8-K

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):

October 25, 2007

Cabot Microelectronics Corporation

(Exact name of registrant as specified in its charter)

Delaware	000-30205	36-4324765
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer 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:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   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 October 25, 2007, Cabot Microelectronics Corporation issued a press release entitled “Cabot Microelectronics Corporation Reports Results for Fourth Quarter and Full Fiscal Year 2007,” 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 fourth fiscal quarter and full fiscal year ended September 30, 2007.  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 October 25, 2007, entitled “Cabot Microelectronics Corporation Reports Results for Fourth Quarter and Full Fiscal Year 2007.”

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: October 25, 2007	By:	/s/ WILLIAM S. JOHNSON
		William S. Johnson
		Vice President and Chief Financial Officer
		[Principal Financial Officer]

INDEX TO EXHIBITS

Exhibit Number	Title
99.1	Press release, dated October 25, 2007, entitled “Cabot Microelectronics Corporation Reports Results for Fourth Quarter and Full Fiscal Year 2007.”

EX-99.1

Exhibit 99.1

CABOT MICROELECTRONICS CORPORATION REPORTS RESULTS

FOR FOURTH QUARTER AND FULL FISCAL YEAR 2007

  §Record Quarterly Revenue of $90.4 Million

  §Record Annual Revenue of $338.2 Million

  §Quarterly Gross Profit Percentage Increase of 140 Basis Points

  §Annual Gross Profit Percentage Increase of 80 Basis Points

AURORA, IL, October 25, 2007 – Cabot Microelectronics Corporation (Nasdaq:  CCMP), the world’s leading supplier of chemical mechanical planarization (CMP) polishing slurries to the semiconductor industry, today reported financial results for its fourth fiscal quarter and full fiscal year 2007, which ended September 30.

Total revenue during the fourth fiscal quarter reached $90.4 million and is the highest quarterly revenue in the company’s history, building on the previous record of $89.0 million achieved in the prior quarter.  Total CMP revenue was 5.3 percent higher than the prior quarter, and sequential revenue increases were recorded in each of the company’s CMP application areas.  Sales of slurry for tungsten applications reached a second consecutive quarter of record revenue.  Total revenue this quarter was 3.9 percent higher than the $87.0 million in revenue reported in the same quarter last year.

Revenue for the full fiscal year was a record $338.2 million, which was $17.4 million, or 5.4 percent higher than revenue for the previous fiscal year.  Full year revenue reflects the addition of the QED business, acquired in July of 2006, as well as relatively soft semiconductor industry demand for the company’s CMP products in the first half of the fiscal year followed by a stronger environment in the second half of the year.

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The average selling price for the company’s slurry products sold in the fourth quarter was slightly higher than in the prior quarter.  For the full year, the average selling price increased by 1.6 percent, mostly attributable to a higher-priced product mix.

Gross profit as a percentage of revenue was 49.1 percent this quarter, up from 47.7 percent in the prior quarter and 44.4 percent in the year ago quarter.  The increase in gross profit percentage compared to both periods was largely driven by higher manufacturing capacity utilization.  Also contributing to the increase over the prior year was the absence of the $1.1 million write-off of production assets in the fourth quarter of fiscal 2006 associated with retrofitting a building for the company’s pad business.  Gross profit for the full fiscal year was 47.3 percent of revenue, compared to 46.5 percent in the previous year, representing the first annual increase in gross profit percentage in the company’s history.

Operating expenses, consisting of research, development and technical, selling and marketing, and general and administrative expenses were $30.3 million in the fourth quarter.  This was $2.4 million higher than the $27.9 million reported last quarter, primarily due to higher accruals for the company’s annual cash bonus program and higher professional fees, partially offset by lower costs for clean room materials in the company’s research and development activities.  Operating expenses this quarter were $2.1 million higher than in the same quarter last year, driven by higher accruals for the company’s annual cash bonus program and higher professional fees.  These increases were partially offset by the absence of $1.8 million of one-time write-offs in research and development incurred in the fourth quarter of fiscal 2006.

For the full year, operating expenses were $114.2 million, which represents a 9.2 percent increase from $104.6 million reported in fiscal 2006.  The increase was primarily due to operating expenses associated with the acquired QED business and higher professional fees.

Net income for the quarter was $10.2 million, up from $10.1 million last quarter and $8.2 million in the year ago quarter.  Net income for the full fiscal year was $33.8 million, up 2.7 percent from $32.9 million in fiscal 2006.

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Diluted earnings per share were $0.43 this quarter, up from $0.42 in the previous quarter and $0.34 in the fourth quarter of fiscal 2006.  Earnings per share for full fiscal year 2007 of $1.42 were up 4.7 percent from $1.36 for the previous fiscal year.

“We are proud of our accomplishments this quarter, as well as for the entire fiscal year.  Guided by our strategic initiatives of technology leadership, operations excellence and connecting with customers, we achieved our second consecutive year of record revenue, despite operating in a soft industry environment during the first half of the year.  Simultaneously, we increased our annual gross profit percentage for the first time in our company’s history, which we believe demonstrates our ability to grow profitably in spite of competitive pressures, increasing customer performance requirements, and industry cycles,” stated William Noglows, Chairman and CEO of Cabot Microelectronics.

 “We are also energized by the progress made in our company’s growth initiatives.  First, our Engineered Surface Finishes (ESF) business had an outstanding year.  Our ESF acquisitions have performed better than expected, our internal efforts have started yielding commercial sales for applications outside of the semiconductor industry, and our strong balance sheet and cash flow give us the flexibility to continue investing in this area.  Second, with our new CMP pad manufacturing capacity on line and nine customer adoptions across a variety of applications, technology nodes and polishing tools, we believe that we are well positioned for stronger performance in our pad business in the coming year.  On the whole, I am encouraged by our achievements this year and look forward to another successful year in 2008.”

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 (866) 362-4832.  Callers outside the U.S. can dial (617) 597-5364.  The conference code for the call is 78233676.  A replay will be available through November 22, 2007 via webcast at www.cabotcmp.com.  A transcript of the formal comments made during the conference call will also be available in the Investor Relations section of the company’s website.

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ABOUT CABOT MICROELECTRONICS CORPORATION

Cabot Microelectronics Corporation, headquartered in Aurora, Illinois, 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 the most advanced semiconductor devices, enabling the manufacture of smaller, faster and more complex devices by its customers. Since becoming an independent public company in 2000, the company has grown to approximately 750 employees. The company's vision is to become the world leader in shaping, enabling and enhancing the performance of surfaces, so the company is leveraging its expertise in CMP slurry formulation, materials and polishing techniques developed for the semiconductor industry and applying it to demanding surface modification applications in other industries where shaping, enabling and enhancing the performance of surfaces is critical to success.  For more information about Cabot Microelectronics Corporation, visit www.cabotcmp.com or contact Amy Ford, 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 or trends; growth of the markets in which the company participates; international events; product performance; the generation, protection and acquisition of intellectual property, and litigation related to such intellectual property; new product introductions; development of new products, technologies and markets; the acquisition of or investment in other entities; and the construction of new or refurbishment of existing 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 “Risk Factors" in the company’s quarterly report on Form 10-Q for the quarter ended June 30, 2007 and in the company’s annual report on Form 10-K for the fiscal year ended September 30, 2006, both filed with the SEC. Cabot Microelectronics assumes no obligation to update this forward-looking information.

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CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited and amounts in thousands, except per share amounts)
	Quarter Ended							Twelve Months Ended
	September 30,  2007		June 30,  2007			September 30, 2006		September 30, 2007		September 30, 2006
Revenue	$	90,379	$	89,023		$	86,982	$	338,205	$	320,795
Cost of goods sold		45,983		46,552			48,328		178,224		171,758
Gross profit		44,396		42,471			38,654		159,981		149,037
Operating expenses:
Research, development & technical		12,209		12,033			13,030		49,970		48,070
Selling & marketing		6,518		6,469			5,528		24,310		21,115
General & administrative		11,584		9,387			8,556		39,933		34,319
Purchased in-process research & development		-		-			1,120		-		1,120
Total operating expenses		30,311		27,889			28,234		114,213		104,624
Operating income		14,085		14,582			10,420		45,768		44,413
Other income (expense), net		1,320		(148	)		1,541		3,606		4,111
Income before income taxes		15,405		14,434			11,961		49,374		48,524
Provision for income taxes		5,246		4,373			3,803		15,538		15,576
Net income	$	10,159	$	10,061		$	8,158	$	33,836	$	32,948
Basic earnings per share	$	0.43	$	0.43		$	0.34	$	1.42	$	1.36
Weighted average basic shares outstanding		23,783		23,662			24,087		23,748		24,228
Diluted earnings per share	$	0.43	$	0.42		$	0.34	$	1.42	$	1.36
Weighted average diluted shares outstanding		23,847		23,687			24,087		23,754		24,228

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CABOT MICROELECTRONICS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited and amounts in thousands)
					September 30, 2007		September 30, 2006
			ASSETS:
Current assets:
	Cash, cash equivalents and short-term investments			$	212,472	$	165,930
	Accounts receivable, net				52,302		48,028
	Inventories, net				37,266		40,326
	Other current assets				8,714		7,221
		Total current assets			310,754		261,505
Property, plant and equipment, net					118,454		130,176
Other long-term assets					25,921		20,452
		Total assets		$	455,129	$	412,133
		LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
	Accounts payable			$	15,859	$	15,104
	Capital lease obligations				1,066		1,254
	Accrued expenses, income taxes payable and other current liabilities				19,638		22,475
		Total current liabilities			36,563		38,833
Capital lease obligations					3,608		4,420
Other long-term liabilities					1,754		1,109
		Total liabilities			41,925		44,362
Stockholders' equity					413,204		367,771
		Total liabilities and stockholders' equity		$	455,129	$	412,133

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