Cabot Microelectronics Corporation Reports Strong Results for Third Quarter of Fiscal 2016

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; growth or contraction, and trends in the industry and markets in which the company participates; the company’s management; various economic factors and international events; regulatory or legislative activity; 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 company’s supply chain; natural disasters; the acquisition of or investment in other entities; uses and investment of the company’s cash balance, including dividends and share repurchases, which may be suspended, terminated or modified at any time for any reason, based on a variety of factors; financing facilities and related debt, payment of principal and interest, and compliance with covenants and other terms; the company’s capital structure; the company’s current or future tax rate; and the operation of 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 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 March 31, 2016 and in the company’s annual report on Form 10-K for the fiscal year ended September 30, 2015, both filed with the SEC.  Cabot Microelectronics 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 EndedNine Months Ended
 June 30,March 31,June 30,June 30,June 30,
  2016  2016  2015  2016  2015 
  
Revenue$  108,152 $  99,244 $  97,168 $  307,765 $  313,960 
      
Cost of goods sold  56,127  52,348  48,609  158,649  153,751 
      
Gross profit 52,025  46,896  48,559  149,116  160,209 
      
Operating expenses:     
      
Research, development & technical  12,928  14,934  14,773  42,690  44,922 
      
Selling & marketing  6,243  6,668  5,804  19,660     19,220  
           
General & administrative    10,738     12,990     12,830     37,991     38,877  
           
Total operating expenses   29,909     34,592     33,407     100,341     103,019  
           
Operating income   22,116     12,304     15,152     48,775     57,190  
           
Interest expense   1,178     1,191     1,065     3,536     3,030  
           
Other income (expense), net   (246 )   452     (160 )   396     565  
           
Income before income taxes   20,692     11,565     13,927     45,635     54,725  
           
Provision for income taxes    1,990     2,434     4,041     6,493     11,112  
           
Net income $   18,702   $   9,131   $   9,886   $   39,142   $   43,613  
           
           
           
Income available to common shareholders $   18,592   $   9,090   $   9,741   $   38,882   $   43,221  
           
           
Basic earnings per share  $ 0.78   $ 0.38   $ 0.40   $ 1.62   $ 1.80  
           
Weighted average basic shares outstanding    23,929     24,061     24,333     24,023     24,005  
           
Diluted earnings per share  $ 0.76   $ 0.37   $ 0.39   $ 1.59   $ 1.75  
           
Weighted average diluted shares outstanding    24,325     24,408     24,813     24,403     24,655  

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