(NASDAQ:CSCD)
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Cascade Microtech (NASDAQ:CSCD), today announced it has acquired
Gryphics, Inc., a private company that designs, manufactures and markets
a range of high performance socket products used for final production
and evaluation testing of packaged semiconductor integrated circuits.
This acquisition is another strategic step in Cascade Microtech’s
long term vision of being a leading provider of advanced production test
consumables for high performance ICs.
It is estimated that Gryphics has a servable production test consumable
market of approximately $250 million per year in 2007 out of a total
test socket market of approximately $600 million per year. There is
increased demand for newer socket designs to support higher speed ICs.
Gryphics is targeting this trend by supporting wireless, high speed
digital and complex IC’s such as
microprocessors and graphics chips as well as other types of sockets.
“Gryphics’ success
to date in the socket market is based on its track record of innovative,
high-performance solutions combined with outstanding technical support.
With our technical capabilities, market access and global footprint we
believe we can continue to accelerate the adoption of Graphics’
products in the market place,” said Eric
Strid, CEO of Cascade Microtech. “This
acquisition will allow us to expand our test consumables revenue, a
market that is much less volatile than semiconductor production capacity
equipment.”
Terms of the Deal
Cascade acquired all of the outstanding capital stock of Gryphics for
approximately 843,000 shares of Cascade common stock and cash of $13.7
million, subject to a post-closing purchase price adjustment. Cascade
expects the acquisition to be accretive by the end of 2007. Gryphics
revenue for 2006 was $7.7 million and it was profitable.
D.A. Davidson & Co. acted as exclusive strategic and financial advisor
to Cascade in this transaction and provided a fairness opinion to Cascade’s
Board of Directors.
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 highly reliable production wafer
test solutions provide the semiconductor industry with leading-edge
probe cards that reduce manufacturing costs of complex semiconductors.
Information about Cascade Microtech can be found on the Web at www.cascademicrotech.com.
Forward-Looking Statements
This press release contains statements, including statements regarding
the Company’s expectation that it can
accelerate the adoption of Gryphics’ products
in the marketplace and the Company’s
expectation that the acquisition will be accretive by the end of 2007
that 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 proposed acquisition 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. For example, if the expected market opportunity
does not materialize or if we fail to successfully integrate Gryphics,
we shall not achieve anticipated revenue and cost benefits; there may be
diversion of management’s attention from our
existing business as well as that of Gryphics; and there may be adverse
effects on relationships with our existing suppliers, customers or
partners. Other risks and uncertainties are 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.