| CABOT MICROELECTRONICS CORPORATION | |||||||||||
| 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 January 28, 2016. | |||||||||||
| Three Months Ended December 31, 2015 | |||||||||||
| U.S. GAAP | Adjustments | Non-GAAP | |||||||||
| Gross profit | $ | 50,195 | 1,591 | $ | 51,786 | ||||||
| Gross profit as a percentage of revenue (1) | 50.0 | % | 51.6 | % | |||||||
| Net income (2) | $ | 11,309 | $ | 2,597 | $ | 13,906 | |||||
| Diluted earnings per share (3) | $ | 0.46 | $ | 0.10 | $ | 0.56 | |||||
| (1) Non-GAAP gross profit as a percentage of revenue excludes $706 of NexPlanar acquisition-related | |||||||||||
| costs and $885 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 excludes the items mentioned above in (1) plus $2,074 of NexPlanar | |||||||||||
| acquisition-related costs and $362 of NexPlanar amortization expense recorded in operating | |||||||||||
| expenses. The $2,074 in acquisition-related costs include share-based compensation expense | |||||||||||
| for certain unvested NexPlanar stock options settled in cash at the date of 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 $1,430 related increase in the provision for income taxes. | |||||||||||
| (3) Non-GAAP diluted earnings per share is calculated based upon Non-GAAP net income. | |||||||||||
