AURORA, Ill.--(BUSINESS WIRE)--Oct. 25, 2001--Cabot
Microelectronics Corporation (Nasdaq: CCMP), the leading supplier of
chemical mechanical planarization (CMP) polishing slurries to the
semiconductor industry, today reported financial results for its
fourth fiscal quarter ended September 30, 2001.
Revenue for the quarter was $51.4 million, down 8.5% compared to
the prior-year results on a pro forma(a) basis. On a sequential basis,
fourth quarter revenue was essentially flat with the third quarter of
this year. Net income was $9.2 million, down 14.4% from the prior-year
pro forma results, but was up 4.1% sequentially. Diluted earnings per
share were $0.38, compared to $0.44 in the prior-year fourth quarter
pro forma results and $0.36 in the third quarter of this year.
For the fiscal year, revenues reached $227.2 million, an increase
of 25.8% compared with pro forma revenues of $180.6 million last year.
Net income for the fiscal year was $41.9 million, up 42.4% over last
year on a pro forma basis and diluted earnings per share were $1.72,
compared to $1.34 last year.
"Our fourth quarter results benefited from copper product
revenues, which grew 56% sequentially from the third quarter and 2.5
times on a full year over year basis," stated Dr. Matthew Neville,
Cabot Microelectronics' Chairman, President and CEO. "This
demonstrates the continued technology advancements being made by our
customers, through device feature shrinks and the adoption of copper
wiring, notwithstanding the present severity of the semiconductor
industry downturn. It also provides further evidence that leading edge
technology chip activities appear to have been less impacted during
this downturn than the industry as a whole. Our efforts at continuous
product innovation during the quarter were not only evident in our
copper results, but also in the market gains we experienced in the
hard disk drive sector. These successes, coupled with tight control
over discretionary costs, contributed to our 4% sequential quarterly
earnings improvement.
"As we begin our new fiscal year, we are encouraged by the
continued pace of technology advancement, which we expect to provide
growth for our business over time. We remain more committed than ever
to our customer-driven support initiatives, including developing new
and improved products to support our customers' advancing technology
needs, making all necessary strategic R&D and other investments, and
stringently managing discretionary costs," concluded Neville.
(a)Pro Forma Reporting
To provide a consistent basis of comparison with current year
results, prior year historical financial results are presented
together with prior year results on a pro forma basis. Pro forma
adjustments have been made to present the results as they would have
occurred if certain agreements entered into in connection with our
separation from Cabot Corporation had been in place throughout the
prior year. Pro forma adjustments also have been made to exclude
certain one-time transactions associated with our separation from
Cabot Corporation. These pro forma adjustments increased reported net
income for the three months ended September 30, 2000 by $1.0 million
while reducing reported net income for the fiscal year ended September
30, 2000 by $1.1 million. Cabot Microelectronics Corporation operated
as the Microelectronics Materials Division of Cabot Corporation prior
to its initial public offering on April 4, 2000. The spin-off of Cabot
Microelectronics Corporation from Cabot Corporation was completed on
September 29, 2000.
Conference Call
Cabot Microelectronics' quarterly earnings conference call will be
held today at 11:00 a.m. Central Time. The live conference call and a
subsequent replay will be available via Webcast at www.cabotcmp.com or
www.streetfusion.com. For assistance, call 1-630-499-2600.
About Cabot Microelectronics
Cabot Microelectronics Corp., headquartered in Aurora, Ill., is
the leading supplier of CMP slurries for polishing various materials
used in semiconductor manufacturing processes. These products enable
IC manufacturers to make smaller, faster and more complex devices and
improve their production processes. For more information on Cabot
Microelectronics, visit www.cabotcmp.com or call 1-630-499-2600.
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, 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 anticipated 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 10Q for the quarter ended June 30, 2001, and our Annual
Report on Form 10K for the fiscal year ended September 30, 2000, both
filed with the SEC. Cabot Microelectronics Corporation assumes no
obligation to update this forward-looking information.
(Tables to follow)
CABOT MICROELECTRONICS CORPORATION
PRO FORMA STATEMENTS OF INCOME
(Unaudited and in thousands, except per share amounts)
Three Months Twelve Months
Ended September 30 Ended September 30
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue $ 51,411 $ 56,186 $227,192 $180,572
Cost of goods sold 25,305 27,182 108,419 90,478
--------- --------- --------- ---------
Gross profit 26,106 29,004 118,773 90,094
Operating expenses:
Research and development 6,297 5,244 25,805 19,762
Selling and marketing 2,292 2,433 8,757 7,594
General and administrative 4,106 5,114 21,054 16,219
Amortization of goodwill
and other intangibles 179 180 718 718
--------- --------- --------- ---------
Total operating
expenses 12,874 12,971 56,334 44,293
--------- --------- --------- ---------
Operating income 13,232 16,033 62,439 45,801
Other income (expense) 208 3 1,049 (499)
--------- --------- --------- ---------
Income before income taxes 13,440 16,036 63,488 45,302
Provision for income taxes 4,217 5,262 21,586 15,870
--------- --------- --------- ---------
Net income $ 9,223 $ 10,774 $ 41,902 $ 29,432
========= ========= ========= =========
Basic net income per share $0.38 $0.46 $1.76 $1.39
========= ========= ========= =========
Weighted average basic
shares outstanding 24,043 23,590 23,824 21,214
========= ========= ========= =========
Diluted net income per share $0.38 $0.44 $1.72 $1.34
========= ========= ========= =========
Weighted average diluted
shares outstanding 24,510 24,353 24,327 21,888
========= ========= ========= =========
Notes to Unaudited Pro Forma Statements of Income:
a. Certain amounts in the prior fiscal year have been
reclassified to conform with the current year presentation.
b. Pro forma results reflect the revenue and cost of goods sold
which would have resulted had our dispersion services
agreement and fumed metal oxide supply agreement with Cabot
Corporation been in effect for the periods presented. Pro
forma results also include interest expense which would have
been incurred on the borrowings necessary to finance a
dividend to Cabot Corporation and exclude a one-time charge of
$2,113 related to stock options granted to non-Cabot
Microelectronics employees and a one-time charge of $1,642 for
the accelerated vesting of Cabot Microelectronics' employee
incentive compensation and benefits at the time of the
spin-off from Cabot Corporation.
CABOT MICROELECTRONICS CORPORATION
STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
Three Months Twelve Months
Ended September 30 Ended September 30
2001 2000 2001 2000
--------- --------- --------- ---------
(unaudited)
Revenue $ 51,411 $ 56,186 $227,192 $181,156
Cost of goods sold 25,305 27,182 108,419 86,290
--------- --------- --------- ---------
Gross profit 26,106 29,004 118,773 94,866
Operating expenses:
Research and development 6,297 5,244 25,805 19,762
Selling and marketing 2,292 2,433 8,757 7,594
General and administrative 4,106 6,756 21,054 19,974
Amortization of goodwill
and other intangibles 179 180 718 718
--------- --------- --------- ---------
Total operating
expenses 12,874 14,613 56,334 48,048
--------- --------- --------- ---------
Operating income 13,232 14,391 62,439 46,818
Other income (expense) 208 3 1,049 130
--------- --------- --------- ---------
Income before income taxes 13,440 14,394 63,488 46,948
Provision for income taxes 4,217 4,646 21,586 16,446
--------- --------- --------- ---------
Net income $ 9,223 $ 9,748 $ 41,902 $ 30,502
========= ========= ========= =========
Basic net income per share $0.38 $0.41 $1.76 $1.44
========= ========= ========= =========
Weighted average basic
shares outstanding 24,043 23,590 23,824 21,214
========= ========= ========= =========
Diluted net income per share $0.38 $0.40 $1.72 $1.39
========= ========= ========= =========
Weighted average diluted
shares outstanding 24,510 24,353 24,327 21,888
========= ========= ========= =========
Note to Statements of Income:
Certain amounts in the prior fiscal year have been
reclassified to conform with the current year presentation.
CABOT MICROELECTRONICS CORPORATION
CONDENSED BALANCE SHEETS
(Amounts in thousands)
September 30, September 30,
2001 2000
------------- -------------
ASSETS:
Current assets:
Cash and cash equivalents $ 47,677 $ 9,971
Accounts receivable, net 26,735 30,595
Inventories, net 16,806 14,014
Other current assets 5,236 4,473
------------- -------------
Total current assets 96,454 59,053
Property, plant and equipment, net 97,426 71,873
Other long-term assets 2,801 5,180
------------- -------------
Total assets $ 196,681 $ 136,106
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 13,557 $ 11,646
Accrued expenses and other
current liabilities 12,809 12,554
------------- -------------
Total current liabilities 26,366 24,200
Long-term debt 3,500 3,500
Deferred income taxes and other
long-term liabilities 528 844
------------- -------------
Total liabilities 30,394 28,544
Stockholders' equity 166,287 107,562
------------- -------------
Total liabilities and
stockholders' equity $ 196,681 $ 136,106
============= =============
--30--as/cgo*
| CONTACT: |
Cabot Microelectronics Corporation |
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Martin M. Ellen, 630/375-6631 |
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