Cabot Microelectronics Reports Results for Second Fiscal Quarter
2004
AURORA, Ill., April 22 /PRNewswire-FirstCall/ -- Cabot Microelectronics
Corporation , the leading supplier of chemical mechanical planarization (CMP)
polishing slurries to the semiconductor industry, today reported financial
results for its second fiscal quarter, which ended March 31, 2004.
Total revenue for the second fiscal quarter of 2004 was $73.5 million, down
3.6% from $76.3 million in the prior quarter and up 18.2% from $62.2 million in
the second quarter a year ago. While overall sales volumes increased slightly
from the prior quarter, revenue was adversely affected by a decline in the
overall average selling price as a result of a lower valued product mix and
selective price reductions.
Gross profit of $36.1 million in the quarter was down by 3.0% sequentially from
the $37.3 million reported in the prior quarter and up 18.9% from the $30.4
million reported in the year ago quarter. As a percentage of revenue, gross
profit increased to 49.2% this quarter from 48.8% last quarter, primarily due
to higher yields in the company's manufacturing process and overall lower
product costs, partially offset by lower prices. Gross profit in the same
quarter of last year represented 48.9% of revenue.
Operating expenses of $21.3 million, consisting of research and development,
selling and marketing, and general and administrative expenses, increased
sequentially by $1.6 million, and were $4.5 million higher than the comparable
quarter last year. The increase from the prior quarter was partially
attributable to approximately $0.5 million in separation costs associated with
the departure of two executives, which the company had previously disclosed,
along with annual wage and salary increases that became effective on January 1,
higher depreciation, and a modest increase in research and development expense.
Net income for the quarter was $9.7 million, down 16.2% from $11.6 million in
the previous quarter and up 7.3% from $9.1 million in the year ago quarter. Diluted earnings per share were $0.39 this quarter, compared to $0.46 in the
previous quarter and $0.37 in the year ago quarter.
"While it has been a challenging quarter, we believe we are well-positioned for
continued leadership in the competitive CMP slurry arena," stated William P. Noglows, Cabot Microelectronics' Chairman and CEO. "We view our operational
and technical capabilities and facilities as unmatched in the industry,
enabling us to continue to meet our customers' increasing requirements for
product quality and performance. Further, the breadth and depth of our
infrastructure, along with a renewed focus on costs, provide us with continued
opportunities to capture efficiencies and economies of scale in our business." Conference Call Cabot Microelectronics' quarterly earnings conference call will be held today
at 9:00 a.m. Central Time. The live conference call and a subsequent replay
will be available via webcast at http://www.cabotcmp.com/ . Access to the live
call is also available by phone at 800-893-3008, access code 4711975. Callers
outside of the U.S. can dial 706-634-5531. For assistance, call 630-499-2600. This press release, as well as the transcript of the formal comments made
during the conference call, will be available in the Investor Relations section
of the company's web site at http://www.cabotcmp.com/ .
About Cabot Microelectronics Cabot Microelectronics, headquartered in Aurora, Illinois, is the leading
supplier of CMP slurries for polishing various materials used in semiconductor
manufacturing processes. The company's products play a critical role in the
production of the most advanced semiconductor devices, enabling the manufacture
of smaller, faster and more complex devices by its customers. For more
information about Cabot Microelectronics, visit http://www.cabotcmp.com/ or
call 630-499-2600.
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 and trends, growth of this
market, international events, product performance, new product introductions
and development of new products and technologies by Cabot Microelectronics. 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 the actual results to differ materially from those described
by these forward-looking statements. In particular, see "Risks Relating to Our
Business" in Management's Discussion and Analysis in our quarterly report on
Form 10-Q for the quarter ended December 31, 2003, and our Annual Report on
Form 10-K for the fiscal year ended September 30, 2003, both filed with the
SEC. Cabot Microelectronics Corporation assumes no obligation to update this
forward-looking information.
Contact:
William S. Johnson
Vice President and Chief Financial Officer
Cabot Microelectronics Corporation 630/375-6631
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and amounts in thousands, except per share amounts) Quarter Ended Six Months Ended
March 31, Dec. 31, March 31, March 31, March 31,
2004 2003 2003 2004 2003 Revenue $73,515 $76,279 $62,201 $149,794 $119,474 Cost of goods sold 37,366 39,026 31,786 76,392 59,451 Gross profit 36,149 37,253 30,415 73,402 60,023 Operating expenses: Research and
development 11,143 10,723 9,609 21,866 18,244 Selling and
marketing 4,363 3,783 2,554 8,146 5,132 General and
administrative 5,749 5,124 4,595 10,873 8,963 Amortization of
intangibles 85 85 85 170 170 Total operating
expenses 21,340 19,715 16,843 41,055 32,509 Operating income 14,809 17,538 13,572 32,347 27,514 Other income
(expense), net (86) 36 43 (50) 38 Income before income
taxes 14,723 17,574 13,615 32,297 27,552 Provision for income
taxes 5,006 5,976 4,561 10,982 9,230 Net income $9,717 $11,598 $9,054 $21,315 $18,322
Basic earnings per
share $0.39 $0.47 $0.37 $0.86 $0.75 Weighted average basic
shares outstanding 24,785 24,733 24,346 24,761 24,325
Diluted earnings per
share $0.39 $0.46 $0.37 $0.85 $0.75 Weighted average
diluted shares
outstanding 24,926 24,994 24,593 24,935 24,589
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands) March 31, September 30,
2004 2003
ASSETS: Current assets:
Cash and cash equivalents $140,264 $111,318
Accounts receivable, net 38,452 37,564
Inventories, net 23,861 23,814
Other current assets 8,427 6,416
Total current assets 211,004 179,112 Property, plant and equipment, net 129,799 133,695
Other long-term assets 2,660 2,810
Total assets $343,463 $315,617
LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities:
Accounts payable $14,398 $12,521
Capital lease obligations 1,591 1,716
Accrued expenses and other current
liabilities 12,141 14,679
Total current liabilities 28,130 28,916 Capital lease obligations 6,835 7,452
Deferred income taxes and other long-term
liabilities 8,669 7,476
Total liabilities 43,634 43,844 Stockholders' equity 299,829 271,773
Total liabilities and stockholders'
equity $343,463 $315,617
DATASOURCE: Cabot Microelectronics Corporation CONTACT: William S. Johnson, Vice President and Chief Financial Officer of Cabot Microelectronics Corporation, +1-630-375-6631 Web site: http://www.cabotcmp.com/
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