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Free Post Earnings Research Report: Cabot Microelectronics Delivered Record Revenue; Earnings Surged 33.3%

Stock Monitor: Electro Scientific Industries Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 05, 2018 / Active-Investors.com has just released a free earnings report on Cabot Microelectronics Corp. (NASDAQ: CCMP) ("Cabot"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CCMP. Cabot reported its first quarter fiscal 2018 operating and financial results on January 25, 2018. The chip equipment maker exceeded top- and bottom-line expectations and reported its highest gross profit since 2002. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Electro Scientific Industries, Inc. (NASDAQ: ESIO), which also belongs to the Technology sector as the Company Cabot Microelectronics. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=ESIO

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cabot Microelectronics most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CCMP

Earnings Highlights and Summary

For the first quarter of fiscal 2018, which ended December 31, 2017, Cabot generated record revenue of $140.0 million, reflecting an increase of 13.6% compared to revenue of $123.3 million in Q1 FY17. The reported growth was attributed to continued successful execution of strategic initiatives and continued strong global semiconductor industry demand observed over last seven quarters. The Company's reported numbers exceeded analysts' expectations by $2.08 million.

During Q1 FY18, Cabot's gross profit came in at 52.9% of revenue, the Company's highest level since 2002, compared to 49.9% of revenue reported in Q1 FY17, The Company's reported quarter gross profit included $1.2 million of NexPlanar amortization expense. Excluding the aforementioned expense, the Company's non-GAAP gross profit was 53.8% of revenue, up 290 basis points compared to last year. For FY18, Cabot is forecasting GAAP gross profit guidance range of 50% to 52%, including approximately 100 basis points of NexPlanar amortization expense.

For Q2 FY18, Cabot's operating expenses were $36.9 million, $3.5 million higher than the $33.4 million reported in Q1 FY17, primarily due to higher staffing related expenses, including costs related to the Company's CFO transition and higher incentive compensation expense. Cabot is projecting GAAP operating expenses for FY18 to be between $145 million and $150 million compared to the earlier forecast of $142 million to $147 million.

Cabot's operating income for Q1 FY18 represented 26.5% of revenue, which was 370 basis points higher than in the same quarter last year. The significant y-o-y growth reflected operating leverage driven by revenue growth, combined with the Company's ongoing attention to controlling costs.

Cabot's effective tax rate was 108.4% for Q1 FY18 compared to 20.3% in Q1 FY17. The significant increase was primarily related to the impact of the enactment of the Tax Cuts and Jobs Act in December 2017 ("tax reform"), which increased the Company's income tax expense by approximately $32.9 million. Cabot is estimating effective tax rate for the rest of the fiscal year 2018 to be within the range of 21% to 24%.

For Q1 FY18, Cabot reported GAAP net loss of $3.1 million, or $0.12 per diluted share, compared to net income of $26.5 million, or $1.05 per diluted share, in Q1 FY17. Excluding the one-time impact of tax reform and the amortization expense, the Company's non-GAAP net income totaled $31.1 million, or $1.19 per share, which was 33.3% and 29.3% higher, respectively, driven by higher revenue and a higher gross profit margin, partially offset by higher operating expenses. Cabot's earnings numbers crushed Wall Street's estimates of $1.02 per share.

Cabot Microelectronics' Segment Results

During Q1 FY18, the tungsten slurries segment's revenues, which accounted for 45% of overall quarterly revenue, came in at record $63 million, up 14% on a y-o-y basis. Tungsten growth was driven by strong demand from both memory and logic applications, including 3D memory and FinFET.

For Q1 FY18, the Dielectric slurries segment represented 23% of overall revenue with sales up 8% on a y-o-y basis. The Company is anticipating capturing more business in this area with its higher performing, lower cost, and higher profitability products.

Cash Matters

Cabot ended Q1 FY18 with $426 million in cash and short-term equivalents and $141 million of debt outstanding. The Company's net cash at the end of the reported quarter was approximately $285 million.

Cabot's capital investments for Q1 FY18 were $4 million. For the full fiscal year 2018, the Company is expecting capital spending to be within the range of $18 million to $22 million. Cabot generated cash flow from operations of $31 million in Q1 FY18.

Stock Performance Snapshot

February 02, 2018 - At Friday's closing bell, Cabot Microelectronics' stock declined 1.79%, ending the trading session at $100.42.

Volume traded for the day: 266.44 thousand shares, which was above the 3-month average volume of 184.62 thousand shares.

Stock performance in the last month – up 3.85%; previous three-month period – up 4.92%; past twelve-month period – up 47.37%; and year-to-date – up 6.74%

After last Friday's close, Cabot Microelectronics' market cap was at $2.61 billion.

Price to Earnings (P/E) ratio was at 42.05.

The stock has a dividend yield of 0.80%.

The stock is part of the Technology sector, categorized under the Semiconductor - Integrated Circuits industry.

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