Cabot Microelectronics Corporation (CCMP) has reported a 96.58 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $22.23 million, or $0.88 a share in the quarter, compared with $11.31 million, or $0.46 a share for the same period last year. On an adjusted basis, the company has earned $23.30 million, or $0.92 a share for the quarter. Revenue during the quarter grew 22.80 percent to $123.25 million from $100.37 million in the previous year period. Gross margin for the quarter contracted 11 basis points over the previous year period to 49.90 percent. Total expenses were 77.23 percent of quarterly revenues, down from 85.70 percent for the same period last year. This has led to an improvement of 846 basis points in operating margin to 22.77 percent.
Operating income for the quarter was $28.06 million, compared with $14.36 million in the previous year period.
"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 chief executive officer 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 3D NAND and FinFET technologies, as well as our leading supply positions in other applications. In addition, our pad revenue grew based on heightened customer pull for our products, including slurry and pad consumable sets."
Working capital increases
Cabot Microelectronics Corporation has recorded an increase in the working capital over the last year. It stood at $387.41 million as at Dec. 31, 2016, up 23.99 percent or $74.97 million from $312.44 million on Dec. 31, 2015. Current ratio was at 6.54 as on Dec. 31, 2016, down from 7.01 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 70 days for the quarter from 156 days for the last year period. Days sales outstanding went down to 43 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 53 days for the quarter compared with 135 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Cabot Microelectronics Corporation has recorded a decline in total debt over the last one year. It stood at $154.68 million as on Dec. 31, 2016, down 4.44 percent or $7.19 million from $161.88 million on Dec. 31, 2015. Total debt was 20.87 percent of total assets as on Dec. 31, 2016, compared with 24.65 percent on Dec. 31, 2015. Debt to equity ratio was at 0.30 as on Dec. 31, 2016, down from 0.37 as on Dec. 31, 2015. Interest coverage ratio improved to 24.40 for the quarter from 12.30 for the same period last year.
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