-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UutEhFKfy9dAQdrLBFhhNvUQkQiGRmwR6fzTMO90DW3B3S4hwf+jGKozWB+kjVj6 AevteKAcT253hnlZveGcfA== 0000950137-05-000775.txt : 20050127 0000950137-05-000775.hdr.sgml : 20050127 20050127072816 ACCESSION NUMBER: 0000950137-05-000775 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050127 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050127 DATE AS OF CHANGE: 20050127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CABOT MICROELECTRONICS CORP CENTRAL INDEX KEY: 0001102934 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 364324765 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30205 FILM NUMBER: 05551632 BUSINESS ADDRESS: STREET 1: 870 NORTH COMMONS DRIVE CITY: AURORA STATE: IL ZIP: 60504 BUSINESS PHONE: 6303755461 MAIL ADDRESS: STREET 1: 870 N COMMONS DR CITY: AURORA STATE: IL ZIP: 60504 8-K 1 c91475e8vk.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): January 27, 2005 Cabot Microelectronics Corporation ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 000-30205 36-4324765 - ------------------------------- ----------------------- --------------- (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation) Identification) 870 Commons Drive, Aurora, Illinois 60504 --------------------------------------------------- (Address of principal executive offices) (Zip Code) (630) 375-6631 ---------------------------------------------------- (Registrant's telephone number, including area code) Not applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On January 27, 2005, Cabot Microelectronics Corporation issued a press release entitled "Cabot Microelectronics Reports Results For First Quarter of Fiscal 2005," a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release contains financial and other information including that related to our first fiscal quarter ended December 31, 2004. The press release also includes cautionary statements identifying important factors that could cause actual results to differ materially from those described by any forward-looking statements. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Item 9.01 Financial Statements and Exhibits. (c) Exhibits The following exhibit is being furnished, not filed, herewith pursuant to Item 2.02 of Form 8-K: 99.1 Press release, dated January 27, 2005, entitled "Cabot Microelectronics Reports Results For First Quarter of Fiscal 2005." SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CABOT MICROELECTRONICS CORPORATION Date: January 27, 2005 By: /s/ WILLIAM S. JOHNSON ------------------------------------------ William S. Johnson Vice President and Chief Financial Officer [Principal Financial Officer] 2 INDEX TO EXHIBITS
Exhibit Number Title - ------ ----- 99.1 Press release, dated January 27, 2005, entitled "Cabot Microelectronics Reports Results For First Quarter of Fiscal 2005."
3 EX-99.1 2 c91475exv99w1.txt PRESS RELEASE EXHIBIT 99.1 CABOT MICROELECTRONICS REPORTS RESULTS FOR FIRST QUARTER OF FISCAL 2005 AURORA, IL, January 27, 2005 - 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 quarter of fiscal 2005, which ended December 31, 2004. Total revenue for the first fiscal quarter was $67.1 million, down 18.9% from $82.7 million in the prior quarter and down 12.1% from $76.3 million in the first quarter a year ago. The sequential revenue decrease was primarily due to lower demand for the company's products used in dielectric and tungsten applications, the combined revenue of which declined by 19.4% sequentially. The company attributes the decrease in demand to a reduction in wafer starts during the quarter by a number of customers. Revenue from slurries for copper polishing applications was down sequentially by 25.8% due to the remaining impact of lost business with one customer, which the company previously disclosed, as well as selected price reductions. Revenue from the company's products for data storage applications increased sequentially by 21.3%. Average selling price decreased by 2.9% this quarter compared to the prior quarter, primarily due to price reductions, which were partially offset by a higher valued product mix. Gross profit for the quarter was $33.6 million, down 16.4% from the prior quarter's $40.2 million, and down 9.8% from $37.3 million in the year ago quarter. As a percentage of revenue, gross profit increased to 50.1% this quarter from 48.6% last quarter and 48.8% in the same quarter last year. Gross profit as a percentage of revenue benefited this quarter from a higher valued product mix, as well as higher yields in the company's manufacturing operations. These benefits were partially offset by the effects of price reductions and lower utilization of the company's manufacturing capacity. Operating expenses of $19.4 million, consisting of research and development, selling and marketing, and general and administrative expenses, decreased by $1.3 million sequentially from $20.7 million last quarter, and were $0.3 million lower than the $19.7 million reported in the same quarter last year. Net income for the quarter was $9.8 million, down 25.4% from $13.2 million last quarter and down 15.3% from $11.6 million in the same quarter last year. Diluted earnings per share were $0.40 this quarter, compared to $0.53 in the previous quarter and $0.46 in the year ago quarter. "We believe that the sequential decrease in revenue that we experienced this quarter, which followed two consecutive quarters of record revenue, primarily reflects the impact of a reduction in semiconductor industry output on our business, which is principally wafer-start based," stated William P. Noglows, Cabot Microelectronics' Chairman and CEO. "In our view, this decrease in semiconductor production to reduce excess product inventories was primarily focused on communications devices that represent more mature technologies. Although broad based, the reduction in output was particularly evident among the foundries, which represent a significant portion of our business. As a result, sales of our products for tungsten and oxide polishing applications decreased significantly. Further, although we also experienced a sharp sequential decrease in revenue from our copper slurries, sales volume remained solid, adjusting for the loss of one customer which we have discussed in previous quarters. Despite the challenging industry conditions this quarter, we are particularly encouraged by results of our efforts to improve productivity and quality through our Six Sigma initiatives, as demonstrated by our improved manufacturing yields within this lower revenue environment, as well as our control of costs throughout the organization. In particular, we believe these improvements contributed to the increase in gross margin as a percentage of revenue that we achieved this quarter. From our perspective, these improvements, along with our demonstrated business model, position us well for continued profitability and strong cash generation." 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 February, 17, 2005 by calling (800) 642-1687 or (706) 645-9291, and using access code 3166676, or via webcast at www.cabotcmp.com. A transcript of the formal comments made during the conference call will be available in the Investor Relations section of the company's website. ABOUT CABOT MICROELECTRONICS Cabot Microelectronics Corporation, 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 Corporation visit www.cabotcmp.com or contact Mr. David H. Li, Director of Investor Relations, at (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 the markets in which the company participates, international events, product performance, new product introductions, development of new products and technologies, and 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 Our Business" in Management's Discussion and Analysis in our annual report on Form 10-K for the fiscal year ended September 30, 2004, filed with the SEC and available on our website, www.cabotcmp.com. 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, 2004 2004 2003 ------------ ------------ ------------ Revenue $ 67,084 $ 82,714 $ 76,279 Cost of goods sold 33,472 42,498 39,026 ------------ ------------ ------------ Gross profit 33,612 40,216 37,253 Operating expenses: Research and development 9,544 10,979 10,723 Selling and marketing 4,176 3,844 3,783 General and administrative 5,580 5,819 5,124 Amortization of intangibles 85 85 85 ------------ ------------ ------------ Total operating expenses 19,385 20,727 19,715 ------------ ------------ ------------ Operating income 14,227 19,489 17,538 Other income (expense), net 487 117 36 ------------ ------------ ------------ Income before income taxes 14,714 19,606 17,574 Provision for income taxes 4,885 6,439 5,976 ------------ ------------ ------------ Net income $ 9,829 $ 13,167 $ 11,598 ============ ============ ============ Basic earnings per share $ 0.40 $ 0.53 $ 0.47 ============ ============ ============ Weighted average basic shares outstanding 24,638 24,689 24,733 ============ ============ ============ Diluted earnings per share $ 0.40 $ 0.53 $ 0.46 ============ ============ ============ Weighted average diluted shares outstanding 24,721 24,783 24,994 ============ ============ ============
CABOT MICROELECTRONICS CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited and amounts in thousands)
December 31, September 30, 2004 2004 ------------- ------------- ASSETS: Current assets: Cash and cash equivalents $ 169,796 $ 157,318 Accounts receivable, net 32,596 41,347 Inventories, net 30,480 24,474 Other current assets 7,368 6,542 ------------- ------------- Total current assets 240,240 229,681 Property, plant and equipment, net 128,526 127,794 Other long-term assets 5,547 5,816 ------------- ------------- Total assets $ 374,313 $ 363,291 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 12,429 $ 13,080 Capital lease obligations 1,111 1,272 Accrued expenses, income taxes payable and other current liabilities 15,668 18,023 ------------- ------------- Total current liabilities 29,208 32,375 Capital lease obligations 6,153 6,385 Deferred income taxes and other long-term liabilities 9,091 8,909 ------------- ------------- Total liabilities 44,452 47,669 Stockholders' equity 329,861 315,622 ------------- ------------- Total liabilities and stockholders' equity $ 374,313 $ 363,291 ============= =============
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