Cabot Microelectronics Reports Results for Fourth Fiscal Quarter and Fiscal Year 2004, and Announces Asia Pacific Technology Center.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 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 fourth fiscal quarter and fiscal year ended September September: see month. 30, 2004. The company also announced that it has begun the design of a new technology center to be constructed in the Asia Pacific region. Total revenue for the fourth fiscal quarter of 2004 was $82.7 million, up 7.5% from $76.9 million in the prior quarter and up 21.8% from $67.9 million in the fourth quarter a year ago. For the second consecutive quarter, the company reported record quarterly revenue. The company experienced sequential revenue increases this quarter in all of its 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. application areas. Average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. was essentially unchanged from the previous quarter, as a higher valued product mix offset the impact of selected price reductions. Gross profit for the quarter was $40.2 million, up 3.1% from the $39.0 million reported last quarter and up 16.8% from $34.4 million in the year ago quarter. As a percentage of revenue, gross profit was 48.6% this quarter compared to 50.7% reported for last quarter. Gross profit this quarter was adversely affected by the impact of selected price reductions and higher costs, including transition costs associated with the termination of a polishing pad distribution agreement, as well as lower yields this quarter in the company's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . Gross profit for the year ago quarter was 50.7% of revenue. 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 $20.7 million, consisting of research and development, selling and marketing, and general and administrative expenses, decreased by $0.4 million sequentially from $21.1 million last quarter, and were $0.2 million higher than $20.5 million in the year ago quarter. Net income for the quarter was $13.2 million, up 7.5% from $12.2 million last quarter, and up 36.5% from $9.6 million in the same quarter last year. 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 $0.53 this quarter, compared to $0.49 in the previous quarter and $0.39 in the year ago quarter. The weighted average number of shares outstanding on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis was 24.8 million this quarter compared to 24.9 million in the prior quarter, primarily reflecting the company's repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of approximately 240 thousand shares for $8 million under its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program that was announced in July July: see month. , 2004. The share repurchase program is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: for up to $25 million. Revenue for fiscal year 2004 was $309.4 million, up 23.0% from the $251.7 million reported for fiscal year 2003. Diluted earnings per share in fiscal 2004 were $1.88, which represents a record for the company, up 22.9% from the $1.53 reported in fiscal 2003. The increase in earnings per share in fiscal 2004 reverses the year-over-year decrease in earnings per share experienced in the prior two fiscal years. The company's new Asia Pacific technology center will be constructed adjacent to its existing manufacturing facility in Geino, Japan. The new 18,000 sq. ft (1,672 sq. meters) facility will provide polishing, metrology metrology Science of measurement. Measuring a quantity means establishing its ratio to another fixed quantity of the same kind, known as the unit of that kind of quantity. , and product development capabilities. The technology center, which is the company's first development facility outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , is being designed to include a clean room, development and applications laboratories, a pilot plant and office space. The facility is scheduled to open during the third fiscal quarter of 2005. "We are proud of our strong financial performance this quarter and for the entire fiscal year," stated William P. 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. . "The achievement of our second consecutive quarter of record revenue as well as our record earnings per share for the fiscal year are notable accomplishments. The company's performance this year demonstrates our ability to continue to grow profitably despite increasing competitive pressures, increasing demands on product quality, and through industry cycles. We are also excited about the progress we have made throughout the year on three strategic initiatives - technology leadership, operations excellence and getting closer to customers - that we believe will help provide for our continued success and leadership in CMP slurries. For example, the construction of our new technology center in Japan reflects the importance of the Asia Pacific market to our business and underscores our commitment both to continuing to invest in our technology infrastructure to maintain our technology leadership, and to becoming even more responsive to the needs of our customers. Further, in pursuit of operations excellence, we have successfully launched a company-wide six-sigma program aimed at increasing productivity and managing costs. We believe that these initiatives, along with the breadth and depth of our business, which is focused on providing comprehensive CMP solutions for both leading edge logic and memory applications, will continue to provide a solid base from which to grow in the coming year, despite the current uncertainty in the semiconductor industry." 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 November, 18, 2004, by calling (800) 642-1687 or (706) 645-9291, and using access code 1609499, or 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 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 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 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
Professor David H. , 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 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. " 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 the markets in which the company participates, international events, product performance, new product introductions, development of new products and technologies, and the construction of new facilities 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Our Business" in Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial in our quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2004, and 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, 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 Twelve Months Ended
----------------------------- -------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2004 2004 2003 2004 2003
--------- --------- --------- --------- ---------
Revenue $82,714 $76,925 $67,903 $309,433 $251,665
Cost of goods sold 42,498 37,915 33,458 156,805 124,269
--------- --------- --------- --------- ---------
Gross profit 40,216 39,010 34,445 152,628 127,396
Operating expenses:
Research and
development 10,979 11,158 12,469 44,003 41,516
Selling and
marketing 3,844 4,235 3,338 16,225 11,221
General and
administrative 5,819 5,659 4,607 22,351 18,225
Amortization of
intangibles 85 85 85 340 340
--------- --------- --------- --------- ---------
Total operating
expenses 20,727 21,137 20,499 82,919 71,302
--------- --------- --------- --------- ---------
Operating income 19,489 17,873 13,946 69,709 56,094
Other income
(expense), net 117 72 (111) 139 (27)
--------- --------- --------- --------- ---------
Income before
income taxes 19,606 17,945 13,835 69,848 56,067
Provision for
income taxes 6,439 5,699 4,186 23,120 18,334
--------- --------- --------- --------- ---------
Net income $13,167 $12,246 $9,649 $46,728 $37,733
========= ========= ========= ========= =========
Basic earnings per
share $0.53 $0.49 $0.39 $1.89 $1.55
========= ========= ========= ========= =========
Weighted average
basic shares
outstanding 24,689 24,818 24,591 24,750 24,401
========= ========= ========= ========= =========
Diluted earnings
per share $0.53 $0.49 $0.39 $1.88 $1.53
========= ========= ========= ========= =========
Weighted average
diluted shares
outstanding 24,783 24,912 25,049 24,882 24,665
========= ========= ========= ========= =========
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
September September
30, 30,
2004 2003
--------- ---------
ASSETS:
Current assets:
Cash and cash equivalents $157,318 $111,318
Accounts receivable, net 41,347 37,564
Inventories, net 24,474 23,814
Other current assets 6,542 6,416
--------- ---------
Total current assets 229,681 179,112
Property, plant and equipment, net 127,794 133,695
Other long-term assets 5,816 2,810
--------- ---------
Total assets $363,291 $315,617
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $13,080 $12,521
Capital lease obligations 1,272 1,716
Accrued expenses, income taxes payable and other
current liabilities 18,023 14,679
--------- ---------
Total current liabilities 32,375 28,916
Capital lease obligations 6,385 7,452
Deferred income taxes and other long-term
liabilities 8,909 7,476
--------- ---------
Total liabilities 47,669 43,844
Stockholders' equity 315,622 271,773
--------- ---------
Total liabilities and stockholders' equity $363,291 $315,617
========= =========
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