Cabot Microelectronics Corp. (CCMP, Financial) filed Quarterly Report for the period ended 2010-12-31.
Cabot Microelectronics Corp. has a market cap of $1.05 billion; its shares were traded at around $46.74 with a P/E ratio of 19.3 and P/S ratio of 2.6. Hedge Fund Gurus that owns CCMP: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns CCMP: Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
Revenue was $114.2 million for the three months ended December 31, 2010, which represented a 16.9%, or $16.5 million, increase from the three months ended December 31, 2009. The increase in revenue was driven by a $19.8 million increase in sales volume and a $1.2 million revenue increase due to the effect of foreign exchange rate changes, primarily related to the Japanese yen. These increases were partially offset by a $2.5 million decrease in revenue due to a lower-priced product mix and a $2.0 million decrease due to a lower weighted average selling price of for our CMP slurries. We experienced significant demand increases across all product lines compared to the same period last year. Although historically we have often experienced seasonal softening in demand during our second fiscal quarter, we remain optimistic regarding the demand outlook for our full fiscal year.
Total cost of goods sold was $56.8 million for the three months ended December 31, 2010, which represented an increase of 20.1%, or $9.5 million, from the three months ended December 31, 2009. The increase in cost of goods sold was primarily due to $9.6 million from increased sales volume due to the increased demand for our products associated with the continued economic and industry recovery, a $2.2 million increase due to higher fixed manufacturing costs, and a $1.9 million increase due to the effect of foreign exchange rate changes, primarily related to the Japanese yen, partially offset by a $4.0 million decrease in cost of goods sold due to a lower-cost product mix.
General and administrative expenses were $11.7 million for the three months ended December 31, 2010, which represented an increase of 3.8%, or $0.4 million, from the three months ended December 31, 2009. The increase was primarily due to $0.6 million in higher staffing-related costs, including fringe benefit expenses related to the payment of our fiscal 2010 annual incentive bonus, $0.2 million in higher travel-related expense, and $0.1 million in higher depreciation expense, partially offset by $0.6 million in lower professional fees, including costs to enforce our intellectual property.
In the first three months of fiscal 2011, cash flows used in investing activities were $3.3 million for purchases of property, plant and equipment, the single largest category of which was for improvements in our information technology systems. In the first three months of fiscal 2010, cash flows used in investing activities were $0.9 million, representing $0.8 million in purchases of property, plant and equipment and $0.1 million in other investing activities. We estimate that our total capital expenditures in fiscal 2011 will be approximately $25.0 million, including $12.0 million for our manufacturing and research and development facility in South Korea.
In the first three months of fiscal 2011, cash flows generated by financing activities were $2.4 million. We received $13.5 million from the issuance of common stock related to the exercise of stock options granted under our Second Amended and Restated Cabot Microelectronics Corporation 2000 Equity Incentive Plan (EIP) and our 2007 Employee Stock Purchase Plan, as amended and restated January 1, 2010, and we received $0.6 million in windfall tax benefits related to exercises of stock options and vesting of restricted stock granted under our EIP. These cash inflows were partially offset by $10.0 million in repurchases of common stock under our share repurchase program, $1.4 million in repurchases of common stock pursuant to the terms of our EIP for shares withheld from employees to cover payroll taxes on the vesting of restricted stock granted under the EIP, and $0.3 million in principal payments under capital lease obligations. In the first three months of fiscal 2010, cash flows used in financing activities were $1.0 million, representing $0.8 million in repurchases of common stock pursuant to the terms of our EIP for shares withheld from employees to cover payroll taxes on the vesting of restricted stock granted under the EIP and $0.3 million in principal payments under capital lease obligations, partially offset by $0.1 million received from the issuance of common stock under our EIP.
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Cabot Microelectronics Corp. has a market cap of $1.05 billion; its shares were traded at around $46.74 with a P/E ratio of 19.3 and P/S ratio of 2.6. Hedge Fund Gurus that owns CCMP: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns CCMP: Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
The results of operations for the quarter ended December 31, 2010 include certain adjustments to correct prior period amounts, which we have determined to be immaterial to the current period and the prior periods to which they relate. Collectively, these adjustments reduced net income for the first quarter of fiscal 2011 by $1.7 million and diluted earnings per share by approximately $0.08. These adjustments relate to: (1) $1.5 million ($1.0 million, net of tax) in employer-paid fringe benefits for required contributions to our 401(k) Plan, Supplemental Employee Retirement Plan, and non-United States statutory pension plans as a result of our annual payment pursuant to our fiscal 2010 annual incentive bonus program (AIP); (2) the reversal of a $0.5 million deferred tax asset regarding certain share-based compensation expense which is not subject to such tax treatment; and (3) our under accrual of $0.3 million ($0.2 million, net of tax) for payments made pursuant to the AIP as a result of the calculation of results against goals under the AIP.Revenue was $114.2 million for the three months ended December 31, 2010, which represented a 16.9%, or $16.5 million, increase from the three months ended December 31, 2009. The increase in revenue was driven by a $19.8 million increase in sales volume and a $1.2 million revenue increase due to the effect of foreign exchange rate changes, primarily related to the Japanese yen. These increases were partially offset by a $2.5 million decrease in revenue due to a lower-priced product mix and a $2.0 million decrease due to a lower weighted average selling price of for our CMP slurries. We experienced significant demand increases across all product lines compared to the same period last year. Although historically we have often experienced seasonal softening in demand during our second fiscal quarter, we remain optimistic regarding the demand outlook for our full fiscal year.
Total cost of goods sold was $56.8 million for the three months ended December 31, 2010, which represented an increase of 20.1%, or $9.5 million, from the three months ended December 31, 2009. The increase in cost of goods sold was primarily due to $9.6 million from increased sales volume due to the increased demand for our products associated with the continued economic and industry recovery, a $2.2 million increase due to higher fixed manufacturing costs, and a $1.9 million increase due to the effect of foreign exchange rate changes, primarily related to the Japanese yen, partially offset by a $4.0 million decrease in cost of goods sold due to a lower-cost product mix.
General and administrative expenses were $11.7 million for the three months ended December 31, 2010, which represented an increase of 3.8%, or $0.4 million, from the three months ended December 31, 2009. The increase was primarily due to $0.6 million in higher staffing-related costs, including fringe benefit expenses related to the payment of our fiscal 2010 annual incentive bonus, $0.2 million in higher travel-related expense, and $0.1 million in higher depreciation expense, partially offset by $0.6 million in lower professional fees, including costs to enforce our intellectual property.
In the first three months of fiscal 2011, cash flows used in investing activities were $3.3 million for purchases of property, plant and equipment, the single largest category of which was for improvements in our information technology systems. In the first three months of fiscal 2010, cash flows used in investing activities were $0.9 million, representing $0.8 million in purchases of property, plant and equipment and $0.1 million in other investing activities. We estimate that our total capital expenditures in fiscal 2011 will be approximately $25.0 million, including $12.0 million for our manufacturing and research and development facility in South Korea.
In the first three months of fiscal 2011, cash flows generated by financing activities were $2.4 million. We received $13.5 million from the issuance of common stock related to the exercise of stock options granted under our Second Amended and Restated Cabot Microelectronics Corporation 2000 Equity Incentive Plan (EIP) and our 2007 Employee Stock Purchase Plan, as amended and restated January 1, 2010, and we received $0.6 million in windfall tax benefits related to exercises of stock options and vesting of restricted stock granted under our EIP. These cash inflows were partially offset by $10.0 million in repurchases of common stock under our share repurchase program, $1.4 million in repurchases of common stock pursuant to the terms of our EIP for shares withheld from employees to cover payroll taxes on the vesting of restricted stock granted under the EIP, and $0.3 million in principal payments under capital lease obligations. In the first three months of fiscal 2010, cash flows used in financing activities were $1.0 million, representing $0.8 million in repurchases of common stock pursuant to the terms of our EIP for shares withheld from employees to cover payroll taxes on the vesting of restricted stock granted under the EIP and $0.3 million in principal payments under capital lease obligations, partially offset by $0.1 million received from the issuance of common stock under our EIP.
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