Cabot Microelectronics Corp. (NASDAQ:CCMP) filed Quarterly Report for the period ended 2012-12-31.
Cabot Microelectronics Corporation has a market cap of $828.939 million; its shares were traded at around $35.74 with a P/E ratio of 20.4082 and P/S ratio of 1.9455. Cabot Microelectronics Corporation had an annual average earning growth of 3.7% over the past 10 years.
Highlight of Business Operations:The results of operations for the three months ended December 31, 2012 include a foreign tax adjustment to correct prior period amounts, which we have determined to be immaterial to the prior periods to which it relates and is expected to be immaterial to our full fiscal year 2013 results. This adjustment reduced net income for the first quarter of fiscal 2013 by $1.7 million and diluted earnings per share by approximately $0.07. This adjustment relates to the reversal of a deferred tax asset for cumulative net operating losses (NOLs)associated with our facility in South Korea since its opening in 2011,as these NOLs are expected to be consumed during periods a tax holiday is in effect.
Revenue was $106.5 million for the three months ended December 31, 2012, which represented a 4.3%, or $4.4 million, increase from the three months ended December 31, 2011. The increase in revenue was driven by a $4.0 million increase due to a higher-priced product mix and a $2.0 million increase due to higher sales volume. We experienced revenue increases in our dielectric slurry, copper slurry and polishing pad product lines compared to the same quarter of last year, due to further adoption of our pad products, growth of our business in Korea and other factors. These increases were partially offset by decreased revenue in our ESF business. However, we are experiencing continued soft industry demand that we first began to see late in the fourth quarter of fiscal 2012 and we expect that softness will continue through the second quarter of our fiscal 2013.
Total cost of goods sold was $56.5 million for the three months ended December 31, 2012, which represented an increase of 6.9%, or $3.7 million, from the three months ended December 31, 2011. The increase in cost of goods sold was primarily due to $4.6 million from a higher-cost product mix and $2.6 million due to certain production variances. These increases in cost of goods sold were partially offset by a $3.5 million decrease due to increased utilization of our manufacturing capacity associated with the higher sales volume.
Our gross profit as a percentage of revenue was 47.0% for the three months ended December 31, 2012, as compared to 48.3% for the three months ended December 31, 2011. The decrease in gross profit as a percentage of revenue was primarily due to certain higher manufacturing costs and a lower-valued product mix, partially offset by increased sales volume. We continue to expect our gross profit percentage for full year fiscal 2013 to be in the range of 46% to 48%.
Net income was $9.7 million for the three months ended December 31, 2012 which represented a decrease of 6.8%, or $0.7 million, from the three months ended December 31, 2011. The decrease was primarily due to the previously noted tax adjustment and higher interest expense, partially offset by higher revenue, foreign exchange gains and lower operating expenses.
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