10 Feb 09Cascade Microtech Reports Fourth Quarter and 2008 Year End Results

Fourth quarter results include:

• Revenue of $15.4 million, down 27% from Q3 of 2008
• $27.7 million non-cash impairment charge made up of a goodwill impairment of $17.4 million and other intangibles impairment of $10.3 million
• Severance costs of $450,000
• Net loss of $31.4 million or $2.39 per share for Q408, compared to a net loss of $1.3 million or $0.10 per share for Q308
• Cash and investment balances increased slightly to $35.0 million

"During the fourth quarter, we continued to see deterioration in market conditions and in common with the rest of the industry, experienced a difficult quarter. As previously announced, we continued our restructuring program in the fourth quarter in order to bring our costs more in line with current market expectations" said Geoff Wild, CEO of Cascade Microtech. "During this difficult period, we shall focus on expense management and cash conservation but still make prudent investments to position the business for a market recovery," added Mr. Wild.

Revenue for the fourth quarter was $15.4 million, a decrease of 30% from $22.0 million in the fourth quarter of 2007. Net loss for the fourth quarter was $31.4 million (which includes a non-cash impairment charge of $27.7 million) and loss per share was $2.39, compared to a net loss of $140,000 and loss per share of $0.01 for the fourth quarter of 2007.

Financial Outlook

Based on the current backlog, anticipated bookings and the current market environment, Cascade anticipates that first quarter 2009 revenues will be in the range of $11.0 million to $14.0 million. The Company has suspended earnings per share guidance in view of the uncertainty of the mix of revenue and the potential range of outcomes.

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to revenue in the first quarter of 2009 and the comments by Mr. Wild 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 10, 2009 to discuss its results for the fourth quarter and year ended December 31, 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 available after 7 p.m. EST dial: 888-286-8010, international: 617-801-6888, passcode: 83074521)

Cascade Microtech Financial Statements - Q4 2008

Contact: Cascade Microtech, Inc.
Steven Sipowicz, Chief Financial Officer, 503 601-1000