Cabot Microelectronics Corporation Reports Results for Fourth Quarter and Full Fiscal Year 2012

Cabot Microelectronics Corporation Reports Results for Fourth Quarter and Full
Fiscal Year 2012

  *Annual Revenue of $427.7 Million Reflects Strengthening After Soft
    Industry Demand During First Half of the Year
  *Strong Annual Gross Profit Margin of 47.7 Percent of Revenue, Near Upper
    End of Annual Guidance Range
  *Annual Earnings Per Share of $1.75, Including 20 Cents of Certain Adverse
    Items (Recorded Earlier in Fiscal Year)
  *Strong Financial Position and Commitment to Return Capital to Shareholders
    Highlighted by Capital Management Initiative

AURORA, Ill., Oct. 25, 2012 (GLOBE NEWSWIRE) -- 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 fourth
quarter and full fiscal year 2012, which ended September 30.

Total revenue during the fourth fiscal quarter was $110.6 million, reflecting
an increase of 0.8 percent compared to the same quarter last year and a
decrease of 4.4 percent compared to the record revenue reported in the prior
quarter. The company achieved a gross profit margin of 48.6 percent of revenue
in the fourth fiscal quarter, diluted earnings per share of $0.49 and cash
flow from operations of $22.3 million. For the full fiscal year, total revenue
was $427.7 million, gross profit margin was 47.7 percent of revenue, diluted
earnings per share were $1.75 and cash flow from operations was $66.4 million.
The company's balance sheet reflects a cash balance of $178.5 million, which
is an increase of $11.6 million compared to the prior quarter, and $172.8
million of debt outstanding as of September 30, 2012. These balances reflect
the distribution of a $347 million special cash dividend in the second fiscal
quarter, approximately half of which was funded from the company's cash
balance and the remainder from debt.

"During fiscal year 2012, we continued to execute our strategies to strengthen
and grow our core CMP consumables business, while also further developing our
Engineered Surface Finishes business. While faced with challenging
macroeconomic and semiconductor industry environments during the year, we grew
our Pads business, commercialized new products from our new research,
development and manufacturing facility in South Korea, which represents the
second largest CMP consumables market in the world, and also increased our
revenue there by 22 percent," said William Noglows, Chairman and CEO of Cabot
Microelectronics. "The fiscal year was also highlighted by our capital
management initiative, which included the implementation of a leveraged
recapitalization, payment of a $15 per share special cash dividend, and a
significant increase to our share repurchase authorization. As a result of the
leveraged recapitalization, we achieved a more efficient balance sheet while
also distributing approximately 30 percent of our market value to our
shareholders through the special cash dividend. This capital management
initiative represented a significant change in our capital allocation
strategy, and enabled us to provide additional value to our shareholders while
still maintaining the resources necessary to implement our business strategies
and also support future growth opportunities."

Mr. Noglows continued, "Looking to the future, we are excited by the potential
long term growth opportunities associated with the trend toward greater mobile
connectivity, and higher demand for mobile internet devices and cloud
computing. Though we remain mindful of the potential impact of global
macroeconomic uncertainties on the semiconductor industry, we believe the
investments we have made and the progress we have achieved position us well
for continued success. We intend to continue to proactively manage our
business activities so as to be able to respond quickly to changing trends and
market conditions."

Key Financial Information

Total fourth fiscal quarter revenue of $110.6 million represents a 0.8 percent
increase from the $109.7 million reported in the same quarter last year and a
4.4 percent decrease from the record level of $115.7 million in the prior
quarter. Revenue from the company's Copper and Dielectrics slurry businesses
and its CMP polishing pads business increased this quarter compared to the
same quarter last year. Compared to the prior quarter, revenue from the
company's Pads business increased, while revenue from its other business areas
decreased. The company believes that the decrease in revenue from the prior
quarter primarily reflects softening demand that it began to see late in the
fourth fiscal quarter.

Total revenue for the full fiscal year was $427.7 million, which represents a
4.0 percent decrease from the record $445.4 million in fiscal year 2011. Full
year revenue results reflect strengthening in demand for the company's
products in the second half of the fiscal year after soft industry demand
during the first half of the year. Revenue from the company's CMP Pads and
Engineered Surface Finishes businesses increased from the prior year. The
company's performance was especially strong in South Korea, with revenue
growth of approximately 22 percent compared to last year.

Gross profit, expressed as a percentage of revenue, was 48.6 percent this
quarter, compared to 46.4 percent in the same quarter a year ago and 47.7
percent in the prior quarter. Compared to the year ago quarter, gross profit
percentage increased primarily due to increased utilization of the company's
manufacturing capacity and lower variable manufacturing costs, partially
offset by pricing impacts. The increase in gross profit percentage versus the
third fiscal quarter was primarily due to lower manufacturing costs and lower
sample costs, partially offset by pricing impacts.

Gross profit margin for the full fiscal year was 47.7 percent of revenue,
which is near the upper end of the company's full year guidance range of 46 to
48 percent of revenue. Gross profit margin decreased from 48.1 percent of
revenue in fiscal 2011 primarily due to higher fixed manufacturing costs,
pricing impacts and lower sales and production volume, partially offset by
lower variable manufacturing costs and higher manufacturing yields. For full
fiscal year 2013, the company expects its gross profit margin to be between 46
and 48 percent of revenue, unchanged from its guidance for full fiscal year
2012.

Operating expenses, which include research, development and technical, selling
and marketing, and general and administrative expenses, were $33.3 million in
the fourth fiscal quarter, representing a 2.4 percent decrease from $34.1
million in the same quarter a year ago. The decrease was driven primarily by
lower professional fees and lower staffing related costs. Operating expenses
were $0.3 million lower than the $33.6 million reported in the previous
quarter.

For the full year, total operating expenses were $137.5 million, which is
within the company's guidance range for full fiscal year 2012 of $135 million
to $140 million, and represents a 2.8 percent increase from the $133.7 million
reported in fiscal 2011. The increase was driven primarily by bad debt expense
related to a customer bankruptcy reported during the second fiscal quarter,
costs associated with the company's leveraged recapitalization with a special
cash dividend, and higher research and development supplies expense, partially
offset by lower staffing related costs. The company expects its operating
expense for full fiscal 2013 to be between $132 million and $136 million.

Net income for the quarter was $11.6 million, up from $9.3 million in the same
quarter last year and down from $13.2 million in the prior quarter. Compared
to the same quarter last year, net income was higher primarily due to a higher
gross profit margin and a lower effective tax rate. Compared to the prior
quarter, net income was down mainly due to the company's lower revenue and a
higher effective tax rate, partially offset by a higher gross profit margin.
Net income for the full fiscal year was $40.8 million, down from $51.7 million
in fiscal 2012 primarily due to soft semiconductor industry demand during the
first half of fiscal 2012, a lower gross profit margin, higher operating
expenses and interest expense related to the company's term loan associated
with its leveraged recapitalization and special cash dividend.

Diluted earnings per share were $0.49 this quarter, up from $0.40 reported in
the fourth quarter of fiscal 2011 and down from $0.55 reported in the previous
quarter. Earnings per share for full fiscal year 2012 were $1.75, down $0.45
from the record level of $2.20 reported in the previous fiscal year. This
year's results include a $0.20 adverse effect from costs associated with the
leveraged recapitalization with a special cash dividend ($0.10) and bad debt
expense related to the customer bankruptcy ($0.10) recorded earlier in the
fiscal year, as well as $0.06 of interest expense related to the company's
term loan.

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) 783-2145. Callers outside the U.S. can dial (857) 350-1604.
The conference code for the call is 56154858. 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 1,025 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, 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 debt, payment of principal and interest, and compliance
with covenants and other 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 quarterly report on Form 10-Q for the quarter ended
June 30, 2012 and in the company's annual report on Form 10-K for the fiscal
year ended September 30, 2011, 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                    Twelve Months Ended
                       September  June 30,   September  September  September
                        30,                   30,        30,        30,
                       2012       2012       2011       2012       2011
                                                               
Revenue                 $110,621 $115,678 $109,731 $427,657 $445,442
                                                               
Cost of goods sold      56,883    60,462    58,814    223,630    231,336
                                                               
Gross profit            53,738    55,216    50,917    204,027    214,106
                                                               
Operating expenses:                                             
                                                               
Research, development & 15,401    15,415    14,687    58,642     58,035
technical
                                                               
Selling & marketing     7,288     7,458     7,702     29,516     29,758
                                                               
General &               10,572    10,695    11,677    49,345     45,928
administrative
                                                               
Total operating         33,261    33,568    34,066    137,503    133,721
expenses
                                                               
Operating income        20,477    21,648    16,851    66,524     80,385
                                                               
Interest expense        961       955       44        2,309      155
                                                               
Other income (expense), (681)     (864)     (829)     (1,344)    (1,318)
net
                                                               
Income before income    18,835    19,829    15,978    62,871     78,912
taxes
                                                               
Provision for income    7,196     6,587     6,689     22,045     27,250
taxes
                                                               
Net income              $11,639  $13,242  $9,289   $40,826  $51,662
                                                               
Basic earnings per      $ 0.51     $ 0.57     $ 0.41     $ 1.81     $ 2.26
share
                                                               
Weighted average basic  22,920     23,120     22,816     22,506     22,896
shares outstanding
                                                               
Diluted earnings per    $ 0.49     $ 0.55     $ 0.40     $ 1.75     $ 2.20
share
                                                               
Weighted average
diluted shares          23,706     23,939     23,191     23,280     23,435
outstanding
                                                               

                                                              
CABOT MICROELECTRONICS CORPORATION                             
CONSOLIDATED CONDENSED BALANCE SHEETS                          
(Unaudited and amounts in thousands)                           
                                                              
                                                 September 30, September 30,
                                                 2012          2011
ASSETS:                                                        
                                                              
Current assets:                                                
Cash and cash equivalents                         $178,459    $302,546
Accounts receivable, net                          53,506       52,747
Inventories, net                                  66,472       56,128
Other current assets                              19,451       18,984
Total current assets                              317,888       430,405
                                                              
Property, plant and equipment, net                125,020      130,791
Other long-term assets                            74,917       67,033
Total assets                                      $517,825    $628,229
                                                              
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY:                          
                                                              
Current liabilities:                                           
Accounts payable                                  $19,542     $22,436
Current portion of long-term debt                 10,937       --
Capital lease obligations                         2            10
Accrued expenses and other current liabilities    32,738       33,104
Total current liabilities                         63,219        55,550
                                                              
Long-term debt, net of current portion            161,875      --
Capital lease obligations, net of current portion 19           2
Other long-term liabilities                       9,121        6,323
Total liabilities                                 234,234      61,875
                                                              
Stockholders' equity                              283,591      566,354
Total liabilities and stockholders' equity        $517,825    $628,229
                                                              

CONTACT: Trisha Tuntland
         Manager of Investor Relations
         630-499-2600

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