MIRA INFORM REPORT

Report Date :

25.10.2013

IDENTIFICATION DETAILS

Name :

CASCADE MICROTECH, INC.

Registered Office :

9100 SW Gemini Drive, Beaverton, OR 97008

Country :

United States

Financials (as on) :

31.12.2012

Date of Incorporation :

24.02.1984

Legal Form :

Public Parent

Line of Business :

Designs, Develops, Manufactures and Markets Wafer Probing and Test Socket Solutions for the Electrical Measurement and Testing of Semiconductor Devices.

No. of Employees :

383

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments.

Source : CIA

Company Name and Address

Cascade Microtech, Inc.

9100 SW Gemini Drive
Beaverton, OR 97008
United States
Tel:	503-601-1000
Fax:	503-601-1901
Toll Free:	800-854-8400
www.cmicro.com

Employees:

383

Company Type:

Public Parent

Corporate Family:

10 Companies

Traded:

NASDAQ:

CSCD

Incorporation Date:

24-Feb-1984

Auditor:

KPMG LLP

Credit Rating:

A+ (100)

Financials in:	USD (Mil)
Fiscal Year End:	31-Dec-2012
Reporting Currency:	US Dollar
Annual Sales:	113.0 ^1
Net Income:	6.1
Total Assets:	85.3 ^2
Market Value:	166.1
	(11-Oct-2013)

Business Description

Cascade Microtech, Inc. designs, develops, manufactures and markets wafer probing and test socket solutions for the electrical measurement and testing of semiconductor devices. Its products enable precision on-wafer measurement of integrated circuits. The Company designs manufactures and assemble its products in Beaverton, Oregon and Dresden, Germany and maintain global sales, service and support centers in North America, Germany, Japan, Taiwan, China and Singapore. The Company operates in two business segments: Systems and Probes. Sales of its probe stations are included in the Systems segment and sales of its analytical probes and production probe cards are included in the Probes segment. In October 2013, the Company acquired ATT Advanced Temperature Test Systems GmbH (ATT Systems). For the six months ended 30 June 2013, Cascade Microtech, Inc. revenues increased 5% to $57.8M. Net income increased 1% to $2.9M. Revenues reflect Engineering Products/Systems segment increase of 11% to $19.8M, Pyramids Products/Probes & Sockets segment increase of 8% to $10.5M. Basic Earnings per Share excluding Extraordinary Items remained flat at $0.21.

Industry

Industry	Electromedical and Control Instruments Manufacturing
ANZSIC 2006:	2419 - Other Professional and Scientific Equipment Manufacturing
ISIC Rev 4:	2651 - Manufacture of measuring, testing, navigating and control equipment
NACE Rev 2:	2651 - Manufacture of instruments and appliances for measuring, testing and navigation
NAICS 2012:	334515 - Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
UK SIC 2007:	2651 - Manufacture of instruments and appliances for measuring, testing and navigation
US SIC 1987:	3825 - Instruments for Measuring and Testing of Electricity and Electrical Signals

Key Executives

Name	Title
Michael D. Burger	President, Chief Executive Officer, Director
Jeff A. Killian	Chief Financial Officer, Vice President - Finance, Treasurer, Secretary
Debbora Ahlgren	Vice President - Marketing
Steve Mahon	Vice President - Operations
Steven L. Harris	Interim Executive Vice President and Vice President - Engineering

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	1	Cascade Microtech Inc Acquires ATT Advanced Temperature Test Systems GmbH	2-Oct-2013
Negative Earnings Pre-Announcement	3	Cascade Microtech Inc Issues Q3 2013 Guidance; EPS Guidance Below Analysts' Estimates	1-Aug-2013
Other Earnings Pre-Announcement	1	Cascade Microtech Inc Issues Q4 2012 Guidance In Line With Analysts' Estimates	30-Oct-2012
Positive Earnings Pre-Announcement	1	Cascade Microtech Inc Issues Q4 2013 Revenue Guidance Above Analysts' Estimates-Conference Call	4-Oct-2013

* Number of significant developments within the last 12 months

News

Title	Date
Form 4/A CASCADE MICROTECH INC For: May 10 Filed by: Carlson F Paul BusinessWeek (40 Words)	22-Oct-2013
Form 4/A CASCADE MICROTECH INC For: May 10 Filed by: LINK RAYMOND A BusinessWeek (40 Words)	22-Oct-2013
Cascade Microtech Up 47.4% Since SmarTrend Uptrend Call (CSCD) Individual.com (41 Words)	21-Oct-2013
Cascade Microtech Acquires ATT Advanced Temperature Test Systems GmbH - Final FD (Fair Disclosure) Wire (5369 Words)	21-Oct-2013
Seeking Alpha: New Products And Technologies Can Continue To Push Cascade Microtech Kratisto Investing (150 Words)	17-Oct-2013
New Products And Technologies Can Continue To Push Cascade Microtech Seeking Alpha (1123 Words)	17-Oct-2013

Financial Summary

As of 30-Jun-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	5.52	3.16
Quick Ratio (MRQ)	3.88	1.74
Debt to Equity (MRQ)	0.0000	0.29
Sales 5 Year Growth	4.67	6.76
Net Profit Margin (TTM) %	5.30	8.43
Return on Assets (TTM) %	7.23	7.34
Return on Equity (TTM) %	9.30	12.34

Stock Snapshot

Traded: NASDAQ: CSCD

As of 11-Oct-2013

   Financials in: USD

Recent Price	10.32	EPS	0.42
52 Week High	10.45	Price/Sales	1.47
52 Week Low	5.00	Price/Earnings	15.49
Avg. Volume (mil)	0.04	Price/Book	2.22
Market Value (mil)	166.14	Beta	0.86

	Price % Change	Rel S&P 500%
4 Week	31.80%	30.62%
13 Week	53.12%	51.05%
52 Week	86.96%	57.28%
Year to Date	84.29%	54.32%

ABI Number: 259407898

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location
9100 SW Gemini Drive
Beaverton, OR, 97008
Washington County
United States

Tel:	503-601-1000
Fax:	503-601-1901
Toll Free Tel:	800-854-8400

www.cmicro.com

Quote Symbol - Exchange
CSCD - NASDAQ
Sales USD(mil):	113.0
Assets USD(mil):	85.3
Employees:	383
Fiscal Year End:	31-Dec-2012

Industry:	Scientific and Technical Instruments

Incorporation Date:	24-Feb-1984
Company Type:	Public Parent
Quoted Status:	Quoted

President, Chief Executive Officer, Director:	Michael D. Burger

Industry Codes

ANZSIC 2006 Codes:
2419	-	Other Professional and Scientific Equipment Manufacturing

ISIC Rev 4 Codes:
2651	-	Manufacture of measuring, testing, navigating and control equipment

NACE Rev 2 Codes:
2651	-	Manufacture of instruments and appliances for measuring, testing and navigation

NAICS 2012 Codes:
334515	-	Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

US SIC 1987:
3825	-	Instruments for Measuring and Testing of Electricity and Electrical Signals

UK SIC 2007:
2651	-	Manufacture of instruments and appliances for measuring, testing and navigation

Business Description

Cascade Microtech, Inc., incorporated on February 24, 1984, designs, develops, manufactures and markets wafer probing and test socket solutions for the electrical measurement and testing of semiconductor devices. Its products enable precision on-wafer measurement of integrated circuits. The Company designs manufactures and assemble its products in Beaverton, Oregon and Dresden, Germany and maintain global sales, service and support centers in North America, Germany, Japan, Taiwan, China and Singapore. The Company operates in two business segments: Systems and Probes. Sales of its probe stations are included in the Systems segment and sales of its analytical probes and production probe cards are included in the Probes segment. In October 2013, the Company acquired ATT Advanced Temperature Test Systems GmbH (ATT Systems).

Probe stations provide precise and accurate measurement of semiconductor electrical characteristics during device design or when optimizing the chip fabrication process. Its probe stations are configurable and are typically sold with various accessories, including its analytical probes, as well as accessories from third parties. In addition, the Company design and build custom probe stations to address the specific requirements of its customers.

Probe Stations

The Company offers probe stations for 300 millimeter, 200 millimeter and 150 millimeter or smaller wafer sizes. Probe stations are configurable depending upon the size and type of wafer, the particular characteristics of the device design that the customer is testing, the required measurements, the temperatures at which the device is tested and the test equipment that the customer is using. Its probe stations are available in manual, semi- and fully-automated configurations. In January 2013, CM300 probe station was introduced represents the flexibility and accuracy of an analytical prober is combined with the automation required to handle full cassettes of 300 millimeter wafers.

The Company competes with Vector Semiconductor Co. Ltd., Signatone Corporation, MPI Corporation, Accretech, Tokyo Electron (TEL), The Micromanipulator Company Inc. and Wentworth Laboratories Inc.

Analytical Probes 

Cascade Microtech, Inc. offers over 50 different analytical probe models primarily for engineering and production testing. The Infinity series probes are designed with probe tips derived from its lithographic manufacturing technology, enabling electrical contacts on aluminum and copper pads. While the Company’s analytical probes are used primarily for engineering test, several of its analytical probes are also used in production testing of some high-frequency devices. 

The Company competes with GGB Industries Inc. 

Production Probe Cards 

A production probe card temporarily connects one or more die or integrated circuits (ICs) on a wafer under test to a production tester. Probe cards are customized for each new chip type and physically wear out during usage in production testing. Depending upon the test environment, production probe cards may last roughly one million contact cycles. The Company’s Pyramid Probe Card product line offers electrical speed performance and is used in wireless chip applications. 

The Company competes with Feinmetall GmbH, FormFactor Inc., Japan Electronic Materials Corporation, Micronics Japan Company, Ltd., Micro Square Technology Inc., PHICOM Corporation, SV Probe Inc., Technoprobe S.r.l., Tokyo Cathode Laboratory Company Ltd. and Wentworth Laboratories Inc. 

Services and Support

The Company offers services to enable its customers to maintain and more effectively utilize its products and to enhance its customer relationships. In addition to traditional maintenance services, its applications engineers assist its customers in test methodologies to make advanced measurements on-wafer in both the lab and in fabrication.

MORE BUSINESS DESCRIPTIONS

Cascade Microtech, Inc. designs, develops, manufactures and markets wafer probing and test socket solutions for the electrical measurement and testing of semiconductor devices. Its products enable precision on-wafer measurement of integrated circuits. The Company designs manufactures and assemble its products in Beaverton, Oregon and Dresden, Germany and maintain global sales, service and support centers in North America, Germany, Japan, Taiwan, China and Singapore. The Company operates in two business segments: Systems and Probes. Sales of its probe stations are included in the Systems segment and sales of its analytical probes and production probe cards are included in the Probes segment. In October 2013, the Company acquired ATT Advanced Temperature Test Systems GmbH (ATT Systems). For the six months ended 30 June 2013, Cascade Microtech, Inc. revenues increased 5% to $57.8M. Net income increased 1% to $2.9M. Revenues reflect Engineering Products/Systems segment increase of 11% to $19.8M, Pyramids Products/Probes & Sockets segment increase of 8% to $10.5M. Basic Earnings per Share excluding Extraordinary Items remained flat at $0.21.

Integrated Circuit, Microchip & Semiconductor Industry Electrical Measurement & Testing Equipment Developer, Mfr & Marketer

Establishments primarily engaged in providing professional engineering services. Establishments primarily providing and supervising their own engineering staff on temporary contract to other firms are included in this industry.

Cascade Microtech Inc. (NASDAQ: CSCD) is a worldwide leader in precision 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 Microtechs 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.

Cascade Microtech is engaged in the design, development and manufacture of advanced wafer probing solutions for the electrical measurement and test of semiconductor integrated circuits and chips. Customers use company products to perform testing of chips while in wafer form, or wafer probing, in both engineering and production test environments. Its engineering probe stations and analytical probes are used in research and development to perform precise electrical measurements, or electrical metrology, on increasingly complex and high-speed chips in order to assure quality and reliability, reduce costly redesigns, accelerate time-to-market and improve chip fabrication processes. Cascade has more than 800 customers, which includes 20 of the largest semiconductor manufacturers in the world. Its customers include Agilent Technologies, Hitachi, IBM, Intel, Micron Technology, NEC, Northrop-Grumman, Sony, Taiwan Semiconductor Manufacturing Company and Texas Instruments. Cascade Microtech is headquartered in Beaverton, Ore.

Product Codes

Product Code	Product Description
AUT-AT-A	Probe stations
AUT-AT-A	High-frequency microwave probe stations
AUT-AT-PW	Probe stations
AUT-AT-PW	Microwave wafer probing equipment
AUT-AT-PW	High-frequency microwave probe stations
TAM-ME-MEP	Failure analysis test equipment

Brand/Trade Names
Attoguard - Electronic equipment Cascade Microtech - Integrated circuits	Pyramid Probe - Electrical testing instruments

Financial Data

Financials in:	USD(mil)
Revenue:	113.0
Net Income:	6.1
Assets:	85.3
Long Term Debt:	0.0
Total Liabilities:	19.4
Working Capital:	0.1
Date of Financial Data:	31-Dec-2012

1 Year Growth

8.0%

NA

2.7%

Market Data

Quote Symbol:	CSCD
Exchange:	NASDAQ
Currency:	USD
Stock Price:	10.3
Stock Price Date:	10-11-2013
52 Week Price Change %:	87.0
Market Value (mil):	166,137.2
SEDOL:	B04LZ92
ISIN:	US1473221018

Equity and Dept Distribution:

Common Stock $.01 Par, 03/11, 100M auth., 14,545,183 issd. Insiders own 48.11%. IPO 12/15/04, 5,300,000 shares (3.3M by the Company) @ $14 per share by Lehman Brothers Inc.

Key Corporate Relationships

Auditor:	KPMG LLP
Auditor:	KPMG LLP

Additional Information
ABI Number:	259407898

Location
9100 SW Gemini Dr Beaverton, OR 97008-7127 United States
County:	Washington
MSA:	Portland, OR
Phone:	503-601-1000
Fax:	503-601-1002
Toll Free:	800-854-8400
URL:	http://cmicro.com
KeyID^SM:	313844
ABI^©:	259407898
Annual Sales:	$112,963,000 (USD)
Employees:	383
Facility Size(ft^2):	40,000+
Business Type:	Public
Location Type:	Headquarter
Ticker:	CSCD
Exchange:	NASDAQ

Primary Line of Business:
SIC:	8711-15 - Engineers-Electrical
NAICS:	541330 - Engineering Svcs
Secondary Lines of Business:
NAICS:	339112 - Surgical & Medical Instrument Mfg
	541710 - Physical, Engineering, & Biological Research
	541613 - Marketing Consulting Svcs
	335999 - Misc Electrical Equip Mfg
SICs:	3699-02 - Electric Equipment-Manufacturers
	3841-04 - Physicians & Surgeons Equip & Supls-Mfrs
	8731-09 - Testing
	8742-13 - Marketing Programs & Services
	9999-66 - Federal Government Contractors

Table of Contents

Similar Businesses in the Area *
Teradyne Inc 7670 SW Mohawk St Tualatin, OR 97062-8119	Sedivy, Gary 15575 SW Sequoia Pkwy Ste: 140 Portland, OR 97224-7233	Wunderlich-Malec Engineering 12180 SW Garden Pl Portland, OR 97223-2333
Cundiff Engineering Inc 8885 SW Canyon Rd Ste: 205 Portland, OR 97225-3429	Epsilon Engineering Inc 1970 SW Mccamley Rd Beaverton, OR 97005-1261	Pride, Thomas 520 SW 6th Ave Ste: 500 Portland, OR 97204-1517
Dhillon Engineers Inc 4380 SW Macadam Ave Ste: 280 Portland, OR 97239-6405	Elcon Associates Inc 12670 NW Barnes Rd Ste: 200 Portland, OR 97229-9001	MLC Engineering LLC 1515 SW 5th Ave Ste: 1028 Portland, OR 97201-5614
POWER Engineers 9320 SW Barbur Blvd Ste: 200 Portland, OR 97219-5499

*	Similar Businesses are defined as the closest businesses sharing the same six-digit primary SIC code ( 8711-15 - Engineers-Electrical) regardless of size.

Closest Neighbors
Beaverton Education Assn-Oea 20450 NW Amberwood Dr Ste: 125 Beaverton, OR 97006-6979	Liberty Mutual 16505 SW 72nd Ave Ste: 200 Portland, OR 97224-7761	KLA-Tencor Corp 20475 NW Amberwood Dr Ste: 130 Beaverton, OR 97006-7002
Oregon Education Association 20450 NW Amberwood Dr Ste: 125 Beaverton, OR 97006-6979	ACS Inc 20450 NW Amberwood Dr Beaverton, OR 97006-6973	NVIDIA Corp 20400 NW Amberwood Dr Ste: 100 Beaverton, OR 97006-6975

Corporate Structure News

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Cascade Microtech, Inc.	Parent	Beaverton, OR	United States	Electromedical and Control Instruments Manufacturing	113.0	383
Cascade Microtech Dresden GmbH	Subsidiary	Thiendorf, Sachsen	Germany	Electromedical and Control Instruments Manufacturing	26.7	100
Cascade Microtech, Gemini-Pyramid Probe Division	Division	Beaverton, OR	United States	Electromedical and Control Instruments Manufacturing		70
Cascade Microtech Japan, KK	Subsidiary	Tokyo	Japan	Electronics Wholesale		20
ATT Advanced Temperature Test Systems GmbH	Subsidiary	Planegg, Bayern	Germany	Machinery and Equipment Manufacturing		18
Cascade Microtech China (Shanghai) Co., Ltd.	Subsidiary	Shanghai	China	Electronics Wholesale		8
Cascade Microtech Singapore Pte., Ltd.	Subsidiary	Singapore	Singapore	Electronics Wholesale		7
Cascade Microtech Europe Ltd.	Subsidiary	Adderbury	United Kingdom	Electronics Wholesale
Cascade Microtech Taiwan Co., Ltd.	Subsidiary	Hsin-chu	Taiwan	Electronics Wholesale
Cascade Microtech GmbH	Subsidiary	Hallbergmoos	Germany	Electronics Wholesale

Competitors Report

Company Name	Location	Employees	Ownership
FormFactor, Inc.	Livermore, California, United States	1,021	Public
JAPAN ELECTRONIC MATERIAL CORPORATION	Amagasaki-Shi, Japan	887	Public
MICRONICS JAPAN CO., LTD.	Musashino-Shi, Japan	1,456	Public
MPI CORPORATION	Jhubei, Taiwan	1,108	Public
Tokyo Electron Limited	Minato-Ku, Japan	1,293	Public

Executives Report

Board of Directors

Name	Title	Function
F. Paul Carlson	Chairman	Chairman
Biography: Dr. F. Paul Carlson, Ph.D., is Independent Chairman of the Board of Cascade Microtech Inc. Dr. Carlson was named Chairman of the Board and interim Chief Executive Officer in December 2009 and interim President in January 2010. Dr. Carlson served as interim Chief Executive Officer and President until July 2010. In 1991, he founded and has since served as President and Chief Executive Officer of The Carlson Group of Companies, a company specializing in business re-engineering and re-structuring, and the financing and development of early stage companies. From 1988 to 1991, Dr. Carlson served as the Vice President of Strategy and Business Development for Honeywell, Inc. From 1985 to 1988 he served as President and Chief Executive Officer of the Oregon Graduate Center Corporation. From 1980 to 1985, he served as the President and Chief Executive Officer of the Oregon Graduate Institute. Previously, he served as a Professor of Electrical Engineering at the University of Washington for 10 years. Dr. Carlson holds a B.S. in Electrical Engineering from the University of Washington, an M.S. in Electrical Engineering from the University of Maryland and a Ph.D. in Electrical Engineering from the University of Washington. Dr. Carlson attended the Stanford Executive Education program in 1987, and, in 1991, attended the MIT Sloan Executive Education program on Corporate Strategy. Age: 74 Education: University of Washington, PHD (Electrical Engineering) University of Maryland, MS (Electrical Engineering) University of Washington, BS (Electrical Engineering) Compensation/Salary:$208,788 Compensation Currency: USD
Michael D. Burger	President, Chief Executive Officer, Director	Director/Board Member
Biography: Mr. Michael D. Burger is President, Chief Executive Officer, Director of Cascade Microtech Inc. Prior to joining Cascade Microtech, Inc., Mr. Burger served as the President and Chief Executive Officer of Merix Corporation, a printed circuit board manufacturer, from April 2007 to February 2010. From November 2004 until joining Merix, Mr. Burger served as a director and the President of the Components Business of Flextronics Corporation, a provider of advanced design and electronics manufacturing services to original equipment manufacturers. From 1999 to November 2004, Mr. Burger was employed by ZiLOG, Inc., a supplier of devices for embedded control and communications applications, serving as President and a director from May 2002 until November 2004. Mr. Burger holds a B.S. degree in Electrical Engineering from New Mexico State University and a certificate from the Stanford University International Executive Management Program. Age: 54 Education: New Mexico State University, BS (Electrical Engineering) Compensation/Salary:$400,010 Compensation Currency: USD
John Y. Chen	Independent Director	Director/Board Member
Biography: Dr. John Y. Chen is Independent Director of Cascade Microtech, Inc. Dr. Chen has been in the semiconductor industry for over 35 years and since 2005 has served as the Vice President of Technology and Foundry Operations at NVIDIA Corporation. Prior to joining NVIDIA, Dr. Chen, an Institute of Electrical and Electronics Engineers (IEEE) Fellow, held senior executive positions at FlexICs, Inc., Taiwan Semiconductor Manufacturing Company, WaferTech LLC, and Cypress Semiconductor Corporation. Dr. Chen holds a B.S. degree in Electrical Engineering from the National Taiwan University, an M.S. degree in Electrical Engineering from the University of Maine, a Ph.D. in Electrical Engineering from UCLA, and an M.E. degree from the UCLA Executive Engineering Management School. Age: 63 Education: UCLA, PHD (Electrical Engineering) University of Maine, MS (Electrical Engineering) UCLA, ME
John (J.D.) Delafield	Director	Director/Board Member
Biography: Mr. John D. Delafield, Jr., is Independent Director of Cascade Microtech Inc. Mr. Delafield has served as the Chairman, President and Chief Executive Officer of Delafield Hambrecht, Inc., an investment banking and asset management firm, since 2002. Prior to this, Mr. Delafield co-founded WR Hambrecht + Co., an Internet and auction technology-driven investment bank, where he held a number of positions including Chief Operating Officer. Prior to WR Hambrecht + Co., Mr. Delafield worked at Morgan Stanley in investment banking in New York and Singapore and at The Coca-Cola Company in Beijing. Mr. Delafield holds an A.B. degree in Asian Studies from Princeton University and an M.B.A. from Harvard Business School. Age: 47 Education: Princeton University, AB (Asian Studies) Harvard University, MBA
Raymond A. Link	Independent Director	Director/Board Member
Biography: Mr. Raymond A. Link, CPA, is Independent Director of Cascade Microtech Inc. Since July 2005, Mr. Link has served as Executive Vice President and Chief Financial Officer of FEI Company, a supplier of scientific and analytical instruments for nanoscale imaging. Prior to this, Mr. Link served as Vice President, Finance and Administration, Chief Financial Officer and Secretary of TriQuint Semiconductor, Inc., a manufacturer of electronic signal processing components primarily used in wireless communications, since July 2001 as a result of TriQuint’s merger with Sawtek, Inc. In September 1995 Mr. Link joined Sawtek, Inc., a designer and manufacturer of a broad range of electronic signal processing components primarily for use in the wireless communications industry, as Vice President Finance and Chief Financial Officer. He is also on the board of directors of nLight Corporation, a private company that makes high-power semiconductor lasers. Mr. Link received a B.S. degree from the State University of New York at Buffalo and an M.B.A. from the Wharton School at the University of Pennsylvania. Mr. Link is also a licensed Certified Public Accountant. Age: 59 Education: The Wharton School of the University of Pennsylvania, MBA State University of New York at Buffalo, BS
George P O'Leary	Board Member	Director/Board Member
Biography: Dr. OLeary has served as a member of the Cascade Microtech Board since September 1988. Dr. OLeary was a faculty member of the Oregon Graduate Institute and taught Physics from 1969 to 1972. Dr. OLeary joined Floating Point Systems in 1972. During his tenure there from 1972 to 1983 he served as vice president of Engineering and Vice President of European Operations. He held the position of Chief Operating Officer and Director from 1986 to 1987. Dr. OLeary was president of Accufiber in 1986 - 1987. He is presently on the Boards of Jubitz Corporation and the Providence St. Vincent Medical Foundation. Dr. OLeary developed the AP120B Array Processor and the FPS-164 Mini-Supercomputer. He received a PhD in Physics in 1969 from Yale University. Education: Yale University, PhD (Physics)
William R. Spivey	Independent Director	Director/Board Member
Biography: Dr. William R. Spivey, Ph.D., is Independent Director of Cascade Microtech Inc. From July 2000 until September 2001, Dr. Spivey served as the President and Chief Executive Officer of Luminent, Inc., a provider of fiber optic components to the communications industry. From 1997 to 2000, Dr. Spivey served as Group President of the Network Products group of Lucent Technologies. From 1994 to 1997, he served as Vice President of the Systems and Components Group, Member of the Office of the President and Co-chair of the Executive Committee of AT&T Microelectronics. Dr. Spivey holds a B.S. in Physics from Duquesne University, a M.S. in Physics from Indiana University of Pennsylvania, and a Ph.D. in Administration/Management from Walden University. Dr. Spivey also serves as a director of The Laird Group PLC, Novellus Systems, Inc. and Raytheon Company. Age: 66 Education: Walden University, PHD (Management) Indiana University of Pennsylvania, MS (Physics) Duquense University, BS (Physics)
Eric W. Strid	Director	Director/Board Member
Biography: Mr. Eric W. Strid is Chief Technical Officer and Director of Cascade Microtech Inc. He co-founded Cascade Microtech and served as the company's Chairman and Chief Executive Officer from 1984 until January 2008. He also served as the company's President from 1984 to December 1996 and from June 2004 to January 2008. In January 2008, Mr. Strid became the company's Chief Technical Officer. As a founder and Chief Executive Officer of Cascade Microtech, Inc. for over 25 years, his views and understanding of both semiconductor testing technology and the market for the company's products has been a key to Cascade Microtech, Inc.’s success. Prior to 1984, Mr. Strid served as a Principal Engineer with Tektronix, Inc. and with TriQuint Semiconductor, Inc., where he designed and evaluated high-frequency gallium arsenide integrated circuits. Mr. Strid holds a B.S. in Electrical Engineering from the Massachusetts Institute of Technology and an M.S. in Electrical Engineering from the University of California at Berkeley. Age: 60 Education: University of California, Berkeley, MS (Electrical Engineering) Massachusetts Institute of Technology, BS (Electrical Engineering) Compensation/Salary:$203,231 Compensation Currency: USD

Executives

Name	Title	Function
Michael D. Burger	President, Chief Executive Officer, Director	Chief Executive Officer
Biography: Mr. Michael D. Burger is President, Chief Executive Officer, Director of Cascade Microtech Inc. Prior to joining Cascade Microtech, Inc., Mr. Burger served as the President and Chief Executive Officer of Merix Corporation, a printed circuit board manufacturer, from April 2007 to February 2010. From November 2004 until joining Merix, Mr. Burger served as a director and the President of the Components Business of Flextronics Corporation, a provider of advanced design and electronics manufacturing services to original equipment manufacturers. From 1999 to November 2004, Mr. Burger was employed by ZiLOG, Inc., a supplier of devices for embedded control and communications applications, serving as President and a director from May 2002 until November 2004. Mr. Burger holds a B.S. degree in Electrical Engineering from New Mexico State University and a certificate from the Stanford University International Executive Management Program. Age: 54 Education: New Mexico State University, BS (Electrical Engineering) Compensation/Salary:$400,010 Compensation Currency: USD
Steve Mahon	Vice President - Operations	Operations Executive
Biography: Mr. Steve Mahon is Vice President - Operations of Cascade Microtech Inc. He joined Cascade Microtech, Inc. in November 2010 as Vice President of Operations. Mr. Mahon has over 30 years of experience in a broad array of positions in micro-fabrication operations, engineering management and semiconductor process engineering. Prior to Cascade Microtech, he spent over 16 years at TriQuint, where his positions included serving as general manager of military bulk acoustic wave (BAW) and surface acoustic wave (SAW) products, as well as BAW production. Mr. Mahon began his career at Hewlett Packard as a process development engineer, and then moved to Electronic Decisions, Inc. of Illinois where he served as wafer fabrication manager. Mr. Mahon holds a B.S. in Electrical Engineering from the University of Illinois at Urbana-Champaign and an M.S. in Electrical Engineering from Stanford University. Age: 53 Education: Stanford University, MS (Electrical Engineering) University of Illinois, BS (Electrical Engineering)
Liz Behnke	Chief Administrative Officer	Administration Executive
Kimberly Eriksen	Administration Manager	Administration Executive
Jeff A. Killian	Chief Financial Officer, Vice President - Finance, Treasurer, Secretary	Company Secretary
Biography: Mr. Jeff A. Killian is Chief Financial Officer, Vice President - Finance, Treasurer, Secretary of Cascade Microtech Inc. From June 2008 to April 2010, Mr. Killian served as the company's Director of Finance. Prior to this, Mr. Killian served in various financial roles at TriQuint Semiconductor, Inc. (“TriQuint�), a manufacturer of electronic signal processing components primarily used in wireless communications, from May 1997 to June 2008. Mr. Killian served as TriQuint’s Director of Financial Planning and Analysis from January 2007 to June 2008, as its Corporate Controller from June 2005 through December 2006 and as its Director of Oregon Finance from 2003 through May 2005. Mr. Killian holds a B.S. in Finance from Oregon State University and an M.B.A. from the University of Oregon. Age: 53 Education: University of Oregon, MBA Oregon State University, BS (Finance) Compensation/Salary:$252,582 Compensation Currency: USD
Dale Dour	Account Sales Manager	Accounting Executive
James Nias	Corporate Controller	Controller
Ellen Raim	Vice President - Human Resources	Human Resources Executive
Biography: Ms. Ellen Raim is Vice President - Human Resources of Cascade Microtech, Inc. Ms. Raim has 25 years of experience helping organizations succeed by aligning their strategy with their culture. She began her career as a labor and employment attorney for a multinational law firm. From 1994 to 2004, Ms. Raim was employed by Intel Corporation. From 1994 to 1996, Ms. Raim worked in the Legal Department at Intel and, from 1996 to 2004, she served in Human Resources. Her final position at Intel, from 2001 to 2004, was as Director of World Wide Talent Acquisition. After Intel, Ms. Raim served as Vice President of Human Resources at Electro Scientific Industries, Inc., a provider of high-technology manufacturing equipment to the global semiconductor and micro-electronics markets, from 2004 to 2007. From 2007 until joining Cascade Microtech, Inc., Ms. Raim provided human resource consulting services focused on organizational development. Ms. Raim holds a B.A. in Economics from Brown University, an M.A. in Organizational Design from Seattle University and a J.D. from the University of Miami School of Law. Age: 54 Education: University of Miami School of Law, JD Seattle University, MA Brown University, BA (Economics)
Madelaine Salas	Human Resources Representative	Human Resources Executive
Art Smith	Human Resources	Human Resources Executive
Education: Niagara University, BS (Business)
Paul J O'Mara	Vice President Of Sales	Sales Executive
Biography: Paul OMara joined Cascade Microtech Inc. in March 2008 as Vice President of Sales after more than 30 years in the computer broadcast equipment and electron microscopy industries. From 2001 to 2008 Mr. OMara held various sales service operations and general management positions and most recently served as Senior Vice President of Customer Service at FEI Company a leading supplier of scientific and analytical instruments for nanoscale imaging. Mr. OMara holds a B.S. in Electronic Engineering from the University of Sussex England. Education: University of Sussex , England, BS (Electronic Engineering)
Wayne Poe	Information Technology, Sales, International	Sales Executive
Debbora Ahlgren	Vice President - Marketing	Marketing Executive
Biography: Ms. Debbora Ahlgren is Vice President - Marketing of Cascade Microtech, Inc. Ms. Ahlgren most recently served as vice president of marketing for The CBA Group, comprised of Universal Instruments Corporation and Hover-Davis. Before joining The CBA Group, Debbora held the position of senior vice president of sales and marketing for OptimalTest, Inc. Prior to OptimalTest, she served as chief marketing officer for Verigy, where she drove the portfolio strategic plan and corporate development activities including development of the company's product, marketing and brand strategies. Additionally, Debbora held leadership positions in marketing and business development for Agilent Technologies, KLA-Tencor, and Schlumberger. Ms. Ahlgren holds a Bachelor of Science degree from SUNY at Stony Brook. She studied technology management at the Harriman School at the same institution. Her passion for leadership was fueled by studies at the Stanford Graduate School of Business. Age: 57 Education: State University of New York at Stony Brook, BS
Ken Dawson	Vice President of Marketing	Marketing Executive
Liz Kennedy	Program Manager, Engineering Probes Marketing	Marketing Executive
Mike Kondrat	Chief Marketing Officer, Vice President	Marketing Executive
Russell Schlager	Marketing Executive	Marketing Executive
Education: Saint John's University, bachelor's (Physics)
Phyllis Woods	Marketing	Marketing Executive
Brad Cackler	Information Technology Director	Information Executive
Terressa Cook	Information Technology	Information Executive
Chris Roth	Corporate Web Architect	Network Management Executive
Dan Croft	Engineering	Engineering/Technical Executive
Steven L. Harris	Interim Executive Vice President and Vice President - Engineering	Engineering/Technical Executive
Biography: Mr. Steven L. Harris is Executive Vice President of Cascade Microtech Inc. He joined Cascade Microtech, Inc. in January 2009 as Vice President of Engineering. In December 2009, he was appointed as Executive Vice President. From 1997 to 2008, Mr. Harris held various positions at Electro Scientific Industries, Inc. (“ESI�), a provider of technology manufacturing equipment, including the Central Engineering Group, serving as General Manager of the Semiconductor Link Processing business unit and approximately five years as Vice President of Research, Development and Engineering. Prior to joining ESI, Mr. Harris was employed at Tektronix, where he began his career and spent 13 years in a variety of product development and engineering management positions. Mr. Harris holds a B.S. in Electrical Engineering from the University of Idaho. Age: 49 Education: University of Idaho, BS (Electrical Engineering) Compensation/Salary:$272,234 Compensation Currency: USD
Eric Hill	Engineering/Technical	Engineering/Technical Executive
Clint Vandergiessen	Hardware Engineer Manager	Engineering/Technical Executive
John Ebner	Research and Development Manager	Research & Development Executive
Greg Spanier	Director Product Marketing	Product Management Executive
Arianne Boyer	Development Manager	Business Development Executive
Lori Vanderzanden	Purchasing Supervisor	Purchasing Executive
K. Reed Gleason	Vice President - Advanced Development, Director Emeritus	Other
Biography: Mr. K. Reed Gleason is Vice President - Advanced Development, Director Emeritus of Cascade Microtech Inc. Mr. Gleason was a Senior Physicist at Tektronix, Inc. and at TriQuint Semiconductor, Inc. (“TriQuint�), a manufacturer of electronic signal processing components primarily used in wireless communications, conducting research into high-frequency gallium arsenide devices and integrated circuits. He began his career as an engineer with the U.S. Naval Research Laboratory in Washington, D.C. Mr. Gleason holds a B.S. in Electrical Engineering from the California Institute of Technology. Mr. Gleason also serves as Director Emeritus. Age: 68 Education: California Institute of Technology, BS (Electrical Engineering) Compensation/Salary:$152,881 Compensation Currency: USD

Significant Developments

Cascade Microtech Inc Issues Q4 2013 Revenue Guidance Above Analysts' Estimates-Conference Call

Oct 04, 2013

Cascade Microtech Inc announced that for the fourth quarter of 2013, it expects revenue to be in the range of $34 million to $38 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $32 million for the fourth quarter of 2013. 

Cascade Microtech Inc Acquires ATT Advanced Temperature Test Systems GmbH

Oct 02, 2013

Cascade Microtech Inc announced that it has acquired ATT Advanced Temperature Test Systems GmbH (ATT Systems), which is headquartered in Munich Germany. ATT Systems is in the manufacturing of advanced thermal systems used in the testing of semiconductor wafers. The purchase price for the acquisition includes approximately 8.4 million Euros in cash (net of approximately 0.4 million Euros of acquired cash), approximately 1.6 million shares of Cascade Microtech common stock, and deferred payments of approximately 0.8 million Euros. The purchase price is subject to certain post-closing adjustments. The shares of common stock issued in the transaction are subject to a one-year lock-up agreement. 

Cascade Microtech Inc Issues Q3 2013 Guidance; EPS Guidance Below Analysts' Estimates

Aug 01, 2013

Cascade Microtech Inc announced that for the third quarter of 2013, before acquisition related costs, and assuming consistent foreign currency rates, revenue is expected to be in the range of $28.0 million to $31.0 million, and earnings per share (EPS) are expected to be in the range of $0.08 to $0.12 on a fully-diluted basis. Due to the mid-quarter timing of the acquisition, the revenue from the RTP business is not expected to be meaningful in the third quarter. Third quarter earnings guidance listed above is before one-time costs of purchasing and integrating the RTP business, which are estimated between $0.7 million and $0.9 million during the quarter. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $30.0 million and EPS of $0.16 for the third quarter of 2013, 

Cascade Microtech Inc Issues Q2 2013 Guidance; EPS Guidance Below Analysts' Estimates

Apr 30, 2013

Cascade Microtech Inc announced that for the second quarter of 2013. it expect revenue to be in the range of $27.0 million to $30.0 million. GAAP earnings per share is expected to be in the range of $0.08 to $0.12 on a fully-diluted basis, assuming no significant one-time charges or changes in foreign currency rates. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $29.4 million and EPS of $0.13 for the second quarter of 2013. 

Cascade Microtech Inc Issues Q1 2013 Guidance Below Analysts' Estimates

Feb 05, 2013

Cascade Microtech Inc announced that for first quarter of 2013, it expects to be in the range of $26.0 million to $29.0 million. GAAP earnings per share guidance is expected to be in the range of $0.06 to $0.10 on a fully-diluted basis. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $29.7 million and EPS of $0.14 for first quarter of 2013. 

Cascade Microtech Inc Issues Q4 2012 Guidance In Line With Analysts' Estimates

Oct 30, 2012

Cascade Microtech Inc announced that for fourth quarter of 2012, it expects revenue to be in the range of $27.0 million to $30.0 million. GAAP earnings per share guidance is being raised from the previous quarter and is expected to be in the range of $0.08 to $0.12 on a fully-diluted basis, assuming no significant one-time charges or changes in foreign currency rates. The EPS guidance includes continued investments in new product development costs including the prototyping of new systems, as previously announced. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $29 million and EPS of $0.12 for fourth quarter of 2012. 

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Restated Normal 31-Dec-2012
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	113.0	104.6	92.6	51.3	72.8
Revenue	113.0	104.6	92.6	51.3	72.8
Total Revenue	113.0	104.6	92.6	51.3	72.8
Cost of Revenue	63.0	63.1	55.8	31.3	42.3
Cost of Revenue, Total	63.0	63.1	55.8	31.3	42.3
Gross Profit	50.0	41.6	36.8	20.0	30.5
Selling/General/Administrative Expense	29.6	28.5	28.4	18.8	27.2
Labor & Related Expense	1.3	1.3	1.3	1.3	-
Total Selling/General/Administrative Expenses	30.9	29.7	29.7	20.0	27.2
Research & Development	10.8	11.8	11.7	7.7	9.1
Amortization of Intangibles	0.7	0.8	0.8	0.6	-
Depreciation/Amortization	0.7	0.8	0.8	0.6	-
Restructuring Charge	0.0	3.4	2.7	0.0	-
Impairment-Assets Held for Use	-	-	-	-	3.0
Unusual Expense (Income)	0.0	3.4	2.7	0.0	3.0
Total Operating Expense	105.4	108.8	100.7	59.6	81.6
Operating Income	7.6	-4.2	-8.1	-8.3	-8.8
Investment Income - Non-Operating	-0.8	0.5	-0.1	0.1	-
Interest/Investment Income - Non-Operating	-0.8	0.5	-0.1	0.1	-
Interest Income (Expense) - Net Non-Operating	0.1	0.1	0.1	0.3	-
Interest Income (Expense) - Net Non-Operating Total	-0.7	0.5	0.0	0.4	-
Other Non-Operating Income (Expense)	0.0	0.0	0.0	0.0	1.0
Other, Net	0.0	0.0	0.0	0.0	1.0
Income Before Tax	6.8	-3.6	-8.1	-7.9	-7.9
Total Income Tax	0.7	0.2	0.0	-2.0	1.5
Income After Tax	6.1	-3.8	-8.1	-5.9	-9.4
Net Income Before Extraord Items	6.1	-3.8	-8.1	-5.9	-9.4
Discontinued Operations	0.0	-2.0	-2.2	-1.8	-25.2
Total Extraord Items	0.0	-2.0	-2.2	-1.8	-25.2
Net Income	6.1	-5.8	-10.3	-7.6	-34.6
Income Available to Common Excl Extraord Items	6.1	-3.8	-8.1	-5.9	-9.4
Income Available to Common Incl Extraord Items	6.1	-5.8	-10.3	-7.6	-34.6
Basic/Primary Weighted Average Shares	14.2	14.6	14.3	13.3	13.1
Basic EPS Excl Extraord Items	0.43	-0.26	-0.57	-0.44	-0.72
Basic/Primary EPS Incl Extraord Items	0.43	-0.40	-0.72	-0.57	-2.65
Dilution Adjustment	-	0.0	0.0	0.0	0.0
Diluted Net Income	6.1	-5.8	-10.3	-7.6	-34.6
Diluted Weighted Average Shares	14.4	14.6	14.3	13.3	13.1
Diluted EPS Excl Extraord Items	0.42	-0.26	-0.57	-0.44	-0.72
Diluted EPS Incl Extraord Items	0.42	-0.40	-0.72	-0.57	-2.65
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Depreciation, Supplemental	4.6	3.6	3.7	3.3	-
Total Special Items	0.0	3.4	2.7	0.0	3.0
Normalized Income Before Tax	6.8	-0.2	-5.4	-7.9	-4.9
Effect of Special Items on Income Taxes	0.0	1.2	0.9	0.0	1.1
Inc Tax Ex Impact of Sp Items	0.7	1.4	1.0	-2.0	2.6
Normalized Income After Tax	6.1	-1.6	-6.4	-5.9	-7.5
Normalized Inc. Avail to Com.	6.1	-1.6	-6.4	-5.9	-7.5
Basic Normalized EPS	0.43	-0.11	-0.45	-0.44	-0.57
Diluted Normalized EPS	0.42	-0.11	-0.45	-0.44	-0.57
Amort of Intangibles, Supplemental	-	1.0	0.7	0.7	-
Rental Expenses	2.6	2.5	3.0	2.6	-
Research & Development Exp, Supplemental	11.0	11.8	11.7	7.7	9.1
Normalized EBIT	7.6	-0.8	-5.4	-8.3	-5.8
Normalized EBITDA	12.2	3.8	-1.1	-4.3	-5.8
Current Tax - Domestic	0.0	-0.1	0.0	-2.2	-
Current Tax - Foreign	0.8	0.0	1.5	0.0	-
Current Tax - Local	0.0	0.0	0.0	0.0	-
Current Tax - Total	0.8	-0.1	1.6	-2.2	-
Deferred Tax - Domestic	0.0	0.0	0.0	0.0	-
Deferred Tax - Foreign	-0.1	0.3	-1.5	0.1	-
Deferred Tax - Local	0.0	0.0	0.0	0.0	-
Deferred Tax - Total	-0.1	0.3	-1.5	0.1	-
Income Tax - Total	0.7	0.2	0.0	-2.0	-
Defined Contribution Expense - Domestic	0.4	0.3	0.0	0.0	-
Total Pension Expense	0.4	0.3	0.0	0.0	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	17.9	10.7	21.9	19.5	3.8
Short Term Investments	5.3	2.7	0.9	13.4	28.8
Cash and Short Term Investments	23.2	13.3	22.7	32.9	32.5
Accounts Receivable - Trade, Gross	21.4	24.1	20.1	11.9	13.8
Provision for Doubtful Accounts	-0.3	-0.3	-0.4	-1.0	-1.0
Trade Accounts Receivable - Net	21.1	23.9	19.7	10.9	12.8
Other Receivables	-	-	-	2.6	1.0
Total Receivables, Net	21.1	23.9	19.7	13.5	13.8
Inventories - Finished Goods	6.8	5.7	5.8	5.7	6.8
Inventories - Work In Progress	2.7	3.0	2.5	1.2	1.3
Inventories - Raw Materials	14.8	14.8	12.4	9.8	11.0
Total Inventory	24.3	23.6	20.8	16.6	19.1
Prepaid Expenses	2.5	4.1	2.0	0.8	1.4
Restricted Cash - Current	1.1	1.5	1.7	0.0	-
Deferred Income Tax - Current Asset	-	-	-	0.0	0.1
Other Current Assets	-	-	-	0.0	0.4
Other Current Assets, Total	1.1	1.5	1.7	0.0	0.5
Total Current Assets	72.2	66.4	67.0	63.7	67.3
Buildings	8.2	8.0	7.1	7.0	6.6
Machinery/Equipment	24.1	22.6	22.3	22.6	20.4
Construction in Progress	0.6	0.1	0.4	0.2	1.3
Property/Plant/Equipment - Gross	32.8	30.8	29.8	29.8	28.3
Accumulated Depreciation	-24.6	-21.8	-19.8	-17.8	-14.8
Property/Plant/Equipment - Net	8.3	9.0	10.0	12.0	13.6
Goodwill, Net	1.0	1.0	1.0	0.0	-
Intangibles - Gross	5.6	5.6	5.6	8.5	9.0
Accumulated Intangible Amortization	-4.0	-3.3	-2.5	-4.8	-4.6
Intangibles, Net	1.6	2.3	3.1	3.7	4.4
LT Investments - Other	0.0	1.8	0.0	0.8	2.5
Long Term Investments	0.0	1.8	0.0	0.8	2.5
Deferred Income Tax - Long Term Asset	-	-	-	0.2	0.2
Other Long Term Assets	2.2	2.6	3.5	0.5	0.5
Other Long Term Assets, Total	2.2	2.6	3.5	0.8	0.7
Total Assets	85.3	83.1	84.5	80.9	88.5
Accounts Payable	5.9	6.0	6.4	3.8	4.1
Accrued Expenses	6.6	7.7	6.3	2.1	3.8
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	-	-	-	0.0	0.0
Customer Advances	3.5	5.5	3.3	1.1	1.1
Other Current liabilities, Total	3.5	5.5	3.3	1.1	1.1
Total Current Liabilities	16.1	19.3	16.0	6.9	9.0
Capital Lease Obligations	-	-	-	0.0	0.1
Total Long Term Debt	0.0	0.0	0.0	0.0	0.1
Total Debt	0.0	0.0	0.0	0.0	0.1
Other Long Term Liabilities	3.3	4.5	2.9	2.6	2.7
Other Liabilities, Total	3.3	4.5	2.9	2.6	2.7
Total Liabilities	19.4	23.8	18.9	9.6	11.8
Common Stock	0.1	0.1	0.1	0.1	0.1
Common Stock	0.1	0.1	0.1	0.1	0.1
Additional Paid-In Capital	90.9	90.7	91.0	85.6	83.2
Retained Earnings (Accumulated Deficit)	-24.4	-30.5	-24.7	-14.4	-6.7
Other Comprehensive Income	-0.7	-1.1	-0.8	0.0	0.1
Other Equity, Total	-0.7	-1.1	-0.8	0.0	0.1
Total Equity	65.9	59.3	65.6	71.4	76.7
Total Liabilities & Shareholders’ Equity	85.3	83.1	84.5	80.9	88.5
Shares Outstanding - Common Stock Primary Issue	14.2	14.2	14.5	13.5	13.2
Total Common Shares Outstanding	14.2	14.2	14.5	13.5	13.2
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	383	365	401	306	306
Number of Common Shareholders	600	700	675	700	700
Accumulated Intangible Amort, Suppl.	4.0	3.3	2.5	4.8	4.6
Deferred Revenue - Current	3.5	5.5	3.3	1.1	1.1
Deferred Revenue - Long Term	0.4	0.2	0.1	0.1	0.3
Interest Costs	-	0.0	-	0.0	0.0
Total Capital Leases, Supplemental	-	0.0	-	0.0	0.1
Capital Lease Payments Due in Year 1	-	0.0	-	0.0	0.0
Capital Lease Payments Due in Year 2	-	0.0	-	0.0	0.0
Capital Lease Payments Due in Year 3	-	0.0	-	0.0	0.0
Capital Lease Payments Due in Year 4	-	0.0	-	0.0	0.0
Capital Lease Payments Due in Year 5	-	0.0	-	0.0	0.0
Capital Lease Payments Due in 2-3 Years	-	0.0	-	0.0	0.0
Capital Lease Payments Due in 4-5 Years	-	0.0	-	0.0	0.0
Cap. Lease Pymts. Due in Year 6 & Beyond	-	0.0	-	0.0	0.0
Total Operating Leases, Supplemental	9.1	11.9	14.9	14.0	16.0
Operating Lease Payments Due in Year 1	3.3	3.2	3.4	2.6	2.6
Operating Lease Payments Due in Year 2	3.3	3.2	3.0	2.6	2.6
Operating Lease Payments Due in Year 3	1.8	3.1	3.0	2.3	2.5
Operating Lease Payments Due in Year 4	0.3	1.7	3.0	2.4	2.2
Operating Lease Payments Due in Year 5	0.3	0.3	2.0	2.4	2.3
Operating Lease Pymts. Due in 2-3 Years	5.1	6.3	6.0	5.0	5.2
Operating Lease Pymts. Due in 4-5 Years	0.7	2.1	5.1	4.8	4.5
Oper. Lse. Pymts. Due in Year 6 & Beyond	0.0	0.3	0.5	1.6	3.7

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	6.1	-5.8	-10.3	-7.6	-34.6
Depreciation	4.6	4.6	4.4	4.0	5.9
Depreciation/Depletion	4.6	4.6	4.4	4.0	5.9
Deferred Taxes	-0.1	0.2	-1.4	0.1	-0.7
Discontinued Operations	0.0	1.9	0.6	0.4	-
Unusual Items	0.0	0.0	0.3	0.0	28.2
Other Non-Cash Items	1.5	1.9	1.8	1.8	2.5
Non-Cash Items	1.5	3.7	2.7	2.3	30.8
Accounts Receivable	2.8	-4.7	-6.8	0.3	5.4
Inventories	-1.5	-3.9	3.8	2.5	-0.5
Prepaid Expenses	1.7	-2.0	1.7	0.5	-0.5
Accounts Payable	-0.2	-0.2	1.7	-0.3	0.0
Accrued Expenses	-2.4	3.2	2.2	-1.5	-1.6
Other Liabilities	-1.9	2.3	1.2	-0.3	-0.2
Changes in Working Capital	-1.5	-5.3	3.9	1.1	2.6
Cash from Operating Activities	10.6	-2.6	-0.8	-0.1	3.9
Purchase of Fixed Assets	-1.8	-3.7	-1.5	-2.1	-3.5
Capital Expenditures	-1.8	-3.7	-1.5	-2.1	-3.5
Acquisition of Business	0.0	0.0	-7.1	0.0	-1.1
Sale of Fixed Assets	0.0	0.6	0.0	0.4	0.3
Sale/Maturity of Investment	8.3	4.0	15.0	37.4	45.6
Investment, Net	0.4	0.2	-1.7	-	-
Purchase of Investments	-9.1	-7.6	-1.8	-20.3	-47.5
Other Investing Cash Flow	-	-	-	0.0	0.0
Other Investing Cash Flow Items, Total	-0.4	-2.7	4.5	17.5	-2.7
Cash from Investing Activities	-2.2	-6.4	3.0	15.4	-6.2
Other Financing Cash Flow	-0.3	-0.6	-0.2	0.0	-0.3
Financing Cash Flow Items	-0.3	-0.6	-0.2	0.0	-0.3
Sale/Issuance of Common	0.4	0.4	0.5	0.5	1.4
Repurchase/Retirement of Common	-1.3	-2.0	0.0	0.0	-
Common Stock, Net	-0.9	-1.6	0.5	0.5	1.4
Issuance (Retirement) of Stock, Net	-0.9	-1.6	0.5	0.5	1.4
Long Term Debt Reduction	0.0	0.0	0.0	0.0	0.0
Long Term Debt, Net	0.0	0.0	0.0	0.0	0.0
Issuance (Retirement) of Debt, Net	0.0	0.0	0.0	0.0	0.0
Cash from Financing Activities	-1.3	-2.2	0.3	0.5	1.1
Foreign Exchange Effects	0.1	0.0	-0.1	0.0	0.0
Net Change in Cash	7.3	-11.2	2.4	15.7	-1.2
Net Cash - Beginning Balance	10.7	21.9	19.5	3.8	4.9
Net Cash - Ending Balance	17.9	10.7	21.9	19.5	3.8
Cash Interest Paid	-	-	-	-	0.0
Cash Taxes Paid	1.6	-0.7	-1.5	-1.6	-1.2

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Restated Normal 31-Dec-2012
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Revenue	113.0	104.6	92.6	51.3	72.8
Total Revenue	113.0	104.6	92.6	51.3	72.8
Cost of sales	62.8	62.9	55.6	31.0	42.3
Stock-based Compensation - Cost of Sales	0.2	0.2	0.2	0.3	-
Restructuring Exp- COGS	0.0	0.1	1.4	0.0	-
Research and development	10.8	11.8	11.7	7.7	9.1
Stock-based compensation in R&D	0.2	-	-	-	-
Restructuring charges- R & D	0.0	0.0	0.1	0.0	-
Selling, general and administrative	29.6	28.5	28.4	18.8	27.2
Stock-based Compensation - Selling & Gen	1.1	1.3	1.3	1.3	-
Restructuring charges - Selling & Genral	0.0	3.3	1.2	0.0	-
Amortization of Purchased Intangibles	0.7	0.8	0.8	0.6	-
Asset Impairment Charges	-	-	-	-	3.0
Total Operating Expense	105.4	108.8	100.7	59.6	81.6
Interest income, net	0.1	0.1	0.1	0.3	-
Foreign currency gains(Losses)	-1.0	0.6	0.0	0.2	-
Gains(losses) on foreign currency forwar	0.2	-0.1	-0.1	-0.1	-
Other, net	0.0	0.0	0.0	0.0	1.0
Net Income Before Taxes	6.8	-3.6	-8.1	-7.9	-7.9
Provision for Income Taxes	0.7	0.2	0.0	-2.0	1.5
Net Income After Taxes	6.1	-3.8	-8.1	-5.9	-9.4
Net Income Before Extra. Items	6.1	-3.8	-8.1	-5.9	-9.4
Discontinued Operations	0.0	-2.0	-2.2	-1.8	-25.2
Net Income	6.1	-5.8	-10.3	-7.6	-34.6
Income Available to Com Excl ExtraOrd	6.1	-3.8	-8.1	-5.9	-9.4
Income Available to Com Incl ExtraOrd	6.1	-5.8	-10.3	-7.6	-34.6
Basic Weighted Average Shares	14.2	14.6	14.3	13.3	13.1
Basic EPS Excluding ExtraOrdinary Items	0.43	-0.26	-0.57	-0.44	-0.72
Basic EPS Including ExtraOrdinary Items	0.43	-0.40	-0.72	-0.57	-2.65
Dilution Adjustment	-	0.0	0.0	0.0	0.0
Diluted Net Income	6.1	-5.8	-10.3	-7.6	-34.6
Diluted Weighted Average Shares	14.4	14.6	14.3	13.3	13.1
Diluted EPS Excluding ExtraOrd Items	0.42	-0.26	-0.57	-0.44	-0.72
Diluted EPS Including ExtraOrd Items	0.42	-0.40	-0.72	-0.57	-2.65
DPS-Ordinary Shares	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	6.8	-0.2	-5.4	-7.9	-4.9
Inc Tax Ex Impact of Sp Items	0.7	1.4	1.0	-2.0	2.6
Normalized Income After Taxes	6.1	-1.6	-6.4	-5.9	-7.5
Normalized Inc. Avail to Com.	6.1	-1.6	-6.4	-5.9	-7.5
Basic Normalized EPS	0.43	-0.11	-0.45	-0.44	-0.57
Diluted Normalized EPS	0.42	-0.11	-0.45	-0.44	-0.57
Stock-based compensation in R&D	0.2	-	-	-	-
Research & Development Exp	10.8	11.8	11.7	7.7	9.1
Depreciation	4.6	3.6	3.7	3.3	-
Amort of Intangibles	-	1.0	0.7	0.7	-
Rental Expense	2.6	2.5	3.0	2.6	-
Current Tax - Domestic	0.0	-	-	-	-
Current Tax- Federal	-	-0.1	0.0	-2.2	-
Current Tax - Local	0.0	-	-	-	-
Current Tax-State	-	0.0	0.0	0.0	-
Current Tax - Foreign	0.8	-	-	-	-
Current Tax-Foreign	-	0.0	1.5	0.0	-
Current Tax - Total	0.8	-0.1	1.6	-2.2	-
Deferred Tax - Domestic	0.0	-	-	-	-
Deferred Tax-Federal	-	0.0	0.0	0.0	-
Deferred Tax - Local	0.0	-	-	-	-
Deferred Tax-State	-	0.0	0.0	0.0	-
Deferred Tax - Foreign	-0.1	-	-	-	-
Deferred Tax-Foreign	-	0.3	-1.5	0.1	-
Deferred Tax - Total	-0.1	0.3	-1.5	0.1	-
Income Tax - Total	0.7	0.2	0.0	-2.0	-
401(k) Plan	0.4	0.3	0.0	0.0	-
Total Pension Expense	0.4	0.3	0.0	0.0	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash and cash equivalents	17.9	10.7	21.9	19.5	3.8
Short-term marketable securities	5.3	2.7	0.9	13.4	28.8
Restricted cash	1.1	1.5	1.7	0.0	-
Accounts Receivable	21.4	24.1	20.1	11.9	13.8
Allowance	-0.3	-0.3	-0.4	-1.0	-1.0
Raw Materials	14.8	14.8	12.4	9.8	11.0
Work-in-Process	2.7	3.0	2.5	1.2	1.3
Finished Goods	6.8	5.7	5.8	5.7	6.8
Income Tax Receivable	-	-	-	2.6	1.0
Prepaid expenses and other	2.5	4.1	2.0	0.8	1.4
Deferred Taxes	-	-	-	0.0	0.1
Assets Held for Sale	-	-	-	0.0	0.4
Total Current Assets	72.2	66.4	67.0	63.7	67.3
Long-term investments	0.0	1.8	0.0	0.8	2.5
Equipment	24.1	22.6	22.3	22.6	20.4
Leasehold Improv	8.2	8.0	7.1	7.0	6.6
Construction in Progress	0.6	0.1	0.4	0.2	1.3
Depreciation	-24.6	-21.8	-19.8	-17.8	-14.8
Other assets, net of accumulated amortiz	2.2	2.6	3.5	-	-
Goodwill	1.0	1.0	1.0	0.0	-
Deferred Taxes	-	-	-	0.2	0.2
Customer relationships	3.3	-	-	-	-
Other intangible	2.3	-	-	-	-
Intangibles	-	5.6	5.6	3.6	3.6
Accumulated Amortization	-4.0	-3.3	-2.5	-1.7	-1.2
Patents	-	-	-	4.9	5.4
Accumulated Amortization(1)	-	-	-	-3.1	-3.4
Other assets net	-	-	-	0.5	0.5
Total Assets	85.3	83.1	84.5	80.9	88.5
Current portion of capital leases	-	-	-	0.0	0.0
Accounts Payable	5.9	6.0	6.4	3.8	4.1
Deferred Revenue	3.5	5.5	3.3	1.1	1.1
Accrued Compensation & Benefits	2.8	-	-	-	-
Accrued Warranty	0.7	-	-	-	-
Other Accrued	0.9	-	-	-	-
Accrued sales taxes and VAT	0.5	-	-	-	-
Accrued commissions	0.4	-	-	-	-
Accrued restructuring costs	1.1	-	-	-	-
Accrued liabilities	-	6.8	5.0	2.1	3.8
Accrued income taxes	0.3	0.9	1.3	-	-
Total Current Liabilities	16.1	19.3	16.0	6.9	9.0
Capital leases, net of current portion	-	-	-	0.0	0.1
Total Long Term Debt	-	-	-	0.0	0.1
Deferred Revenue	0.4	0.2	0.1	0.1	0.3
Other long-term liabilities	2.9	4.2	2.8	2.5	2.4
Total Liabilities	19.4	23.8	18.9	9.6	11.8
Common stock, $0.01 par value. Authorize	0.1	0.1	0.1	0.1	0.1
Additional paid-in capital	90.9	90.7	91.0	85.6	83.2
Other Comprehensive Income	-0.7	-1.1	-0.8	0.0	0.1
Accumulated deficit	-24.4	-30.5	-24.7	-14.4	-6.7
Total Equity	65.9	59.3	65.6	71.4	76.7
Total Liabilities & Shareholders' Equity	85.3	83.1	84.5	80.9	88.5
S/O-Ordinary Shares	14.2	14.2	14.5	13.5	13.2
Total Common Shares Outstanding	14.2	14.2	14.5	13.5	13.2
T/S-Ordinary Shares	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	3.5	5.5	3.3	1.1	1.1
Deferred Revenue Long Term	0.4	0.2	0.1	0.1	0.3
Accumulated Intangible Amortization	4.0	3.3	2.5	4.8	4.6
Full-Time Employees	383	365	401	306	306
Number of Common Shareholders	600	700	675	700	700
Capital Lease Maturing Within 1 Year	-	0.0	-	0.0	0.0
Capital Lease Maturing Within 2 Years	-	0.0	-	0.0	0.0
Capital Lease Maturing Within 3 Years	-	0.0	-	0.0	0.0
Capital Lease Maturing Within 4 Years	-	0.0	-	0.0	0.0
Capital Lease Maturing Within 5 Years	-	0.0	-	0.0	0.0
Capital Leases - Remaining Maturities	-	0.0	-	0.0	0.0
Interest	-	0.0	-	0.0	0.0
Total Capital Leases, Supplemental	-	0.0	-	0.0	0.1
Operating Lease Matuaring within 1 Year	3.3	3.2	3.4	2.6	2.6
Operating Lease Matuaring within 2 Year	3.3	3.2	3.0	2.6	2.6
Operating Lease Matuaring within 3 Year	1.8	3.1	3.0	2.3	2.5
Operating Lease Matuaring within 4 Year	0.3	1.7	3.0	2.4	2.2
Operating Lease Maturing within 5 Years	0.3	0.3	2.0	2.4	2.3
Operating Lease Remaining Maturities	0.0	0.3	0.5	1.6	3.7
Total Operating Leases, Supplemental	9.1	11.9	14.9	14.0	16.0

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income	6.1	-5.8	-10.3	-7.6	-34.6
Depreciation	4.6	4.6	4.4	4.0	5.9
Stock-based compensation within disconti	0.0	0.1	0.0	-	-
Loss from disposal activities within dis	0.0	1.5	-	-	-
Stock-based compensation within disconti	-	-	-	0.1	-
Depreciation and amortization within dis	0.0	0.3	0.5	0.4	-
Impairment charges	-	-	-	-	27.7
Stock-based compensation	1.5	1.9	1.8	1.8	2.5
Loss on disposal of discontinued operati	-	-	0.0	0.0	-
Loss on write-down of contingent conside	0.0	0.0	0.1	0.0	0.0
Loss on disposal of assets held for sale	-	-	-	-	0.0
Loss on write-down or disposal of long-l	0.0	0.0	0.2	0.0	0.5
Deferred income taxes	-0.1	0.2	-1.4	0.1	-0.7
Income taxes receivable	-	-	-	-1.6	-
Accounts receivable, net	2.8	-4.7	-6.8	1.9	5.4
Inventories	-1.5	-3.9	3.8	2.5	-0.5
Prepaid expenses and other	1.7	-2.0	1.7	0.5	-0.5
Accounts Payable	-0.2	-0.2	1.7	-0.3	0.0
Deferred Revenue	-1.9	2.3	1.2	-0.3	-0.2
Accrued and other long-term liabilities	-2.4	3.2	2.2	-1.5	-1.6
Cash from Operating Activities	10.6	-2.6	-0.8	-0.1	3.9
crease) decrease in restricted cash	0.4	0.2	-1.7	-	-
Purchase of marketable securities	-9.1	-7.6	-1.8	-20.3	-47.5
Proceeds from sale of marketable securit	8.3	4.0	15.0	37.4	45.6
Purchase of fixed assets	-1.8	-3.7	-1.5	-1.8	-2.7
Cash received from disposition of assets	0.0	0.5	0.0	-	-
Proceeds from sale of assets held for sa	0.0	0.1	0.0	-	-
Proceeds from sale or disposal of fixed	-	-	-	0.4	0.3
Business acquisition of eVue product	0.0	0.0	-7.1	0.0	-1.1
Investment in other long-lived assets	-	-	-	-0.3	-0.8
Cash received from disposition of assets	-	-	-	0.0	-
Increase in restricted cash	-	-	-	0.0	0.0
Cash from Investing Activities	-2.2	-6.4	3.0	15.4	-6.2
Principal payments on capital lease obli	0.0	0.0	0.0	0.0	0.0
Witholding taxes paid on net settlement	-0.3	-0.6	-0.2	-0.2	-0.1
Excess tax benefits related to stock opt	-	-	-	0.1	-0.2
Cash paid for repurchase of common stock	-1.3	-2.0	0.0	0.0	-
Proceeds from issuances of common stock	0.4	0.4	0.5	0.5	1.4
Cash from Financing Activities	-1.3	-2.2	0.3	0.5	1.1
Foreign Exchange Effects	0.1	0.0	-0.1	0.0	0.0
Net Change in Cash	7.3	-11.2	2.4	15.7	-1.2
Net Cash - Beginning Balance	10.7	21.9	19.5	3.8	4.9
Net Cash - Ending Balance	17.9	10.7	21.9	19.5	3.8
Cash Interest Paid	-	-	-	-	0.0
Cash Taxes Paid	1.6	-0.7	-1.5	-1.6	-1.2

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 30-Jun-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue (?)	30.3	9.66%	113.0	7.98%	30.10%	4.67%
Research & Development (?)	2.6	8.57%	10.8	-8.74%	12.01%	-0.19%
Operating Income (?)	2.5	11.32%	7.6	-	-	111.16%
Income Available to Common Excl Extraord Items (?)	2.2	0.60%	6.1	-	-	45.66%
Basic EPS Excl Extraord Items (?)	0.15	-0.72%	0.43	-	-	42.15%
Capital Expenditures (?)	0.9	57.30%	1.8	-51.68%	-5.34%	-29.96%
Cash from Operating Activities (?)	5.1	4.42%	10.6	-	-	21.45%
Free Cash Flow (?)	4.3	-2.16%	8.8	-	-	-
Total Assets (?)	86.1	3.48%	85.3	2.67%	1.75%	-7.40%
Total Liabilities (?)	16.3	-24.00%	19.4	-18.53%	26.53%	1.84%
Total Long Term Debt (?)	0.0	-	0.0	-	-	-
Employees (?)	-	-	383	4.93%	7.77%	1.59%
Total Common Shares Outstanding (?)	14.4	2.05%	14.2	0.24%	1.80%	1.97%
Market Cap (?)	95.8	48.50%	79.5	64.62%	8.86%	-9.53%

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin (?)	44.22%	39.72%	39.75%	38.98%	41.89%
Operating Margin (?)	6.69%	-4.01%	-8.76%	-16.17%	-12.14%
Pretax Margin (?)	6.03%	-3.46%	-8.75%	-15.41%	-10.82%
Net Profit Margin (?)	5.40%	-3.63%	-8.78%	-11.41%	-12.93%
Financial Strength
Current Ratio (?)	4.49	3.44	4.18	9.19	7.46
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Management Effectiveness
Return on Assets (?)	7.25%	-4.53%	-9.83%	-6.91%	-8.80%
Return on Equity (?)	9.74%	-6.08%	-11.88%	-7.90%	-10.21%
Efficiency
Receivables Turnover (?)	5.02	4.80	5.58	3.76	4.55
Inventory Turnover (?)	2.63	2.84	2.98	1.75	2.24
Asset Turnover (?)	1.34	1.25	1.12	0.61	0.68

Market Valuation USD (mil)
P/E (TTM) (?)	24.29	.	Enterprise Value (?)	137.3
Price/Sales (TTM) (?)	1.44	.	Enterprise Value/Revenue (TTM)(?)	1.19
Price/Book (MRQ) (?)	2.13	.	Enterprise Value/EBITDA (TTM)(?)	11.17
Market Cap as of 11-Oct-2013(?)	166.1	.

Ratio Comparisons

Financials in: USD (actual units)

As of 11-Oct-2013

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM) (?)	24.29	27.86	24.91	19.68
P/E High Excluding Extraordinary - Last 5 Yrs (?)	13.21	38.88	40.00	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs (?)	13.21	6.62	8.69	10.71
Beta (?)	0.86	1.53	1.47	1.00
Price/Revenue (TTM) (?)	1.44	1.99	2.38	2.57
Price/Book (MRQ) (?)	2.13	2.68	3.90	3.67
Price to Tangible Book (MRQ) (?)	2.46	6.83	5.81	5.21
Price to Cash Flow Per Share (TTM) (?)	15.35	16.42	13.98	14.22
Price to Free Cash Flow Per Share (TTM) (?)	19.04	29.60	37.21	26.26
Dividends
Dividend Yield (?)	-	0.88%	1.75%	2.26%
Dividend Per Share - 5 Yr Avg (?)	0.00	0.99	2.50	1.99
Dividend 5 Yr Growth (?)	-	4.54%	1.06%	0.08%
Payout Ratio (TTM) (?)	0.00%	20.70%	29.68%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago (?)	9.66%	21.35%	20.15%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago (?)	8.78%	19.14%	23.47%	17.69%
Revenue 5 Yr Growth (?)	4.67%	6.76%	7.38%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago (?)	0.65%	33.62%	13.63%	19.49%
EPS (TTM) vs TTM 1 Yr Ago (?)	595.68%	124.73%	42.74%	32.55%
EPS 5 Yr Growth (?)	42.38%	5.77%	8.05%	9.86%
Capital Spending 5 Yr Growth (?)	-29.96%	8.85%	9.93%	-2.04%
Financial Strength
Quick Ratio (MRQ) (?)	3.88	1.74	1.78	1.24
Current Ratio (MRQ) (?)	5.52	3.16	2.73	1.79
LT Debt/Equity (MRQ) (?)	0.00	0.26	0.81	0.64
Total Debt/Equity (MRQ) (?)	0.00	0.29	0.88	0.73
Interest Coverage (TTM) (?)	12.07	10.05	11.21	13.80
Profitability Ratios (%)
Gross Margin (TTM) (?)	44.20%	26.58%	32.32%	45.21%
Gross Margin - 5 Yr Avg (?)	41.17%	25.52%	31.54%	44.91%
EBITD Margin (TTM) (?)	10.64%	16.26%	22.23%	24.43%
EBITD Margin - 5 Yr Avg (?)	1.10%	15.46%	18.43%	22.84%
Operating Margin (TTM) (?)	6.57%	12.93%	16.99%	20.63%
Operating Margin - 5 Yr Avg (?)	-5.04%	12.28%	13.64%	18.28%
Pretax Margin (TTM) (?)	6.01%	12.37%	15.86%	17.95%
Pretax Margin - 5 Yr Avg (?)	-4.76%	11.83%	12.57%	17.10%
Net Profit Margin (TTM) (?)	5.30%	8.43%	11.55%	13.65%
Net Profit Margin - 5 Yr Avg (?)	-4.86%	7.88%	8.64%	12.10%
Effective Tax Rate (TTM) (?)	11.87%	31.50%	28.04%	28.45%
Effective Tax rate - 5 Yr Avg (?)	-	32.54%	29.65%	29.92%
Management Effectiveness (%)
Return on Assets (TTM) (?)	7.23%	7.34%	8.05%	8.54%
Return on Assets - 5 Yr Avg (?)	-4.77%	8.99%	7.49%	8.40%
Return on Investment (TTM) (?)	8.87%	6.14%	5.86%	7.90%
Return on Investment - 5 Yr Avg (?)	-5.59%	7.32%	5.78%	8.27%
Return on Equity (TTM) (?)	9.30%	12.34%	18.78%	19.72%
Return on Equity - 5 Yr Avg (?)	-5.86%	16.56%	17.45%	20.06%
Efficiency
Revenue/Employee (TTM) (?)	301,723.30	330,250.78	613,510.56	927,613.77
Net Income/Employee (TTM) (?)	15,976.50	26,934.95	82,492.56	116,121.92
Receivables Turnover (TTM) (?)	5.35	7.02	8.71	13.25
Inventory Turnover (TTM) (?)	2.66	4.69	8.16	14.53
Asset Turnover (TTM) (?)	1.37	0.96	0.82	0.93

Annual ratios  

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio (?)	4.49	3.44	4.18	9.19	7.46
Quick/Acid Test Ratio (?)	2.76	1.93	2.65	6.68	5.14
Working Capital (?)	56.1	47.1	50.9	56.8	58.3
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Long Term Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Payout Ratio (?)	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate (?)	10.41%	-	-	-	-
Total Capital (?)	65.9	59.3	65.6	71.4	76.8
Efficiency
Asset Turnover (?)	1.34	1.25	1.12	0.61	0.68
Inventory Turnover (?)	2.63	2.84	2.98	1.75	2.24
Days In Inventory (?)	138.69	128.43	122.30	208.19	162.69
Receivables Turnover (?)	5.02	4.80	5.58	3.76	4.55
Days Receivables Outstanding (?)	72.65	76.06	65.40	97.02	80.27
Revenue/Employee (?)	294,943	286,603	230,915	167,627	237,765
Operating Income/Employee (?)	19,731	-11,479	-20,219	-27,111	-28,866
EBITDA/Employee (?)	31,817	1,011	-9,317	-14,062	-28,866
Profitability
Gross Margin (?)	44.22%	39.72%	39.75%	38.98%	41.89%
Operating Margin (?)	6.69%	-4.01%	-8.76%	-16.17%	-12.14%
EBITDA Margin (?)	10.79%	0.35%	-4.03%	-8.39%	-12.14%
EBIT Margin (?)	6.69%	-4.01%	-8.76%	-16.17%	-12.14%
Pretax Margin (?)	6.03%	-3.46%	-8.75%	-15.41%	-10.82%
Net Profit Margin (?)	5.40%	-3.63%	-8.78%	-11.41%	-12.93%
R&D Expense/Revenue (?)	9.54%	11.29%	12.62%	14.95%	12.52%
COGS/Revenue (?)	55.78%	60.28%	60.25%	61.02%	58.11%
SG&A Expense/Revenue (?)	27.37%	28.41%	32.12%	39.04%	37.39%
Management Effectiveness
Return on Assets (?)	7.25%	-4.53%	-9.83%	-6.91%	-8.80%
Return on Equity (?)	9.74%	-6.08%	-11.88%	-7.90%	-10.21%
Valuation
Free Cash Flow/Share (?)	0.62	-0.44	-0.16	-0.17	0.03
Operating Cash Flow/Share  (?)	0.75	-0.18	-0.06	-0.01	0.30

Current Market Multiples
Market Cap/Earnings (TTM) (?)	27.15
Market Cap/Equity (MRQ) (?)	2.38
Market Cap/Revenue (TTM) (?)	1.44
Market Cap/EBIT (TTM) (?)	21.88
Market Cap/EBITDA (TTM) (?)	13.51
Enterprise Value/Earnings (TTM) (?)	22.44
Enterprise Value/Equity (MRQ) (?)	1.97
Enterprise Value/Revenue (TTM) (?)	1.19
Enterprise Value/EBIT (TTM) (?)	18.09
Enterprise Value/EBITDA (TTM) (?)	11.17

Stock Snapshot

Traded: NASDAQ: CSCD

As of 11-Oct-2013    US Dollars

Recent Price	$10.32	EPS	$0.42
52 Week High	$10.45	Price/Sales	1.47
52 Week Low	$5.00	Price/Earnings	15.49
Avg. Volume (mil)	0.04	Price/Book	2.22
Market Value (mil)	$166.14	Beta	0.86

	Price % Change	Rel S&P 500%
4 Week	31.80%	30.62%
13 Week	53.12%	51.05%
52 Week	86.96%	57.28%
Year to Date	84.29%	54.32%

Stock History

Market Cap History
	30-Jun-13	% Chg	31-Mar-13	% Chg	31-Dec-12	% Chg	30-Sep-12	% Chg	30-Jun-12	% Chg
Total Common Shares Outstanding	14	1.1	14	0.3	14	0.0	14	0.6	14	-0.5
Market Cap	95.8	-6.6	102.6	29.0	79.5	-0.9	80.2	24.3	64.5	-7.8

Yearly Price History
	2013	% Chg	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg
High Price	10.45	73.6	6.02	-14.0	7.00	33.6	5.24	-6.3	5.59	-44.4
Low Price	5.62	79.0	3.14	19.8	2.62	-19.4	3.25	76.6	1.84	1.7
Year End Price	10.32	84.3	5.60	64.2	3.41	-21.6	4.35	-5.0	4.58	134.9

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
11-Oct-13	9.00	10.45	8.88	10.32	1,157,802
30-Sep-13	7.71	9.18	7.25	8.97	878,223
30-Aug-13	6.98	8.00	6.98	7.78	423,922
31-Jul-13	6.66	7.15	6.50	7.04	161,442
28-Jun-13	6.58	6.95	6.41	6.65	144,465
31-May-13	6.60	6.80	6.26	6.59	524,528
30-Apr-13	7.12	7.20	6.65	6.86	215,826
28-Mar-13	7.17	7.48	6.47	7.20	352,870
28-Feb-13	7.50	8.00	6.73	7.13	589,037
31-Jan-13	5.74	7.53	5.62	7.48	667,012
31-Dec-12	5.65	5.72	5.30	5.60	643,542
30-Nov-12	5.12	5.76	5.07	5.75	298,916
31-Oct-12	5.71	5.75	5.00	5.25	524,765

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

---

• We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.99.53
Euro	1	Rs.84.82

INFORMATION DETAILS

Report Prepared by :

NIT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.