- Revenue of $111.8 Million
- Gross Profit Margin of 47.4 Percent of
Revenue
- Earnings Per Share of 54 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
third quarter of fiscal 2011, which ended June 30.
Total revenue during the third fiscal quarter was $111.8
million, which represents an increase of 10.0 percent compared to
the same quarter last year and an increase of 2.0 percent compared
to the prior quarter, on continued solid demand for the company's
products. The company achieved a gross profit margin of 47.4
percent of revenue in the third fiscal quarter and diluted earnings
per share of $0.54. During the quarter, the company purchased
$15 million of stock, under the company's $125 million share
repurchase program.
"Our solid revenue and earnings this quarter reflect our
continued execution against our strategic initiatives and sustained
growth in the semiconductor industry. We are proud that year
to date, our revenue has grown nearly 13 percent and our earnings
per share have grown 23 percent over the record level of
performance we achieved last year," said William Noglows, Chairman
and CEO of Cabot Microelectronics. "While some industry
analysts are indicating signs of potential near-term softness in
industry demand, we currently expect solid year over year growth
for our company on a full year basis."
Mr. Noglows continued, "We are confident that the investments we
are making in the Asia Pacific region, including our new research,
development and manufacturing facility in South Korea and our
manufacturing capacity expansion in Japan, will further strengthen
our global competitive position and contribute to the company's
continued growth. We look forward to leveraging these
facilities to further expand our collaboration with customers, as
we continue to meet their increasing performance requirements."
Key Financial Information
Total third fiscal quarter revenue of $111.8 million represents
a 10.0 percent increase from the $101.7 million reported in the
same quarter last year and a 2.0 percent increase from $109.7
million last quarter. The increase in revenue from the same
period last year reflects increased demand within each of the
company's business areas, except for the company's polishing pads
business. Compared to the prior quarter, revenue for each of
the company's CMP slurry application areas increased, except for
data storage applications, and revenue from the pads and Engineered
Surface Finishes (ESF) business areas decreased. Year to date
revenue of $335.7 million represents an increase of 12.7 percent
from the prior year, driven by double-digit growth in the company's
CMP slurry and ESF business areas and continued growth in the pads
business.
Gross profit, expressed as a percentage of revenue, was 47.4
percent this quarter, which is lower than the 49.1 percent of
revenue reported in the same quarter a year ago and 48.1 percent
last quarter. Compared to the year ago quarter, gross profit
percentage decreased primarily due to foreign exchange rate
changes, in particular the weakening of the U.S. dollar versus the
Japanese yen, and selective price reductions, partially offset by a
higher value product mix. The decrease in gross profit
percentage versus the previous quarter was primarily due to lower
yields in the company's manufacturing operations and increased
fixed manufacturing costs, partially offset by lower variable
manufacturing costs in selected areas. Year to date, gross
profit represented 48.6 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 $33.4 million in the third fiscal quarter, or $1.1
million less than the $34.5 million reported in the same quarter a
year ago, driven primarily by lower professional fees, including
costs to enforce the company's intellectual
property. Operating expenses were $0.1 million higher than the
$33.3 million reported in the previous quarter. Year to date, total
operating expenses were $99.7 million, or 29.7 percent of revenue,
which is 2.9 percent higher than during the same period last
year. The company continues to expect its full year operating
expenses to be within a range of $130 million to $135 million for
fiscal 2011.
Net income for the quarter was $12.8 million, or 26.7 percent
higher than the $10.1 million reported in the same quarter last
year primarily due to the higher level of sales and lower operating
expenses, partially offset by lower gross profit
margin. Compared to $13.1 million in the previous quarter, net
income was down 2.3 percent due to the unfavorable impact of
foreign exchange rates, which is reflected in other income, and
lower gross profit margin. Year to date, net income of $42.4
million was up 24.0 percent compared to the prior year.
Diluted earnings per share were $0.54 this quarter, up from
$0.43 reported in the third quarter of fiscal 2010 and down from
$0.55 reported in the previous quarter. Year to date, diluted
earnings per share of $1.80 were up 23.3 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) 543-6408. Callers outside the U.S. can dial
(617) 213-8899. The conference code for the call is
57003081. 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 1,000 employees on a
global basis. For more information about Cabot
Microelectronics Corporation, visit www.cabotcmp.com or contact
Trisha Tuntland, Manager 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 March
31, 2011 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 |
Nine Months Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2011 |
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
|
Revenue |
$ 111,846 |
$ 109,660 |
$ 101,655 |
$ 335,711 |
$ 297,883 |
|
|
|
|
|
|
Cost of goods sold |
58,821 |
56,927 |
51,759 |
172,522 |
148,114 |
|
|
|
|
|
|
Gross profit |
53,025 |
52,733 |
49,896 |
163,189 |
149,769 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research, development
& technical |
14,573 |
14,919 |
12,875 |
43,348 |
38,364 |
|
|
|
|
|
|
Selling &
marketing |
7,785 |
6,791 |
7,009 |
22,056 |
19,861 |
|
|
|
|
|
|
General &
administrative |
11,008 |
11,567 |
14,637 |
34,251 |
38,581 |
|
|
|
|
|
|
Total operating
expenses |
33,366 |
33,277 |
34,521 |
99,655 |
96,806 |
|
|
|
|
|
|
Operating income |
19,659 |
19,456 |
15,375 |
63,534 |
52,963 |
|
|
|
|
|
|
Other income (expense), net |
(311) |
646 |
172 |
(600) |
(207) |
|
|
|
|
|
|
Income before income taxes |
19,348 |
20,102 |
15,547 |
62,934 |
52,756 |
|
|
|
|
|
|
Provision for income taxes |
6,559 |
7,010 |
5,450 |
20,561 |
18,588 |
|
|
|
|
|
|
Net income |
$ 12,789 |
$ 13,092 |
$ 10,097 |
$ 42,373 |
$ 34,168 |
|
|
|
|
|
|
Basic earnings per share |
$0.55 |
$0.57 |
$0.44 |
$1.85 |
$1.47 |
|
|
|
|
|
|
Weighted average basic shares
outstanding |
23,119 |
23,032 |
23,143 |
22,931 |
23,178 |
|
|
|
|
|
|
Diluted earnings per share |
$0.54 |
$0.55 |
$0.43 |
$1.80 |
$1.46 |
|
|
|
|
|
|
Weighted average diluted shares
outstanding |
23,797 |
23,693 |
23,478 |
23,525 |
23,383 |
|
CABOT MICROELECTRONICS
CORPORATION |
CONSOLIDATED CONDENSED BALANCE
SHEETS |
(Unaudited and amounts in thousands) |
|
|
|
|
June 30, |
September 30, |
|
2011 |
2010 |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 292,939 |
$ 254,164 |
Accounts receivable,
net |
56,989 |
57,456 |
Inventories, net |
54,747 |
51,896 |
Other current assets |
29,122 |
17,513 |
Total current assets |
433,797 |
381,029 |
|
|
|
Property, plant and equipment, net |
125,381 |
115,811 |
Other long-term assets |
69,650 |
74,916 |
Total assets |
$ 628,828 |
$ 571,756 |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 18,543 |
$ 17,521 |
Capital lease
obligations |
340 |
1,296 |
Accrued expenses and
other current liabilities |
31,053 |
34,513 |
Total current
liabilities |
49,936 |
53,330 |
|
|
|
Capital lease obligations, net of current
portion |
4 |
12 |
Other long-term liabilities |
9,053 |
4,071 |
Total liabilities |
58,993 |
57,413 |
|
|
|
Stockholders' equity |
569,835 |
514,343 |
Total liabilities and
stockholders' equity |
$ 628,828 |
$ 571,756 |
CONTACT: Trisha Tuntland, Manager of Investor Relations
(630) 499-2600
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