AURORA, Ill.--(BUSINESS WIRE)--July 22, 2004--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 third
fiscal quarter, which ended June 30, 2004. The company also announced
that its Board of Directors has authorized a share repurchase program
for up to $25 million of the company's outstanding common stock.
Total revenue for the third fiscal quarter of 2004 was $76.9
million, up 4.6% from $73.5 million in the prior quarter and up 19.7%
from $64.3 million in the third quarter a year ago. Slurries used for
copper, tungsten, and oxide polishing applications all experienced
sequential revenue increases this quarter. Average selling price also
rose sequentially by 2.0%, due to a higher valued product mix than in
the prior quarter, partially offset by selected price reductions.
Gross profit for the quarter was $39.0 million, up by 7.9% from
the prior quarter's $36.1 million, and up 18.5% from $32.9 million in
the year ago quarter. As a percentage of revenue, gross profit
increased to 50.7% this quarter from 49.2% last quarter, primarily due
to the benefits of higher manufacturing capacity utilization and a
more favorable product mix versus the previous quarter, partially
offset by selected price reductions. Gross profit in the same quarter
of last year represented 51.2% of revenue.
Operating expenses of $21.1 million, consisting of research and
development, selling and marketing, and general and administrative
expenses, decreased by $0.2 million sequentially, and were $2.8
million higher than the same quarter last year.
Net income for the quarter was $12.2 million, up by 26.0% from
$9.7 million last quarter, and up 25.4% from $9.8 million in the same
quarter last year. Diluted earnings per share were $0.49 this quarter,
compared to $0.39 in the previous quarter and $0.40 in the year ago
quarter.
In addition, with respect to the $25 million share repurchase
program, share repurchases will be funded from the company's cash
balance, which as of June 30, 2004 was $155.9 million, and are
primarily intended to diminish dilution from stock option and employee
stock purchase plans. Share repurchases under the program may be made
at management's discretion from time to time, depending on market
conditions, in open market transactions. The program, which is
effective immediately, may be suspended or terminated at the company's
discretion. At present, the company has approximately 24.8 million
shares of common stock outstanding and an aggregate market
capitalization of approximately $680 million.
"We are proud of our strong financial performance this quarter,
including our achievement of a record level of quarterly revenue,"
stated William P. Noglows, Chairman and CEO. "Our company has recently
realized progress on a number of important initiatives that we believe
will contribute toward our long term success. First, in support of our
strategy to enlarge and strengthen our already substantial presence in
the Asia Pacific region, we purchased additional land adjoining our
existing facilities in Japan to expand our current infrastructure
there. Second, as part of our strategy of continued technology
leadership, we entered into a strategic alliance with NanoProducts
Corporation, a technology leader in the field of nanoscale particles,
and also obtained a minority equity position in the company, which we
believe will allow us to leverage innovative next generation abrasives
for our CMP slurries and other fine finish polishing applications.
Finally, we believe the implementation of our share repurchase program
represents a prudent use of a portion of our growing cash balance. We
are excited about the progress we have made, as demonstrated by these
important initiatives, and we believe we are well positioned for
continued leadership in this competitive arena."
Conference Call
Cabot Microelectronics' quarterly earnings conference call will be
held today at 9:00 a.m. Central Time. The live conference call will be
available to all interested parties via webcast from the company's
website, www.cabotcmp.com, or by phone at (800) 893-3008. Callers
outside the U.S. can dial (706) 634-5531. For those who cannot listen
to the live broadcast, a replay will be available through August 19,
2004, by calling (800) 642-1687 or (706) 645-9291, and using access
code 5676078, or via webcast at www.cabotcmp.com. A transcript of the
formal comments made during the conference call will be available in
the Investor Relations section of the company's website.
About Cabot Microelectronics
Cabot Microelectronics Corporation, headquartered in Aurora,
Illinois, is the leading supplier of CMP slurries for polishing
various materials used in semiconductor manufacturing processes. The
company's products play a critical role in the production of the most
advanced semiconductor devices, enabling the manufacture of smaller,
faster and more complex devices by its customers. For more information
about Cabot Microelectronics Corporation, visit www.cabotcmp.com or
contact Mr. David H. Li, Director 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 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 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 quarterly report on Form 10-Q for the
quarter ended March 31, 2004, and our Annual Report on Form 10-K for
the fiscal year ended September 30, 2003, both filed with the SEC.
Cabot Microelectronics Corporation 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,
2004 2004 2003 2004 2003
--------- --------- -------- --------- ---------
Revenue $76,925 $73,515 $64,288 $226,719 $183,762
Cost of goods sold 37,915 37,366 31,360 114,307 90,811
--------- --------- -------- --------- ---------
Gross profit 39,010 36,149 32,928 112,412 92,951
Operating expenses:
Research and
development 11,158 11,143 10,803 33,024 29,047
Selling and
marketing 4,235 4,363 2,751 12,381 7,883
General and
administrative 5,659 5,749 4,655 16,532 13,618
Amortization of
intangibles 85 85 85 255 255
--------- --------- -------- --------- ---------
Total operating
expenses 21,137 21,340 18,294 62,192 50,803
--------- --------- -------- --------- ---------
Operating income 17,873 14,809 14,634 50,220 42,148
Other income
(expense), net 72 (86) 46 22 84
--------- --------- -------- --------- ---------
Income before
income taxes 17,945 14,723 14,680 50,242 42,232
Provision for
income taxes 5,699 5,006 4,918 16,681 14,148
--------- --------- -------- --------- ---------
Net income $12,246 $9,717 $9,762 $33,561 $28,084
========= ========= ======== ========= =========
Basic earnings per
share $0.49 $0.39 $0.40 $1.35 $1.15
========= ========= ======== ========= =========
Weighted average
basic shares
outstanding 24,818 24,785 24,389 24,775 24,341
========= ========= ======== ========= =========
Diluted earnings per
share $0.49 $0.39 $0.40 $1.35 $1.14
========= ========= ======== ========= =========
Weighted average
diluted shares
outstanding 24,912 24,926 24,639 24,919 24,600
========= ========= ======== ========= =========
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
June 30, September 30,
2004 2003
------------- -------------
ASSETS:
Current assets:
Cash and cash equivalents $155,885 $111,318
Accounts receivable, net 37,952 37,564
Inventories, net 24,565 23,814
Other current assets 7,286 6,416
------------- -------------
Total current assets 225,688 179,112
Property, plant and equipment, net 126,900 133,695
Other long-term assets 2,368 2,810
------------- -------------
Total assets $354,956 $315,617
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $13,363 $12,521
Capital lease obligations 1,434 1,716
Accrued expenses, income taxes payable
and other current liabilities 13,597 14,679
------------- -------------
Total current liabilities 28,394 28,916
Capital lease obligations 6,612 7,452
Deferred income taxes and other long-term
liabilities 9,523 7,476
------------- -------------
Total liabilities 44,529 43,844
Stockholders' equity 310,427 271,773
------------- -------------
Total liabilities and stockholders'
equity $354,956 $315,617
============= =============
CONTACT: Cabot Microelectronics Corporation
William S. Johnson, 630-375-5591
SOURCE: Cabot Microelectronics Corporation