Cascade Microtech Announces Acquisition of Gryphics, Inc.
04 April 2007 - 11:15PM
Business Wire
Cascade Microtech (NASDAQ:CSCD), today announced it has acquired
Gryphics, Inc., a private company that designs, manufactures and
markets a range of high performance socket products used for final
production and evaluation testing of packaged semiconductor
integrated circuits. This acquisition is another strategic step in
Cascade Microtech�s long term vision of being a leading provider of
advanced production test consumables for high performance ICs. It
is estimated that Gryphics has a servable production test
consumable market of approximately $250 million per year in 2007
out of a total test socket market of approximately $600 million per
year. There is increased demand for newer socket designs to support
higher speed ICs. Gryphics is targeting this trend by supporting
wireless, high speed digital and complex IC�s such as
microprocessors and graphics chips as well as other types of
sockets. �Gryphics� success to date in the socket market is based
on its track record of innovative, high-performance solutions
combined with outstanding technical support. With our technical
capabilities, market access and global footprint we believe we can
continue to accelerate the adoption of Graphics� products in the
market place,� said Eric Strid, CEO of Cascade Microtech. �This
acquisition will allow us to expand our test consumables revenue, a
market that is much less volatile than semiconductor production
capacity equipment.� Terms of the Deal Cascade acquired all of the
outstanding capital stock of Gryphics for approximately 843,000
shares of Cascade common stock and cash of $13.7 million, subject
to a post-closing purchase price adjustment. Cascade expects the
acquisition to be accretive by the end of 2007. Gryphics revenue
for 2006 was $7.7 million and it was profitable. D.A. Davidson
& Co. acted as exclusive strategic and financial advisor to
Cascade in this transaction and provided a fairness opinion to
Cascade�s Board of Directors. 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, and extraction of, electrical data
from wafers, integrated circuits (ICs), IC packages, circuit boards
and modules, MEMs, biological structures, electro-optic devices and
more. Cascade Microtech�s highly reliable production wafer test
solutions provide the semiconductor industry with leading-edge
probe cards that reduce manufacturing costs of complex
semiconductors. Information about Cascade Microtech can be found on
the Web at www.cascademicrotech.com. Forward-Looking Statements
This press release contains statements, including statements
regarding the Company�s expectation that it can accelerate the
adoption of Gryphics� products in the marketplace and the Company�s
expectation that the acquisition will be accretive by the end of
2007 that 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
proposed acquisition 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. For example, if
the expected market opportunity does not materialize or if we fail
to successfully integrate Gryphics, we shall not achieve
anticipated revenue and cost benefits; there may be diversion of
management�s attention from our existing business as well as that
of Gryphics; and there may be adverse effects on relationships with
our existing suppliers, customers or partners. Other risks and
uncertainties are 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.
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