- Revenue of $102.1 Million
- Gross Profit Margin of 48.3 Percent of
Revenue
- EPS of 45 Cents, Including 7 Cent Adverse Effect from
Fees Related to Proposed Leveraged Recapitalization
- New Capital Management Initiative Announced in
December
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 2012, which ended December 31, 2011.
Total revenue during the first fiscal quarter was $102.1
million, which reflects a decrease of 10.6 percent compared to the
same quarter last year and a decrease of 6.9 percent compared to
the prior quarter primarily due to continued soft semiconductor
industry demand. The company achieved a gross profit margin of 48.3
percent of revenue in the first fiscal quarter and diluted earnings
per share of $0.45. Earnings per share for the quarter include an
adverse impact of approximately $0.07 per share related to
professional fees associated with the company's previously
announced proposed leveraged recapitalization with a special cash
dividend. The company's balance sheet reflects a cash balance
of $293.6 million as of December 31, 2011.
"We begin fiscal 2012 with solid financial results despite
continued softness within the industry," said William Noglows,
Chairman and CEO of Cabot Microelectronics. "As we expect
current industry conditions to persist in the near term, we are
managing our business activities accordingly, as reflected by our
profitability this quarter, and we will continue to focus on
implementing our strategies to strengthen and grow our core CMP
consumables business and advance our Engineered Surface Finishes
business."
Mr. Noglows continued, "We believe our flexible business model,
strong cash flow and global infrastructure assist us in weathering
soft demand environments and excelling in stronger markets. As
a result, we are able to return value to our shareholders, as
demonstrated by the new capital management initiative we announced
in December 2011. This initiative includes a proposed
leveraged recapitalization of our company with a special cash
dividend of $15 per share, or approximately $345 million in total,
which we expect to pay during our second fiscal quarter, contingent
upon arranging financing acceptable to us, as well as an increase
to $150 million in authority under our share repurchase
program. We intend to continue to pursue our growth and
investment strategies, as we implement our new capital management
initiative."
Key Financial Information
Total first fiscal quarter revenue of $102.1 million represents
a 10.6 percent decrease from the $114.2 million reported in the
same quarter last year and a 6.9 percent decrease from $109.7
million last quarter. The company believes that the decrease
in revenue from the same quarter last year and the prior quarter
primarily reflect soft demand within the global semiconductor
industry.
Gross profit, expressed as a percentage of revenue, was 48.3
percent this quarter, which is slightly above the company's
guidance range of 46 to 48 percent of revenue for the full fiscal
year. This is lower than the 50.3 percent reported in the same
quarter a year ago and higher than 46.4 percent last
quarter. Compared to the year ago quarter, gross profit
percentage decreased primarily due to lower production volumes and
selective price reductions, partially offset by lower variable
manufacturing costs. The increase in gross profit percentage
versus the previous quarter was primarily due to lower variable and
fixed manufacturing costs, and a higher valued product mix,
partially offset by lower production volumes.
Operating expenses, which include research, development and
technical, selling and marketing, and general and administrative
expenses, were $34.0 million in the first fiscal quarter, including
professional fees of approximately $2.4 million related to the
company's new capital management initiative. Operating
expenses were $1.0 million higher than the $33.0 million reported
in the same quarter a year ago, driven primarily by the higher
professional fees, partially offset by lower staffing related
expenses. Operating expenses were $0.1 million lower than the
$34.1 million reported in the previous quarter.
Net income for the quarter was $10.4 million, or 36.8 percent
lower than the $16.5 million reported in the same quarter last year
primarily due to soft demand within the global semiconductor
industry and a lower gross profit margin. Compared to $9.3
million in the previous quarter, net income was up 12.1 percent due
to a lower effective tax rate, higher gross profit margin and
foreign exchange gains included in other income, partially offset
by the adverse effect of lower revenue.
Diluted earnings per share were $0.45 this quarter, including an
adverse impact of approximately $0.07 as a result of professional
fees related to the company's new capital management
initiative. This is down from $0.71 reported in the first
quarter of fiscal 2011 and up from $0.40 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) 788-0540. Callers outside the U.S. can dial
(857) 350-1678. The conference code for the call is
14154096. 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: whether the conditions to the
proposed recapitalization transaction, including the declaration
and payment of the special cash dividend, will be satisfied,
including whether the company will obtain debt financing under
terms and conditions acceptable to the company; whether the
recapitalization transaction will occur on the terms described in
the company's filings or at all, and the timing of any such
recapitalization transaction; 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, regulatory or legislative activity, 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; financing facilities
and related availability and terms; the company's capital
structure; and the construction and operation 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,
2011, 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, 2011 |
September 30, 2011 |
December 31, 2010 |
|
|
|
|
Revenue |
$ 102,122 |
$ 109,731 |
$ 114,205 |
|
|
|
|
Cost of goods sold |
52,843 |
58,814 |
56,774 |
|
|
|
|
Gross profit |
49,279 |
50,917 |
57,431 |
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research, development
& technical |
13,755 |
14,687 |
13,856 |
|
|
|
|
Selling &
marketing |
7,336 |
7,702 |
7,480 |
|
|
|
|
General &
administrative |
12,901 |
11,677 |
11,676 |
|
|
|
|
Total operating
expenses |
33,992 |
34,066 |
33,012 |
|
|
|
|
Operating income |
15,287 |
16,851 |
24,419 |
|
|
|
|
Other income (expense), net |
65 |
(873) |
(935) |
|
|
|
|
Income before income taxes |
15,352 |
15,978 |
23,484 |
|
|
|
|
Provision for income taxes |
4,937 |
6,689 |
6,992 |
|
|
|
|
Net income |
$ 10,415 |
$ 9,289 |
$ 16,492 |
|
|
|
|
|
|
|
|
Basic earnings per share |
$ 0.46 |
$ 0.41 |
$ 0.73 |
|
|
|
|
Weighted average basic shares
outstanding |
22,508 |
22,816 |
22,710 |
|
|
|
|
Diluted earnings per share |
$ 0.45 |
$ 0.40 |
$ 0.71 |
|
|
|
|
Weighted average diluted shares
outstanding |
22,926 |
23,191 |
23,131 |
|
|
|
|
CABOT MICROELECTRONICS
CORPORATION |
CONSOLIDATED CONDENSED
BALANCE SHEETS |
(Unaudited and amounts in
thousands) |
|
|
|
|
|
December 31, 2011 |
September 30, 2011 |
ASSETS: |
|
|
|
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 293,628 |
$ 302,546 |
Accounts receivable,
net |
50,432 |
52,747 |
Inventories, net |
57,747 |
56,128 |
Other current assets |
13,704 |
18,984 |
Total current assets |
415,511 |
430,405 |
|
|
|
Property, plant and equipment, net |
129,783 |
130,791 |
Other long-term assets |
67,978 |
67,033 |
Total assets |
$ 613,272 |
$ 628,229 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 19,434 |
$ 22,436 |
Capital lease
obligations |
9 |
10 |
Accrued expenses and
other current liabilities |
19,499 |
33,104 |
Total current
liabilities |
38,942 |
55,550 |
|
|
|
Capital lease obligations, net of current
portion |
-- |
2 |
Other long-term liabilities |
6,757 |
6,323 |
Total liabilities |
45,699 |
61,875 |
|
|
|
Stockholders' equity |
567,573 |
566,354 |
Total liabilities and
stockholders' equity |
$ 613,272 |
$ 628,229 |
CONTACT: Trisha Tuntland
Manager, Investor Relations
(630)499-2600
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