Highlights for the Second Quarter 2008 include:
- Revenues of $19.3 million, down 7% sequentially and down 20% from Q2 last year
- $12.9 million Engineering Products Division revenue, down 11% sequentially and down 32% from Q2 last year, due to lower high-end station and analytical probe revenue
- $ 6.4 million Production Products Division revenue, up 2% sequentially and up 29% over Q2 last year
- Loss per share was $(0.14), down from loss per share of $(0.00) sequentially and earnings per diluted share of $0.02 from Q2 last year
- Cash and investment balances were flat during the quarter
“As we previously announced, the weak conditions in the semiconductor industry and semiconductor equipment industry are continuing to impact our Engineering Products Division, which experienced a significant shortfall in revenue and gross margin. We appear to be in a protracted “down cycle” where EPD bookings and shipments remain weak," said Geoff Wild, CEO of Cascade Microtech. “In the light of these results, there is a renewed urgency to look at our cost structure as well as identify opportunities for revenue growth, particularly in the area of consumables, where we remain optimistic,” added Mr. Wild.
Revenue for the second quarter was $19.3 million, net loss for the quarter was $1.9 million and loss per share was $(0.14), compared to revenue of $20.8 million, net loss of $16,000 and loss per share of $(0.00) for the first quarter of 2008.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that third quarter 2008 revenues will be in the range of $18.0 million to $21.0 million and that loss per share will be in the range of $(0.05) to $(0.18).
About Cascade Microtech
Cascade Microtech, Inc. (NASDAQ:CSCD) 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. Information about Cascade Microtech can be found on the Web at www.cascademicrotech.com.
Forward-Looking Statements
The statements in this release regarding the Company’s financial outlook as to revenue and earnings in the third quarter of 2008 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 assumptions do not include an estimate of any extraordinary or unusual charges, including any such charges as a result of any mergers, acquisitions or other restructuring events. 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, fluctuations in foreign exchange rates 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. EST (2 p.m. PST) on July 29, 2008, to discuss its results for the second quarter ended June 30, 2008, and its outlook for the third 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. EST at this same Internet address. (For a telephone replay, dial 888-286-8010 passcode: 43432209; International: 617-801-6888.)
| CASCADE MICROTECH, INC. | |||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||||
| (unaudited, in thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| June 30 | March 31 | June 30 | Year to Date Ended June 30 | ||||||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | |||||||||||||||||
| Sales | $ | 19,287 | $ | 20,759 | $ | 24,116 | $ | 40,046 | $ | 46,587 | |||||||||||
| Cost of sales | 10,784 | 10,867 | 13,186 | 21,651 | 25,273 | ||||||||||||||||
| Stock-based compensation | 105 | 109 | 127 | 214 | 249 | ||||||||||||||||
| Gross profit | 8,398 | 9,783 | 10,803 | 18,181 | 21,065 | ||||||||||||||||
| Operating expenses: | |||||||||||||||||||||
|
Research and development (includes $95, $116, $89, per quarter and $211, $168 year to date respectively, of stock-based compensation) |
2,826 | 2,906 | 3,120 | 5,732 | 5,759 | ||||||||||||||||
|
Selling, general and administrative (includes $524, $414, $408, per quarter and $938, $769 year to date respectively, of stock-based compensation) |
7,336 | 6,879 | 7,439 | 14,215 | 14,103 | ||||||||||||||||
| Amortization of purchased intangibles | 648 | 648 | 555 | 1,296 | 661 | ||||||||||||||||
| Total operating expenses | 10,810 | 10,433 | 11,114 | 21,243 | 20,523 | ||||||||||||||||
| Income (loss) from operations | (2,412 | ) | (650 | ) | (311 | ) | (3,062 | ) | 542 | ||||||||||||
| Other income (expense): | |||||||||||||||||||||
| Interest income | 227 | 264 | 366 | 491 | 821 | ||||||||||||||||
| Interest expense | - | (1 | ) | - | (1 | ) | (1 | ) | |||||||||||||
| Other, net | (183 | ) | 439 | (65 | ) | 256 | 45 | ||||||||||||||
| Total other income, net | 44 | 702 | 301 | 746 | 865 | ||||||||||||||||
| Income (loss) before income taxes | (2,368 | ) | 52 | (10 | ) | (2,316 | ) | 1,407 | |||||||||||||
| Provision (benefit) for income taxes | (510 | ) | 68 | (248 | ) | (442 | ) | 121 | |||||||||||||
| Net income (loss) | $ | (1,858 | ) | $ | (16 | ) | $ | 238 | $ | (1,874 | ) | $ | 1,286 | ||||||||
| Net income (loss) per share-Basis and Diluted | |||||||||||||||||||||
| Basic | $ | (0.14 | ) | $ | (0.00 | ) | $ | 0.02 | $ | (0.14 | ) | $ | 0.10 | ||||||||
| Shares used in computing net income (loss) per share: | |||||||||||||||||||||
| Basic | 13,046 | 12,985 | 12,724 | 13,016 | 12,269 | ||||||||||||||||
| Diluted | 13,046 | 12,985 | 13,038 | 13,016 | 12,625 | ||||||||||||||||
| CASCADE MICROTECH, INC. | ||||||
| AND SUBSIDIARIES | ||||||
| Consolidated Balance Sheets | ||||||
| (unaudited, in thousands) | ||||||
| June 30, 2008 and December 31, 2007 | ||||||
| June 30, | December 31, | |||||
| Assets | 2008 | 2007 (1) | ||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 5,750 | $ | 4,900 | ||
| Marketable securities | 21,653 | 24,521 | ||||
| Accounts receivable, net | 13,775 | 18,195 | ||||
| Inventories | 20,138 | 18,608 | ||||
| Prepaid expenses and other | 1,968 | 1,874 | ||||
| Deferred income taxes | 2,909 | 2,729 | ||||
| Total current assets | 66,193 | 70,827 | ||||
| Long-term investments | 9,109 | 4,836 | ||||
| Fixed assets, net | 14,678 | 14,575 | ||||
| Goodwill | 17,310 | 17,310 | ||||
| Purchased intangible assets, net | 13,745 | 15,042 | ||||
| Other assets | 2,856 | 2,691 | ||||
| $ | 123,891 | $ | 125,281 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt and capital leases | $ | 13 | $ | 13 | ||
| Accounts payable | 4,177 | 5,158 | ||||
| Deferred revenue | 982 | 1,102 | ||||
| Accrued liabilities | 4,807 | 5,589 | ||||
| Total current liabilities | 9,979 | 11,862 | ||||
| Long-term debt and capital leases | 47 | 51 | ||||
| Deferred income tax | 3,071 | 3,114 | ||||
| Deferred revenue | 416 | 481 | ||||
| Other long-term liabilities | 2,198 | 2,168 | ||||
| Total liabilities | 15,711 | 17,676 | ||||
| Stockholders' equity: | ||||||
| Common stock | 82,136 | 79,697 | ||||
| Unrealized holding gain on investments | 55 | 45 | ||||
| Retained earnings | 25,989 | 27,863 | ||||
| Total stockholders' equity | 108,180 | 107,605 | ||||
| $ | 123,891 | $ | 125,281 | |||
|
(1) Derived from Cascade Microtech's audited Consolidated Financial Statements as of December 31, 2007. |
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Contact:
Cascade Microtech, Inc.
Steven Sipowicz, Chief Financial Officer,
503-601-1000