AURORA, Ill., Jan. 22 /PRNewswire-FirstCall/ -- 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 first fiscal quarter ended December 31,
2003.
Total revenue for the first fiscal quarter of 2004 was $76.3 million, up
12.3% on a sequential basis from $67.9 million in the prior quarter and up
33.2% from $57.3 million in the first quarter a year ago. The revenue
increase this quarter was primarily due to strengthening demand for the
company's products within the semiconductor industry. Sequentially higher
sales levels were achieved in all product lines and all geographic regions.
Average price per gallon increased slightly this quarter due to better product
mix and the effect of the U.S. dollar's weakening against the Japanese Yen.
Gross profit of $37.3 million in the first fiscal quarter was up
sequentially from $34.4 million. However, as a percentage of revenue, gross
profit decreased from 50.7% last quarter to 48.8%. This quarter gross profit
was adversely affected by higher manufacturing and other product costs
associated with meeting increasing customer requirements for higher product
quality and greater product consistency. These higher costs this quarter more
than offset the combined benefit of higher capacity utilization, due to this
quarter's higher level of sales, and the absence of the $2.0 million charge
recorded last quarter related to a minimum purchase obligation under a raw
material supply agreement. Gross profit in the year ago quarter was
$29.6 million, which represented 51.7% of revenue.
Operating expenses of $19.7 million, consisting of research and
development, selling and marketing, and general and administrative expenses,
decreased sequentially $0.8 million, and were $4.0 million higher than the
year ago quarter. This decrease from the prior quarter was mainly due to
lower spending on wafers and supplies used in the company's research and
development program, and was partially offset by a modest increase in staffing
costs. Operating expenses represented 25.8% of sales this quarter, compared
with 30.2% in the prior quarter and 28.3% for full fiscal year 2003.
Net income for the quarter was $11.6 million, up 20.2% from $9.6 million
in the previous quarter and up 25.1% from $9.3 million in the year ago
quarter. Diluted earnings per share were $0.46 this quarter, compared to
$0.39 in the previous quarter and $0.38 in the year ago quarter.
"We are pleased with our overall sales growth and profitability this
quarter," stated William P. Noglows, Cabot Microelectronics' Chairman and CEO.
"We believe that the investments and commitments we made during the prolonged
industry downturn have positioned us well for what appears to be a strong
recovery in the semiconductor industry. Our operating profit this quarter
demonstrates our ability to leverage our substantial investment in research
and development and other fixed operating expenses as sales increase. We
remain committed to maintaining our leadership position in this competitive
CMP slurry arena."
Conference Call
Cabot Microelectronics' quarterly earnings conference call will be held
today at 9:00 a.m. Central Time. The live conference call and a subsequent
replay will be available via webcast at www.cabotcmp.com . Access to the live
call is also available by phone at 800-923-0061, access code 4711006. Callers
outside of the U.S. can dial 706-634-5545. For assistance, call 630-499-2600.
This press release, as well as the transcript of the formal comments made
during the conference call, will be available in the Investor Relations
section of the company's web site at www.cabotcmp.com .
About Cabot Microelectronics
Cabot Microelectronics Corp., headquartered in Aurora, IL., is the leading
supplier of CMP slurries for polishing various materials used in semiconductor
manufacturing processes. These products enable manufacturers of integrated
circuits to make smaller, faster and more complex devices and improve their
production processes. For more information about Cabot Microelectronics,
visit www.cabotcmp.com or call 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, product performance, 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 described
by these forward-looking statements. In particular, see "Risks Relating to
Our Business" in Management's Discussion and Analysis in our annual report on
Form 10-K for the fiscal year ended September 30, 2003, filed with the SEC.
Cabot Microelectronics Corporation assumes no obligation to update this
forward-looking information.
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited in thousands, except per share amounts)
Quarter Ended
Dec. 31, Sept. 30, Dec. 31,
2003 2003 2002
Revenue $76,279 $67,903 $57,273
Cost of goods sold 39,026 33,458 27,665
Gross profit 37,253 34,445 29,608
Operating expenses:
Research and development 10,723 12,469 8,635
Selling and marketing 3,783 3,338 2,578
General and administrative 5,124 4,607 4,368
Amortization of intangibles 85 85 85
Total operating expenses 19,715 20,499 15,666
Operating income 17,538 13,946 13,942
Other income (expense), net 36 (111) (5)
Income before income taxes 17,574 13,835 13,937
Provision for income taxes 5,976 4,186 4,669
Net income $11,598 $9,649 $9,268
Basic earnings per share $0.47 $0.39 $0.38
Weighted average basic shares
outstanding 24,733 24,591 24,300
Diluted earnings per share $0.46 $0.39 $0.38
Weighted average diluted shares
outstanding 24,994 25,049 24,579
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
December 31, September 30,
2003 2003
ASSETS:
Current assets:
Cash and cash equivalents $127,359 $111,318
Accounts receivable, net 41,009 37,564
Inventories, net 22,682 23,814
Other current assets 7,039 6,416
Total current assets 198,089 179,112
Property, plant and equipment, net 132,117 133,695
Other long-term assets 2,728 2,810
Total assets $332,934 $315,617
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Current liabilities:
Accounts payable $12,819 $12,521
Capital lease obligations 1,746 1,716
Accrued expenses, income taxes
payable and other current
liabilities 16,133 14,679
Total current liabilities 30,698 28,916
Capital lease obligations 7,054 7,452
Deferred income taxes and other long-
term liabilities 8,108 7,476
Total liabilities 45,860 43,844
Stockholders' equity 287,074 271,773
Total liabilities and
stockholders' equity $332,934 $315,617
Contact:
William S. Johnson
Vice President and Chief Financial Officer
Cabot Microelectronics Corporation
630/375-6631
SOURCE Cabot Microelectronics Corporation
-0- 01/22/2004
/CONTACT: William S. Johnson, Vice President and Chief Financial Officer
of Cabot Microelectronics Corporation, +1-630-375-6631/
/Web site: http://www.cabotcmp.com /
(CCMP)
CO: Cabot Microelectronics Corporation
ST: Illinois
IN: CPR HRD MLM ENV CHM
SU: ERN CCA
SH-AM
-- CGTH018 --
7711 01/22/2004 08:00 EST http://www.prnewswire.com