Cabot Microelectronics Reports Results for First Quarter of Fiscal 2006.AURORA Aurora, cities, United States Aurora (ərôr`ə, ô–). 1 City (1990 pop. 222,103), Adams and Arapahoe counties, N central Colo., a growing suburb on the east side of Denver; inc. 1903. , Ill. -- Cabot Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. Corporation (Nasdaq:CCMP CCMP Comprehensive Conservation and Management Plan CCMP Counter-Mode/CBC-Mac Protocol (IEEE 802.11I encryption algorithm) CCMP Capacitively Coupled Microwave Plasma CCMP Coalition of Concerned Medical Professionals ), the world's leading supplier of chemical mechanical planarization (CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information ) polishing slurries to the semiconductor industry, today reported financial results for its first quarter of fiscal 2006, which ended December December: see month. 31, 2005. Total revenue for the first fiscal quarter was $81.5 million, up 10.3% from $73.9 million in the prior quarter and up 21.5% from $67.1 million in the first quarter a year ago. This was the second consecutive quarter in which the company's revenue grew by more than ten percent. Slurry slurry, n a thin mixture of insoluble material floating in liquid. slurry solids in suspension. Used as a method of feeding pigs—slurry is pumped through fixed lines and delivered to troughs by hoses equipped with gasoline pump fittings. revenues for copper, tungsten tungsten (tŭng`stən) [Swed.,=heavy stone], metallic chemical element; symbol W; at. no. 74; at. wt. 183.85; m.p. about 3,410°C;; b.p. 5,660°C;; sp. gr. 19.3 at 20°C;; valence +2, +3, +4, +5, or +6. and dielectric dielectric (dī'ĭlĕk`trĭk), material that does not conduct electricity readily, i.e., an insulator (see insulation). A good dielectric should also have other properties: It must resist breakdown under high voltages; it should not applications all increased sequentially. Average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. fell by 1.1% compared with the prior quarter, primarily due to selected price reductions and the effect of the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation).“JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. , partially offset by a higher-priced product mix. Gross profit for the quarter was $38.4 million, up 11.0% from $34.6 million in the prior quarter and up 14.4% from $33.6 million in the same quarter a year ago. As a percentage of revenue, gross profit was 47.2% this quarter compared with 46.9% reported for last quarter and 50.1% in the same quarter last year. Gross profit expressed as a percentage of revenue rose this quarter primarily due to higher capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. and lower fixed manufacturing costs, partially offset by certain higher variable manufacturing costs, including costs to resolve a quality issue related to a dielectric product. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $25.1 million, consisting of research and development, selling and marketing, and general and administrative expense, increased by $1.1 million sequentially from $24.0 million last quarter, and were $5.7 million higher than $19.4 million in the same quarter last year. The sequential increase in operating expenses was primarily due to the commencement this quarter, as required by accounting rules, of the inclusion of stock option expense. The company recorded total stock option expense of $2.4 million this quarter, of which $2.2 million was included in operating expenses. This was partially offset by lower costs in certain areas, including cleanroom (programming) cleanroom - A software development approach aimed at producing software with the minimum number of errors. materials and laboratory supplies for research and development activities. Net income for the quarter was $9.6 million, up 16.0% from $8.3 million last quarter, despite the inclusion this quarter of stock option expense. Net income in the same quarter last year was $9.8 million. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.39 this quarter, up from $0.34 in the previous quarter, even with the adverse impact of approximately $0.07 of stock option expense. Earnings per share in the first quarter of fiscal 2005 were $0.40. "We are pleased with our strong revenue growth and profitability this quarter, especially given the adverse impact of stock option expensing," stated William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack Noglows, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cabot Microelectronics. "This strong start to the fiscal year reflects an upturn in the semiconductor industry, but we believe it also results from the steps we've we've Contraction of we have. we've have taken over the last two years to strengthen and grow our core CMP business. We expect to continue executing our strategic initiatives of technology leadership, operations excellence and getting closer to our customers in the coming year. We also plan to make further progress on our Engineered Surface Finishes initiative to deliver revolutionary performance to customers outside of our core CMP business by leveraging our capability to modify surfaces at an atomic level." CONFERENCE CALL Cabot Microelectronics Corporation's quarterly earnings conference call will be held today at 9:00 a.m. Central Time. The live conference call will be available via webcast from the company's website, www.cabotcmp.com, or by phone at (800) 893-3008 with access code 4017819; callers outside the U.S. can dial (706) 634-5531. A replay will be available through February February: see month. 24, 2006 via webcast at www.cabotcmp.com. A transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record of the formal comments made during the conference call will also be available in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the company's website. ABOUT CABOT MICROELECTRONICS CORPORATION Cabot Microelectronics Corporation, headquartered in Aurora, Illinois Aurora is the largest city in Kane County, Illinois. The city also lies within DuPage, Will and Kendall counties. As reported in the 2000 U.S. census, the city was home to 142,990 people, while the city's estimated 2006 population is 170,617. , is the world's leading supplier of CMP slurries used in semiconductor and data storage manufacturing. The company's products play a critical role in the production of advanced semiconductor devices, enabling its customers to manufacture smaller, faster and more complex devices. As the company continues investing in its core CMP business, it is also looking beyond the semiconductor industry to pursue its vision to "be the world leader in shaping, enabling and enhancing the performance of surfaces". For more information about Cabot Microelectronics Corporation visit www.cabotcmp.com or contact Barbara A. Ven Horst, Director of Investor Relations at (630) 499-2600. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT This news release may include statements that constitute "forward looking statements" within the meaning of federal securities regulations. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include statements related to future sales and operating results, company and industry growth and trends, growth of the markets in which the company participates, international events, product performance, new product introductions, development of new products, technologies and markets, the acquisition of or investment in other entities, and the construction of new facilities by Cabot Microelectronics Corporation. 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Our Business" in Managements' Discussion and Analysis in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 2005, 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
-----------------------------------------
December 31, September 30, December 31,
2005 2005 2004
------------- ------------- -------------
Revenue $81,488 $73,861 $67,084
Cost of goods sold 43,051 39,234 33,472
------------- ------------- -------------
Gross profit 38,437 34,627 33,612
Operating expenses:
Research and development 11,659 12,147 9,544
Selling and marketing 5,026 4,863 4,176
General and administrative 8,410 7,029 5,580
Amortization of
intangibles 4 - 85
------------- ------------- -------------
Total operating
expenses 25,099 24,039 19,385
------------- ------------- -------------
Operating income 13,338 10,588 14,227
Other income, net 716 833 487
------------- ------------- -------------
Income before income taxes 14,054 11,421 14,714
Provision for income taxes 4,483 3,169 4,885
------------- ------------- -------------
Net income $9,571 $8,252 $9,829
============= ============= =============
Basic earnings per share $0.39 $0.34 $0.40
============= ============= =============
Weighted average basic
shares outstanding 24,363 24,459 24,638
============= ============= =============
Diluted earnings per share $0.39 $0.34 $0.40
============= ============= =============
Weighted average diluted
shares outstanding 24,363 24,460 24,721
============= ============= =============
Line items above include the
following amounts related to
share-based compensation
expense:
Cost of goods sold $150 $- $-
Research and development 233 - -
Selling and marketing 245 - -
General and
administrative 1,762 - -
Provision for income
taxes (762) - -
-----------------------------------------
Net income $1,628 $- $-
============= ============= =============
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
December 31, September 30,
2005 2005
------------- -------------
ASSETS:
Current assets:
Cash, cash equivalents, and short-term
investments $178,710 $171,041
Accounts receivable, net 42,486 36,759
Inventories, net 24,460 28,797
Other current assets 7,610 9,210
------------- -------------
Total current assets 253,266 245,807
Property, plant and equipment, net 134,044 135,784
Other long-term assets 5,399 5,172
------------- -------------
Total assets $392,709 $386,763
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $16,565 $10,236
Capital lease obligations 1,190 1,170
Accrued expenses, income taxes payable
and other current liabilities 18,667 24,216
------------- -------------
Total current liabilities 36,422 35,622
Capital lease obligations 5,188 5,436
Deferred income taxes and other long-term
liabilities 5,772 6,621
------------- -------------
Total liabilities 47,382 47,679
Stockholders' equity 345,327 339,084
------------- -------------
Total liabilities and stockholders'
equity $392,709 $386,763
============= =============
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