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Cabot Microelectronics Corporation Reports Strong Results for Fourth Quarter and Full Fiscal Year 2013



Cabot Microelectronics Corporation Reports Strong Results for Fourth Quarter
and Full Fiscal Year 2013

  * Record Quarterly Revenue of $116.3 Million; Annual Revenue of $433.1
    Million
  * Fourth Quarter Gross Profit Margin of 50.9 Percent; Annual Gross Profit
    Margin of 49.0 Percent is Above Guidance
  * Fourth Quarter Earnings Per Share of $0.70; Full Year EPS 23.4 Percent
    Higher Than Prior Year

AURORA, Ill., Oct. 29, 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 fourth
quarter and full fiscal year 2013, which ended September 30.

Total revenue during the fourth fiscal quarter was $116.3 million, which
represents a record revenue level for the company. This reflects an increase
of 5.1 percent compared to the same quarter last year and an increase of 5.7
percent from the prior quarter, on solid demand for the company's products.
The company achieved a gross profit margin of 50.9 percent of revenue in the
fourth fiscal quarter, which is the highest level since December 2009, and
diluted earnings per share of $0.70, an increase of 42.9 percent compared to
the prior year quarter. For the full fiscal year, the company achieved revenue
of $433.1 million, a gross profit margin of 49.0 percent of revenue, which is
the highest level since full fiscal 2010, and diluted earnings per share of
$2.16, 23.4 percent higher than in the prior year. The company's balance sheet
reflects a cash balance of $226.0 million, which is $24.4 million higher than
in the prior quarter and $47.6 million higher than last year, and $161.9
million of debt outstanding as of September 30, 2013.

"We are pleased with our strong financial performance for the quarter and full
fiscal year, despite soft semiconductor industry conditions in the first half,
and we believe the execution of our long-term strategic initiatives continues
to create value for our customers and our shareholders," said William Noglows,
Chairman and CEO of Cabot Microelectronics. "From a technology standpoint, we
are now focusing more heavily on collaborating with our customers to provide
innovative solutions for leading edge applications, and the recent growth in
revenues from our CMP solutions for polishing aluminum and advanced
dielectrics are specific examples of our ability to innovate to meet our
customers' challenging product performance requirements for leading edge
applications. From a customer standpoint, we believe the supplier excellence
awards we earned during the fiscal year exemplify our ongoing commitment to
collaborating with our customers and consistently delivering innovative, high
performing and high-quality products. Finally, on the operations side, we
continued to improve our productivity this year, and also ramped production at
our facility in South Korea, contributing to our strong margin performance and
profitability."

Mr. Noglows continued, "Based on this sound execution of our strategic
initiatives in fiscal 2013, we believe we are well positioned for continued
success in fiscal 2014. While a number of industry analysts and certain
customers are forecasting some softness in demand early in our fiscal year, we
are confident in our ability to continue delivering attractive results across
a variety of industry demand environments."

Key Financial Information

The company's record revenue of $116.3 million in the fourth fiscal quarter
represents a 5.1 percent increase from the $110.6 million reported in the same
quarter last year, and a 5.7 percent increase from $110.0 million in the prior
quarter. Compared to the same quarter last year, revenue from all the
company's business areas increased except for its Tungsten and Pads
businesses. Compared to the prior quarter, revenue from all the company's
business areas increased, except for its Data Storage business.

Total revenue for the full fiscal year was $433.1 million, which represents a
1.3 percent increase from $427.7 million in fiscal 2012. Full year revenue
results reflect strengthening in demand for the company's products in the
second half of the fiscal year after soft industry conditions in the first
half of the year, and include an adverse foreign exchange impact of $5.9
million.

Gross profit, expressed as a percentage of revenue, was 50.9 percent this
quarter, compared to 48.6 percent in the same quarter a year ago and 49.7
percent in the prior quarter. Compared to the year ago quarter, gross profit
percentage increased primarily due to lower fixed manufacturing costs and
benefits associated with a weaker Japanese yen versus the U.S. dollar. The
increase in gross profit percentage versus the previous quarter was primarily
due to lower variable manufacturing costs, despite higher costs associated
with the transition to a new raw material supply contract with an existing
supplier that the company discussed last quarter, and higher sales volume,
partially offset by higher fixed manufacturing costs.

Gross profit margin for the full fiscal year was 49.0 percent of revenue,
which is above the company's full year guidance range of 46 to 48 percent of
revenue. Gross profit margin increased from 47.7 percent of revenue in fiscal
2012, primarily due to the favorable impact of the weaker Japanese yen and
lower fixed manufacturing costs. For full fiscal year 2014, the company is
increasing its gross profit margin guidance range to between 48 and 50 percent
of revenue.

Operating expenses, which include research, development and technical, selling
and marketing, and general and administrative expenses, were $35.5 million in
the fourth fiscal quarter, or $2.2 million higher than the $33.3 million
reported in the same quarter a year ago, primarily due to higher staffing
related expenses, including incentive compensation costs related to the strong
financial results, partially offset by lower depreciation expense and clean
room materials expense. Operating expenses were $3.1 million higher than the
$32.4 million reported in the previous quarter, primarily due to higher
staffing related costs, including incentive compensation costs.

For the full year, total operating expenses decreased 1.4 percent to $135.6
million, and were within the company's guidance range for full fiscal year
2013 of $132 million to $136 million. The company expects its operating
expense for full fiscal year 2014 to be between $131 million and $135 million.

Net income for the quarter was $16.8 million, up from $11.6 million in the
same quarter last year and $15.5 million in the prior quarter. Compared to the
same quarter last year, net income was higher primarily due to the company's
higher level of sales, higher gross profit margin and a lower effective tax
rate, partially offset by higher operating expenses. Compared to the prior
quarter, net income was up mainly due to the company's higher revenue and
higher gross profit margin, partially offset by higher operating expenses. Net
income for the full fiscal year was $51.4 million, up from $40.8 million in
fiscal 2012 primarily due to a higher gross profit margin, a lower effective
tax rate, a favorable impact of the weaker Japanese yen reflected in other
income, and a higher level of sales.

Diluted earnings per share were $0.70 this quarter, up from $0.49 reported in
the fourth quarter of fiscal 2012 and $0.65 reported in the previous quarter.
Earnings per share for full fiscal year 2013 were $2.16, up from $1.75
reported in the previous fiscal 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) 700-6293. Callers outside the U.S. can dial (617) 213-8835.
The conference code for the call is 36031930. 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
June 30, 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                    Twelve Months Ended
                        September  June 30,   September  September  September
                        30,                   30,        30,        30,
                        2013       2013       2012       2013       2012
                                                                     
Revenue                  $ 116,266  $ 109,968  $ 110,621  $ 433,131  $ 427,657
                                                                     
Cost of goods sold      57,143     55,359     56,883     221,015    223,630
                                                                     
 Gross profit           59,123     54,609     53,738     212,116    204,027
                                                                     
Operating expenses:                                                  
                                                                     
 Research, development  15,835     15,149     15,401     61,373     58,642
& technical 
                                                                     
 Selling & marketing    7,360      6,470      7,288      27,985     29,516
                                                                     
 General &              12,270     10,776     10,572     46,287     49,345
administrative 
                                                                     
 Total operating        35,465     32,395     33,261     135,645    137,503
expenses
                                                                     
Operating income        23,658     22,214     20,477     76,471     66,524
                                                                     
Interest expense        911        907        961        3,643      2,309
                                                                     
Other income (expense), (173)      248        (681)      1,392      (1,344)
net
                                                                     
Income before income    22,574     21,555     18,835     74,220     62,871
taxes
                                                                     
Provision for income    5,805      6,062      7,196      22,835     22,045
taxes 
                                                                     
 Net income              $ 16,769   $ 15,493   $ 11,639   $ 51,385   $ 40,826
                                                                     
Basic earnings per      $0.73      $0.68      $0.51      $2.24      $1.81
share 
                                                                     
Weighted average basic  23,041     22,951     22,920     22,924     22,506
shares outstanding 
                                                                     
Diluted earnings per    $0.70      $0.65      $0.49      $2.16      $1.75
share 
                                                                     
Weighted average
diluted shares          24,072     23,776     23,706     23,802     23,280
outstanding 

                                                                  
                                                                  
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
                                                                  
                                                   September 30, September 30,
                                                   2013          2012
ASSETS:                                                           
                                                                  
Current assets:                                                   
 Cash and cash equivalents                          $ 226,029     $ 178,459
 Accounts receivable, net                           54,640        53,506
 Inventories, net                                   63,786        66,472
 Other current assets                               21,257        19,451
 Total current assets                              365,712       317,888
                                                                  
Property, plant and equipment, net                  111,985       125,020
Other long-term assets                              76,809        74,917
 Total assets                                       $ 554,506     $ 517,825
                                                                  
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY:                             
                                                                  
Current liabilities:                                              
 Accounts payable                                   $ 16,663      $ 19,542
 Current portion of long-term debt                  10,938        10,937
 Capital lease obligations                          --            2
 Accrued expenses, income taxes payable and other   39,899        32,738
current liabilities
 Total current liabilities                         67,500        63,219
                                                                  
Long-term debt, net of current portion              150,937       161,875
Capital lease obligations, net of current portion   --            19
Other long-term liabilities                         8,992         9,121
 Total liabilities                                  227,429       234,234
                                                                  
Stockholders' equity                                327,077       283,591
 Total liabilities and stockholders' equity         $ 554,506     $ 517,825

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

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