Cabot Microelectronics posts jump in 4th-quarter profit as revenue climbs on acquisition

Cabot Microelectronics posts jump in 4Q profit

AURORA, Ill. — Cabot Microelectronics Corp. posted a jump in fourth-quarter earnings Thursday, with sales recovering from steep declines the year before due to an improved economy and an acquisition.

The company, which makes materials for semiconductor manufacturing, reported a profit of $13 million, or 56 cents per share. That’s up from just $116,000, or a penny per share, in the same period a year earlier.

Revenue climbed 55 percent to $97.7 million, largely due to improved industry conditions and Epoch Material Co., which Cabot purchased last February.

On average, analysts expected profit of 41 cents per share on sales of $90 million, according to a Thomson Reuters poll.

“With semiconductor device inventories at relatively low levels and bullish outlooks reported from a number of our customers, we are optimistic about the continued strength of semiconductor device demand in calendar 2010,” Chairman and CEO William Noglows said in a statement.

The company’s stock rose $1.82, or 5.6 percent, to $34.25 in midday trading. The stock has ranged from $18.47 to $36.38 over the past year.