Press Release
Company
26 Jul 05Cascade Microtech Reports Second Quarter 2005 Results
Quarterly revenues of $18.3 million, Up 21% over the prior year and EPS of $0.19, including settlement income of $0.05
PORTLAND, Ore.-(BUSINESS WIRE)-July 26, 2005-Cascade Microtech (NASDAQ:CSCD), today reported financial results for the second quarter ended June 30, 2005.
Highlights for the second quarter include:
- Revenues of $18.3 million, up 21% year over year
- Book to bill for the quarter exceeded one in both divisions
- EPS of $0.19 per diluted share, including settlement income of $0.05, compared to $0.15 for the second quarter of 2004
- Cash and investments up to $49.7 million
"We are pleased to report solid revenue and earnings for our second quarter of 2005," said Eric Strid, CEO of Cascade Microtech. "The Engineering Products Division had year over year revenue growth of 15% and our Production Probe Division achieved a year over year growth of 83%. We built backlog in both divisions with a book to bill in excess of one."
Revenue for the second quarter was $18.3 million, an increase of 21% over $15.1 million in the second quarter of the prior year. Net income for the second quarter was $2.2 million and diluted earnings per share were $0.19, compared to net income of $1.2 million and diluted earnings per share of $0.15 for the second quarter of 2004. Net income for the second quarter of 2005 includes settlement income of $0.05.
Gross margin for the second quarter increased to 47.2% from 43.3% in the second quarter of 2004 but, as expected, declined from 49.1% in the first quarter of 2005.
At June 30, 2005, the Company had cash and investments of $49.7 million.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that third quarter 2005 revenues will be in the range of $17.8 million to $19.0 million compared to $17.1 million in the third quarter of 2004 and that diluted earnings per share will be in the range of $0.14 to $0.19 on 11.8 million shares compared to $0.17 on 8.3 million shares in the third quarter of 2004.
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook as to revenue and diluted earnings per share in the third quarter of 2005 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 July 26, 2005 to discuss its results for the second quarter ended June 30, 2005.
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: 79099625; International: 617-801-688.)
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
(in thousands except for per share data) | ||||||||||||
| Three Months Ended June 30, | Year to Date Ended June 30, | |||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||
| (unaudited) | (unaudited) | |||||||||||
| Sales | $ | 18,311 | $ | 15,120 | $ | 36,972 | $ | 28,954 | ||||
| Cost of sales | 9,651 | 8,553 | 19,141 | 16,488 | ||||||||
| Deferred stock compensation | 10 | 20 | 22 | 39 | ||||||||
| Gross profit | 8,650 | 6,547 | 17,809 | 12,427 | ||||||||
| Operating expenses: | ||||||||||||
Research and | 1,665 | 1,269 | 3,304 | 2,658 | ||||||||
Selling, general and | 5,161 | 4,188 | 9,760 | 7,975 | ||||||||
| Deferred stock compensation | 15 | 69 | 44 | 170 | ||||||||
| Total operating expenses | 6,841 | 5,526 | 13,108 | 10,803 | ||||||||
| Income from operations | 1,809 | 1,021 | 4,701 | 1,624 | ||||||||
| Other income (expense): | ||||||||||||
| Interest income | 258 | 20 | 470 | 46 | ||||||||
| Interest expense | (0) | (122) | (16) | (254) | ||||||||
| Other, net | 766 | 22 | 790 | 194 | ||||||||
| Total other income (expense) | 1,024 | (80) | 1,244 | (14) | ||||||||
| Income before income taxes | 2,833 | 941 | 5,945 | 1,610 | ||||||||
| Provision for income taxes | 602 | (298) | 1,219 | (2) | ||||||||
| Net income | 2,231 | 1,239 | 4,726 | 1,612 | ||||||||
| Accretion of redeemable stock | - | 37 | - | 75 | ||||||||
| Net income attributed to common shareholders | $ | 2,231 | $ | 1,202 | $ | 4,726 | $ | 1,537 | ||||
| Net income per share: | ||||||||||||
| Basic | $ | 0.20 | $ | 0.23 | $ | 0.43 | $ | 0.30 | ||||
| Diluted | $ | 0.19 | $ | 0.15 | $ | 0.40 | $ | 0.19 | ||||
| Shares used in computing net income per share: | ||||||||||||
| Basic | 10,916 | 5,182 | 10,890 | 5,160 | ||||||||
| Diluted | 11,715 | 8,289 | 11,682 | 8,274 | ||||||||
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets | ||||||
|---|---|---|---|---|---|---|
June 30, 2005 and December 31, 2004 (in thousands) | ||||||
| June 30, | December 31, | |||||
| Assets | 2005 | 2004 | ||||
| (unaudited) | (unaudited) | |||||
| Current assets: | ||||||
| Cash, cash equivalents and marketable securities | $ | 46,650 | $ | 43,747 | ||
| Accounts receivable, net | 14,516 | 13,640 | ||||
| Inventories | 10,864 | 10,180 | ||||
| Prepaid expenses and other | 1,983 | 1,579 | ||||
| Deferred income taxes | 1,717 | 1,552 | ||||
| Total current assets | 75,730 | 70,698 | ||||
| Long-term investments | 3,090 | 2,779 | ||||
| Fixed assets, net | 3,677 | 4,008 | ||||
| Deferred income tax | 222 | 65 | ||||
| Other assets | 1,585 | 1,466 | ||||
| $ | 84,304 | $ | 79,016 | |||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Line of credit | - | - | ||||
| Current portion of long-term debt and capital leases | $ | 8 | $ | 21 | ||
| Accounts payable | 4,189 | 3,951 | ||||
| Deferred revenue | 380 | 579 | ||||
| Accrued liabilities | 2,359 | 2,609 | ||||
| Total current liabilities | 6,936 | 7,160 | ||||
| Long-term debt and capital leases | 5 | 14 | ||||
| Deferred income tax | - | - | ||||
| Deferred revenue | 314 | 282 | ||||
| Other long-term liabilities | 1,206 | 1,372 | ||||
| Total liabilities | 8,461 | 8,828 | ||||
| Stockholders' equity: | ||||||
| Common stock | 56,389 | 55,511 | ||||
| Deferred stock-based compensation | (229) | (310) | ||||
| Notes receivable | - | - | ||||
| Unrealized holding gain (loss) on investments | (47) | (17) | ||||
| Retained earnings | 19,730 | 15,004 | ||||
| Total stockholders' equity | 75,843 | 70,188 | ||||
| $ | 84,304 | $ | 79,016 | |||
Contact: Cascade Microtech, Inc.
Steven Sipowicz, Chief Financial Officer, 503 601-1000
Gale Napier, Investor relations, 503 601-1000
