Cabot Microelectronics Corporation Reports Results for First Quarter of Fiscal 2011
January 27 2011 - 6:00AM
- Record Revenue of $114.2 Million
- Gross Profit Margin of 50.3 Percent of
Revenue
- Record Earnings Per Share of 71 Cents
Cabot Microelectronics Corporation (Nasdaq:CCMP), the world's
leading supplier of chemical mechanical planarization (CMP)
polishing slurries and a growing CMP pad supplier to the
semiconductor industry, today reported financial results for its
first quarter of fiscal 2011, which ended December 31, 2010.
Total revenue during the first fiscal quarter was $114.2
million, which represents a record level for the company. The
company's first quarter revenue reflects an increase of 16.9
percent compared to the same quarter last year and an increase of
3.5 percent compared to the prior quarter on continued strong
demand for the company's products. The company achieved a
gross profit margin of 50.3 percent of revenue in the first fiscal
quarter and diluted earnings per share of $0.71. The company's
balance sheet reflects a cash balance of $263.0 million as of
December 31, 2010, and no debt outstanding.
"We are delighted to start fiscal 2011 with strong financial
performance, following the company's record setting year in fiscal
2010. We continue to execute on our strategic initiatives and
recently began construction on our new manufacturing and research
and development center in South Korea. This investment
represents another significant milestone demonstrating our
commitment to and plans for continued growth in the Asia Pacific
region," said William Noglows, Chairman and CEO of Cabot
Microelectronics. "Although we have historically experienced
seasonal softening in the March quarter, at present our outlook for
the full fiscal year 2011 remains optimistic. With the
revitalization in corporate and enterprise IT spending, additional
capacity expansions by our major customers and the significant
growth of wireless multimedia platforms, we see tremendous
opportunities for continued growth for Cabot Microelectronics."
Key Financial Information
Total first fiscal quarter revenue of $114.2 million represents
a 16.9 percent increase from the $97.7 million reported in the same
quarter last year and a 3.5 percent increase from $110.3 million
last quarter. The increase in revenue from the same period
last year primarily reflects increased demand within each of the
company's business areas. Compared to the prior
quarter, revenue increased across all business areas, except CMP
slurries for dielectric and copper applications.
Gross profit, expressed as a percentage of revenue, was 50.3
percent this quarter, which is slightly above the company's
guidance range of 48 to 50 percent of revenue for the full fiscal
year. This is lower than the 51.6 percent reported in the same
quarter a year ago and higher than 48.7 percent last
quarter. Compared to the year ago quarter, gross profit
percentage decreased primarily due to the absence of a $1.6 million
raw material supplier credit that the company realized in the first
quarter of fiscal 2010, as well as higher fixed manufacturing
costs, partially offset by the benefit of increased utilization of
the company's manufacturing capacity. The increase in gross
profit percentage versus the previous quarter was primarily due to
increased utilization of the company's manufacturing
capacity.
Operating expenses, which include research, development and
technical, selling and marketing, and general and administrative
expenses, were $33.0 million in the first fiscal quarter, or $2.9
million higher than the $30.1 million reported in the same quarter
a year ago, driven primarily by higher staffing related costs and
travel expenses, partially offset by lower professional fees,
including costs to enforce the company's intellectual
property. Operating expenses were $0.3 million higher than the
$32.7 million reported in the previous quarter, mostly due to
higher staffing related costs, partially offset by lower
professional fees, including costs to enforce the company's
intellectual property. The company expects its full year
operating expenses to be near the upper end of its guidance range
of $125 million to $130 million for fiscal 2011.
Net income for the quarter was $16.5 million, or 25.7 percent
higher than the $13.1 million reported in the same quarter last
year primarily due to the higher level of sales and a lower
effective tax rate, partially offset by higher operating
expenses. Compared to $15.3 million in the previous quarter,
net income was up 7.9 percent mainly due to the higher level of
sales and higher gross profit margin.
Diluted earnings per share were $0.71 this quarter, which
represents a record level for the company. This is up from
$0.56 reported in the first quarter of fiscal 2010 and $0.66
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 conference call will be available via live webcast
and replay from the company's website, www.cabotcmp.com, or by
phone at (866) 356-4279. Callers outside the U.S. can dial
(617) 597-5394. The conference code for the call is
89982133. 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 a 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 950 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
annual report on Form 10-K for the fiscal year ended September 30,
2010, 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 |
|
December 31, 2010 |
September 30, 2010 |
December 31, 2009 |
|
|
|
|
Revenue |
$ 114,205 |
$ 110,318 |
$ 97,672 |
|
|
|
|
Cost of goods sold |
56,774 |
56,590 |
47,264 |
|
|
|
|
Gross profit |
57,431 |
53,728 |
50,408 |
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research, development &
technical |
13,856 |
13,454 |
12,581 |
|
|
|
|
Selling & marketing |
7,480 |
7,024 |
6,322 |
|
|
|
|
General & administrative |
11,676 |
12,202 |
11,245 |
|
|
|
|
Total operating expenses |
33,012 |
32,680 |
30,148 |
|
|
|
|
Operating income |
24,419 |
21,048 |
20,260 |
|
|
|
|
Other income (expense), net |
(935) |
(527) |
61 |
|
|
|
|
Income before income taxes |
23,484 |
20,521 |
20,321 |
|
|
|
|
Provision for income taxes |
6,992 |
5,231 |
7,197 |
|
|
|
|
Net income |
$ 16,492 |
$ 15,290 |
$ 13,124 |
|
|
|
|
Basic earnings per share |
$0.73 |
$0.67 |
$0.57 |
|
|
|
|
Weighted average basic shares
outstanding |
22,710 |
22,821 |
23,167 |
|
|
|
|
Diluted earnings per share |
$0.71 |
$0.66 |
$0.56 |
|
|
|
|
Weighted average diluted shares
outstanding |
23,131 |
23,002 |
23,294 |
|
|
|
CABOT MICROELECTRONICS
CORPORATION |
|
|
CONSOLIDATED CONDENSED BALANCE
SHEETS |
|
|
(Unaudited and amounts in thousands) |
|
|
|
|
|
|
December 31, 2010 |
September 30, 2010 |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
Cash, cash equivalents and short-term
investments |
$ 262,951 |
$ 254,164 |
Accounts receivable, net |
62,740 |
57,456 |
Inventories, net |
54,246 |
51,896 |
Other current assets |
16,090 |
17,513 |
Total current assets |
396,027 |
381,029 |
|
|
|
Property, plant and equipment, net |
115,857 |
115,811 |
Other long-term assets |
72,954 |
74,916 |
Total assets |
$ 584,838 |
$ 571,756 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 16,530 |
$ 17,521 |
Capital lease obligations |
983 |
1,296 |
Accrued expenses and other current
liabilities |
20,208 |
34,513 |
Total current liabilities |
37,721 |
53,330 |
|
|
|
Capital lease obligations |
9 |
12 |
Other long-term liabilities |
4,358 |
4,071 |
Total liabilities |
42,088 |
57,413 |
|
|
|
Stockholders' equity |
542,750 |
514,343 |
Total liabilities and stockholders'
equity |
$ 584,838 |
$ 571,756 |
CONTACT: Amy Ford, Director of Investor Relations
(630) 499-2600
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