|
|
227 |
|
|
- |
|
Acquisition and acquisition related |
|
|
779 |
|
|
627 |
|
|
- |
|
|
1,406 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAS |
|
$ |
5,158 |
|
$ |
3,687 |
|
$ |
3,829 |
|
$ |
15,763 |
|
$ |
13,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconcilation of Forward-Looking GAAP and non-GAAP
Financial Measures |
EBITDAS and Adjusted EBITDAS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014 |
|
|
Low Range Guidance |
|
High Range Guidance |
Income from operations |
|
$ |
1,000 |
|
$ |
3,000 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,600 |
|
|
1,600 |
|
Stock-based compensation |
|
|
400 |
|
|
400 |
|
|
|
|
|
|
|
EBITDAS |
|
$ |
3,000 |
|
$ |
5,000 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Restructuring |
|
|
- |
|
|
- |
|
Acquisition and acquisition related |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
Adjusted EBITDAS |
|
$ |
3,000 |
|
$ |
5,000 |
|
|
|
|
|
|
|
FOR MORE INFORMATION, CONTACT: Jeff A. Killian Cascade
Microtech, Inc. (503) 601-1280
(NASDAQ:CSCD)
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