Press Release
Company
13 Feb 07Cascade Microtech Reports Fourth Quarter and 2006 Year End Results
Record Annual Revenue of $84.9 million, Up 15% over last year and Diluted EPS of $0.30
Fourth quarter Revenue of $22.6 million, Up 28% over last year and Diluted EPS of $0.08
PORTLAND, Ore - (BUSINESS WIRE) - February 13, 2007 - Cascade Microtech (NASDAQ:CSCD), today reported financial results for the fourth quarter and year ended December 31, 2006.
Highlights for the fourth quarter include:
- Revenue of $22.6 million, up 28% over Q4 of last year and down 2% compared to Q3 this year
- $17.6 million Engineering Products division revenue, up 22% over Q4 of last year and down 3% compared to Q3 this year
- $5.0 million Production Probes division revenue, up 53% over Q4 of last year and up 4% compared to Q3 this year
- Diluted EPS of $0.08 compared to $0.10 for Q3 of this year and $0.12 in Q4 last year
- Acquisition of technology, design information for the manufacture of subassemblies and other intangibles for the eVue product line with an initial cash payment of $4 million
- Cash and investments at the end of the quarter were $53.5 million, up $1.6 million from the end of last year
“We are pleased to report record revenue for 2006,” said Eric Strid, CEO of Cascade Microtech. “We have seen strong growth in both divisions over last year. We have also continued to invest in the business in 2006 and expect to continue to do so in 2007 to position the Company for future growth in both revenue and earnings.”
Revenue for the fourth quarter was $22.6 million, an increase of 28% over $17.7 million in the fourth quarter of 2005. Net income for the fourth quarter was $0.9 million and diluted earnings per share were $0.08, compared to net income of $1.4 million and diluted earnings per share of $0.12 for the fourth quarter of 2005.
At December 31, 2006, the Company had cash and investments of $53.5 million, up from $51.9 million at December 31, 2005. During the fourth quarter of 2006, the Company made an initial payment of $4 million to acquire assets for the eVue product line.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that first quarter 2007 revenues will be in the range of $21.5 million to $23.5 million; and that diluted earnings per share will be in the range of $0.06 to $0.11.
Forward-Looking Statements
The statements in this release by Mr. Strid and the statements in the paragraph above captioned “Financial Outlook” 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 February 13, 2007 to discuss its results for the fourth quarter and year ended December 31, 2006.
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 pass code: 62520800; International: 617-801-6888.)
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data, unaudited) | ||||||||||||||
| Three Months Ended | Year to Date Ended December 31, | |||||||||||||
| December 31, 2006 | September 30, 2006 | December 31, 2005 | 2006 | 2005 | ||||||||||
| Sales | $ | 22,605 | $ | 22,950 | $ | 17,678 | $ | 84,852 | $ | 73,637 | ||||
| Cost of sales | 12,679 | 12,929 | 10,100 | 47,367 | 39,351 | |||||||||
| Stock-based compensation | 111 | 107 | 6 | 443 | 39 | |||||||||
| Gross profit | 9,815 | 9,914 | 7,572 | 37,042 | 34,247 | |||||||||
| Operating expenses: | ||||||||||||||
| Research and development (includes $77, $76, $6, $230 and $14, respectively, of stock-based compensation) | 2,570 | 2,231 | 1,898 | 8,949 | 6,968 | |||||||||
| Selling, general and administrative (includes $332, $258, $24, $854 and $60, respectively, of stock-based compensation) | 6,910 | 6,222 | 5,043 | 24,949 | 19,778 | |||||||||
| Total operating expenses | 9,480 | 8,453 | 6,941 | 33,898 | 26,746 | |||||||||
| Income from operations | 335 | 1,461 | 631 | 3,144 | 7,501 | |||||||||
| Other income (expense): | ||||||||||||||
| Interest income | 420 | 428 | 315 | 1,615 | 1,061 | |||||||||
| Interest expense | (1) | - | (2) | - | (18) | |||||||||
| Other, net | 28 | 272 | 176 | 347 | 948 | |||||||||
| Total other income (expense) | 447 | 700 | 489 | 1,961 | 1,991 | |||||||||
| Income before income taxes | 782 | 2,161 | 1,120 | 5,105 | 9,492 | |||||||||
| Provision (benefit) for income taxes | (144) | 929 | (325) | 1,495 | 1,173 | |||||||||
| Net income | 926 | 1,232 | 1,445 | 3,610 | 8,319 | |||||||||
| Net income per share: | ||||||||||||||
| Basic | $ | 0.08 | $ | 0.11 | $ | 0.13 | $ | 0.31 | $ | 0.75 | ||||
| Diluted | $ | 0.08 | $ | 0.10 | $ | 0.12 | $ | 0.30 | $ | 0.70 | ||||
| Shares used in computing net income per share: | ||||||||||||||
| Basic | 11,664 | 11,475 | 11,281 | 11,482 | 11,055 | |||||||||
| Diluted | 12,084 | 11,930 | 11,955 | 11,959 | 11,816 | |||||||||
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Assets | December 31, 2006 | September 30, 2006 | December 31, 2005 | |||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 5,260 | 2,806 | 2,224 | ||||||
| Marketable securities | 38,534 | 44,179 | 48,122 | |||||||
| Accounts receivable, net | 17,642 | 18,729 | 16,182 | |||||||
| Inventories | 15,094 | 13,940 | 10,889 | |||||||
| Prepaid expenses and other | 2,293 | 1,901 | 3,000 | |||||||
| Deferred income taxes | 2,042 | 1,832 | 1,699 | |||||||
| Total current assets | 80,865 | 83,387 | 82,116 | |||||||
| Long-term investments | 9,662 | 7,933 | 1,549 | |||||||
| Fixed assets, net | 6,818 | 6,351 | 4,422 | |||||||
| Deferred income tax | 444 | 343 | 336 | |||||||
| Other assets | 5,997 | 2,062 | 1,697 | |||||||
| $ | 103,786 | 100,076 | 90,120 | |||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Current portion of long-term debt and capital leases | $ | - | $ | 1 | $ | 8 | ||||
| Accounts payable | 6,013 | 5,696 | 3,904 | |||||||
| Deferred revenue | 1,184 | 558 | 516 | |||||||
| Accrued liabilities | 5,026 | 5,047 | 3,087 | |||||||
| Total current liabilities | 12,223 | 11,302 | 7,515 | |||||||
| Long-term debt and capital leases | - | - | - | |||||||
| Deferred revenue | 199 | 265 | 255 | |||||||
| Other long-term liabilities | 1,171 | 934 | 845 | |||||||
| Total liabilities | 13,593 | 12,501 | 8,615 | |||||||
| Stockholder's equity | ||||||||||
| Common stock | 63,261 | 61,561 | 58,400 | |||||||
| Deferred stock-based compensation | - | - | (142) | |||||||
| Unrealized holding gain (loss) on investments | (1) | 7 | (76) | |||||||
| Retained earnings | 26,933 | 26,007 | 23,323 | |||||||
| Total stockholders' equity | 90,193 | 87,575 | 81,505 | |||||||
| $ | 103,786 | 100,076 | 90,120 | |||||||
Contacts
Cascade Microtech, Inc.
Steven Sipowicz, Chief Financial Officer, 503 601-1000
Gale Napier, Investor Relations, 503 601-1000
