Welcome!

News Feed Item

Cascade Microtech Reports First Quarter 2014 Results

Revenue of $33.8 Million; Gross Margin of 48.1%; Income From Operations of $2.6 Million; GAAP EPS of $0.10

BEAVERTON, OR -- (Marketwired) -- 04/29/14 -- Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the first quarter March 31, 2014.

Financial summary

Results for the quarter ended March 31, 2014 were as follows:

  • Total revenue of $33.8 million, compared to $34.0 million for Q4 2013 and $27.5 million for Q1 2013.
    • Systems revenue of $21.6 million, a decrease of $2.6 million, or 10.8%, from Q4 2013, and an increase of $3.9 million, or 21.8%, over Q1 2013.
    • Probes revenue of $12.2 million, an increase of $2.4 million, or 24.3%, over Q4 2013, and an increase of $2.5 million, or 25.4%, over Q1 2013.
    • Q1 2014 sets a new revenue record for our Probes segment.
  • Gross margin of 48.1%, up from 45.5% in Q4 2013, and 42.0% in Q1 2013.
    • Systems gross margin of 42.7%, up from 42.3% in Q4 2013, and 37.9% in Q1 2013.
    • Probes gross margin of 57.8%, up from 53.3% in Q4 2013, and 49.4% in Q1 2013.
    • Q1 2014 represents our best gross margin performance in 9 years.
  • Income from operations of $2.6 million, an increase of $0.4 million, or 18.1%, over Q4 2013, and an increase of $1.6 million, or 150.0%, over Q1 2013.
  • Net income of $1.6 million, or $0.10 per diluted share, compared to $8.8 million, or $0.53 per diluted share, for Q4 2013, and $0.7 million, or $0.05 per diluted share, for Q1 2013.
    • Q1 2014 includes tax expense of $0.9 million, or $0.06 per diluted share, compared to a tax benefit of $6.6 million, or $0.40 per diluted share, for Q4 2013, and tax expense of $0.1 million, or $0.01 per diluted share, for Q1 2013.
  • Non-GAAP net income of $0.13 per diluted share, compared to $0.21 per diluted share for Q4 2013 and $0.07 per diluted share for Q1 2013.
  • Depreciation, amortization and stock-based compensation expenses totaled $2.1 million, compared to $2.1 million for Q4 2013 and $1.5 million for Q1 2013.
  • Adjusted EBITDAS of $4.7 million, compared to $5.2 million for Q4 2013 and $2.6 million for Q1 2013.
  • Total cash, restricted cash and investments of $28.5 million, an increase of $6.0 million over December 31, 2013.
    • Q1 2014 includes stock repurchases of $0.8 million.
  • Book-to-bill ratio of 0.92 to 1.

"We are pleased by the strong overall results of the first quarter. Both revenue and profitability were near the high end of our expectations due to record revenue and gross margins from our Probes segment. Favorable product mix drove the best overall gross margins for the company in over nine years, and cash grew $6 million quarter on quarter. Our new acquisitions performed well, and we continue to see improved market acceptance and sales of our new products. With a strong Q1 behind us, we are optimistic about the rest of 2014," said Michael Burger, President and CEO.

Financial outlook

For the second quarter of 2014 we are projecting revenue in the range of $32.0 million to $35.0 million with diluted GAAP earnings per share in the range of $0.05 to $0.10, and non-GAAP earnings per share in the range of $0.08 to $0.13. Our guidance assumes a tax rate of 37%, consistent foreign currency rates and no significant one-time charges.

We will host a conference call beginning at 2:00 p.m. PDT (5:00 p.m. EDT) on Tuesday, April 29, 2014, to discuss our results for the quarter ended March 31, 2014.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com. If you are interested in participating in the call, the live dial-in number is 866-515-2910, or international 617-399-5124, participant Passcode: 24546255. 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: 888-286-8010, international: 617-801-6888, Passcode: 22751227).

Forward-Looking Statements

The statements in this release regarding performance of our new acquisitions, improved market acceptance and sales of our new products, our optimism about the rest of 2014, and statements under "Financial Outlook" regarding projected revenue, GAAP earnings per share, and non-GAAP earnings per share, 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 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, 2013. 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:

  • Non-GAAP net income is defined as GAAP net income before certain items (adjustments) such as restructuring, facility move and project costs, acquisition-related expenses, the amortization of intangibles and discrete tax items that we believe are either not representative of our ongoing operating performance or effect the comparability of results over time. Non-GAAP net income should not be construed as a substitute for net income as defined by GAAP. However, we regard non-GAAP net income as a complement to GAAP net income in assessing our financial performance over time and in the future.

  • Adjusted EBITDAS is defined as income from continuing operations before depreciation and amortization and stock-based compensation and certain other items (adjustments) such as restructuring, facility move and project costs, and acquisition-related expenses that we believe are not representative of our ongoing operating performance. Adjusted EBITDAS should not be construed as a substitute for net income from continuing operations or net cash provided by (used in) operating activities (all as determined in accordance with GAAP) for the purpose of analyzing our operating performance, financial position and cash flows, as adjusted EBITDAS is not defined by GAAP. However, we regard adjusted EBITDAS as a complement to net income from continuing operations and other GAAP financial performance measures, by including an indirect measure of operating cash flow.

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,     March 31,    December 31,
                                       2014          2013          2013
                                  ------------- ------------- -------------

Revenue                           $      33,810 $      27,471 $      34,035
Cost of sales                            17,537        15,928        18,547
                                  ------------- ------------- -------------
Gross profit                             16,273        11,543        15,488
                                  ------------- ------------- -------------

Operating expenses:
 Research and development                 3,241         2,456         3,061
 Selling, general and
  administrative                         10,430         8,046        10,223
                                  ------------- ------------- -------------
                                         13,671        10,502        13,284
                                  ------------- ------------- -------------

Income from operations                    2,602         1,041         2,204
                                  ------------- ------------- -------------

Other income (expense):
 Interest income, net                         2            20             4
 Other, net                                 (69)         (244)          (27)
                                  ------------- ------------- -------------
                                            (67)         (224)          (23)
                                  ------------- ------------- -------------

Income before income taxes                2,535           817         2,181

Income tax expense (benefit)                943            70        (6,621)
                                  ------------- ------------- -------------

Net income                        $       1,592 $         747 $       8,802
                                  ============= ============= =============

Net income per share:
 Basic                            $        0.10 $        0.05 $        0.54
 Diluted                          $        0.10 $        0.05 $        0.53

Shares used in computing net
 income per share:
 Basic                                   16,242        14,227        16,173
 Diluted                                 16,679        14,599        16,634



                          CASCADE MICROTECH, INC.
                              AND SUBSIDIARIES

                   Condensed Consolidated Balance Sheets
                               (in thousands)
                                (unaudited)


                                               March 31,      December 31,
                   Assets                         2014            2013
                                            --------------- ---------------

Current assets:
  Cash and cash equivalents                 $        24,945 $        17,172
  Marketable securities                               2,737           4,278
  Restricted cash                                       831           1,082
  Accounts receivable, net                           21,642          26,520
  Inventories                                        25,598          24,884
  Deferred income taxes                               2,270           2,268
  Prepaid expenses and other                          2,616           2,147
                                            --------------- ---------------
    Total current assets                             80,639          78,351

Fixed assets, net                                     5,805           6,403
Purchased intangible assets, net                     16,206          16,937
Goodwill                                             14,473          14,471
Deferred income taxes                                 1,236           1,235
Other assets, net                                     1,092           1,114
                                            --------------- ---------------

                                            $       119,451 $       118,511
                                            =============== ===============


    Liabilities and Shareholders' Equity

Current liabilities:
  Accounts payable                          $         7,193 $         7,229
  Deferred revenue                                    2,092           2,555
  Accrued liabilities                                 9,158           8,859
                                            --------------- ---------------
    Total current liabilities                        18,443          18,643

Deferred revenue                                        566             548
Other long-term liabilities                           1,897           2,119
                                            --------------- ---------------

    Total liabilities                                20,906          21,310
                                            --------------- ---------------

Shareholders' equity:
  Common stock                                      107,808         108,070
  Accumulated other comprehensive income                132             118
  Accumulated deficit                                (9,395)        (10,987)
                                            --------------- ---------------

    Total shareholders' equity                       98,545          97,201
                                            --------------- ---------------

                                            $       119,451 $       118,511
                                            =============== ===============



                          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,       March 31,      December 31,
Non-GAAP Net Income               2014            2013            2013
                            --------------- --------------- ---------------
GAAP net income             $         1,592 $           747 $         8,802

Adjustments to net income:
  Restructuring                           -               -             115
  Acquisition and
   acquisition related                    -               -             779
  Amortization of
   intangibles                          785             237             787
  Income tax effect of non-
   GAAP adjustments                    (291)            (21)           (168)
  Discrete tax items                      -               -          (6,840)
                            --------------- --------------- ---------------
Non-GAAP net income         $         2,086 $           963 $         3,475
                            =============== =============== ===============

GAAP net income per diluted
 share                      $          0.10 $          0.05 $          0.53
                            =============== =============== ===============
Non-GAAP net income per
 diluted share              $          0.13 $          0.07 $          0.21
                            =============== =============== ===============

Shares used in diluted
 share calculations                  16,679          14,599          16,634


                                    Three Months Ended June 30, 2014
                            -----------------------------------------------
                                Low Range                      High Range
                                Guidance                        Guidance
                            ---------------                 ---------------
Forward-looking non-GAAP
 net income
GAAP net income             $           800                 $         1,600
Adjustments:
  Amortization of
   intangibles                          785                             785
  Income tax effect of non-
   GAAP adjustments                    (291)                           (291)
                            ---------------                 ---------------
Non-GAAP Net Income         $         1,294                 $         2,094
                            ===============                 ===============

GAAP net income per diluted
 share                      $          0.05                 $          0.10
                            ===============                 ===============
Non-GAAP net income per
 diluted share              $          0.08                 $          0.13
                            ===============                 ===============

Shares used in diluted
 share calculations                  16,750                          16,750


                                           Three Months Ended
                            -----------------------------------------------
EBITDAS and Adjusted            March 31,       March 31,     December 31,
 EBITDAS                          2014            2013            2013
                            --------------- --------------- ---------------
GAAP Income from operations $         2,602 $         1,041 $         2,204

Adjustments:
  Depreciation                          829             963             874
  Amortization of
   intangibles                          785             237             787
  Stock-based compensation              449             334             399
                            --------------- --------------- ---------------
EBITDAS                     $         4,665 $         2,575 $         4,264
                            --------------- --------------- ---------------

Adjustments:
  Restructuring                           -               -             115
  Acquisition and
   acquisition related                    -               -             779
                            --------------- --------------- ---------------
Adjusted EBITDAS            $         4,665 $         2,575 $         5,158
                            =============== =============== ===============


FOR MORE INFORMATION, CONTACT:

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...