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 or political factors and international or national 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; the financial conditions of the company’s customers; natural disasters; the acquisition of, investment in, or collaboration with 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 December 31, 2016 and in the company’s annual report on Form 10-K for the fiscal year ended September 30, 2016, both filed with the SEC. Cabot Microelectronics assumes no obligation to update this forward-looking information.
1Free cash flow is cash provided by operating activities less capital expenditures.
| CABOT MICROELECTRONICS CORPORATION | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited and amounts in thousands, except per share amounts) | |||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||
| March 31, | December 31, | March 31, | March 31, | March 31, | |||||||||||
| 2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||
| Revenue | $ | 119,184 | $ | 123,254 | $ | 99,244 | $ | 242,438 | $ | 199,613 | |||||
| Cost of goods sold | 59,153 | 61,749 | 52,348 | 120,902 | 102,522 | ||||||||||
| Gross profit | 60,031 | 61,505 | 46,896 | 121,536 | 97,091 | ||||||||||
| Operating expenses: | |||||||||||||||
| Research, development & technical | 14,090 | 13,396 | 14,934 | 27,486 | 29,762 | ||||||||||
| Selling & marketing | 7,268 | 7,552 | 6,668 | 14,820 | 13,417 | ||||||||||
| General & administrative | 14,699 | 12,496 | 12,990 | 27,195 | 27,253 | ||||||||||
| Total operating expenses | 36,057 | 33,444 | 34,592 | 69,501 | 70,432 | ||||||||||
| Operating income | 23,974 | 28,061 | 12,304 | 52,035 | 26,659 | ||||||||||
| Interest expense | 1,135 | 1,150 | 1,191 | 2,285 | 2,358 | ||||||||||
| Other income (expense), net | 234 | 996 | 452 | 1,230 | 642 | ||||||||||
| Income before income taxes | 23,073 | 27,907 | 11,565 | 50,980 | 24,943 | ||||||||||
| Provision for income taxes | 4,793 | 5,676 | 2,434 | 10,469 | 4,503 | ||||||||||
| Net income | $ | 18,280 | $ | 22,231 | $ | 9,131 | $ | 40,511 | $ | 20,440 | |||||
| Income available to common shareholders | $ | 18,232 | $ | 22,129 | $ | 9,090 | $ | 40,365 | $ | 20,280 | |||||
| Basic earnings per share | $ | 0.73 | $ | 0.90 | $ | 0.38 | $ | 1.63 | $ | 0.84 | |||||
| Weighted average basic shares outstanding | 25,031 | 24,583 | 24,061 | 24,798 | 24,070 | ||||||||||
| Diluted earnings per share | $ | 0.71 | $ | 0.88 | $ | 0.37 | $ | 1.60 | $ | 0.83 | |||||
| Weighted average diluted shares outstanding | 25,526 | 25,072 | 24,408 | 25,304 | 24,444 | ||||||||||
