AURORA, Ill., Jan. 23 /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, 2002.
Total revenue for the first fiscal quarter of 2003 was $57.3 million, up 12.3% from the first quarter a year ago. On a sequential basis, revenue was down 12.2% from the fourth fiscal quarter of 2002. The majority of the revenue decrease from the prior quarter was due to decreased demand caused by a decline in wafer starts along with a few customers drawing down their slurry inventories. The Company's overall average selling price was unchanged.
Gross margin in the first fiscal quarter of 51.7% was up sequentially from 51.1%. The improvement in margin primarily resulted from lower manufacturing operating costs and other expenses, which more than offset the effect of lower production volumes. Gross margin in the year ago quarter was 53.4%.
Operating expenses of $15.7 million, consisting of research and development (R&D), selling and marketing and general and administrative expenses, were down sequentially by $0.9 million, mainly due to lower spending on research and development supplies as well as other reduced discretionary items. Operating expenses increased on a year-over-year basis by $2.4 million, primarily due to increases in R&D efforts consistent with the Company's strategy of investing to maintain its technology leadership. The Company's current estimate of its worldwide effective tax rate for all of fiscal 2003 is 33.5%.
Net income for the quarter was $9.3 million, compared to $11.5 million in the fourth quarter and $9.0 million in the year ago quarter. On a diluted share basis, earnings were $0.38 this quarter, compared to $0.47 in the fourth quarter and $0.37 in the year ago first quarter.
"During our first fiscal quarter of 2003, Cabot Microelectronics delivered solid financial performance that showed concrete improvement in our overall year-over-year financial measures and operational initiatives," stated Dr. Matthew Neville, Cabot Microelectronics, Chairman and CEO. "Despite the ongoing effects of the global and industry downturn and sequential impact of our customers' reduction in wafer starts to meet current end-market demand, we were able to deliver these results because of our continued mission critical focus to advance our product technologies and improve our customer relationships, while stringently managing our costs. We remain encouraged about the long-term growth opportunities for the CMP consumables market, given factors such as our customers' continued implementation of advanced technologies, feature shrinks, and the adoption of new materials and processes that require CMP."
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 or www.ccbn.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 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 10K for the fiscal year ended September 30, 2002, 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, 2002 2002 2001 Revenue $57,273 $65,264 $51,004 Cost of goods sold 27,665 31,946 23,746 Gross profit 29,608 33,318 27,258 Operating expenses: Research and development 8,635 10,102 6,947 Selling and marketing 2,578 2,469 2,358 General and administrative 4,368 3,917 3,884 Amortization of intangibles 85 74 90 Total operating expenses 15,666 16,562 13,279 Operating income 13,942 16,756 13,979 Other income (expense) (5) 71 (317) Income before income taxes 13,937 16,827 13,662 Provision for income taxes 4,669 5,377 4,645 Net income $9,268 $11,450 $9,017 Basic net income per share $0.38 $0.47 $0.37 Weighted average basic shares outstanding 24,300 24,231 24,096 Diluted net income per share $0.38 $0.47 $0.37 Weighted average diluted shares outstanding 24,579 24,501 24,532 CABOT MICROELECTRONICS CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited and amounts in thousands)
December 31, September 30, 2002 2002 ASSETS: Current assets: Cash and cash equivalents $76,796 $69,605 Accounts receivable, net 28,141 26,082 Inventories, net 24,390 21,959 Other current assets 5,910 5,637 Total current assets 135,237 123,283 Property, plant and equipment, net 131,449 132,264 Other long-term assets 2,637 2,838 Total assets $269,323 $258,385 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $9,405 $11,748 Capital lease obligation 1,612 1,585 Accrued expenses, income taxes payable and other current liabilities 17,248 17,238 Total current liabilities 28,265 30,571 Long-term debt 3,500 3,500 Capital lease obligation 8,499 8,865 Deferred income taxes and other long-term liabilities 2,197 1,943 Total liabilities 42,461 44,879 Stockholders' equity 226,862 213,506 Total liabilities and stockholders' equity $269,323 $258,385
|CONTACT:||Daniel S. Wobby, Corporate Controller and Acting Chief|
|Financial Officer of Cabot Microelectronics Corporation, +1-630-375-6631|
SOURCE Cabot Microelectronics Corp.
/CONTACT: Daniel S. Wobby, Corporate Controller and Acting Chief Financial Officer of Cabot Microelectronics Corporation, +1-630-375-6631/