Cascade Microtech Reports First Quarter 2015 Results
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Cascade Microtech Reports First Quarter 2015 Results

BEAVERTON, OR -- (Marketwired) -- Apr 29, 2015 -- Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the first quarter ended March 31, 2015.

Financial Summary

Results for the quarter ended March 31, 2015 were as follows:

"Revenue for the first quarter of 2015 was, as predicted, seasonally down and was impacted by the change in foreign exchange rates. Our profitability exceeded expectations due to strong product mix and record gross margins," said Michael Burger, President and CEO. "We remain very optimistic about the balance of 2015 as our Probes products continue to gain market share and we are seeing acceleration in our Systems business. As stated previously, for 2015 we expect to financially outperform our 2014 results and grow faster than the markets we serve."

Financial Outlook

For the second quarter of 2015 we are projecting revenue in the range of $34.0 million to $38.0 million, with diluted GAAP earnings per share in the range of $0.12 to $0.17, and non-GAAP earnings per share in the range of $0.14 to $0.20. Our guidance assumes a tax rate of 33%, consistent foreign currency exchange rates and no significant one-time charges.

We will host a conference call beginning at 5:00 p.m. EDT (2:00 p.m. PDT) on Wednesday, April 29, 2015, to discuss our results for the quarter ended March 31, 2015.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com/investors. If you are interested in participating in the call, the live dial-in number is 855-871-8541, or international 720-634-2920, conference ID: 32505266. A replay will be available after 9:00 p.m. EDT at the same internet address. (For a telephone replay available after 9:00 p.m. EDT, dial: 855-859-2056, international: 404-537-3406, conference ID: 32505266).

Forward-Looking Statements

The statements in this release regarding financial results and positioning in our markets in 2015, continuing growth in market share of Probes, a return to historic levels of revenue for Systems and statements under "Financial Outlook" regarding projected revenue, GAAP earnings per share, and non-GAAP earnings per share and assumptions supporting those projections, 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 or tax 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, 2014. 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.

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 a table later in this release:

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.

                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
              Condensed Consolidated Statements of Operations               
                   (in thousands, except per share data)                    
                                (unaudited)                                 
                                                                            
                                                Three Months Ended          
                                       ------------------------------------ 
                                        March 31,  December 31,   March 31, 
                                          2015         2014         2014    
                                       ----------  ------------  ---------- 
                                                                            
Revenue                                $   31,742  $     36,593  $   33,685 
Cost of sales                              14,720        17,058      17,412 
                                       ----------  ------------  ---------- 
Gross profit                               17,022        19,535      16,273 
                                                                            
Operating expenses:                                                         
  Research and development                  3,676         3,598       3,241 
  Selling, general and administrative      10,547        11,797      10,430 
                                       ----------  ------------  ---------- 
                                           14,223        15,395      13,671 
                                       ----------  ------------  ---------- 
                                                                            
Income from operations                      2,799         4,140       2,602 
                                                                            
Other income (expense):                                                     
  Interest income (expense), net              (14)            4           2 
  Other, net                                  231          (289)        (69)
                                       ----------  ------------  ---------- 
                                              217          (285)        (67)
                                       ----------  ------------  ---------- 
                                                                            
Income before income taxes                  3,016         3,855       2,535 
                                                                            
Income tax expense (benefit)                  843          (448)        943 
                                       ----------  ------------  ---------- 
                                                                            
Net income                             $    2,173  $      4,303  $    1,592 
                                       ==========  ============  ========== 
                                                                            
Net income per share:                                                       
  Basic                                $     0.13  $       0.26  $     0.10 
  Diluted                              $     0.13  $       0.25  $     0.10 
                                                                            
Shares used in computing net income per                                     
 share:                                                                     
  Basic                                    16,523        16,435      16,242 
  Diluted                                  17,037        16,955      16,679 
                                                                            
                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
                   Condensed Consolidated Balance Sheets                    
                               (in thousands)                               
                                (unaudited)                                 
                                                                            
                                                 March 31,     December 31, 
                    Assets                          2015           2014     
                                               -------------  ------------- 
                                                                            
Current assets:                                                             
  Cash and cash equivalents                    $      34,079  $      38,107 
  Marketable securities                                6,854          1,626 
  Restricted cash                                         54             61 
  Accounts receivable, net                            21,197         20,763 
  Inventories                                         24,723         24,642 
  Deferred income taxes                                3,013          3,027 
  Prepaid expenses and other                           4,584          4,454 
                                               -------------  ------------- 
    Total current assets                              94,504         92,680 
                                                                            
Fixed assets, net                                      9,196          8,100 
Goodwill                                              11,419         12,823 
Purchased intangible assets, net                      10,748         12,572 
Deferred income taxes                                  1,573          1,262 
Other assets                                             838            944 
                                               -------------  ------------- 
                                                                            
                                               $     128,278  $     128,381 
                                               =============  ============= 
                                                                            
                                                                            
     Liabilities and Shareholders' Equity                                   
                                                                            
Current liabilities:                                                        
  Accounts payable                             $       9,297  $       7,505 
  Deferred revenue                                     1,750          2,070 
  Accrued liabilities                                  7,391          9,505 
                                               -------------  ------------- 
    Total current liabilities                         18,438         19,080 
                                                                            
Deferred revenue                                         296            329 
Other long-term liabilities                            1,624          1,511 
                                               -------------  ------------- 
                                                                            
    Total liabilities                                 20,358         20,920 
                                                                            
Shareholders' equity:                                                       
  Common stock                                       112,292        111,645 
  Accumulated other comprehensive loss                (5,488)        (3,127)
  Retained earnings (accumulated deficit)              1,116         (1,057)
                                               -------------  ------------- 
                                                                            
    Total shareholders' equity                       107,920        107,461 
                                               -------------  ------------- 
                                                                            
                                               $     128,278  $     128,381 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
           Reconciliation of GAAP to Non-GAAP Financial Measures            
                  (in thousands, except per share amounts)                  
                                (unaudited)                                 
                                                                            
                                                Three Months Ended          
                                      ------------------------------------- 
                                       March 31,   December 31,   March 31, 
Non-GAAP Net Income                       2015         2014          2014   
                                      ----------  -------------  ---------- 
GAAP net income                       $    2,173  $       4,303  $    1,592 
                                                                            
Adjustments to net income:                                                  
  Restructuring                              118          1,178           - 
  Amortization of intangibles                647            694         785 
  Income tax effect of non-GAAP                                             
   adjustments                              (253)          (509)       (291)
  Discrete tax items                        (154)        (1,246)          - 
                                      ----------  -------------  ---------- 
Non-GAAP net income                   $    2,531  $       4,420  $    2,086 
                                      ==========  =============  ========== 
                                                                            
GAAP net income per diluted share     $     0.13  $        0.25  $     0.10 
                                      ==========  =============  ========== 
Non-GAAP net income per diluted share $     0.15  $        0.26  $     0.13 
                                      ==========  =============  ========== 
                                                                            
Shares used in diluted share                                                
 calculations                             17,037         16,955      16,679 
                                                                            
                                                                            
                                                Three Months Ended          
                                      ------------------------------------- 
                                       March 31,   December 31,   March 31, 
EBITDAS and Adjusted EBITDAS             2015          2014         2014    
                                      ----------  -------------  ---------- 
GAAP Income from operations           $    2,799  $       4,140  $    2,602 
                                                                            
Adjustments:                                                                
  Depreciation                               750            883         829 
  Amortization of intangibles                647            694         785 
  Stock-based compensation                   587            564         449 
                                      ----------  -------------  ---------- 
EBITDAS                                    4,783          6,281       4,665 
                                                                            
Adjustments:                                                                
  Restructuring                              118          1,178           - 
Adjusted EBITDAS                      $    4,901  $       7,459  $    4,665 
                                      ==========  =============  ========== 
                                                                            
                                                                            
                                        Three Months Ending June 30, 2015   
                                      ------------------------------------- 
                                       Low Range                 High Range 
                                       Guidance                   Guidance  
                                      ----------                 ---------- 
Forward-looking non-GAAP net income                                         
GAAP net income                       $    2,000                 $    3,000 
Adjustments:                                                                
  Amortization of intangibles                650                        650 
  Income tax effect of non-GAAP                                             
   adjustments                              (215)                      (215)
                                      ----------                 ---------- 
Non-GAAP net income                   $    2,435                 $    3,435 
                                      ==========                 ========== 
                                                                            
GAAP net income per diluted share     $     0.12                 $     0.17 
                                      ==========                 ========== 
Non-GAAP net income per diluted share $     0.14                 $     0.20 
                                      ==========                 ========== 
                                                                            
Shares used in diluted share                                                
 calculations                             17,150                     17,150 

FOR MORE INFORMATION, CONTACT:

Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1280