Cabot Microelectronics Corporation Reports Solid Results for First Quarter of Fiscal 2013

Cabot Microelectronics Corporation Reports Solid Results for First Quarter of
Fiscal 2013

  *Revenue of $106.5 Million
  *Gross Profit Margin of 47.0 Percent of Revenue, at Mid-Point of Full Year
  *Earnings Per Share of 41 Cents, Includes Adverse Impact of 7 Cents Due to
    Foreign Tax Adjustment

AURORA, Ill., Jan. 24, 2013 (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 first quarter
of fiscal 2013, which ended December 31, 2012.

Total revenue during the first fiscal quarter was $106.5 million, which
reflects an increase of 4.3 percent compared to the same quarter last year and
a decrease of 3.7 percent compared to the prior quarter. The company achieved
a gross profit margin of 47.0 percent of revenue in the first fiscal quarter
and diluted earnings per share of $0.41, which includes an adverse impact of
approximately $0.07 associated with a tax adjustment related to operations of
the company's facility in Korea since its opening in 2011. The company's
balance sheet reflects a cash balance of $169.6 million and $168.4 million of
debt outstanding as of December 31, 2012.

"I am encouraged with our first fiscal quarter financial results, which
reflect performance solidly in line with our expectations that were shaped by
persisting industry headwinds," said William Noglows, Chairman and CEO of
Cabot Microelectronics. "Though we experienced soft industry conditions,
continued macroeconomic uncertainty and the usual seasonality during the
quarter, we achieved revenue increases in both our core CMP slurry and pad
businesses compared to last year. Furthermore, our robust business model
enables us to successfully run our business over a range of market conditions,
and in the quarter we continued to prudently manage our operating costs and
generate a strong gross margin despite the slight sequential decline in demand
for our CMP consumables products."

Mr. Noglows continued, "In the face of continued macroeconomic uncertainty,
the industry has shown positive trends including the continuing strong
adoption of mobile devices.In order to leverage this growth opportunity and
other positive long-term industry trends, we continue to partner with
semiconductor industry leaders to further develop innovative technology that
is vital to success in our business. Our focus on building our infrastructure
and presence in the Asia Pacific region has significantly advanced these
efforts.With continuing softness in the industry in the near term, we believe
our ability to partner with our customers and leverage our global capabilities
and CMP expertise positions us well for continued success as we further
develop reliable, cost-effective solutions."

Key Financial Information

Total first fiscal quarter revenue of $106.5 million represents a 4.3 percent
increase from the $102.1 million reported in the same quarter last year and a
3.7 percent decrease from $110.6 million last quarter.The company believes
that the decrease in revenue from the prior quarter primarily reflects
continued soft demand within the global semiconductor industry that began to
appear late in the fourth fiscal quarter of 2012.

Gross profit, expressed as a percentage of revenue, was 47.0 percent this
quarter, which is at the midpoint of the company's guidance range of 46 to 48
percent of revenue for the full fiscal year.This is lower than the 48.3
percent reported in the same quarter a year ago and lower than 48.6 percent
last quarter.Compared to the year ago quarter, gross profit percentage
decreased primarily due to certain higher manufacturing costs and a lower
valued product mix, partially offset by higher sales volume.The decrease in
gross profit percentage versus the previous quarter was primarily due to
higher variable manufacturing costs and lower manufacturing yields, partially
offset by lower fixed manufacturing costs and a higher valued product mix.

Operating expenses, which include research, development and technical, selling
and marketing, and general and administrative expenses, were $33.4 million in
the first fiscal quarter, representing a 1.8 percent decrease from $34.0
million in the same quarter a year ago.The decrease was driven primarily by
the absence of professional fees related to the company's leveraged
recapitalization with a special cash dividend that it executed during fiscal
2012.Operating expenses were $0.1 million higher than the $33.3 million
reported in the previous quarter.

Net income for the quarter was $9.7 million, down from $10.4 million reported
in the same quarter last year and down from $11.6 million in the prior
quarter.Compared to the same quarter last year, net income was lower
primarily due to a $1.7 million adverse tax adjustment associated with
operations of the company's facility in Korea since its opening in 2011, and
higher interest expense, partially offset by higher revenue, foreign exchange
gains and lower operating expenses.Compared to the prior quarter, net income
was down mainly due to lower revenue and a lower gross profit margin,
partially offset by foreign exchange gains.

Diluted earnings per share were $0.41 this quarter, down from $0.45 reported
in the first quarter of fiscal 2012 and down from $0.49 reported in the
previous quarter.Earnings per share for the quarter were adversely impacted
by approximately $0.07 due to the referenced tax adjustment.


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,, or
by phone at (866) 700-0161.Callers outside the U.S. can dial (617)
213-8832.The conference code for the call is 79325109.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.


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 1,050 employees on a
global basis. For more information about Cabot Microelectronics Corporation,
visit or contact Trisha Tuntland, Manager of Investor
Relations at 630-499-2600.

The Cabot Microelectronics Corporation logo is available at


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 annual report on Form 10-K for the fiscal year ended
September 30, 2012, 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, September 30, December 31,
                                   2012         2012          2011
Revenue                            $106,533   $110,621    $102,122
Cost of goods sold                56,494       56,883       52,843
Gross profit                       50,039       53,738       49,279
Operating expenses:                                         
Research, development & technical 15,316       15,401       13,755
Selling & marketing               7,109        7,288        7,336
General & administrative          10,954       10,572       12,901
Total operating expenses           33,379       33,261       33,992
Operating income                   16,660       20,477       15,287
Interest expense                   953          961          39
Other income (expense), net        854          (681)        104
Income before income taxes         16,561       18,835       15,352
Provision for income taxes        6,858        7,196        4,937
Net income                         $9,703     $11,639     $10,415
Basic earnings per share          $0.42        $0.51         $0.46
Weighted average basic shares      22,845       22,920        22,508
Diluted earnings per share        $0.41        $0.49         $0.45
Weighted average diluted shares    23,658       23,706        22,926

CABOT MICROELECTRONICS CORPORATION                                          
CONSOLIDATED CONDENSED BALANCE SHEETS                                       
(Unaudited and amounts in thousands)                                        
                                               December 31, September 30,
                                                2012         2012
Current assets:                                             
Cash and cash equivalents                       $169,619   $178,459
Accounts receivable, net                       63,247      53,506
Inventories, net                                62,879      66,472
Other current assets                            15,165      19,451
Total current assets                            310,910      317,888
Property, plant and equipment, net              119,390     125,020
Other long-term assets                          75,481      74,917
Total assets                                    $505,781   $517,825
Current liabilities:                                        
Accounts payable                                $15,020    $19,542
Current portion of long-term debt               8,750       10,937
Capital lease obligations                       --          2
Accrued expenses, income taxes payable and      26,755      32,738
other current liabilities
Total current liabilities                       50,525       63,219
Long-term debt, net of current portion          159,687     161,875
Capital lease obligations, net of current       --          19
Other long-term liabilities                     10,443      9,121
Total liabilities                               220,655     234,234
Stockholders' equity                            285,126     283,591
Total liabilities and stockholders' equity      $505,781   $517,825

CONTACT: Trisha Tuntland, Manager of Investor Relations

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