Cascade Microtech, Inc. (CSCD)

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The Company is engaged in the development, manufacturing and selling of wafer probing solutions for the electrical measurement and test of integrated circuits, or ICs.

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Avatar NetscribeSemiCdr (< 20) Submitted: 2/16/07 8:04 AM : Start Price: $13.72 CSCD Score: -39.71

Cascade Microtech is a leading company in the design, development and manufacture of advanced wafer probing solutions for the electrical measurement and test of semiconductor integrated circuits and chips. Its products are used to perform testing of chips while in wafer form, or wafer probing, in both engineering and production test environments. The company's products include engineering probe stations, analytical probes, production probe cards, application software and services.

The company reported record revenue of $84.9 million, up 16% over last year for the year 2006. The Production Probe division was one of the major contributors to the revenue and is growing at a rapid pace, which can be shown by its recent performance where it grew to $16.9 million, up 68% over last year. It is expected that the increasing demand for high speed and high density cards will continue to drive high growth rates for this division in 2007 and 2008 as well. Adding to this the company booked record largest probe card order from a European supplier of cell phone components which will begin shipping in Q2 2007, ensuring the revenue supply throughout 2007.

Cascade is an industry leader in the growing market for engineering and process development wafer probing equipment. The company has a high demand for its high-performance production probe applications in the semiconductor test industry giving it substantial growth opportunities in this market. The company has more than 800 customers, including all of the top 20 chipmakers to boost its revenue in the coming years. It is expected that Cascade’s shares to move higher as it maintains its research and development probe position creating entry barriers for its competitors and executes in the production probe card market.

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Avatar NetscribeSemiCdr (< 20) Submitted: 5/23/07 8:46 AM

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Cascade Microtech recently 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. The acquisition was in a cash and stock deal, in which Cascade acquired all the outstanding shares of Gryphics for nearly 843 thousand shares of Cascade common stock and cash of $13.7 million.

Gryphics has an estimated servable production test consumable market of about $250 million a year in 2007 out of a total test socket market of about $600 million a year. On the back of this fact this acquisition is expected to allow the company to expand its test consumables revenue, a market that is much less volatile than semiconductor production capacity equipment.

In addition to this, Antares Advanced Test Technologies and Gryphics, Inc. jointly announced that they have reached an agreement in which Antares will assume sales, distribution and service responsibilities for Gryphics' LQFN test-socket line. The strategic relationship is expected to expand Antares' product offering while expanding Gryphics' global sales and service footprint.

Moreover with a good start in the fiscal 2007 where in the revenues for the first quarter increased by 14.1% along with the above acquisition it can be expected that more such double digit growth performances are lined up in the future. This is not only expected to give the company’s margins a better look but also give its stock a boost in the coming months.

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Cascade Microtech, Inc. (CSCD)

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