Cascade Microtech Reports First Quarter 2006 Results; Revenues of $19.7 Million, up 11% Sequentially and EPS of 6 Cents, Including 3 Cents Stock Compensation Charge Under SFAS 123R.PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore. -- Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Microtech (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSCD CSCD Community Supervision & Corrections Department (Harris County, Texas) CSCD Cascade & Columbia River Railroad CSCD CTAS Software Change Document CSCD Coupling-Strength-Control Defect ), today reported financial results for the first quarter ended March 31, 2006. Highlights for the First Quarter 2006 include: --Revenues of $19.7 million, up 11% sequentially and 6% over last year --Strong bookings during the quarter with positive book-to-bill for both divisions --$3.4 million Production Probes Division revenue, up 77% over last year --$16.3 million Engineering Products Division revenue, up 13% sequentially --EPS of $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, including $0.03 stock compensation expense under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R --Cash and investments at March 31, 2006 were $54.6 million, up $2.7 million from the end of last year. "We were pleased with our strong bookings and revenue performance in the first quarter of 2006. Book-to-bill was above one in both divisions and revenue grew 11% sequentially. We also continued to invest during the quarter by adding employees in our Production Probe Division to improve our lead times and in our Engineering Products Division to expand our direct sales capabilities," said Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Strid n. 1. A narrow passage between precipitous rocks or banks, which looks as if it might be crossed at a stride. This striding place is called the Strid. - Wordsworth. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cascade Microtech. Revenue for the first quarter was $19.7 million, net income for the quarter was $0.7 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.06, compared to revenue of $17.7 million, net income of $1.4 million and diluted earnings per share of $0.12 for the fourth quarter of 2005. Gross margin for the first quarter improved to 43.5% from 42.8% in the fourth quarter of 2005 primarily due to the increase in revenue and related gross margin and product mix. Beginning in January 2006 we were required to expense the costs of stock options through our income statement under SFAS 123R. This resulted in a charge to earnings of approximately $453,000 during the first quarter of 2006. The effective tax rate for the first quarter was 33% compared to a tax benefit of 29% in the fourth quarter of 2005. The tax charge for the first quarter did not include any benefit for research and experimentation tax credits since current legislation related to such credits has expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. and has not yet been renewed. At March 31, 2006, the Company had cash and investments of $54.6 million, up from $51.9 million at December 31, 2005. Financial Outlook Based on the current backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and anticipated bookings, Cascade anticipates that second quarter 2006 revenues will be in the range of $19.5 million to $21.0 million compared to $19.7 million in the first quarter of 2006; and that diluted earnings per share will be in the range of $0.05 to $0.10, including stock compensation expense under SFAS 123R. About Cascade Microtech Cascade Microtech, Inc. (Nasdaq: CSCD) is a worldwide leader in the precise electrical measurement and test of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. (ICs) and other small structures. For technology businesses and scientific institutions who need to evaluate small structures, Cascade Microtech delivers access to, and extraction of, electrical data from wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. , integrated circuits (ICs), IC packages, circuit boards and modules, MEMs, biological structures, electro-optic devices and more. Cascade Microtech's highly reliable production wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. test solutions provide the semiconductor industry with leading-edge probe cards A probe card is an interface between an electronic test system and a semiconductor wafer. Its purpose is to provide an electrical path between the test system and the circuits on the wafer, thereby permitting the testing and validation of the circuits at the wafer level, usually that reduce manufacturing costs of complex semiconductors. Information about Cascade Microtech can be found on the Web at www.cascademicrotech.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The statements in this release regarding the Company's financial outlook as to revenue and diluted earnings per share in the second quarter of 2006 are "forward-looking" statements within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . In addition such statements could be affected by general industry and market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release. The company will host a conference call beginning at 5 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (2 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) on April 25, 2006 to discuss its results for the first quarter ended March 31, 2006 and its outlook for the second quarter of 2006. A simultaneous audio cast of the conference call may be accessed online from the investor relations Investor relations The process by which the corporation communicates with its investors. page of www.cascademicrotech.com. A replay will be available after 7 p.m. EDT at this same internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. . (For a telephone replay, dial 888-286-8010 passcode: 58807273; International: 617-801-6888.)
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
----------------------------------
March 31, December 31, March 31,
2006 2005 2005
--------- ------------ ---------
Sales $ 19,699 $ 17,678 $ 18,661
Cost of sales 11,020 10,100 9,490
Stock-based compensation 112 6 12
--------- ------------ ---------
Gross profit 8,567 7,572 9,159
--------- ------------ ---------
Operating expenses:
Research and development
(includes $77, $3, and
$4, respectively, of
stock-based compensation) 1,998 1,898 1,643
Selling, general and
administrative (includes
$264, $6, and $25,
respectively, of
stock-based compensation) 6,009 5,043 4,624
--------- ------------ ---------
Total operating expenses 8,007 6,941 6,267
--------- ------------ ---------
Income from operations 560 631 2,892
--------- ------------ ---------
Other income (expense):
Interest income 362 315 212
Interest expense - (2) (16)
Other, net 57 176 24
--------- ------------ ---------
Total other income (expense) 419 489 220
--------- ------------ ---------
Income before income taxes 979 1,120 3,112
Provision for income taxes 323 (325) 617
--------- ------------ ---------
Net income $ 656 $ 1,445 $ 2,495
========= ============ =========
Net income per share:
Basic $ 0.06 $ 0.13 $ 0.23
Diluted $ 0.06 $ 0.12 $ 0.21
Shares used in computing
net income per share:
Basic 11,373 11,281 10,864
Diluted 11,907 11,955 11,674
CASCADE MICROTECH, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, 2006 and December 31, 2005
March 31, December 31,
Assets 2006 2005
------ ---- ----
(unaudited)
Current assets:
Cash and cash equivalents $ 1,896 $ 2,224
Marketable securities 51,673 48,122
Accounts receivable, net 16,088 16,182
Inventories 11,477 10,889
Prepaid expenses and other 2,014 3,000
Deferred income taxes 1,584 1,699
----------- ------------
Total current assets 84,732 82,116
Long-term investments 1,045 1,549
Fixed assets, net 5,240 4,422
Deferred income tax 342 336
Other assets 1,734 1,697
----------- ------------
$ 93,093 $ 90,120
=========== ============
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable 4,692 3,912
Deferred revenue 515 516
Accrued liabilities 3,478 3,087
----------- ------------
Total current liabilities 8,685 7,515
Deferred revenue 309 255
Other long-term liabilities 822 845
----------- ------------
Total liabilities 9,817 8,615
----------- ------------
Stockholders' equity:
Common stock 59,371 58,400
Deferred stock-based compensation - (142)
Unrealized holding gain (loss) on
investments (73) (76)
Retained earnings 23,979 23,323
----------- ------------
Total stockholders' equity 83,277 81,505
----------- ------------
$ 93,093 $ 90,120
=========== ============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion