AURORA, IL, July 25, 2001 - Cabot Microelectronics Corporation (Nasdaq: CCMP), the leading supplier of chemical mechanical planarization (CMP) polishing slurries to the semiconductor industry, today reported results for its third fiscal quarter ended June 30, 2001.
Revenue for the quarter was $51.5 million, up 1.7%, compared to the prior-year results on a pro forma* basis. On a sequential basis, third quarter revenue was down 7.6% from the second quarter of this year. Net income was $8.9 million, down 1.9% from the prior-year pro forma results, and diluted earnings per share were $0.36, compared to $0.38 in the prior-year pro forma results.
For the nine-month fiscal period, revenues reached $175.8 million, an increase of 41.3% compared with pro forma revenues of $124.4 million in the same period last year. Net income for the nine-month period was $32.7 million, up 75.1% over the same period last year on a pro forma basis and diluted earnings per share were $1.35 compared to $0.89 in the prior year.
"The combination of continued weakness in most global economies, higher than normal chip inventories, and slower demand for electronic systems continues to limit the demand for advanced ICs and our products, which are necessary in the manufacturing process of advanced ICs," stated Dr. Matthew Neville, Cabot Microelectronics' Chairman, President and CEO. "Although we experienced a sequential revenue decline for the third quarter, revenues occurred evenly throughout each of the three months of this quarter. We experienced sequential growth in copper slurry sales, which demonstrates that our customers are continuing to invest in leading edge technologies including copper, low-k dielectric materials, and feature shrinks.
"Visibility remains clouded relative to the duration of this downturn. During this period, we remain committed to 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. By so doing, we are confident in our ability to emerge from this industry downturn with an even more compelling customer value proposition," concluded Neville.
*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 June 30, 2000 by $0.2 million while reducing reported net income for the nine months ended June 30, 2000 by $2.1 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.
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, 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 Related to our Business" in Management's Discussion and Analysis in our quarterly report on Form 10Q for the quarter ended March 31, 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.