House & Home
House and Home
House and Home 
Wed, February 11, 2009
Tue, February 10, 2009
Cascade Microtech: Cascade Microtech Reports Fourth Quarter and 2008 Year End Results
PORTLAND, OR--(Marketwire - February 10, 2009) - Cascade Microtech (
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)
About Cascade Microtech, Inc.
Cascade Microtech, Inc. (
CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended ------------------------------- Year to Date Ended December September December December 31, 31, 30, 31, -------------------- 2008 2008 2007 2008 2007 --------- --------- --------- --------- --------- Sales $ 15,387 $ 21,128 $ 21,992 $ 76,561 $ 89,922 Cost of sales 10,544 12,068 11,824 44,477 48,801 --------- --------- --------- --------- --------- Gross profit 4,843 9,060 10,168 32,084 41,121 --------- --------- --------- --------- --------- Operating expenses: Research and development 2,433 2,308 2,759 10,473 11,241 Selling, general and administrative 7,341 7,739 6,872 29,311 27,723 Amortization of purchased intangibles 582 582 649 2,461 1,977 Impairment charges 27,701 - - 27,701 - --------- --------- --------- --------- --------- Total operating expenses 38,057 10,629 10,280 69,946 40,941 --------- --------- --------- --------- --------- Income (loss) from operations (33,214) (1,569) (112) (37,862) 180 --------- --------- --------- --------- --------- Other income (expense): Interest income, net 151 221 305 862 1,455 Other, net 272 (369) (63) 176 (119) --------- --------- --------- --------- --------- Total other income (expense) 423 (148) 242 1,038 1,336 --------- --------- --------- --------- --------- Income (loss) before income taxes (32,791) (1,717) 130 (36,824) 1,516 Provision (benefit) for income taxes (1,379) (426) 270 (2,247) 586 --------- --------- --------- --------- --------- Net income (loss) $ (31,412) $ (1,291) $ (140) $ (34,577) $ 930 ========= ========= ========= ========= ========= Net income (loss) per share: Basic $ (2.39) $ (0.10) $ (0.01) $ (2.65) $ 0.07 Diluted $ (2.39) $ (0.10) $ (0.01) $ (2.65) $ 0.07 Shares used in computing net income (loss) per share: Basic 13,142 13,108 12,855 13,071 12,550 Diluted 13,142 13,108 12,855 13,071 12,840 CASCADE MICROTECH, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) (unaudited) December September December 31, 30, 31, Assets 2008 2008 2007 -------- --------- --------- Current assets: Cash and cash equivalents $ 3,750 $ 4,422 $ 4,900 Marketable securities 28,795 25,521 24,521 Accounts receivable, net 12,801 16,890 18,195 Inventories 19,079 19,494 18,608 Prepaid expenses and other 1,367 1,141 1,874 Income taxes receivable 1,003 - - Deferred income taxes 99 3,071 2,729 Assets held for sale 400 562 - -------- --------- --------- Total current assets 67,294 71,101 70,827 Long-term investments 2,465 5,039 4,836 Fixed assets, net 13,580 13,799 14,575 Goodwill - 17,406 17,310 Purchased intangible assets, net 2,425 13,163 15,042 Deferred income taxes 237 - - Other assets 2,455 2,820 2,691 -------- --------- --------- $ 88,456 $ 123,328 $ 125,281 ======== ========= ========= Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt and capital leases $ 19 $ 16 $ 13 Accounts payable 4,110 4,773 5,158 Deferred revenue 1,120 905 1,102 Accrued liabilities 3,776 3,984 5,589 -------- --------- --------- Total current liabilities 9,025 9,678 11,862 Long-term debt and capital leases 62 59 51 Deferred income taxes - 3,064 3,114 Deferred revenue 313 413 481 Other long-term liabilities 2,356 2,380 2,168 -------- --------- --------- Total liabilities 11,756 15,594 17,676 -------- --------- --------- Stockholders' equity: Common stock 83,345 83,028 79,697 Unrealized holding gain on investments 69 8 45 Retained earnings (deficit) (6,714) 24,698 27,863 -------- --------- --------- Total stockholders' equity 76,700 107,734 107,605 -------- --------- --------- $ 88,456 $ 123,328 $ 125,281 ======== ========= =========