Cabot Microelectronics Corporation (NASDAQ:CCMP) Q4 2019 Earnings Conference Call - Final Transcript

Nov 18, 2019 • 10:00 am ET


Cabot Microelectronics Corporation (NASDAQ:CCMP) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Cabot Microelectronics Fourth Quarter Fiscal 2019 Earnings Conference Call. [Operator Instructions]

I would now like to introduce your host for today's conference call Ms. Colleen Mumford, Vice President of Corporate Communications and Marketing at Cabot Microelectronics. You may begin, ma'am.

Colleen Mumford

Great. Thank you. Good morning. With me today are David Li, President and CEO; and Scott Beamer, Vice President and CFO.

Last night, we reported results for our fourth-quarter and full fiscal year 2019, which ended September 30th, 2019. Whether you're joining us online or over the phone, we encourage you to review the investor slide presentation that we've made available under the quarterly results section of our investor relations center on our website A webcast of today's conference call and the script of this morning's prepared comments will also be available on our website shortly after this live conference call. You may request any of the information by calling our investor relations office at 630-499-2600.

Please remember that our discussions today may include forward-looking statements that involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements. These risk factors are discussed in our SEC filings, including our Form 10-K for the fiscal year ended September 30th, 2018 and our Form 10-Q for the quarter ended June 30th, 2019. We assume no obligation to update any of these forward-looking information.

Also, our remarks this morning reference certain non-GAAP financial measures, including adjusted pro forma results. Our earnings release and slide presentation include a reconciliation of each non-GAAP financial measure to the nearest comparable GAAP financial measure. We also provided supplemental pro forma information in this quarterly release, which compares current results as if Cabot Microelectronics owned KMG Chemicals during the comparable period last year. Additionally, data reflects rounded values throughout this discussion and in the accompanying slide presentation.

I will now turn the call over to Dave.

David H. Li

Thanks, Colleen. Last night, we announced results for our fourth quarter and full year fiscal 2019. We set another record for quarterly revenue achieving $279 million, which is 78% higher, compared to the same period last year and up 2% sequentially. Fourth quarter revenue exceeded our previously provided guidance, driven by stabilization in semiconductor demand and continued strong growth in pipeline performance. For the full year, our revenue increased by 76%, primarily due to the acquisition of KMG, which closed approximately one year ago. This acquisition was the largest in our company's history and has significantly broadened our portfolio of solutions and industry participation, nearly doubled our size and has provided us with greater geographic balance. This is the fourth consecutive year that we have delivered sequential annual growth, which we believe demonstrates the strength and resiliency of our business model as well as our continued strong operational execution.

On a segment level, fourth quarter revenue in electronic materials was down 4% year-over-year, as lower sales in CMP slurries was