- Strong Results Within a Seasonally Soft
Quarter
- Revenue of $109.7 Million
- Gross Profit Margin of 48.1 Percent of
Revenue
- Earnings Per Share of 55 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
second quarter of fiscal 2011, which ended March 31, 2011.
Total revenue during the second fiscal quarter was $109.7
million, which represents an increase of 11.3 percent compared to
the same quarter last year on continued strong demand for the
company's products, and a decrease of 4.0 percent compared to the
prior quarter, reflecting historical seasonal trends for the
company. The company achieved a gross profit margin of 48.1 percent
of revenue in the second fiscal quarter and diluted earnings per
share of $0.55. The company's balance sheet reflects a cash
balance of $278.3 million as of March 31, 2011, and no debt
outstanding. During the quarter, the company purchased $15
million of stock, completing its $75 million share repurchase
program. Future share repurchases will be made under the
company's new $125 million share repurchase program, which was
authorized by the Board of Directors in November 2010.
"We are pleased to report continued strong financial results for
the quarter in light of what has historically been a seasonally
soft period for us following the strong holiday season. Our
revenue and earnings this quarter were the highest achieved during
any second fiscal quarter in our history," said William Noglows,
Chairman and CEO of Cabot Microelectronics. "Driven by an ever
expanding range of electronic systems, increased enterprise
spending and growth in emerging economies, industry analysts
continue to expect solid semiconductor unit growth in calendar
2011, even considering the impact of the recent Japan earthquake
and tsunami. We believe this bodes well for our wafer start
driven business."
Mr. Noglows continued, "We are also making progress on our
strategic initiatives, including the construction of our
manufacturing and research and development facility in South Korea,
as well as the expansion of our manufacturing facility in
Japan. Both of these initiatives continue on schedule and are
expected to improve our capabilities and proximity to many of our
customers in the region. In addition, we are delighted to have
recently been awarded Intel's Preferred Quality Supplier award for
2010, which represents the fourth time we have won this award in
the last five years."
Key Financial Information
Total second fiscal quarter revenue of $109.7 million represents
an 11.3 percent increase from the $98.6 million reported in the
same quarter last year and a 4.0 percent decrease from $114.2
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 for the company's Engineered Surface Finishes business
increased, while revenue for all other business areas decreased,
reflecting historical seasonal trends for the company. Year to
date, revenue of $223.9 million represents an increase of 14.1
percent from the prior year, driven by double-digit growth in each
of the company's business areas.
Gross profit, expressed as a percentage of revenue, was 48.1
percent this quarter, which is lower than the 50.2 percent of
revenue reported in the same quarter a year ago and 50.3 percent
last quarter. Compared to the year ago quarter, gross profit
percentage decreased primarily due to the adverse impact of foreign
exchange rate changes, selective price reductions and higher fixed
manufacturing costs, partially offset by the benefit of increased
utilization of the company's manufacturing capacity. The
decrease in gross profit percentage versus the previous quarter was
primarily due to selective price reductions, higher sample costs
related to product evaluations, higher logistics costs driven by
increased oil prices and lower manufacturing yields. Year to
date, gross profit represented 49.2 percent of revenue, which is
consistent with the company's full year guidance range of 48 to 50
percent of revenue.
Operating expenses, which include research, development and
technical, selling and marketing, and general and administrative
expenses, were $33.3 million in the second fiscal quarter, or $1.1
million higher than the $32.1 million reported in the same quarter
a year ago, driven primarily by higher staffing related costs and
clean room materials expenses, partially offset by lower
professional fees and travel expenses. Operating expenses were
$0.3 million higher than the $33.0 million reported in the previous
quarter, mostly due to higher clean room materials expenses,
staffing related costs and professional fees, partially offset by
lower travel expenses.
Year to date, total operating expenses were $66.3 million, or
29.6 percent of revenue. The company currently expects its
full year operating expenses to be in the range of $130 million to
$135 million, which represents an increase from the company's
previous full year estimate of $125 million to $130 million for
fiscal 2011. The increase in expected full year operating
expenses is primarily due to higher staffing related
costs. The midpoint of this new range represents a 2.3 percent
increase versus fiscal 2010.
Net income for the quarter was $13.1 million, or 19.6 percent
higher than the $10.9 million reported in the same quarter last
year primarily due to the higher level of sales. Compared to
$16.5 million in the previous quarter, net income was down 20.6
percent mainly due to the lower level of sales and lower gross
profit margin. Year to date, net income of $29.6 million was
up 22.9 percent compared to the prior year.
Diluted earnings per share were $0.55 this quarter, which is up
from $0.47 reported in the second quarter of fiscal 2010 and down
from $0.71 reported in the previous quarter. Earnings per share for
the quarter were adversely impacted by approximately 5 cents versus
the prior quarter, due to taxes associated with compensation
expense the company had previously recognized, as well as higher
average diluted shares outstanding as a result of stock option
exercises and the dilutive impact of in-the-money outstanding
options in light of the company's higher stock price, partially
offset by share repurchases. Year to date, diluted earnings
per share of $1.26 were up 22.8 percent compared to last
year.
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) 362-5158. Callers outside the U.S. can dial
(617) 597-5397. The conference code for the call is
66882479. 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 975 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; natural disasters; 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, 2010 and in the company's annual report on Form 10-K
for the fiscal year ended September 30, 2010, 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, |
|
2011 |
2010 |
2010 |
2011 |
2010 |
|
|
|
|
|
|
Revenue |
$ 109,660 |
$ 114,205 |
$ 98,556 |
$ 223,865 |
$ 196,228 |
|
|
|
|
|
|
Cost of goods sold |
56,927 |
56,774 |
49,091 |
113,701 |
96,355 |
|
|
|
|
|
|
Gross profit |
52,733 |
57,431 |
49,465 |
110,164 |
99,873 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research, development &
technical |
14,919 |
13,856 |
12,908 |
28,775 |
25,489 |
|
|
|
|
|
|
Selling & marketing |
6,791 |
7,480 |
6,530 |
14,271 |
12,852 |
|
|
|
|
|
|
General & administrative |
11,567 |
11,676 |
12,699 |
23,243 |
23,944 |
|
|
|
|
|
|
Total operating expenses |
33,277 |
33,012 |
32,137 |
66,289 |
62,285 |
|
|
|
|
|
|
Operating income |
19,456 |
24,419 |
17,328 |
43,875 |
37,588 |
|
|
|
|
|
|
Other income (expense), net |
646 |
(935) |
(440) |
(289) |
(379) |
|
|
|
|
|
|
Income before income taxes |
20,102 |
23,484 |
16,888 |
43,586 |
37,209 |
|
|
|
|
|
|
Provision for income taxes |
7,010 |
6,992 |
5,941 |
14,002 |
13,138 |
|
|
|
|
|
|
Net income |
$ 13,092 |
$ 16,492 |
$ 10,947 |
$ 29,584 |
$ 24,071 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$0.57 |
$0.73 |
$0.47 |
$1.29 |
$1.04 |
|
|
|
|
|
|
Weighted average basic shares
outstanding |
23,032 |
22,710 |
23,263 |
22,857 |
23,205 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$0.55 |
$0.71 |
$0.47 |
$1.26 |
$1.03 |
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
23,693 |
23,131 |
23,485 |
23,395 |
23,367 |
|
|
|
|
|
|
CABOT MICROELECTRONICS
CORPORATION |
|
|
CONSOLIDATED CONDENSED BALANCE
SHEETS |
|
|
(Unaudited and amounts in thousands) |
|
|
|
|
|
|
March 31, |
September 30, |
|
2011 |
2010 |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 278,334 |
$ 254,164 |
Accounts receivable, net |
60,049 |
57,456 |
Inventories, net |
55,608 |
51,896 |
Other current assets |
27,353 |
17,513 |
Total current assets |
421,344 |
381,029 |
|
|
|
Property, plant and equipment, net |
117,336 |
115,811 |
Other long-term assets |
70,827 |
74,916 |
Total assets |
$ 609,507 |
$ 571,756 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 16,330 |
$ 17,521 |
Capital lease obligations |
664 |
1,296 |
Accrued expenses and other current
liabilities |
24,420 |
34,513 |
Total current liabilities |
41,414 |
53,330 |
|
|
|
Capital lease obligations, net of current
portion |
7 |
12 |
Other long-term liabilities |
5,416 |
4,071 |
Total liabilities |
46,837 |
57,413 |
|
|
|
Stockholders' equity |
562,670 |
514,343 |
Total liabilities and stockholders'
equity |
$ 609,507 |
$ 571,756 |
|
|
|
CONTACT: Cabot Microelectronics Corporation
Amy Ford, Director of Investor Relations
(630) 499-2600
www.cabotcmp.com
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