Cabot Microelectronics 3Q revenues drop

Globe Newswire

AURORA - Cabot Microelectronics Corp. reported third quarter revenue for fiscal year 2015 was down 10.3 percent over the same period last year as business in the microprocessor industry remains soft.

The manufacturer of chemical polishing slurries and CMP pads used in the microprocessor industry said revenue for the quarter was $97.2 million. The company's gross profit margin of 50 percent of revenue in the third fiscal quarter, which includes the adverse effect of $1.4 million, or 140 basis points, in costs related to certain raw material that did not meet the company's quality requirements.

The company recorded diluted earnings per share of 39 cents for the third fiscal quarter, which includes a combined 7 cent adverse impact of the higher costs related to material quality and a higher effective tax rate compared to the same quarter last year, primarily related to the jurisdictional mix of earnings. Cash flow from operations was $25.2 million. As of June 30, 2015, the company's cash balance, net of debt outstanding, was $172.4 million.

"Consistent with our update on the quarter last week, our results this quarter reflect both industry and company-specific headwinds. However, despite these challenges, on a year-to-date basis our revenue, gross profit margin and net income are all higher than last year," said David Li, President and CEO of Cabot Microelectronics. "We continue to experience strong demand for our tungsten slurry products across a wide range of applications and technology nodes, and we remain focused on a broad transformation of our dielectrics slurry product area. During the quarter, we made further progress on commercializing our new higher performing dielectrics solutions, and we secured several new business opportunities."