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Cascade Microtech Reports Third Quarter 2013 Results

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:

"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.

                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
              Condensed Consolidated Statements of Operations               
                   (in thousands, except per share data)                    
                                (unaudited)                                 
                                                        Year to Date Ended  
                            Three Months Ended             September 30,    
                     --------------------------------   ------------------- 
                     September   June 30,   September                       
                      30, 2013     2013      30, 2012     2013       2012   
                     ---------   --------   ---------   --------   -------- 
                                                                            
Revenue             $   28,197  $  30,307  $   27,414  $  85,975  $  82,595 
Cost of sales           14,779     16,032      15,210     46,739     45,699 
                     ---------   --------   ---------   --------   -------- 
Gross profit            13,418     14,275      12,204     39,236     36,896 
                     ---------   --------   ---------   --------   -------- 
                                                                            
Operating expenses:                                                         
  Research and                                                              
   development           2,750      2,694       2,778      7,900      7,995 
  Selling, general                                                          
   and                                                                      
   administrative        9,097      9,064       7,675     26,207     23,628 
                     ---------   --------   ---------   --------   -------- 
                        11,847     11,758      10,453     34,107     31,623 
                     ---------   --------   ---------   --------   -------- 
                                                                            
Income from                                                                 
 operations              1,571      2,517       1,751      5,129      5,273 
                     ---------   --------   ---------   --------   -------- 
                                                                            
Other income                                                                
 (expense):                                                                 
  Interest income,                                                          
   net                      18          2           7         40         26 
  Other, net                87       (112)       (109)      (269)      (561)
                     ---------   --------   ---------   --------   -------- 
                           105       (110)       (102)      (229)      (535)
                     ---------   --------   ---------   --------   -------- 
                                                                            
Income before                                                               
 income taxes            1,676      2,407       1,649      4,900      4,738 
                                                                            
Income tax expense                                                          
 (benefit)                  (7)       221         153        284        329 
                     ---------   --------   ---------   --------   -------- 
                                                                            
Net income          $    1,683  $   2,186  $    1,496  $   4,616  $   4,409 
                     =========   ========   =========   ========   ======== 
                                                                            
Net income per                                                              
 share:                                                                     
  Basic             $     0.12  $    0.15  $     0.11  $    0.32  $    0.31 
  Diluted           $     0.11  $    0.15  $     0.10  $    0.31  $    0.31 
                                                                            
Shares used in                                                              
 computing net                                                              
 income per share:                                                          
  Basic                 14,453     14,342      14,162     14,339     14,169 
  Diluted               14,797     14,652      14,377     14,688     14,359 
                                                                            
                                                                            
                                                                            
                          CASCADE MICROTECH, INC.                           
                              AND SUBSIDIARIES                              
                                                                            
                   Condensed Consolidated Balance Sheets                    
                               (in thousands)                               
                                (unaudited)                                 
                                                                            
                                                                            
                                               September 30,   December 31, 
                   Assets                           2013           2012     
                                               -------------   ------------ 
                                                                            
Current assets:                                                             
  Cash and cash equivalents                  $        26,926  $      17,927 
  Marketable securities                                5,258          5,322 
  Restricted cash                                          -          1,069 
  Accounts receivable, net                            18,410         21,087 
  Inventories                                         23,445         24,277 
  Prepaid expenses and other                           2,643          2,503 
                                               -------------   ------------ 
    Total current assets                              76,682         72,185 
                                                                            
Fixed assets, net                                      6,528          8,271 
Purchased intangible assets, net                       2,521          1,610 
Goodwill                                               1,655            990 
Other assets                                           1,571          2,224 
                                               -------------   ------------ 
                                                                            
                                             $        88,957  $      85,280 
                                               =============   ============ 
                                                                            
                                                                            
    Liabilities and Shareholders' Equity                                    
                                                                            
Current liabilities:                                                        
  Accounts payable                           $         5,972  $       5,900 
  Deferred revenue                                     1,383          3,526 
  Accrued liabilities                                  6,415          6,640 
                                               -------------   ------------ 
    Total current liabilities                         13,770         16,066 
                                                                            
Deferred revenue                                         485            356 
Other long-term liabilities                            2,085          2,940 
                                               -------------   ------------ 
                                                                            
    Total liabilities                                 16,340         19,362 
                                               -------------   ------------ 
                                                                            
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 
                                               =============   ============ 
                                                                            

FOR MORE INFORMATION, CONTACT:

Jeff A. Killian
Cascade Microtech, Inc.
(503) 601-1280