Cabot Microelectronics to Report Higher Third Fiscal Quarter Operating Expenses Due to Litigation Costs; Revenue and Gross Margi
July 13 2010 - 8:30PM
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 announced that its operating expenses
increased significantly in the third fiscal quarter, ended June 30,
2010, due to higher litigation costs. In addition, the company
expects to report strong revenue and gross margin for the quarter.
The company expects to report operating expenses, which include
research, development and technical, selling and marketing, and
general and administrative expenses, of approximately $34.5 million
in the third fiscal quarter, or $2.4 million higher than the $32.1
million reported in the previous quarter. The increase from the
prior period was primarily driven by higher expenses related to the
company's ongoing patent enforcement litigation with DuPont Air
Products NanoMaterials, LLC during the third fiscal
quarter. Following completion of the jury trial on July 8, in
which the company's patents at issue were upheld, the company
expects litigation costs to decrease significantly. Given the
increase in operating expenses in the third fiscal quarter, the
company now expects to exceed its previous guidance range for full
year operating expenses of $120 million to $125 million for fiscal
2010.
The company expects to report revenue of approximately $101.7
million for the third fiscal quarter, which represents its third
consecutive quarter of record revenue, approximately 3 percent
higher than in the prior quarter on continued strong demand for the
company's products. In addition, the company expects to report
a gross profit margin of approximately 49 percent of revenue in the
third fiscal quarter.
As previously announced, Cabot Microelectronics will release
full financial results for its third fiscal quarter on July 22,
2010.
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 925 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 March
31, 2010 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.
CONTACT: Cabot Microelectronics Corporation
Amy Ford, Director of Investor Relations
(630) 499-2600
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