EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
William S. Johnson
Vice President and Chief Financial Officer
Cabot Microelectronics Corporation
630/375-6631
CABOT MICROELECTRONICS REPORTS RESULTS
FOR SECOND FISCAL QUARTER 2004
AURORA, IL, April 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
second fiscal quarter, which ended March 31, 2004.
Total revenue for the second fiscal quarter of 2004 was $73.5 million, down 3.6%
from $76.3 million in the prior quarter and up 18.2% from $62.2 million in the
second quarter a year ago. While overall sales volumes increased slightly from
the prior quarter, revenue was adversely affected by a decline in the overall
average selling price as a result of a lower valued product mix and selective
price reductions.
Gross profit of $36.1 million in the quarter was down by 3.0% sequentially from
the $37.3 million reported in the prior quarter and up 18.9% from the $30.4
million reported in the year ago quarter. As a percentage of revenue, gross
profit increased to 49.2% this quarter from 48.8% last quarter, primarily due to
higher yields in the company's manufacturing process and overall lower product
costs, partially offset by lower prices. Gross profit in the same quarter of
last year represented 48.9% of revenue.
Operating expenses of $21.3 million, consisting of research and development,
selling and marketing, and general and administrative expenses, increased
sequentially by $1.6 million, and were $4.5 million higher than the comparable
quarter last year. The increase from the prior quarter was partially
attributable to approximately $0.5 million in separation costs associated with
the departure of two executives, which the company had previously disclosed,
along with annual wage and salary increases that became effective on January 1,
higher depreciation, and a modest increase in research and development expense.
Net income for the quarter was $9.7 million, down 16.2% from $11.6 million in
the previous quarter and up 7.3% from $9.1 million in the year ago quarter.
Diluted earnings per share were $0.39 this quarter, compared to $0.46 in the
previous quarter and $0.37 in the year ago quarter.
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CABOT MICROELECTRONICS REPORTS
RESULTS FOR SECOND FISCAL QUARTER 2004...............................PAGE 2 OF 4
"While it has been a challenging quarter, we believe we are well-positioned for
continued leadership in the competitive CMP slurry arena," stated William P.
Noglows, Cabot Microelectronics' Chairman and CEO. "We view our operational and
technical capabilities and facilities as unmatched in the industry, enabling us
to continue to meet our customers' increasing requirements for product quality
and performance. Further, the breadth and depth of our infrastructure, along
with a renewed focus on costs, provide us with continued opportunities to
capture efficiencies and economies of scale in our business."
CONFERENCE CALL
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. Access to the live call is also
available by phone at 800-893-3008, access code 4711975. Callers outside of the
U.S. can dial 706-634-5531. For assistance, call 630-499-2600. This press
release, as well as the transcript of the formal comments made during the
conference call, will be available in the Investor Relations section of the
company's web site at www.cabotcmp.com.
ABOUT CABOT MICROELECTRONICS
Cabot Microelectronics, 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, visit www.cabotcmp.com or call
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 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 quarterly report on Form 10-Q for
the quarter ended December 31, 2003, 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.
###
[Tables to follow]
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and amounts in thousands, except per share amounts)
Quarter Ended Six Months Ended
--------------------------------------- -------------------------
March 31, Dec. 31, March 31, March 31, March 31,
2004 2003 2003 2004 2003
--------- --------- --------- --------- ---------
Revenue $ 73,515 $ 76,279 $ 62,201 $ 149,794 $ 119,474
Cost of goods sold 37,366 39,026 31,786 76,392 59,451
--------- --------- --------- --------- ---------
Gross profit 36,149 37,253 30,415 73,402 60,023
Operating expenses:
Research and development 11,143 10,723 9,609 21,866 18,244
Selling and marketing 4,363 3,783 2,554 8,146 5,132
General and administrative 5,749 5,124 4,595 10,873 8,963
Amortization of intangibles 85 85 85 170 170
--------- --------- --------- --------- ---------
Total operating expenses 21,340 19,715 16,843 41,055 32,509
--------- --------- --------- --------- ---------
Operating income 14,809 17,538 13,572 32,347 27,514
Other income (expense), net (86) 36 43 (50) 38
--------- --------- --------- --------- ---------
Income before income taxes 14,723 17,574 13,615 32,297 27,552
Provision for income taxes 5,006 5,976 4,561 10,982 9,230
--------- --------- --------- --------- ---------
Net income $ 9,717 $ 11,598 $ 9,054 $ 21,315 $ 18,322
========= ========= ========= ========= =========
Basic earnings per share $ 0.39 $ 0.47 $ 0.37 $ 0.86 $ 0.75
========= ========= ========= ========= =========
Weighted average basic shares outstanding 24,785 24,733 24,346 24,761 24,325
========= ========= ========= ========= =========
Diluted earnings per share $ 0.39 $ 0.46 $ 0.37 $ 0.85 $ 0.75
========= ========= ========= ========= =========
Weighted average diluted shares outstanding 24,926 24,994 24,593 24,935 24,589
========= ========= ========= ========= =========
CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
March 31, September 30,
2004 2003
-------- -------------
ASSETS:
Current assets:
Cash and cash equivalents $140,264 $111,318
Accounts receivable, net 38,452 37,564
Inventories, net 23,861 23,814
Other current assets 8,427 6,416
-------- --------
Total current assets 211,004 179,112
Property, plant and equipment, net 129,799 133,695
Other long-term assets 2,660 2,810
-------- --------
Total assets $343,463 $315,617
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 14,398 $ 12,521
Capital lease obligations 1,591 1,716
Accrued expenses and other current liabilities 12,141 14,679
-------- --------
Total current liabilities 28,130 28,916
Capital lease obligations 6,835 7,452
Deferred income taxes and other long-term liabilities 8,669 7,476
-------- --------
Total liabilities 43,634 43,844
Stockholders' equity 299,829 271,773
-------- --------
Total liabilities and stockholders' equity $343,463 $315,617
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