Cascade Microtech Reports First Quarter 2009 Results

Revenue of $11.5 Million, Down 25% From Q4 2008 and Down 45% From Q1 2008


PORTLAND, OR--(Marketwire - April 28, 2009) - Cascade Microtech (NASDAQ: CSCD) today reported financial results for the first quarter ended March 31, 2009.

First quarter results include:

--  Revenue of $11.5 million, down 25% sequentially and down 45% from Q108
--  Net loss of $4.2 million or $0.31 per share for Q109, compared to a
    net loss of $31.4 million or $2.39 per share in Q408, which included a
    $27.7 million impairment charge
--  Cash and investment balances were lower by $1.6 million from Q408 to
    $33.4 million
    

"As expected, the first quarter of 2009 was a difficult quarter for Cascade and the semiconductor markets overall. Revenue and bookings declined during the first quarter but the effects of our cost savings initiatives have mitigated the effect on our cash balances," said Geoff Wild, CEO of Cascade Microtech. "We are aware that bookings in the market place seem to be improving, particularly in probes and sockets, which would lead us to believe that first quarter bookings may have been a trough and should improve over the remainder of 2009," added Mr. Wild.

Financial Outlook

Based on the current backlog and anticipated bookings, Cascade anticipates that second quarter 2009 revenues will be in the range of $11 million to $14 million. The Company suspended earnings per share guidance in the fourth quarter of 2008 in view of the uncertainty of the mix of revenue and the potential range of outcomes.

The company will host a conference call beginning at 5 p.m. EDT (2 p.m. PDT) on April 28, 2009, to discuss its results for the first quarter of 2009.

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. EDT at this same internet address. (For a telephone replay, dial (888) 286-8010 passcode: 82068759; International: 617-801-6888.)

Forward-Looking Statements

The statements in this release, specifically the comments above made by Mr. Wild and the paragraph above captioned "Financial Outlook," 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.

About Cascade Microtech

Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in the precise electrical measurement and test of integrated circuits (ICs) 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, integrated circuits (ICs), IC packages, circuit boards and modules, MEMs, biological structures, electro-optic devices and more. Cascade Microtech's leading-edge semiconductor production test consumables include unique probe cards and test sockets that reduce manufacturing costs of high-speed and high-density semiconductor chips. Information about Cascade Microtech can be found on the Web at www.cascademicrotech.com.

                          CASCADE MICROTECH, INC.
                             AND SUBSIDIARIES

              Condensed Consolidated Statements of Operations
                  (in thousands, except per share data)
                                (unaudited)



                                                 Three Months Ended
                                           ---------  ---------  ---------
                                             March    December     March
                                              31,        31,        31,
                                             2009       2008       2008
                                           ---------  ---------  ---------

Sales                                      $  11,469  $  15,387  $  20,759
Cost of sales                                  7,614     10,544     10,976
                                           ---------  ---------  ---------

      Gross profit                             3,855      4,843      9,783
                                           ---------  ---------  ---------

Operating expenses:
   Research and development                    1,993      2,433      2,906
   Selling, general and administrative         5,395      7,341      6,879
   Amortization of purchased intangibles         146        582        648
   Impairment charges                              -     27,701          -
                                           ---------  ---------  ---------

      Total operating expenses                 7,534     38,057     10,433
                                           ---------  ---------  ---------

      Loss from operations                    (3,679)   (33,214)      (650)
                                           ---------  ---------  ---------

Other income (expense):
   Interest income, net                           98        151        263
   Other, net                                   (555)       272        439
                                           ---------  ---------  ---------

      Total other income (expense)              (457)       423        702
                                           ---------  ---------  ---------

      Income (loss) before income taxes       (4,136)   (32,791)        52

Provision (benefit) for income taxes              29     (1,379)        68
                                           ---------  ---------  ---------

      Net loss                             $  (4,165) $ (31,412) $     (16)
                                           =========  =========  =========

      Basic and diluted net loss per share $   (0.31) $   (2.39) $       -

      Shares used in basic and diluted per
       share calculations                     13,240     13,142     12,985






                   Condensed Consolidated Balance Sheets
                              (in thousands)
                                (unaudited)



                                                   March 31,   December 31,
                    Assets                            2009         2008
                                                  -----------  -----------

Current assets:
   Cash and cash equivalents                      $     4,512  $     3,750
   Marketable securities                               25,694       28,795
   Accounts receivable, net                            11,093       12,801
   Inventories                                         19,303       19,079
   Prepaid expenses and other                             856        1,367
   Income taxes receivable                                990        1,003
   Deferred income taxes                                   92           99
   Assets held for sale                                     -          400
                                                  -----------  -----------
      Total current assets                             62,540       67,294

Long-term investments                                   3,235        2,465
Fixed assets, net                                      14,021       13,580
Purchased intangible assets, net                        2,279        2,425
Deferred income taxes                                     257          237
Other assets                                            2,535        2,455
                                                  -----------  -----------

                                                  $    84,867  $    88,456
                                                  ===========  ===========


      Liabilities and Stockholders' Equity

Current liabilities:
   Current portion of long-term debt and capital
    leases                                        $        18  $        19
   Accounts payable                                     4,625        4,110
   Deferred revenue                                     1,500        1,120
   Accrued liabilities                                  2,838        3,776
                                                  -----------  -----------
      Total current liabilities                         8,981        9,025

Long-term debt and capital leases                          53           62
Deferred revenue                                          265          313
Other long-term liabilities                             2,407        2,356
                                                  -----------  -----------

      Total liabilities                                11,706       11,756
                                                  -----------  -----------

Stockholders' equity:
   Common stock                                        83,955       83,345
   Unrealized holding gain on investments                  85           69
   Accumulated deficit                                (10,879)      (6,714)
                                                  -----------  -----------

      Total stockholders' equity                       73,161       76,700
                                                  -----------  -----------

                                                  $    84,867  $    88,456
                                                  ===========  ===========

Contact Information: Contact: Cascade Microtech, Inc. Steven Sipowicz Chief Financial Officer 503 601-1000