31 Jul 12Cascade Microtech Reports Second Quarter 2012 Results
Record Quarterly Revenue
of $27.6 Million
Operating Income Up 79%
Quarterly EPS of $0.15
Book to Bill of 1.14
BEAVERTON, Ore.—(MARKETWIRE)—July 31, 2012—Cascade Microtech, Inc. (NASDAQ:CSCD) today reported financial results for the second quarter ended June 30, 2012.
Financial summary from the second quarter:
Operating results for the quarter ended June 30, 2012 were as follows:
quarterly revenue of $27.6 million.
- Revenue from Production Probes increased by 30.3% over Q1 2012.
- Gross margin of 46.1%, up from 43.4% in Q1 2012, the highest in over 4 years.
expenses of $10.5 million compared to $10.7 million in Q1 2012.
- Research and development expenses decreased by $0.3 million due primarily to the timing of R&D projects.
- Selling, general and administrative expenses increased by $0.1 million due primarily to selling costs.
- Income from operations of $2.3 million, an increase of $1.0 million, or 79.3% over Q1 2012.
- Depreciation, amortization and stock-based compensation expenses for Q2 2012 totaled $1.6 million.
- Net income of $2.2 million, or $0.15 per share for Q2 2012.
- Book-to-bill ratio as of June 30, 2012 of 1.14 to 1.
"Cascade Microtech posted the third consecutive quarterly revenue record in the second quarter of 2012, driven by strong demand for our Production Probe products. Revenue from our Production Probes has grown over 30% sequentially for both the first and second quarters of 2012. Our Systems revenue remained steady quarter-on-quarter. We recently announced two new products that address both the fully-automated high-power market and a cost-effective, yet highly-precise manual system for testing wafers and substrates up to 150mm, which we expect to contribute to revenue during the second half of 2012. Revenue from our Engineering Probes was down quarter-on-quarter due to seasonal fluctuations, but 12% higher than the same quarter in 2011," said Michael Burger, President and CEO.
"The product mix from the second quarter drove improved gross margins. In addition, our R&D expenses were down in the second quarter with increased product development anticipated in the second half of 2012. Improved gross margins and lower operating expenses improved income from operations by $1.0 million resulting in earnings per share of $0.15. Our strong financial performance in the second quarter was further complemented by a book-to-bill ratio of 1.14. As a result, we believe Cascade Microtech is well positioned for the second half of 2012," added Mr. Burger.
For the third quarter of 2012, revenue is expected to be in the range of $27.0 million to $30.0 million. Earnings per share are expected to be in the range of $0.06 to $0.10 on a fully-diluted basis, assuming no significant one-time charges and consistent foreign currency rates. The EPS guidance includes increased investments in R&D costs including the prototyping of new systems, as previously announced.
The company will host a conference call beginning at 2:00 p.m. PDT (5 p.m. EDT) on Tuesday, July 31, 2012, to discuss its results for the quarter ended June 30, 2012.
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 866-783-2140 or international 857-350-1599, participant Passcode: 10917173. A replay will be available after 7:00 p.m. EDT at the same internet address. (For a telephone replay available after 7:00 p.m. EDT, dial: 888-286-8010, international: 617-801-6888, Passcode: 67052642).
The statements in this release regarding strong demand for Probe products; the Company’s financial outlook as to anticipated revenue and earnings per share for the third quarter of 2012; revenue contribution from new products during the second half of 2012; and anticipated increased product development during the second half of 2012 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; potential failure of expected market opportunities to materialize; changes in foreign exchange rates; 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, 2011. 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.