EX-99.1 2 d671353dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Cascade Microtech Reports Fourth Quarter and 2013 Results

Record Annual Revenue of $120.0 Million

Record Quarterly Revenue of $34.0 Million

Record Quarterly Bookings of $38.9 Million

BEAVERTON, Ore. — (MARKETWIRE) — February 5, 2014 — Cascade Microtech, Inc. (NASDAQ:CSCD) today reported financial results for the fourth quarter and year ended December 31, 2013.

Financial summary

Results for the year ended December 31, 2013 were as follows:

 

  •   Total revenue of $120.0 million, compared to $113.0 million for 2012.

 

  - Systems revenue of $79.2 million, an increase of $4.8 million, or 6.5%, over 2012.

 

  - Probes revenue of $40.8 million, an increase of $2.2 million, or 5.7%, over 2012.

 

  - 2013 set new revenue records for both of our segments and includes $5.0 million in annual revenue related to current year acquisitions.

 

  •   Gross margin of 45.6%, up from 44.2% in 2012.

 

  - 2013 cost of sales includes acquisition-related expenses of $0.5 million, or 0.4% of revenue, with no comparable expenses for 2012.

 

  •   Income from operations of $7.3 million, a decrease of $0.2 million, or 3.0%, from 2012.

 

  - 2013 operating expense includes acquisition-related and restructuring expenses of $1.1 million with no comparable expenses for 2012.

 

  - 2013 includes depreciation, amortization and stock-based compensation expenses of $6.8 million, compared to $6.1 million for 2012.

 

  •   Net income of $13.4 million, or $0.89 per diluted share, compared to $6.1 million, or $0.42 per diluted share, for 2012.

 

  - 2013 includes a net tax benefit of $6.3 million, or $0.42 per diluted share, related primarily to the release of valuation allowance on deferred tax assets, compared to a net tax expense of $0.7 million, or $0.05 per diluted share, for 2012.

 

  •   Adjusted EBITDAS of $15.8 million compared to $13.6 million for 2012.

 

  •   Annual book-to-bill ratio of 1.02 to 1.

Results for the quarter ended December 31, 2013 were as follows:

 

  •   Total revenue of $34.0 million, compared to $28.2 million for Q3 2013 and $30.4 million for Q4 2012.

 

  - Systems revenue of $24.2 million, an increase of $6.7 million, or 38.2%, over Q3 2013, and an increase of $3.4 million, or 16.5%, over Q4 2012.

 

  - Probes revenue of $9.9 million, a decrease of $0.8 million, or 7.9%, from Q3 2013, and an increase of $0.2 million, or 2.4%, over Q4 2012.

 

  - Q4 2013 set a new revenue record for our Systems segment and includes $4.9 million in quarterly revenue related to current year acquisitions.

 

  •   Gross margin of 45.5%, down from 47.6% in Q3 2013, and up from 43.0% in Q4 2012.

 

  - Q4 2013 cost of sales includes acquisition-related expenses of $0.5 million, or 1.4% of revenue, with no comparable expenses for either Q3 2013 or Q4 2012.

 

  •   Income from operations of $2.2 million, an increase of $0.6 million, or 40.3%, from Q3 2013, and a decrease of $0.1 million, or 3.5%, from Q4 2012.

 

  - Q4 2013 operating expense includes acquisition-related and restructuring expenses of $0.4 million, compared to $0.6 million for Q3 2013, and no comparable expenses for Q4 2012.

 

  - Q4 2013 includes depreciation, amortization and stock-based compensation expenses of $2.1 million compared to $1.5 million for both Q3 2013 and Q4 2012.

 

  •   Net income of $8.8 million, or $0.53 per diluted share, compared to $1.7 million, or $0.11 per diluted share, for Q3 2013, and $1.7 million, or $0.12 per diluted share, for Q4 2012.

 

1

  - Q4 2013 includes a net tax benefit of $6.6 million, or $0.40 per diluted share, related primarily to the release of valuation allowance on deferred tax assets. Net tax expense was near zero in Q3 2013 and $0.4 million, or $0.03 per diluted share, for Q4 2012.

 

  - Q4 2013 includes intangible amortization expenses of $0.6 million, or $0.03 per diluted share, related to our acquisition of Advanced Temperature Test Systems GmbH (ATT Systems) on October 1, 2013.

 

  - Q4 2013 includes $0.9 million, or $0.05 per diluted share, of previously mentioned acquisition-related and restructuring charges.

 

  •   Adjusted EBITDAS of $5.2 million, compared to $3.7 million for Q3 2013, and $3.8 million for Q4 2012.

 

  •   Quarterly book-to-bill ratio of 1.14 to 1.

Adjusted EBITDAS is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” below and the attached supplemental schedule for a reconciliation of GAAP to non-GAAP financial measures.

“We are very excited about 2014 based upon the results for the fourth quarter and the full year of 2013,” said Michael Burger, President and CEO. “Our historical products prior to recent acquisitions outperformed the semi-conductor capital equipment market this year, and we’ve accelerated our growth with the acquisitions closed in the second half of 2013. We set annual and quarterly records for revenue and bookings, while improving our profitability. The markets we serve have been expanded with the addition of Reliability Test Products and ATT Systems, together with our new product introductions that continue to gain traction. Finally, in the fourth quarter, our adjusted EBITDAS increased to 15.2% of revenue and reflects progress towards our success model of 20%. Cascade Microtech is well positioned as we enter 2014.”

Financial outlook

Based upon industry seasonality, and assuming consistent foreign currency rates, we are projecting revenue for the first quarter of 2014 to be in the range of $31.0 million to $34.0 million, with an adjusted EBITDAS in the range of $3.0 million to $5.0 million.

We will host a conference call beginning at 2:00 p.m. PST (5:00 p.m. EST) on Wednesday, February 5, 2014, to discuss our results for the quarter ended December 31, 2013.

A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com. If you are interested in participating in the call, the live dial-in number is 877-546-5021 or international 857-244-7553, participant passcode: 56070753. A replay will be available after 6:00 p.m. PST (9:00 p.m. EST) at the same internet address. (For a telephone replay available after 6:00 p.m. PST (9:00 p.m. EST), dial: 888-286-8010, international: 617-801-6888, passcode: 13911804).

Forward-Looking Statements

The statements in this release regarding our financial outlook as to anticipated revenue and adjusted EBITDAS for the first quarter of 2014, demand for our new and existing products, our growth, and other statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts,” and “continue” or other derivations of these or other comparable terms 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 our 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 our products; changes in product mix; potential delays and other factors affecting the timing of new product introductions; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; potential failure of expected market opportunities to materialize; changes in foreign exchange rates; our ability or delay in integrating acquired businesses; and other risks discussed from time to time in our Securities and Exchange Commission filings and reports, including our Annual Report on Form 10-K for the year ended December 31, 2012. 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 we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

 

2

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), the Company’s earnings release contains Non-GAAP financial measures which are defined below and reconciled to GAAP financial measures in the attached supplemental schedule. Adjusted EBITDAS is defined as operating income from continuing operations before depreciation and amortization and stock-based compensation and certain other items (adjustments) such as restructuring, facility move and project costs, and acquisition-related expenses that we believe are not representative of our ongoing operating performance. Adjusted EBITDAS should not be construed as a substitute for net income from continuing operations or net cash provided by (used in) operating activities (all as determined in accordance with GAAP) for the purpose of analyzing our operating performance, financial position and cash flows, as adjusted EBITDAS is not defined by GAAP. However, we regard adjusted EBITDAS as a complement to net income from continuing operations and other GAAP financial performance measures, including an indirect measure of operating cash flow.

About Cascade Microtech, Inc.

Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in precision contact, electrical measurement and test of integrated circuits (ICs), optical devices and other small structures. For technology businesses and scientific institutions that need to evaluate small structures, Cascade Microtech delivers access to electrical data from wafers, ICs, IC packages, circuit boards and modules, MEMS, 3D TSV, LED devices and more. Cascade Microtech’s leading-edge stations, probes, probe cards, advanced thermal subsystems and integrated systems deliver precision accuracy and superior performance both in the lab and during production manufacturing of high-speed and high-density semiconductor chips. For more information visit www.cascademicrotech.com.

FOR MORE INFORMATION, CONTACT:

Jeff A. Killian

Cascade Microtech, Inc.

(503) 601-1280

###

 

3

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended        
     December 31,     September 30,     December 31,     Year Ended December 31,  
     2013     2013     2012     2013     2012  

Revenue

    $ 34,035      $ 28,197      $ 30,368      $ 120,010      $ 112,963   

Cost of sales

      18,547        14,779        17,313        65,286        63,012   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      15,488        13,418        13,055        54,724        49,951   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

           

Research and development

      3,061        2,750        3,022        10,961        11,017   

Selling, general and administrative

      10,223        9,097        7,749        36,430        31,377   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     13,284        11,847        10,771        47,391        42,394   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      2,204        1,571        2,284        7,333        7,557   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other income (expense):

           

Interest income, net

      4        18        26        44        52   

Other, net

      (27 )      87        (240 )      (296 )      (801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     (23 )      105        (214 )      (252 )      (749 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      2,181        1,676        2,070        7,081        6,808   

Income tax expense (benefit)

      (6,621 )      (7 )      380        (6,337 )      709   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 8,802      $ 1,683      $ 1,690      $ 13,418      $ 6,099   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share:

           

Basic

    $ 0.54      $ 0.12      $ 0.12      $ 0.91      $ 0.43   

Diluted

    $ 0.53      $ 0.11      $ 0.12      $ 0.89      $ 0.42   

Shares used in computing net income per share:

           

Basic

      16,173        14,453        14,223        14,792        14,182   

Diluted

      16,634        14,797        14,428        15,150        14,390   

 

4

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     December 31,     December 31,  
     2013     2012  
Assets     

Current assets:

     

Cash and cash equivalents

    $ 17,172      $ 17,927   

Marketable securities

      4,278        5,322   

Restricted cash

      1,082        1,069   

Accounts receivable, net

      26,518        21,087   

Inventories

      23,803        24,277   

Deferred income taxes

      2,268        218   

Prepaid expenses and other

      2,147        2,285   
  

 

 

    

 

 

  

Total current assets

      77,268        72,185   

Fixed assets, net

      6,403        8,271   

Purchased intangible assets, net

      16,937        1,610   

Goodwill

      14,471        990   

Deferred income taxes

      1,235        396   

Other assets, net

      1,116        1,828   
  

 

 

    

 

 

  
   $ 117,430      $ 85,280   
  

 

 

    

 

 

  
Liabilities and Shareholders’ Equity     

Current liabilities:

     

Accounts payable

    $ 7,229      $ 5,900   

Deferred revenue

      1,474        3,526   

Accrued liabilities

      8,659        6,640   
  

 

 

    

 

 

  

Total current liabilities

      17,362        16,066   

Deferred revenue

      548        356   

Other long-term liabilities

      2,119        2,940   
  

 

 

    

 

 

  

Total liabilities

      20,029        19,362   
  

 

 

    

 

 

  

Shareholders’ equity:

     

Common stock

      108,070        91,039   

Accumulated other comprehensive income (loss)

      318        (716 ) 

Accumulated deficit

      (10,987 )      (24,405 ) 
  

 

 

    

 

 

  

Total shareholders’ equity

      97,401        65,918   
  

 

 

    

 

 

  
   $ 117,430      $ 85,280   
  

 

 

    

 

 

  

 

5

CASCADE MICROTECH, INC.

AND SUBSIDIARIES

Reconcilation of GAAP and Non-GAAP Financial Measures

EBITDAS and Adjusted EBITDAS

(in thousands)

(unaudited)

 

     Three Months Ended                
     December 31,      September 30,      December 31,      Year Ended December 31,  
     2013      2013      2012      2013      2012  

Income from operations

    $ 2,204       $ 1,571       $ 2,284       $ 7,333       $ 7,557   

Adjustments:

               

Depreciation and amortization

      1,661         1,146         1,222         5,183         4,629   

Stock-based compensation

      399         343         323         1,614         1,459   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

EBITDAS

    $ 4,264       $ 3,060       $ 3,829       $ 14,130       $ 13,645   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Adjustments:

               

Restructuring

      115         —           —           227         —     

Acquisition and acquisition related

      779         627         —           1,406         —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDAS

    $ 5,158       $ 3,687       $ 3,829       $ 15,763       $ 13,645   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Reconcilation of Forward-Looking GAAP and non-GAAP Financial Measures

EBITDAS and Adjusted EBITDAS

(in thousands)

(unaudited)

 

     Three Months Ended March 31, 2014  
     Low Range Guidance      High Range Guidance  

Income from operations

    $ 1,000       $ 3,000   

Adjustments:

      

Depreciation and amortization

      1,600         1,600   

Stock-based compensation

      400         400   
  

 

 

     

 

 

  

EBITDAS

    $ 3,000       $ 5,000   
  

 

 

     

 

 

  

Adjustments:

      

Restructuring

      —           —     

Acquisition and acquisition related

      —           —     
  

 

 

     

 

 

  

Adjusted EBITDAS

    $ 3,000       $ 5,000   
  

 

 

     

 

 

  

 

6