Cabot Microelectronics Corporation Reports Strong Results for Fourth Quarter and Full Fiscal Year 2016
CABOT MICROELECTRONICS CORPORATION
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U.S. GAAP to Non-GAAP Reconciliation | |
Gross Profit as a Percentage of Revenue, Net Income and Diluted Earnings Per Share
| | | (Unaudited and amounts in thousands, except per share and percentage amounts) | | | | | | | | | | | | The following presents reconciliation of the Non-GAAP financial measures included in the Cabot Microelectronics Corporation press release dated October 27, 2016. | | | | | | | | | | | | | Three Months Ended September 30, 2016 | Twelve Months Ended September 30, 2016 | | | | | | | | | | | | | U.S. GAAP | Adjustments | Non-GAAP | U.S. GAAP | Adjustments | Non-GAAP | | | Gross profit | $ | 61,086 | | $ | 1,352 | | $ | 62,438 | | $ | 210,202 | | | 5,229 | | $ | 215,431 | | | | Gross profit as a percentage of revenue (1) | | 49.8 | % | | | 50.9 | % | | 48.8 | % | | | 50.0 | % | | | | | | | | | | | | | | | | | | | | | Net income (2) | $ | 20,707 | | $ | 1,807 | | $ | 22,514 | | $ | 59,849 | | $ | 6,185 | | $ | 66,034 | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per share (3) | $ | 0.83 | | $ | 0.08 | | $ | 0.91 | | $ | 2.43 | | $ | 0.25 | | $ | 2.68 | | | | | | | | | | | | | (1) Non-GAAP gross profit as a percentage of revenue for the three months ended September 30, 2016 excludes $1,352 of NexPlanar amortization expense. Non-GAAP gross profit as a percentage of revenue for the twelve months ended September 30, 2016 excludes $706 of NexPlanar acquisition-related costs and $4,523 of NexPlanar amortization expense. Acquisition-related costs include the fair value markup of NexPlanar inventory sold and post-acquisition employee severance. | | | | | | (2) Non-GAAP net income for the three months ended September 30, 2016 excludes the items mentioned above in (1) plus $468 of NexPlanar amortization expense recorded in operating expenses and a $1,000 impairment charge on a NexPlanar intangible asset, which was established for certain in-process technology. These adjustments are partially offset by a $1,013 related increase in the provision for income taxes. Non-GAAP net income for the twelve months ended September 30, 2016 excludes the items mentioned above in (1) plus $1,623 of NexPlanar acquisition-related costs, $1,764 of NexPlanar amortization expense recorded in operating expenses, and the $1,000 impairment charge recorded in the fourth quarter. The $1,623 in acquisition-related costs include share-based compensation expense for certain unvested NexPlanar stock options settled in cash at the date of the acquisition, post-acquisition employee severance, share-based compensation expense for accelerated vesting of certain replacement stock options, and professional fees incurred directly related to the acquisition. These adjustments are partially offset by a $3,431 related increase in the provision for income taxes. | | | | | | | | | | | | (3) Non-GAAP diluted earnings per share is calculated based upon Non-GAAP net income. | |
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