Cabot Microelectronics Q1 Profit Increases - Quick Facts

(RTTNews) - Cabot Microelectronics Corp. (CCMP) reported that net income for the first quarter of fiscal 2014 was $11.3 million, up from $9.7 million in the same quarter last year, primarily due to lower tax expense on the company's foreign earnings resulting from its election to permanently reinvest the earnings of certain foreign subsidiaries. Earnings per share were $0.45, up from $0.41 reported in the first quarter of fiscal 2013.

The first quarter of fiscal 2013 also included an adverse foreign tax adjustment that reduced net income by $1.7 million.

Total first fiscal quarter revenue of $100.5 million represents a 5.6 percent decrease from the $106.5 million reported in the same quarter last year. The company believed the decrease in revenue primarily reflects softer demand due to lower utilization at some fabs, and the continued soft demand for PCs.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share and revenues of $108.06 million for the quarter. Analysts' estimates typically exclude special items.

Gross profit, expressed as a percentage of revenue, was 47.5 percent this quarter. This is higher than the 47.0 percent reported in the same quarter a year ago. Compared to the year ago quarter, gross profit percentage increased primarily due to benefits associated with a weaker Japanese yen versus the U.S. dollar and higher manufacturing yields, partially offset by lower sales volume and higher variable manufacturing costs, including higher raw material costs. The company's full fiscal year guidance range of 48 to 50 percent of revenue remains unchanged.