Cascade Microtech Reports First Quarter 2007 Results
Revenues of $22.5 million, up 14% over Q1 last year and EPS of 9 cents, up 50% over Q1 last year
PORTLAND, Ore.-(BUSINESS WIRE)-April 24, 2007-Cascade Microtech (NASDAQ:CSCD), today reported financial results for the first quarter ended March 31, 2007.
Highlights for the First Quarter 2007 include:
- Revenues of $22.5 million, flat sequentially and up 14% over Q1 last year
- $18.4 million Engineering Products Division revenue, up 4% sequentially and 13% over Q1 last year
- $ 4.1 million Production Products Division revenue, down 19% sequentially but up 19% over Q1 last year
- EPS of $0.09 per diluted share, up 13% sequentially and 50% over Q1 last year
"Our Engineering Products Division continued to show strong performance in the first quarter of 2007. Although our Production Products Division revenue was down from the last quarter as expected, we built backlog in Production Probes and continued to invest during the quarter by adding employees and building out the facility to increase capacity," said Eric Strid, CEO of Cascade Microtech.
Revenue for the first quarter was $22.5 million, net income for the quarter was $1.0 million and diluted earnings per share were $0.09, compared to revenue of $22.6 million, net income of $0.9 million and diluted earnings per share of $0.08 for the fourth quarter of 2006.
Gross margin for the first quarter improved to 45.7% from 43.4% in the fourth quarter of 2006 primarily due to product mix improvements in the Engineering Products Division.
The effective tax rate for the first quarter was 26% compared to a tax benefit of 18% in the fourth quarter of 2006.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that second quarter 2007 revenues for our organic business will be in the range of $21.5 million to $23.5 million and that diluted earnings per share for our organic business will be in the range of $0.06 to $0.11. This organic revenue and earnings range excludes the effect of the acquisition of Gryphics, Inc. which closed during the second quarter of 2007.
Our independent valuation experts have not yet completed the valuation work related to the acquisition of Gryphics. We expect to incur normal acquisition-related charges that may significantly impact the second quarter results so we are unable to provide a meaningful range for reported diluted earnings per share for the second quarter of 2007.
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook as to revenue and earnings in the second quarter of 2007 and any acquisition-related charges 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, product mix, the timing of shipments and customer orders, constraints on supplies of components, excess or shortage of production capacity 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 April 24, 2007 to discuss its results for the first quarter ended March 31, 2007 and its outlook for the second quarter of 2007.
A simultaneous audio cast of the conference call may be accessed online from the investor relations page of http://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: 70824132; International: 617-801-6888.)
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data, unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2007 | December 31, 2006 | March 31, 2006 | ||||||
| Sales | $ | 22,471 | $ | 22,605 | $ | 19,699 | ||
| Cost of sales | 12,087 | 12,679 | 11,020 | |||||
| Stock-based compensation | 122 | 111 | 112 | |||||
| Gross profit | 10,262 | 9,815 | 8,567 | |||||
| Operating expenses: | ||||||||
| Research and development (includes $79, $75, and $77, respectively, of stock-based compensation) | 2,639 | 2,570 | 1,998 | |||||
| Selling, general and administrative (includes $361, $281 and $264, respectively, of stock-based compensation) | 6,770 | 6,910 | 6,009 | |||||
| Total operating expenses | 9,409 | 9,480 | 8,007 | |||||
| Income from operations | 853 | 335 | 560 | |||||
| Other income (expense): | ||||||||
| Interest income | 455 | 420 | 362 | |||||
| Interest expense | (1) | (1) | - | |||||
| Other, net | 110 | 28 | 57 | |||||
| Total other income (expense) | 564 | 447 | 419 | |||||
| Income before income taxes | 1,417 | 782 | 979 | |||||
| Provision (benefit) for income taxes | 369 | (144) | 323 | |||||
| Net income | 1,048 | 926 | 656 | |||||
| Net income per share: | ||||||||
| Basic | $ | 0.09 | $ | 0.08 | $ | 0.06 | ||
| Diluted | $ | 0.09 | $ | 0.08 | $ | 0.06 | ||
| Shares used in computing net income per share: | ||||||||
| Basic | 11,808 | 11,664 | 11,373 | |||||
| Diluted | 12,207 | 12,084 | 11,907 | |||||
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets | |||||
|---|---|---|---|---|---|
| Assets | March 31, 2007 (unaudited) | December 31, 2006 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 2,650 | 5,260 | ||
| Marketable securities | 43,738 | 38,534 | |||
| Accounts receivable, net | 18,767 | 17,642 | |||
| Inventories | 15,506 | 15,094 | |||
| Prepaid expenses and other | 2,112 | 2,293 | |||
| Deferred income taxes | 2,029 | 2,042 | |||
| Total current assets | 84,802 | 80,865 | |||
| Long-term investments | 6,597 | 9,662 | |||
| Fixed assets, net | 8,600 | 6,818 | |||
| Deferred income tax | 723 | 444 | |||
| Goodwill | 1,295 | 1,295 | |||
| Other assets | 4,679 | 4,702 | |||
| $ | 106,696 | 103,786 | |||
| Liabilities and Stockholders' Equity | |||||
| Current liabilities: | |||||
| Current portion of long-term debt and capital leases | $ | 6 | $ | - | |
| Accounts payable | 5,614 | 6,013 | |||
| Deferred revenue | 1,009 | 1,184 | |||
| Accrued liabilities | 5,015 | 5,026 | |||
| Total current liabilities | 11,644 | 12,223 | |||
| Long-term debt and capital leases | 27 | - | |||
| Deferred revenue | 198 | 199 | |||
| Other long-term liabilities | 1,743 | 1,171 | |||
| Total liabilities | 13,612 | 13,593 | |||
| Stockholder's equity | |||||
| Common stock | 65,107 | 63,261 | |||
| Unrealized holding gain (loss) on investments | (4) | (1) | |||
| Retained earnings | 27,981 | 26,933 | |||
| Total stockholders' equity | 93,084 | 90,193 | |||
| $ | 106,696 | 103,786 | |||
Contact:
Cascade Microtech, Inc.
Steven Sipowicz, Chief Financial Officer, 503 601-1000
Gale Napier, Investor Relations, 503 601-1000
