Cascade Microtech Reports Third Quarter 2013 Results
31 October 2013 - 6:53AM
Marketwired
Cascade Microtech Reports Third Quarter 2013 Results
Revenue of $28.2 Million; Gross Margin 47.6%
BEAVERTON, OR--(Marketwired - Oct 30, 2013) - Cascade Microtech,
Inc. (NASDAQ: CSCD) today reported financial results for the third
quarter ended September 30, 2013.
Financial summary
Results for the quarter ended September 30, 2013 were as
follows:
- Total revenue of $28.2 million, compared to $30.3 million for
Q2 2013 and $27.4 million for Q3 2012.
- Systems revenue of $17.5 million, a decrease of $2.3 million,
or 11.8%, from Q2 2013, and an increase of $0.1 million, or 0.4%,
over Q3 2012.
- Probes revenue of $10.7 million, an increase of $0.2 million,
or 2.3%, over Q2 2013, and an increase of $0.7 million, or 7.2%,
over Q3 2012.
- Q3 2013 sets a new revenue record for our Probes segment.
- Gross margin of 47.6%, up from 47.1% in Q2 2013, and 44.5% in
Q3 2012.
- Q3 2013 represents our best gross margin performance in over 8
years.
- Income from operations of $1.6 million, a decrease of $0.9
million, or 37.6%, from Q2 2013, and a decrease of $0.2 million, or
10.3%, from Q3 2012.
- Depreciation, amortization and stock-based compensation
expenses totaled $1.5 million, compared to $1.7 million for Q2 2013
and $1.4 million for Q3 2012.
- Net income of $1.7 million, or $0.11 per diluted share,
compared to $2.2 million, or $0.15 per diluted share, for Q2 2013,
and $1.5 million, or $0.10 per diluted share, for Q3 2012.
- Q3 2013 includes acquisition related expenses of $0.6 million,
or $0.04 per diluted share, related to our previously announced
acquisitions of the Reliability Test Products division (RTP) on
July 31, 2013 and ATT Advanced Temperature Test Systems GmbH (ATT
Systems) on October 1, 2013.
- Q3 2013 also includes expenses of $0.2 million, or $0.01 per
diluted share, related to the operations of RTP since the date of
acquisition.
- Total cash and investments of $32.2 million, an increase of
$3.4 million over June 30, 2013, and an increase of $8.1 million
over September 30, 2012.
- Q3 2013 includes a reduction in cash of $1.9 million paid for
the acquisition of RTP.
- Book-to-bill ratio of 1.06 to 1.
"We are very excited by the recent acquisitions of RTP on July
31, 2013 and ATT Systems on October 1, 2013, and how we believe
these moves will accelerate our strategic plans and expand our
markets," said Michael Burger, President and CEO. "In
addition, our third quarter results achieved revenue within our
guidance range, a book-to-bill in excess of one-to-one, and a 47.6%
gross margin. After adjusting for the acquisition related
expenses discussed above, our adjusted EPS for Q3 2013 exceeded the
upper end of guidance. Finally, with a positive book-to-bill
and good momentum, we believe we are well positioned for the fourth
quarter of 2013 and beyond."
Financial outlook
For the fourth quarter of 2013, assuming consistent tax and
foreign currency exchange rates, we are projecting revenue to be in
the range of $34.0 million to $38.0 million including RTP and ATT
Systems. Before restructuring and acquisition transactional
costs which are estimated between $0.3 million and $0.4 million,
and the incremental amortization expenses related to the ATT
Systems acquisition which are currently estimated between $0.6
million and $0.8 million, earnings per share is expected to be in
the range of $0.17 to $0.21 per share on a fully diluted
basis. As previously announced, approximately 1.6 million
shares were issued on October 1, 2013 in conjunction with the
acquisition of ATT Systems and the final purchase accounting
determination is underway which may adjust the expected
amortization listed above.
We will host a conference call beginning at 2:00 p.m. PDT (5:00
p.m. EDT) on Wednesday, October 30, 2013, to discuss our results
for the quarter ended September 30, 2013.
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 800 884-5695
or international 617 786-2960, participant Passcode: 54893309. 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:
88055847).
Forward-Looking Statements
The statements in this release regarding the Company's financial
outlook as to anticipated revenue for the fourth quarter of 2013,
strong demand for our products, including Probes, and the impact
our acquisitions will have on the results for the fourth quarter of
2013 and beyond, 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, 2012. 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, Inc.
Cascade Microtech, Inc. (NASDAQ: CSCD) is a worldwide leader in
the precise contact, electrical measurement and test of integrated
circuits (ICs), optical devices 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, ICs, IC
packages, circuit boards and modules, MEMS, 3D TSV, LED devices and
more. Cascade Microtech's leading-edge stations, probes,
probe-cards and integrated systems deliver precision accuracy and
superior performance both in the lab and during production
manufacturing of high-speed and high-density semiconductor
chips. For more information visit
www.cascademicrotech.com.
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CASCADE MICROTECH, INC. |
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AND SUBSIDIARIES |
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Condensed Consolidated Statements of Operations |
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(in thousands, except per share data) |
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(unaudited) |
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Year to Date Ended |
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Three Months Ended |
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September 30, |
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September |
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June 30, |
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September |
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30, 2013 |
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2013 |
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30, 2012 |
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2013 |
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2012 |
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Revenue |
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$ |
28,197 |
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$ |
30,307 |
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|
$ |
27,414 |
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$ |
85,975 |
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$ |
82,595 |
|
Cost of sales |
|
|
14,779 |
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|
|
16,032 |
|
|
|
15,210 |
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|
|
46,739 |
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|
45,699 |
|
Gross profit |
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|
13,418 |
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|
14,275 |
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|
12,204 |
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|
39,236 |
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|
36,896 |
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Operating expenses: |
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Research and development |
|
|
2,750 |
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|
2,694 |
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|
2,778 |
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|
7,900 |
|
|
|
7,995 |
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Selling, general and administrative |
|
|
9,097 |
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|
|
9,064 |
|
|
|
7,675 |
|
|
|
26,207 |
|
|
|
23,628 |
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|
|
|
11,847 |
|
|
|
11,758 |
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|
|
10,453 |
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|
|
34,107 |
|
|
|
31,623 |
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Income from operations |
|
|
1,571 |
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|
|
2,517 |
|
|
|
1,751 |
|
|
|
5,129 |
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|
|
5,273 |
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Other income (expense): |
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Interest income, net |
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18 |
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2 |
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7 |
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|
|
40 |
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|
26 |
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Other, net |
|
|
87 |
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|
|
(112 |
) |
|
|
(109 |
) |
|
|
(269 |
) |
|
|
(561 |
) |
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|
|
105 |
|
|
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(110 |
) |
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|
(102 |
) |
|
|
(229 |
) |
|
|
(535 |
) |
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Income before income taxes |
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1,676 |
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2,407 |
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1,649 |
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4,900 |
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4,738 |
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Income tax expense (benefit) |
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(7 |
) |
|
|
221 |
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|
|
153 |
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|
|
284 |
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|
|
329 |
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Net income |
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$ |
1,683 |
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$ |
2,186 |
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$ |
1,496 |
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$ |
4,616 |
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$ |
4,409 |
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Net income per share: |
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Basic |
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$ |
0.12 |
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$ |
0.15 |
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$ |
0.11 |
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$ |
0.32 |
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$ |
0.31 |
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Diluted |
|
$ |
0.11 |
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|
$ |
0.15 |
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$ |
0.10 |
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$ |
0.31 |
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$ |
0.31 |
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Shares used in computing net income per share: |
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Basic |
|
|
14,453 |
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|
|
14,342 |
|
|
|
14,162 |
|
|
|
14,339 |
|
|
|
14,169 |
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Diluted |
|
|
14,797 |
|
|
|
14,652 |
|
|
|
14,377 |
|
|
|
14,688 |
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|
|
14,359 |
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CASCADE MICROTECH, INC. |
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AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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(in thousands) |
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(unaudited) |
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September 30, |
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December 31, |
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Assets |
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|
2013 |
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|
2012 |
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Current assets: |
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Cash and cash equivalents |
|
$ |
26,926 |
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$ |
17,927 |
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Marketable securities |
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|
5,258 |
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|
|
5,322 |
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Restricted cash |
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|
- |
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|
|
1,069 |
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Accounts receivable, net |
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|
18,410 |
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|
|
21,087 |
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Inventories |
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|
23,445 |
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|
|
24,277 |
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Prepaid expenses and other |
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|
2,643 |
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|
|
2,503 |
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Total
current assets |
|
|
76,682 |
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|
|
72,185 |
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|
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Fixed assets, net |
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|
6,528 |
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|
|
8,271 |
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Purchased intangible assets, net |
|
|
2,521 |
|
|
|
1,610 |
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Goodwill |
|
|
1,655 |
|
|
|
990 |
|
Other assets |
|
|
1,571 |
|
|
|
2,224 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
88,957 |
|
|
$ |
85,280 |
|
|
|
|
|
|
|
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|
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|
|
|
|
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Liabilities and Shareholders' Equity |
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
|
|
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Accounts payable |
|
$ |
5,972 |
|
|
$ |
5,900 |
|
|
Deferred revenue |
|
|
1,383 |
|
|
|
3,526 |
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|
Accrued liabilities |
|
|
6,415 |
|
|
|
6,640 |
|
|
|
Total
current liabilities |
|
|
13,770 |
|
|
|
16,066 |
|
|
|
|
|
|
|
|
|
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Deferred revenue |
|
|
485 |
|
|
|
356 |
|
Other long-term liabilities |
|
|
2,085 |
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|
|
2,940 |
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|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
16,340 |
|
|
|
19,362 |
|
|
|
|
|
|
|
|
|
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Shareholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
92,642 |
|
|
|
91,039 |
|
|
Accumulated other comprehensive loss |
|
|
(236 |
) |
|
|
(716 |
) |
|
Accumulated deficit |
|
|
(19,789 |
) |
|
|
(24,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity |
|
|
72,617 |
|
|
|
65,918 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
88,957 |
|
|
$ |
85,280 |
|
|
|
|
|
|
|
|
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FOR MORE INFORMATION, CONTACT: Jeff A. Killian Cascade
Microtech, Inc. (503) 601-1280
(NASDAQ:CSCD)
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