Strong demand pushes Cabot Microelectronics 1Q revenue up 23 percent

AURORA - Cabot Microelectronics Corp. said revenues for the first quarter of fiscal 2017 were up 22.8 percent as global demand for its products remained strong.

Total revenue during the first fiscal quarter was $123.3 million, 22.8 percent higher than in the same quarter last year, and a record level for the company for the second consecutive quarter. The total included record quarterly revenue in its tungsten slurry and pads product areas, and significant revenue growth from its dielectrics slurries. Gross profit margin was 49.9 percent of revenue.

The company achieved record diluted earnings per share of 88 cents, representing an increase of 91.3 percent compared to the same quarter last year. As of December 31, 2016, the company's balance sheet reflected a cash balance of $305.7 million and $154.7 million of debt outstanding.

"We are pleased with our strong start to fiscal 2017, as we achieved record levels of revenue and profit for the second consecutive quarter driven by strong semiconductor industry demand and the continued successful execution of our strategic initiatives," said David Li, President and CEO of Cabot Microelectronics. "During the quarter, we continued the momentum from last year in three key product areas - CMP slurries for polishing tungsten, dielectrics slurries, and CMP pads.

"In particular, we experienced robust demand for our slurry solutions driven by the growing adoption of 3-D NAND and FinFET technologies, as well as our leading supply positions in other applications," Li added. " In addition, our pad revenue grew based on heightened customer pull for our products, including slurry and pad consumable sets."