Cascade Microtech and FormFactor and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from Cascade Microtech shareholders with respect to the transactions contemplated by the merger agreement. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Cascade Microtech security holders in connection with the proposed merger will be set forth in the registration statement and the proxy statement/prospectus when filed with the SEC. Information regarding Cascade Microtech's executive officers and directors is included in Cascade Microtech's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 12, 2015, and its proxy statement for its 2015 annual meeting of shareholders, filed with the SEC on April 6, 2015. Information regarding FormFactor's executive officers and directors is included in FormFactor's Annual Report on Form 10-K for the year ended December 27, 2014, filed with the SEC on March 6, 2015, its proxy statement for its 2015 annual meeting of shareholders, filed with the SEC on March 19, 2015 and its Current Report on Form 8-K, filed with the SEC on August 7, 2015. Copies of the foregoing documents may be obtained as provided above. Certain executive officers and directors of Cascade Microtech and FormFactor have interests in the transaction that may differ from the interests of Cascade Microtech and FormFactor shareholders generally, respectively. These interests will be described in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.
FORM-F
FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Fiscal Year Ended -------------------------- -------------------------- December 26, December 27, December 26, December 27, 2015 2014 2015 2014 ------------ ------------ ------------ ------------ Revenues $ 71,782 $ 71,285 $ 282,358 $ 268,530 Cost of revenues 50,591 50,337 196,620 191,091 ------------ ------------ ------------ ------------ Gross profit 21,191 20,948 85,738 77,439 ------------ ------------ ------------ ------------ Operating Expenses: Research and development 11,236 10,706 44,184 42,725 Selling, general and administrative 10,719 12,631 45,090 51,385 Restructuring charges, net (3) 584 559 2,668 Impairment of long- lived assets -- 390 8 1,219 ------------ ------------ ------------ ------------ Total operating expenses 21,952 24,311 89,841 97,997 ------------ ------------ ------------ ------------ Operating loss (761) (3,363) (4,103) (20,558) Interest income, net 70 69 285 302 Other income (expense), net (36) 155 2,547 161 ------------ ------------ ------------ ------------ Loss before income taxes (727) (3,139) (1,271) (20,095) Provision (benefit) for income taxes (108) (1,268) 252 (910) ------------ ------------ ------------ ------------ Net loss $ (619) $ (1,871) $ (1,523) $ (19,185) ============ ============ ============ ============ Net loss per share: Basic and diluted $ (0.01) $ (0.03) $ (0.03) $ (0.34) ============ ============ ============ ============ Weighted average number of shares used in per share calculations: Basic and diluted 58,128 56,472 57,850 55,908 ============ ============ ============ ============ FORMFACTOR, INC. RECONCILIATION OF NON-GAAP NET INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Fiscal Year Ended -------------------------- -------------------------- December 26, December 27, December 26, December 27, 2015 2014 2015 2014 ------------ ------------ ------------ ------------ GAAP net loss $ (619) $ (1,871) $ (1,523) $ (19,185) Stock-based compensation 3,060 3,256 11,575 13,279 Restructuring charges, net (3) 584 559 2,668 Acquisition and integration related expenses 35 25 231 423 Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition 3,359 3,654 13,509 18,539 Impairment of long- lived assets -- 390 8 1,219 Loss contingency -- 498 -- 1,218 Gain on sale of intellectual property -- -- (1,040) -- Business interruption insurance claim recovery -- -- (1,521) -- ------------ ------------ ------------ ------------ Non-GAAP net income $ 5,832 $ 6,536 $ 21,798 $ 18,161 ============ ============ ============ ============ Non-GAAP net income per share: Basic $ 0.10 $ 0.12 $ 0.38 $ 0.32 ============ ============ ============ ============ Diluted $ 0.10 $ 0.11 $ 0.37 $ 0.32 ============ ============ ============ ============ Weighted-average number of shares used in per share calculations: Basic 58,128 56,472 57,850 55,908 ============ ============ ============ ============ Diluted 59,138 58,234 59,069 57,510 ============ ============ ============ ============ FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 26, December 27, 2015 2014 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 146,264 $ 113,940 Marketable securities 41,325 49,897 Accounts receivable, net 36,725 45,152 Inventories, net 27,223 25,548 Refundable income taxes -- 782 Prepaid expenses and other current assets 6,481 6,919 ------------- ------------- Total current assets 258,018 242,238 Restricted cash 435 435 Property, plant and equipment, net 23,853 25,498 Goodwill 30,731 30,731 Intangibles, net 25,552 38,689 Deferred tax assets 3,281 5,502 Other assets 853 1,150 ------------- ------------- Total assets $ 342,723 $ 344,243 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 18,072 $ 20,274 Accrued liabilities 21,507 21,217 Income taxes payable 110 68 Deferred revenue 3,892 6,303 ------------- ------------- Total current liabilities 43,581 47,862 Long-term income taxes payable 1,069 1,094 Deferred tax liabilities -- 2,208 Deferred rent and other liabilities 3,392 3,643 ------------- ------------- Total liabilities 48,042 54,807 ------------- ------------- Commitments and contingencies Stockholders' equity: Common stock and capital in excess of par value 718,962 711,733 Accumulated other comprehensive loss (2,222) (1,761) Accumulated deficit (422,059) (420,536) ------------- ------------- Total stockholders' equity 294,681 289,436 ------------- ------------- Total liabilities and stockholders' equity $ 342,723 $ 344,243 ============= =============