Revenue of $33.5 Million; Record Gross Margin of 52.3%; Record Income From Operations of $3.6 Million; Record Adjusted EBITDAS of $5.5 Million; GAAP EPS of $0.13; Non-GAAP EPS of $0.15
BEAVERTON, OR--(Marketwired - Oct 28, 2014) - Cascade Microtech, Inc. (
Financial Summary
Results for the quarter ended September 30, 2014 were as follows:
"The third quarter of 2014 set a number of new records for Cascade Microtech, including gross margins, income from operations, adjusted EBITDAS, and Probes revenue, which grew sequentially over 20%. These records reflect our ongoing progress towards achieving our Success Model. All of our product lines posted book-to-bill ratios greater than one, which positions us for a strong fourth quarter," said Michael Burger, President and CEO.
Financial Outlook
For the fourth quarter of 2014 we are projecting revenue in the range of $35.0 million to $38.0 million, with diluted GAAP earnings per share in the range of $0.12 to $0.18, and non-GAAP earnings per share in the range of $0.15 to $0.21. Our guidance assumes a tax rate of 36%, consistent foreign currency exchange rates and no significant one-time charges.
We will host a conference call beginning at 5:00 p.m. EDT (2:00 p.m. PDT) on Tuesday, October 28, 2014, to discuss our results for the quarter ended September 30, 2014.
A simultaneous audio cast of the conference call may be accessed online from the investor relations page of www.cascademicrotech.com/investors. If you are interested in participating in the call, the live dial-in number is 877-415-3186, or international 857-244-7329, participant Passcode: 60945388. A replay will be available after 10:00 p.m. EDT at the same internet address. (For a telephone replay available after 10:00 p.m. EDT, dial: 888-286-8010, international: 617-801-6888, Passcode: 43467652).
Forward-Looking Statements
The statements in this release regarding progress towards the Success Model, our expectations relating to the fourth quarter of 2014, and statements under "Financial Outlook" regarding projected revenue, GAAP earnings per share, and non-GAAP earnings per share, 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 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; 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 the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013. 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.
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 a table later in this release:
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 | |||||||||||||||||||||
September 30, 2014 | June 30, 2014 |
September 30, 2013 | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Revenue | $ | 33,473 | $ | 33,452 | $ | 28,197 | $ | 100,735 | $ | 85,975 | |||||||||||
Cost of sales | 15,953 | 16,466 | 14,779 | 49,956 | 46,739 | ||||||||||||||||
Gross profit | 17,520 | 16,986 | 13,418 | 50,779 | 39,236 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 3,554 | 3,428 | 2,750 | 10,223 | 7,900 | ||||||||||||||||
Selling, general and administrative | 10,352 | 10,630 | 9,097 | 31,412 | 26,207 | ||||||||||||||||
13,906 | 14,058 | 11,847 | 41,635 | 34,107 | |||||||||||||||||
Income from operations | 3,614 | 2,928 | 1,571 | 9,144 | 5,129 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income, net | 16 | 7 | 18 | 25 | 40 | ||||||||||||||||
Other, net | (235 | ) | (56 | ) | 87 | (360 | ) | (269 | ) | ||||||||||||
(219 | ) | (49 | ) | 105 | (335 | ) | (229 | ) | |||||||||||||
Income before income taxes | 3,395 | 2,879 | 1,676 | 8,809 | 4,900 | ||||||||||||||||
Income tax expense (benefit) | 1,188 | 1,051 | (7 | ) | 3,182 | 284 | |||||||||||||||
Net income | $ | 2,207 | $ | 1,828 | $ | 1,683 | $ | 5,627 | $ | 4,616 | |||||||||||
Net income per share: | |||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.11 | $ | 0.12 | $ | 0.35 | $ | 0.32 | |||||||||||
Diluted | $ | 0.13 | $ | 0.11 | $ | 0.11 | $ | 0.34 | $ | 0.31 | |||||||||||
Shares used in computing net income per share: | |||||||||||||||||||||
Basic | 16,357 | 16,255 | 14,453 | 16,286 | 14,339 | ||||||||||||||||
Diluted | 16,851 | 16,751 | 14,797 | 16,775 | 14,688 | ||||||||||||||||
CASCADE MICROTECH, INC. | ||||||||||
AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
September 30, | December 31, | |||||||||
Assets | 2014 | 2013 | ||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 29,717 | $ | 17,172 | ||||||
Marketable securities | 1,703 | 4,278 | ||||||||
Restricted cash | - | 1,082 | ||||||||
Accounts receivable, net | 22,332 | 26,520 | ||||||||
Inventories | 26,215 | 24,884 | ||||||||
Deferred income taxes | 2,262 | 2,268 | ||||||||
Prepaid expenses and other | 4,961 | 2,147 | ||||||||
Total current assets | 87,190 | 78,351 | ||||||||
Fixed assets, net | 7,537 | 6,403 | ||||||||
Goodwill | 13,309 | 14,471 | ||||||||
Purchased intangible assets, net | 13,658 | 16,937 | ||||||||
Deferred income taxes | 1,553 | 1,235 | ||||||||
Other assets | 1,191 | 1,114 | ||||||||
$ | 124,438 | $ | 118,511 | |||||||
Liabilities and Shareholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 7,259 | $ | 7,229 | ||||||
Deferred revenue | 2,316 | 2,555 | ||||||||
Accrued liabilities | 10,279 | 8,859 | ||||||||
Total current liabilities | 19,854 | 18,643 | ||||||||
Deferred revenue | 309 | 548 | ||||||||
Other long-term liabilities | 1,845 | 2,119 | ||||||||
Total liabilities | 22,008 | 21,310 | ||||||||
Shareholders' equity: | ||||||||||
Common stock | 109,813 | 108,070 | ||||||||
Accumulated other comprehensive income (loss) | (2,023 | ) | 118 | |||||||
Accumulated deficit | (5,360 | ) | (10,987 | ) | ||||||
Total shareholders' equity | 102,430 | 97,201 | ||||||||
$ | 124,438 | $ | 118,511 | |||||||
CASCADE MICROTECH, INC. | ||||||||||||||||
AND SUBSIDIARIES | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
September 30, 2014 |
June 30, 2014 |
September 30, 2013 |
Nine Months Ended September 30, | |||||||||||||
Non-GAAP Net Income | 2014 | 2013 | ||||||||||||||
GAAP net income | $ | 2,207 | $ | 1,828 | $ | 1,683 | $ | 5,627 | $ | 4,616 | ||||||
Adjustments to net income: | ||||||||||||||||
Restructuring | (191 | ) | 249 | - | 58 | 112 | ||||||||||
Acquisition and acquisition related | (100 | ) | (457 | ) | 627 | (557 | ) | 627 | ||||||||
Amortization of intangibles | 752 | 780 | 264 | 2,317 | 735 | |||||||||||
Income tax effect of non-GAAP adjustments | (161 | ) | (209 | ) | (64 | ) | (661 | ) | (117 | ) | ||||||
Discrete tax items | - | - | (127 | ) | - | (127 | ) | |||||||||
Non-GAAP net income | $ | 2,507 | $ | 2,191 | $ | 2,383 | $ | 6,784 | $ | 5,846 | ||||||
GAAP net income per diluted share | $ | 0.13 | $ | 0.11 | $ | 0.11 | $ | 0.34 | $ | 0.31 | ||||||
Non-GAAP net income per diluted share | $ | 0.15 | $ | 0.13 | $ | 0.16 | $ | 0.40 | $ | 0.40 | ||||||
Shares used in diluted share calculations | 16,851 | 16,751 | 14,797 | 16,775 | 14,688 | |||||||||||
Three Months Ended | ||||||||||||||||
September 30, 2014 |
June 30, 2014 |
September 30, 2013 |
Nine Months Ended September 30, | |||||||||||||
EBITDAS and Adjusted EBITDAS | 2014 | 2013 | ||||||||||||||
GAAP Income from operations | $ | 3,614 | $ | 2,928 | $ | 1,571 | $ | 9,144 | $ | 5,129 | ||||||
Adjustments: | ||||||||||||||||
Depreciation | 824 | 799 | 882 | 2,452 | 2,787 | |||||||||||
Amortization of intangibles | 752 | 780 | 264 | 2,317 | 735 | |||||||||||
Stock-based compensation | 648 | 821 | 343 | 1,918 | 1,215 | |||||||||||
EBITDAS | 5,838 | 5,328 | 3,060 | 15,831 | 9,866 | |||||||||||
Adjustments: | ||||||||||||||||
Restructuring | (191 | ) | 249 | - | 58 | 112 | ||||||||||
Acquisition and acquisition related | (100 | ) | (457 | ) | 627 | (557 | ) | 627 | ||||||||
Adjusted EBITDAS | $ | 5,547 | $ | 5,120 | $ | 3,687 | $ | 15,332 | $ | 10,605 | ||||||
Three Months Ending December 31, 2014 | |||||||||
Low Range Guidance |
High Range Guidance |
||||||||
Forward-looking non-GAAP net income | |||||||||
GAAP net income | $ | 2,000 | $ | 3,000 | |||||
Adjustments: | |||||||||
Amortization of intangibles | 752 | 752 | |||||||
Income tax effect of non-GAAP adjustments | (269 | ) | (269 | ) | |||||
Non-GAAP net income | $ | 2,483 | $ | 3,483 | |||||
GAAP net income per diluted share | $ | 0.12 | $ | 0.18 | |||||
Non-GAAP net income per diluted share | $ | 0.15 | $ | 0.21 | |||||
Shares used in diluted share calculations | 16,950 | 16,950 |
Contact Information:
FOR MORE INFORMATION, CONTACT:
Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1280