SELECTED QUARTERLY OPERATING RESULTS

The following table presents our unaudited financial information for the eight quarterly periods ended September 30, 2018. This unaudited financial information has been prepared in accordance with accounting principles generally accepted in the United States of America, applied on a basis consistent with the annual audited financial statements and in the opinion of management, include all necessary adjustments, which consist only of normal recurring adjustments necessary to present fairly the financial results for the periods. The results for any quarter are not necessarily indicative of results for any future period.

CABOT MICROELECTRONICS CORPORATION

SELECTED QUARTERLY OPERATING RESULTS

(Unaudited and in thousands, except per share amounts)

	Sept. 30, 2018			June 30, 2018		March 31, 2018		Dec. 31, 2017			Sept. 30, 2017		June 30, 2017			March 31, 2017		Dec. 31, 2016

Revenue	$	156,729		$	150,437	$	142,978	$	139,979		$	136,784	$	127,957		$	119,184	$	123,254
Cost of goods sold		72,383			69,737		67,933		65,965			66,734		65,414			59,153		61,749

Gross profit		84,346			80,700		75,045		74,014			70,050		62,543			60,031		61,505

Operating expenses:
Research, development and technical		13,372			13,059		13,368		12,151			13,839		14,333			14,090		13,396
Selling and marketing		6,211			6,207		6,790		5,836			8,680		7,346			7,268		7,552
General and administrative		20,775			19,504		17,799		18,915			14,489		13,953			14,699		12,496
Total operating expenses		40,358			38,770		37,957		36,902			37,008		35,632			36,057		33,444

Operating income		43,988			41,930		37,088		37,112			33,042		26,911			23,974		28,061

Interest expense		102			513		1,158		1,132			1,127		1,117			1,135		1,150
Other income (expense), net		1,137			1,627		1,062		672			798		(115	)		234		996

Income before income taxes		45,023			43,044		36,992		36,652			32,713		25,679			23,073		27,907
Provision for income taxes		(3,195	)		7,873		7,255		39,735			6,211		5,740			4,793		5,676

Net income (loss)	$	48,218		$	35,171	$	29,737	$	(3,083	)	$	26,502	$	19,939		$	18,280	$	22,231

Basic earnings (loss) per share	$	1.89		$	1.37	$	1.16	$	(0.12	)	$	1.05	$	0.79		$	0.73	$	0.90

Weighted average basic shares outstanding		25,520			25,612		25,593		25,326			25,236		25,228			25,031		24,583

Diluted earnings (loss) per share	$	1.84		$	1.34	$	1.14	$	(0.12	)	$	1.03	$	0.77		$	0.71	$	0.88

Weighted average diluted shares outstanding		26,213			26,319		26,161		25,326			25,710		25,721			25,526		25,072

Dividends per share	$	0.40		$	0.40	$	0.40	$	0.20		$	0.20	$	0.20		$	0.20	$	0.18