Cabot Falling on Missed Quarter

The company missed analyst estimates by 4 cents.

Author:: Michael Dunn
Publish date:: Apr 25, 2002 10:48 AM EDT

Cabot Microelectronics

was plunging 14% on news that it missed second-quarter estimates by 4 cents on a revenue shortfall.

The semiconductor equipment company said its net income was $7.0 million, or 31 cents a share, excluding charges for litigation settlement expense, down from $9.4 million, or 39 cents a share, in the year ago period. Analysts polled by Thomson Financial/First Call had been expecting the company to earn 35 cents a share.

Revenue for the quarter also came in short of expectations at $50.5 million, down from $51.0 million a year ago. First Call analysts had been looking for $53 million.

Without offering specific guidance, the company, which manufactures CMP slurries for polishing materials used in the semiconductor manufacturing process, said it has seen signs of industry improvement. Based on order activity reported by equipment companies, Cabot said industry capital spending appears to be improving.

Shares of CCMP were recently down almost 14% to $46.37 on the news after closing at $53.75.