Press Release
Company
24 Jul 07Cascade Microtech Reports Second Quarter 2007 Results
Record Revenues of $24.1 million and EPS of 2 cents include the effects of the acquisition of Gryphics
PORTLAND, Ore. -(BUSINESS WIRE)- July 24, 2007 - Cascade Microtech (NASDAQ:CSCD - News), today reported financial results for the second quarter ended June 30, 2007.
Highlights for the Second Quarter 2007 include:
- Record revenues of $24.1 million, up 7% sequentially and up 23% over Q2 last year;
- $19.1 million Engineering Products Division revenue, up 4% sequentially and 19% over Q2 last year;
- $5.0 million Production Products Division revenue, up 24% sequentially and up 39% over Q2 last year; Q2 results this year include $1.3 million in revenue from the Gryphics acquisition;
- EPS of $0.02 per diluted share includes amortization of purchased intangibles of $555,000;
- During the second quarter, we closed the acquisition of Gryphics, Inc. for approximately $26 million.
"Our Engineering Products Division continued to show strong performance in the second quarter of 2007, in which we shipped another record number of 300mm probe stations. In our Production Products Division, however, both Pyramid Probe Card revenues and bookings were below plan as we continue to build a more diversified customer base," said Eric Strid, CEO of Cascade Microtech. "During the quarter, we were pleased to complete the acquisition of Gryphics, Inc. and have begun the integration of this business into our Production Products Division," added Strid.
Revenue for the second quarter was $24.1 million, net income for the quarter was $0.2 million and diluted earnings per share were $0.02 compared to revenue of $19.6 million, net income of $0.8 million and diluted earnings per share of $0.07 for the second quarter of 2006.
Gross margin for the second quarter was 44.8% compared to 45.7% in the first quarter of 2007 and 44.6% for the second quarter of 2006.
For the second quarter, there was a tax benefit of $248,000 which included the impact of the acquisition of Gryphics, Inc., which was acquired in April 2007.
Financial Outlook
Based on the current backlog and anticipated bookings, Cascade anticipates that third quarter 2007 revenues will be in the range of $23.0 million to $25.0 million and that diluted earnings per share will be in the range of $0.01 to $0.06. This anticipated earnings range includes $555,000 of acquisition-related amortization.
Forward-Looking Statements
The statements in this release regarding the Company's financial outlook as to revenue and earnings in the third 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. EDT (2 p.m. PDT) on July 24, 2007 to discuss its results for the second quarter ended June 30, 2007 and its outlook for the third quarter of 2007.
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. EDT at this same internet address. (For a telephone replay, dial 888-286-8010 passcode: 35500195; 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 Jun 30, | |||||||||||||
| June 30 , 2007 | March 31, 2007 | June 30 , 2006 | 2007 | 2006 | ||||||||||
| Sales | $ | 24,116 | $ | 22,471 | $ | 19,598 | $ | 46,587 | $ | 39,297 | ||||
| Cost of sales | 13,186 | 12,087 | 10,739 | 25,273 | 21,759 | |||||||||
| Stock-based compensation | 127 | 122 | 113 | 249 | 225 | |||||||||
| Gross profit | 10,803 | 10,262 | 8,746 | 21,065 | 17,313 | |||||||||
| Operating expenses: | ||||||||||||||
| Research and development (includes $89, $79, $77, $168 and $164, respectively, of stock-based compensation) | 3,120 | 2,639 | 2,150 | 5,759 | 4,148 | |||||||||
| Selling, general and administrative (includes $408, $361, $258, $769 and $522, respectively, of stock-based compensation) | 7,439 | 6,664 | 5,808 | 14,103 | 11,817 | |||||||||
| Amortization of purchased intangibles | 555 | 106 | - | 661 | - | |||||||||
| Total operating expenses | 11,114 | 9,409 | 7,958 | 20,523 | 15,965 | |||||||||
| Income (loss) from operations | (311) | 853 | 788 | 542 | 1,348 | |||||||||
| Other income (expense): | ||||||||||||||
| Interest income | 366 | 455 | 405 | 821 | 767 | |||||||||
| Interest expense | - | (1) | - | (1) | - | |||||||||
| Other, net | (65) | 110 | (10) | 45 | 47 | |||||||||
| Total other income (expense) | 301 | 564 | 395 | 865 | 814 | |||||||||
| Income (loss) before income taxes | (10) | 1,417 | 1,183 | 1,407 | 2,162 | |||||||||
| Provision (benefit) for income taxes | (248) | 369 | 387 | 121 | 710 | |||||||||
| Net income | 238 | 1,048 | 796 | 1,286 | 1,452 | |||||||||
| Net income per share: | ||||||||||||||
| Basic | $ | 0.02 | $ | 0.09 | $ | 0.07 | $ | 0.10 | $ | 0.13 | ||||
| Diluted | $ | 0.02 | $ | 0.09 | $ | 0.07 | $ | 0.10 | $ | 0.12 | ||||
| Shares used in computing net income per share: | ||||||||||||||
| Basic | 12,724 | 11,808 | 11,411 | 12,269 | 11,392 | |||||||||
| Diluted | 13,038 | 12,207 | 11,897 | 12,625 | 11,841 | |||||||||
| CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets | |||||
|---|---|---|---|---|---|
| Assets | June 30, 2007 (unaudited) | December 31, 2006 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ | 3,495 | 5,260 | ||
| Marketable securities | 24,425 | 38,534 | |||
| Accounts receivable, net | 20,336 | 17,642 | |||
| Inventories | 15,679 | 15,094 | |||
| Prepaid expenses and other | 1,842 | 2,055 | |||
| Deferred income taxes | 2,059 | 2,042 | |||
| Total current assets | 67,836 | 80,627 | |||
| Long-term investments | 9,442 | 9,662 | |||
| Fixed assets, net | 12,504 | 6,818 | |||
| Deferred income tax | 1,158 | 1,132 | |||
| Goodwill | 15,651 | 1,295 | |||
| Other assets | 17,445 | 4,702 | |||
| $ | 124,036 | 104,236 | |||
| Liabilities and Stockholders' Equity | |||||
| Current liabilities: | |||||
| Current portion of long-term debt and capital leases | $ | 6 | $ | - | |
| Accounts payable | 5,432 | 6,013 | |||
| Deferred revenue | 808 | 1,184 | |||
| Accrued liabilities | 4,280 | 5,026 | |||
| Total current liabilities | 10,526 | 12,223 | |||
| Long-term debt and capital leases | 25 | - | |||
| Deferred income tax | 5,016 | 450 | |||
| Deferred revenue | 460 | 199 | |||
| Other long-term liabilities | 1,922 | 1,171 | |||
| Total liabilities | 17,949 | 14,043 | |||
| Stockholder's equity | |||||
| Common stock | 77,894 | 63,261 | |||
| Unrealized holding gain (loss) on investments | (26) | (1) | |||
| Retained earnings | 28,219 | 26,933 | |||
| Total stockholders' equity | 106,087 | 90,193 | |||
| $ | 124,036 | 104,236 | |||
Contact:
Steven Sipowicz, Chief Financial Officer
(503) 601-1000
