AURORA, Ill. -- Cabot Microelectronics Corp. here continues its dominance in wafer-polishing slurry applications for chemical mechanical planarization (CMP) in 2000. The company increased its market share to 75% of worldwide slurry sales, which totaled $284.5 million in 2000, said a new report from The Information Network.
"Despite the market entry of several competitors and the threat of a slurryless CMP technology, we see Cabot Microelectronics strengthening its position in the market," said analyst Robert N. Castellano, president of The Information Network in New Tripoli, Pa. "Cabot Microelectronics recently doubled manufacturing capacity at its facility in Geino, Japan, and also completed a new 170,000-square-foot slurry manufacturing facility at in Aurora, IL."
On Monday, Cabot Microelectronics reported revenues increased 97% to $68.6 million in the company's fiscal first quarter, ended Dec. 31, compared to $34.8 million in the period a year ago. The company's net income reached $14.4 million vs. $4.7 million in the quarter a year ago.
While fab production segments are now in a slowdown period, Cabot expects growth to bounce back in 2001. "We are raising our expectations slightly for year over year performance," said Matthew Neville, president and CEO of Cabot Microelectronics. "We anticipate revenue growth in excess of 50% and earnings between 16% and 18% of revenue, due to slightly higher growth and slightly lower costs for the overall year."
The Information Network is forecasting strong growth in CMP slurry sales worldwide during the next four years. It projects that merchant slurry revenues will increase fivefold from $284.5 million in 2000 to $1.1 billion in 2004. Revenue growth will be 45.3% in 2001, said the research firm.
Far behind Cabot in market share are nearly a dozen competitors, said The Information Network. These include Rodel, Fujimi and EKC, as well as joint ventures, such as DuPont Air Products NanoMaterials, Planar Solutions and others.