Cascade Microtech Reports Second Quarter 2008 Results

  
    
  
  
    
      Cascade Microtech (NASDAQ:CSCD), today reported financial results for 
      the second quarter ended June 30, 2008.
    
    
      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.