Cabot Microelectronics Corporation Reports Strong Results for Third Quarter of Fiscal 2013

Cabot Microelectronics Corporation Reports Strong Results for Third Quarter of
Fiscal 2013

  *Revenue of $110.0 Million, Up Approximately 10 Percent Sequentially
  *Gross Profit Margin of 49.7 Percent of Revenue, Up 150 Basis Points
    Sequentially
  *Earnings Per Share of 65 Cents, Up From 40 Cents in Prior Period

AURORA, Ill., July 30, 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 third quarter
of fiscal 2013, which ended June 30, 2013.

Total revenue during the third fiscal quarter was $110.0 million. This
reflects an increase of 9.6 percent from the prior quarter, on solid demand
for the company's products, as semiconductor industry demand strengthened
following relatively soft conditions during the first half of the fiscal year,
as well as growth in demand for the company's QED products. The company
achieved gross profit margin of 49.7 percent of revenue, which represents
increases of 200 and 150 basis points year-over-year and sequentially,
respectively. Diluted earnings per share were $0.65, compared to $0.40 in the
prior quarter. The company's balance sheet reflects a cash balance of $201.6
million, $13.3 million higher than in the prior quarter, and $166.3 million of
debt outstanding as of June 30, 2013.

"We are pleased with our strong financial performance this quarter, which we
believe reflects the continued successful execution of our strategic business
initiatives, coupled with strengthening of overall semiconductor industry
demand that we had anticipated to occur during the quarter," said William
Noglows, Chairman and CEO of Cabot Microelectronics. "Our revenue grew by
almost 10 percent sequentially, and notably, revenue from our Pads business
grew by 14 percent compared to the prior period. Additionally, we achieved
strong profitability as our gross margin of 49.7 percent of revenue and
diluted earnings per share of 65 cents were each at the highest quarterly
levels since the December quarter of 2010. Heading into what is typically a
seasonally strong fourth fiscal quarter, I am confident that we are
well-positioned to continue to develop and deliver innovative, high-quality
solutions to our customers and continue to provide value for our
shareholders."

Key Financial Information

Total third fiscal quarter revenue of $110.0 million represents a 4.9 percent
decrease from the record revenue of $115.7 million achieved in the same
quarter last year, and a 9.6 percent increase from $100.4 million reported
last quarter. Compared to the same quarter last year, revenue from the
company's aluminum CMP slurry products increased, while revenue from all other
major business areas decreased. Compared to the prior quarter, revenue from
all of the company's business areas increased except for revenue from slurries
for data storage applications. Year to date revenue of $316.9 million is
essentially even with the prior year's.

Gross profit, expressed as a percentage of revenue, was 49.7 percent this
quarter. This is higher than both the 47.7 percent of revenue reported in the
same quarter a year ago, and 48.2 percent last quarter. Compared to the year
ago quarter, gross profit percentage increased primarily due to lower
manufacturing costs and benefits associated with a weaker Japanese yen versus
the U.S. dollar, partially offset by lower sales volume. The increase in gross
profit percentage versus the previous quarter was primarily due to lower fixed
manufacturing and logistics costs, and the favorable impact of the weaker
Japanese yen. Year to date, gross profit represented 48.3 percent of revenue,
which is above the company's full fiscal year guidance range of 46 to 48
percent of revenue, which remains unchanged.

Operating expenses, which include research, development and technical, selling
and marketing, and general and administrative expenses, were $32.4 million in
the third fiscal quarter, or $1.2 million less than the $33.6 million reported
in the same quarter a year ago, primarily due to lower depreciation expense,
clean room materials expense and staffing related expenses. Operating expenses
were $2.0 million lower than the $34.4 million reported in the previous
quarter, primarily due to lower staffing related costs. Year to date, total
operating expenses were $100.2 million. The company's full year guidance for
operating expenses remains unchanged at $132 million to $136 million.

Net income for the quarter was $15.5 million, or 17.0 percent higher than the
$13.2 million reported in the same quarter last year, and 64.5 percent higher
than the $9.4 million in the previous quarter. Compared to the same quarter
last year, net income was higher primarily due to a higher gross profit
margin, a favorable impact of the weaker Japanese yen reflected in other
income, lower operating expenses, and a lower effective tax rate, partially
offset by lower revenue. The effective tax rate in the third fiscal quarter
decreased primarily due to the company's recent election to permanently
reinvest the earnings of its Japan subsidiaries. Compared to the prior
quarter, net income was up $6.1 million mainly due to the company's higher
level of sales, higher gross profit margin, lower operating expenses and a
lower effective tax rate. Year to date, net income of $34.6 million was up
18.6 percent compared to the prior year.

Diluted earnings per share were $0.65 this quarter, which includes a $0.05
benefit associated with the company's permanent reinvestment election in
Japan, up from $0.55 reported in the third quarter of fiscal 2012 and up from
$0.40 reported in the previous quarter. Year to date, diluted earnings per
share of $1.46 were up 17.7 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) 318-8612. Callers outside the U.S. can dial (617) 399-5131.
The conference code for the call is 62171186.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 1,050 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.

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
March 31, 2013 and in the company's annual report on Form 10-K for the fiscal
year ended September 30, 2012, 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,
                        2013      2013       2012       2013       2012
                                                               
Revenue                  $109,968 $100,364 $115,678 $316,865 $317,036
                                                               
Cost of goods sold      55,359    52,019     60,462     163,872    166,747
                                                               
Gross profit             54,609    48,345     55,216     152,993    150,289
                                                               
Operating expenses:                                             
                                                               
Research, development &  15,149    15,073     15,415     45,538     43,241
technical
                                                               
Selling & marketing     6,470     7,046      7,458      20,625     22,228
                                                               
General &                10,776    12,287     10,695     34,017     38,773
administrative
                                                               
Total operating expenses 32,395    34,406     33,568     100,180    104,242
                                                               
Operating income         22,214    13,939     21,648     52,813     46,047
                                                               
Interest expense         907       872        955        2,732      1,348
                                                               
Other income (expense),  248       463        (864)      1,565      (663)
net
                                                               
Income before income     21,555    13,530     19,829     51,646     44,036
taxes
                                                               
Provision for income     6,062     4,110      6,587      17,030     14,849
taxes
                                                               
Net income               $15,493 $9,420   $13,242  $34,616  $29,187
                                                               
Basic earnings per       $0.68     $0.41      $0.57      $1.51      $1.28
share
                                                               
Weighted average basic   22,951    22,974     23,120     22,897     22,778
shares outstanding
                                                               
Diluted earnings per     $0.65     $0.40      $0.55      $1.46      $1.24
share
                                                               
Weighted average diluted 23,776    23,871     23,939     23,729     23,547
shares outstanding



CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
                                                               
                                                     June 30,   September 30,
                                                     2013       2012
ASSETS:                                                         
                                                               
Current assets:                                                 
Cash and cash equivalents                             $201,611  $178,459
Accounts receivable, net                             55,921    53,506
Inventories, net                                      64,531    66,472
Other current assets                                  19,162    19,451
Total current assets                                  341,225    317,888
                                                               
Property, plant and equipment, net                    109,777   125,020
Other long-term assets                                74,384    74,917
Total assets                                          $525,386 $517,825
                                                               
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY:                           
                                                               
Current liabilities:                                            
Accounts payable                                      $14,778  $19,542
Current portion of long-term debt                     12,031    10,937
Capital lease obligations                             --        2
Accrued expenses, income taxes payable and other      32,612    32,738
current liabilities
Total current liabilities                             59,421     63,219
                                                               
Long-term debt, net of current portion                154,219   161,875
Capital lease obligations, net of current portion     --        19
Other long-term liabilities                           8,925     9,121
Total liabilities                                     222,565   234,234
                                                               
Stockholders' equity                                  302,821   283,591
Total liabilities and stockholders' equity            $525,386  $517,825

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

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