Cabot Microelectronics 2Q revenues reflect soft market

AURORA - Cabot Microelectronics reported revenue of $99.2 million for the second quarter of fiscal year 2016, reflecting a continued soft demand in the semiconductor industry.

Gross profit margin was 47.3 percent of revenue. The company recorded diluted earnings per share of 37 cents for the second fiscal quarter. Cash flow from operations was $25.4 million.

"This quarter we made significant progress on a number of strategic initiatives, although our financial results reflect continued soft semiconductor industry demand, consistent with my comments during our annual meeting on March 8," said David Li, president and CEO of Cabot Microelectronics. "During the quarter we won new business in CMP slurries, pads, and slurry-and-pad consumable sets. In particular, we advanced customer adoption of our new, high-performing colloidal silica-based dielectrics slurries. "

During the quarter, the company purchased $15 million of stock under its share repurchase program. As of March 31, 2016, the company's balance sheet reflected a cash balance of $226.4 million and $159.7 million of debt outstanding. On April 15, the company paid its first regular quarterly cash dividend of 18 cents per share, or approximately $4.4 million in aggregate.

"Looking ahead, we continue to expect stronger semiconductor industry demand in the second half of our fiscal year, and through the first month of our third fiscal quarter orders for our CMP products have notably strengthened," Li said. "With our continued focus on executing our strategic initiatives, strengthening and growing our current business, and building our pipeline of new business opportunities, we are confident that we are well positioned to deliver profitable growth for our company, particularly with improving near term demand conditions, and in light of longer term industry trends."