Cascade Microtech Reports Fourth Quarter 2011 Results

BEAVERTON, OR--(Marketwire - Feb 8, 2012) - Cascade Microtech, Inc. (NASDAQ: CSCD) today reported financial results for the fourth quarter ended December 31, 2011.

Financial summary from the fourth quarter:

Operating results for the quarter ended December 31, 2011 were as follows:

• Record quarterly revenue of $27.3 million, an increase of 15% over Q3 2011.
  • Systems revenue grew 20% over Q3 2011.
• Gross margin of 43%, up from 37% in Q3 2011.
• Operating expenses of $10.6 million.
  • Research and development expenses decreased $0.3 million from Q3 2011 due primarily to the timing of R&D projects and the receipt of government grants.
  • Selling, general and administrative expenses decreased $1.9 million from Q3 2011 due primarily to a $2.1 million reduction in restructuring costs.
• Income from operations of $1.1 million, an increase of $5.1 million over Q3 2011.
• Depreciation, amortization and stock-based compensation expenses totaled $1.5 million.
• Net income of $1.4 million or $0.10 per share for Q4 2011.
• Book-to-bill ratio of approximately 1.1.

"Record quarterly revenues achieved the midpoint of guidance, while our earnings per share reached the upper end of guidance," said Michael Burger, President and CEO of Cascade Microtech. "These favorable earnings results were based upon strong operational execution supported by favorable foreign currency rates. We are pleased with Cascade Microtech's progress in 2011. We set out to grow the company while reducing costs and overhead in order to improve our financial results. Our strong market position and product portfolio supported full year revenue growth of 13% in 2011. Further, we completed the bulk of our restructuring activities in Q3 which provided for a much cleaner P&L in Q4. Looking forward, we will continue to support our customers' product roadmaps with focused product development in order to maintain our market position. Our team is looking forward to continued success in 2012 and beyond."

Additionally, the board of directors has authorized the repurchase of up to an additional $1 million of the Company's common stock. The Company anticipates that it will effect the repurchase pursuant to a 10b5-1 plan, which will be administered through an independent broker.

"We believe our stock is currently undervalued," said Michael Burger, President and CEO. "As a result, we see this repurchase program as a prudent use of capital that underscores our commitment to building long-term value for our shareholders."

Financial outlook

For the first quarter of 2012, revenue is expected to be in the range of $26.0 million to $29.0 million. GAAP earnings per share are expected to be in the range of $0.01 to $0.05 on a fully-diluted basis, assuming no significant one-time charges or changes in foreign exchange rates.

The company will host a conference call beginning at 2:00 p.m. PST (5:00 p.m. EST) on Wednesday, February 8, 2012, to discuss its results for the fourth quarter ended December 31, 2011.

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 8 p.m. EST at this same internet address. (For a telephone replay available after 8:00 p.m. EST dial: 888-286-8010, international: 617-801-6888, passcode: 96130132).

Forward-Looking Statements

The statements in this release regarding the Company's financial outlook as to anticipated revenue and earnings per share for the first quarter of 2012 and the comments by Mr. Burger about the Company's market position and completion of the bulk of restructuring activities 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; changes in product mix; the timing of shipments and customer orders; constraints on supplies of components; excess or shortage of production capacity; difficulties or unexpected costs or delays in the integration of the operations, employees, products, sales channels, strategies, and technologies of acquired businesses; potential failure of the expected market opportunities to materialize; changes in foreign exchange rates; the need for additional restructuring measures; the potential inability to realize expected benefits and synergies of acquisitions and the potential diversion of management's attention from our existing business as well as that of acquired businesses; potential adverse effects of acquisitions on relationships with our existing suppliers, customers or partners; 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.

About Cascade Microtech, Inc.

Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in the precise 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 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.

CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
			Three Months Ended
			December 31, 2011					September 30, 2011				December 31, 2010				Year to Date Ended December 31,
																2011				2010
Revenue			$	27,298			$	23,750			$	26,041			$	104,610			$	92,597
Cost of sales				15,595				14,942				14,739				63,194				57,151
Gross profit				11,703				8,808				11,302				41,416				35,446
Operating expenses:
	Research and development			2,870				3,175				2,929				11,807				11,815
	Selling, general and administrative			7,718				9,648				7,715				33,799				31,739
				10,588				12,823				10,644				45,606				43,554
Income (loss) from operations				1,115				(4,015	)			658				(4,190	)			(8,108	)
Other income (expense):
	Interest income, net			41				20				16				92				70
	Other, net			229				435				(72	)			480				(60	)
				270				455				(56	)			572				10
Income (loss) from continuing operations before income taxes				1,385				(3,560	)			602				(3,618	)			(8,098	)
Income tax expense (benefit)				(59	)			(9	)			339				180				36
Net income (loss) from continuing operations				1,444				(3,551	)			263				(3,798	)			(8,134	)
Net income (loss) from discontinued operations				-				(1,777	)			4				(2,004	)			(2,205	)
Net income (loss)			$	1,444			$	(5,328	)		$	267			$	(5,802	)		$	(10,339	)
Basic net income (loss) per share:
	Continuing operations			0.10				(0.24	)			0.02				(0.26	)			(0.57	)
	Discontinued operations			-				(0.12	)			0.00				(0.14	)			(0.15	)
			$	0.10			$	(0.36	)		$	0.02			$	(0.40	)		$	(0.72	)
Diluted net income (loss) per share:
	Continuing operations			0.10				(0.24	)			0.02				(0.26	)			(0.57	)
	Discontinued operations			-				(0.12	)			0.00				(0.14	)			(0.15	)
			$	0.10			$	(0.36	)		$	0.02			$	(0.40	)		$	(0.72	)
Shares used in computing net income (loss) per share:
	Basic			14,478				14,713				14,446				14,583				14,286
	Diluted			14,550				14,713				14,583				14,583				14,286

CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
				December 31, 2011				December 31, 2010
Assets
Current assets:
	Cash and cash equivalents		$	10,656			$	21,871
	Marketable securities			2,656				870
	Restricted cash			1,470				1,704
	Accounts receivable, net			23,882				19,718
	Inventories			23,607				20,764
	Prepaid expenses and other			4,086				2,032
		Total current assets		66,357				66,959
Long-term investments				1,834				-
Fixed assets, net				9,003				9,973
Purchased intangible assets, net				2,329				3,142
Goodwill				971				985
Other assets				2,570				3,486
			$	83,064			$	84,545
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable			6,033				6,384
	Deferred revenue			5,516				3,338
	Accrued liabilities			7,745				6,293
		Total current liabilities		19,294				16,015
Deferred revenue				225				109
Other long-term liabilities				4,248				2,815
		Total liabilities		23,767				18,939
Stockholders' equity:
	Common stock			90,853				91,112
	Accumulated other comprehensive loss			(1,052	)			(804	)
	Accumulated deficit			(30,504	)			(24,702	)
		Total stockholders' equity		59,297				65,606
			$	83,064			$	84,545