-
Record Revenue of $98.6 Million
-
Gross Profit Margin of 50.2 Percent of
Revenue
-
Earnings Per Share of 47 Cents
-
Strong Balance Sheet with $242 Million of Cash and No
Debt
Cabot Microelectronics Corporation (Nasdaq:CCMP), the world's
leading supplier of chemical mechanical planarization (CMP)
polishing slurries and growing CMP pad supplier to the
semiconductor industry, today reported financial results for its
second quarter of fiscal 2010, which ended March 31.
The company reported a record level of quarterly revenue of
$98.6 million for its second fiscal quarter, which represents an
increase of 117.1 percent compared to the same quarter last year
and an increase of 0.9 percent compared to the prior quarter on
continued strong demand for the company's products. The
company achieved a gross profit margin of 50.2 percent of revenue
in the second fiscal quarter, diluted earnings per share of $0.47,
and cash flow from operations of $20.4 million. The company's
balance sheet reflects cash and cash equivalents of $241.7 million
as of March 31, 2010, and no debt outstanding.
"We are delighted with our strong financial performance this
quarter, including our record revenue achievement, in what has
historically been a seasonally soft period for the industry and our
company. We are particularly proud of our continued strong
gross profit margin performance, which we believe reflects solid
utilization of our manufacturing capacity, successful execution of
productivity initiatives, integration of our Epoch acquisition and
continued growth in our CMP pad business," said William Noglows,
Chairman and CEO of Cabot Microelectronics. "Over the years, we
have consistently executed on our strategies and key initiatives,
including investments to increase our presence in Asia, optimize
our supply chain, reduce variation in our products and develop a
pipeline of CMP solutions that add value for our customers. In
our view, the groundwork we have laid steadily over time is paying
dividends during the current period of strong industry demand, and
we look forward to continuing our strong momentum."
Key Financial Information
Total second fiscal quarter revenue of $98.6 million represents
a 117.1 percent increase from the $45.4 million reported in the
same quarter last year and a 0.9 percent increase from $97.7
million in the previous quarter. The increase in revenue from
the same period last year primarily reflects significantly improved
economic and industry conditions. Compared to the prior
quarter, sales of CMP polishing pads and slurry for copper and
dielectric applications increased, while revenue from the company's
other business areas declined.
Gross profit, expressed as a percentage of revenue, was 50.2
percent this quarter, compared to 28.0 percent in the same quarter
a year ago and 51.6 percent last quarter. Compared to the year
ago quarter, gross profit percentage increased primarily due to
increased utilization of the company's manufacturing capacity on
significantly higher demand. The decrease in gross profit
percentage versus the previous quarter was primarily due to the
absence of a $1.6 million raw material supplier credit related to
achieving a certain volume threshold, which benefited first fiscal
quarter results. Year to date, gross profit represented 50.9
percent of revenue, which is slightly above the upper end of the
company's full fiscal year guidance range of 46 to 50 percent of
revenue.
Operating expenses, which include research, development and
technical, selling and marketing, and general and administrative
expenses, were $32.1 million in the second fiscal quarter, or $2.2
million higher than the $30.0 million reported in the same quarter
a year ago, driven primarily by higher staffing related costs,
travel expenses and professional fees, including costs to enforce
the company's intellectual property. These cost increases were
partially offset by the absence of certain specific cost items
recorded in the second fiscal quarter of 2009, including a $1.5
million write-off of in-process research and development expense
related to the company's acquisition of Epoch, a $1.1 million
impairment related to certain research and development equipment
and a $1.0 million increase in reserve for bad debt
expense. Operating expenses were $2.0 million higher than the
$30.1 million reported in the previous quarter, mostly due to
increased staffing related costs and professional fees, including
costs to enforce the company's intellectual property. Year to
date, total operating expenses were $62.3 million and the company
continues to expect its full year operating expenses to be in the
range of $120 million to $125 million for fiscal 2010.
Net income for the quarter was $10.9 million, compared to a net
loss of $10.1 million in the same quarter last year and net income
of $13.1 million last quarter. The $2.2 million decrease from
the prior quarter was primarily due to the absence of a raw
material supplier credit and higher operating expenses.
Diluted earnings per share were $0.47 this quarter, up from a
diluted loss per share of $0.44 reported in the second quarter of
fiscal 2009 and down from diluted earnings per share of $0.56
reported in the previous quarter.
CONFERENCE CALL
Cabot Microelectronics Corporation's quarterly earnings
conference call will be held today at 9:00 a.m. Central
Time. The live conference call will be available via webcast
from the company's website, www.cabotcmp.com, or by phone at (800)
573-4842. Callers outside the U.S. can dial (617)
224-4327. The conference code for the call is 19901661. A
replay will be available through May 20, 2010 via webcast at
www.cabotcmp.com. A transcript of the formal comments made
during the conference call will also be available in the Investor
Relations section of the company's website.
ABOUT CABOT MICROELECTRONICS CORPORATION
Cabot Microelectronics Corporation, headquartered in Aurora,
Illinois, is the world's leading supplier of CMP polishing slurries
and growing CMP pad supplier to the semiconductor industry. The
company's products play a critical role in the production of
advanced semiconductor devices, enabling the manufacture of
smaller, faster and more complex devices by its customers. The
company's mission is to create value by developing reliable and
innovative solutions, through close customer collaboration, that
solve today's challenges and help enable tomorrow's
technology. Since becoming an independent public company in
2000, the company has grown to approximately 900 employees on a
global basis. For more information about Cabot Microelectronics
Corporation, visit www.cabotcmp.com or contact Amy Ford, Director
of Investor Relations at (630) 499-2600.
The Cabot Microelectronics Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6902
SAFE HARBOR STATEMENT
This news release may include statements that constitute
"forward looking statements" within the meaning of federal
securities regulations. These forward-looking statements include
statements related to: future sales and operating results; company
and industry growth, contraction or trends; growth or contraction
of the markets in which the company participates; international
events or various economic factors; product performance; the
generation, protection and acquisition of intellectual property,
and litigation related to such intellectual property; new product
introductions; development of new products, technologies and
markets; the acquisition of or investment in other entities; uses
and investment of the company's cash balance; and the construction
of facilities by Cabot Microelectronics Corporation. These
forward-looking statements involve a number of risks,
uncertainties, and other factors, including those described from
time to time in Cabot Microelectronics' filings with the Securities
and Exchange Commission (SEC), that could cause actual results to
differ materially from those described by these forward-looking
statements. In particular, see "Risk Factors" in the
company's quarterly report on Form 10-Q for the quarter ended
December 31, 2009 and in the company's annual report on Form 10-K
for the fiscal year ended September 30, 2009, both filed with the
SEC. Cabot Microelectronics assumes no obligation to update this
forward-looking information.
CABOT MICROELECTRONICS CORPORATION
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited and amounts in thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
Six Months Ended
|
|
March 31,
|
December 31,
|
March 31,
|
March 31,
|
March 31,
|
|
2010
|
2009
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
Revenue
|
$ 98,556
|
$ 97,672
|
$ 45,399
|
$ 196,228
|
$ 108,416
|
|
|
|
|
|
|
Cost of goods sold
|
49,091
|
47,264
|
32,689
|
96,355
|
67,000
|
|
|
|
|
|
|
Gross profit
|
49,465
|
50,408
|
12,710
|
99,873
|
41,416
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research, development & technical
|
12,908
|
12,581
|
12,621
|
25,489
|
24,735
|
|
|
|
|
|
|
Selling & marketing
|
6,530
|
6,322
|
5,261
|
12,852
|
11,234
|
|
|
|
|
|
|
General & administrative
|
12,699
|
11,245
|
10,590
|
23,944
|
21,916
|
|
|
|
|
|
|
Purchased in-process research and development
|
--
|
--
|
1,500
|
--
|
1,500
|
|
|
|
|
|
|
Total operating expenses
|
32,137
|
30,148
|
29,972
|
62,285
|
59,385
|
|
|
|
|
|
|
Operating income (loss)
|
17,328
|
20,260
|
(17,262)
|
37,588
|
(17,969)
|
|
|
|
|
|
|
Other income (expense), net
|
(440)
|
61
|
477
|
(379)
|
1,353
|
|
|
|
|
|
|
Income (loss) before income taxes
|
16,888
|
20,321
|
(16,785)
|
37,209
|
(16,616)
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
5,941
|
7,197
|
(6,672)
|
13,138
|
(6,619)
|
|
|
|
|
|
|
Net income (loss)
|
$ 10,947
|
$ 13,124
|
$ (10,113)
|
$ 24,071
|
$ (9,997)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
$0.47
|
$0.57
|
($0.44)
|
$1.04
|
($0.43)
|
|
|
|
|
|
|
Weighted average basic shares outstanding
|
23,263
|
23,167
|
23,107
|
23,205
|
23,053
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
$0.47
|
$0.56
|
($0.44)
|
$1.03
|
($0.43)
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
23,485
|
23,294
|
23,107
|
23,367
|
23,053
|
|
CABOT MICROELECTRONICS CORPORATION
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
(Unaudited and amounts in thousands)
|
|
|
|
|
March 31,
|
September 30,
|
|
2010
|
2009
|
ASSETS:
|
|
|
|
|
|
Current assets:
|
|
|
Cash, cash equivalents and short-term investments
|
$ 241,715
|
$ 199,952
|
Accounts receivable, net
|
54,828
|
53,538
|
Inventories, net
|
47,323
|
44,940
|
Other current assets
|
18,866
|
18,422
|
Total current assets
|
362,732
|
316,852
|
|
|
|
Property, plant and equipment, net
|
115,480
|
122,782
|
Other long-term assets
|
75,607
|
75,510
|
Total assets
|
$ 553,819
|
$ 515,144
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
Current liabilities:
|
|
|
Accounts payable
|
$ 16,538
|
$ 15,182
|
Capital lease obligations
|
1,252
|
1,210
|
Accrued expenses and other current liabilities
|
31,028
|
23,144
|
Total current liabilities
|
48,818
|
39,536
|
|
|
|
Capital lease obligations
|
671
|
1,308
|
Other long-term liabilities
|
3,711
|
3,571
|
Total liabilities
|
53,200
|
44,415
|
|
|
|
Stockholders' equity
|
500,619
|
470,729
|
Total liabilities and stockholders' equity
|
$ 553,819
|
$ 515,144
|
CONTACT: Cabot Microelectronics Corporation
Amy Ford, Director of Investor Relations
(630) 499-2600
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