MATTSON TECHNOLOGY, INC. ANNOUNCES
FIRST QUARTER 2003 FINANCIAL RESULTS
FREMONT, Calif. — May 13, 2003 — Mattson
Technology, Inc. (Nasdaq: MTSN), a leading
supplier of advanced process equipment
used to manufacture semiconductors, today
is reporting financial results for the
fist quarter of 2003.
Highlights of this
report include:
The completion of the previously announced
divestiture of the Wet Products Division.
Gross margin for the first quarter of 2003
was 27% versus 21% for the fourth quarter
of 2002.
Operating expenses decreased to $25.6 million
for the first quarter of 2003. Operating
expenses were $42.1 million for the fourth
quarter of 2002, including $11.1 million
non-recurring, restructuring and other
charges.
Cash position remains strong with over
$82 million on hand at quarter end. The
company has no long-term debt.
“ Despite the continued downturn
and uncertain macroeconomic environment,
we made significant progress, as reflected
in our first quarter results,” said
David L. Dutton, President and chief executive
officer. “We took aggressive actions
to reduce operating expenses and completed
the divestiture of the Wet Products Division.
We expect to see further benefits, especially
improvements in gross margin, as we move
into the second half of this year. We are
now concentrating on our strongest technologies,
Strip and RTP.”
Net sales for the
quarter were $67.8 million, an increase
of $18.6 million or 38 percent
from $49.2 million in the fourth quarter
of 2002, and an increase of $21.6 million
or 47 percent from the first quarter of
2002 net sales of $46.2 million. Revenues
for the quarter included $3.0 million of
royalty income related to the settlement
of the patent infringement suit with Dainippon
Screen Manufacturing Co., Ltd. (DNS).
Shipments
for the quarter were $39.5 million, a decrease
of $1.0 million or 3 percent
from $40.5 million in the fourth quarter
of 2002, and an increase of $5.7 million
or 17 percent from the first quarter of
2002 shipments of $33.8 million.
Sales of
Wet Division products were $32.3 million in the first quarter
of 2003, $23.0
million in the fourth quarter of 2002 and
$23.7 million in the first quarter of 2002.
Shipments of Wet Division products were
$6.4 million in the first quarter of 2003.
Acceptances of Wet Division tools shipped
in prior quarters increased net sales in
the first quarter of 2003.
Net loss for
the first quarter of 2003 was $16.0 million, or ($0.36) per
share,
compared to a net loss of $31.9 million,
or ($0.71) per share, for the fourth quarter
of 2002, and a net loss of $25.8 million,
or ($0.70) per share, for the first quarter
of 2002. Results for the first quarter
of 2003 include a $10.3 million loss related
to the disposition of the Wet Products
Division, reflecting the sale of net assets
associated with that Division and the recording
of certain liabilities resulting from the
disposition.
Net bookings for the first
quarter of 2003 were $34.4 million, compared to net
bookings in the fourth quarter of 2002
of $44.2 million, and net bookings of $26.0
million in the year-ago quarter. Net bookings
in the first quarter of 2003 resulted in
a book-to-bill ratio of 0.9 to 1.0. Bookings
of Wet Division products were $6.9 million
in the first quarter of 2003. Mattson’s
book-to-bill ratio without its Wet Division
was 0.8 to 1.0.
Gross margin for the first
quarter of 2003 was 27 percent, an increase
of approximately
six percentage points from 21 percent for
the fourth quarter of 2002, and an increase
from 16 percent gross margin for the first
quarter of 2002.
Deferred Revenue, which
represents tools shipped and awaiting customer acceptance,
was $24.4 million at the end of Q1 2003,
$84.3 million less than the year-end balance
of $108.7 million and $100.1 million less
than $124.5 million at the end of the year-ago
quarter. This sharp decline in deferred
revenue is primarily the result of the
sale of the Wet Division, which until the
closing of its sale in March of this past
quarter accounted for the majority of Mattson’s
deferred revenue.
The company ended the
quarter with cash, cash equivalents and
restricted cash of
$82.3 million, a decrease of $6.7 million
from $89.0 million at December 31, 2002.
Working capital decreased to $59.5 million
as of March 30, 2003 from $62.1 million
at December 31, 2002.
Second Quarter 2003 Outlook: New order
bookings for Strip and RTP products in
the second quarter of 2003 are expected
to decline between 7 and 12 percent from
the first quarter bookings for those products.
Net revenue for the second quarter of 2003
is expected to range between $28 and $33
million, and gross margin is expected to
rise to the mid-30 percent range.
Attached to this news release are unaudited
condensed consolidated statements of operations
and balance sheets.
At 6:00 AM (Pacific Time), Tuesday, May
13, 2003, Mattson will hold a conference
call to review the following topics: first
quarter 2003 financial results, current
business conditions, and the near-term
business outlook. The conference call will
be webcast via the Internet (www.mattson.com,
under “Investor Line”), beginning
at 6:00 am Pacific Time, May 13, 2003.
In addition to the live webcast, a replay
will be available to the public on the
Mattson website for one-week following
the live broadcast.
This news release contains forward-looking
statements regarding, among other matters,
the Company's future prospects and near-term
outlook, including anticipated bookings,
revenue and margins for future periods,
and expected effects from restructurings.
Forward-looking statements address matters
that are subject to a number of risks and
uncertainties that can cause actual results
to differ materially. In addition to the
general risks associated with the slowdown
in the semiconductor industry and risks
in the development of complex technology,
our future results will depend on a variety
of factors, including the timing of significant
orders, our ability to timely manufacture
and deliver ordered products, our ability
to bring new systems to market, the timing
of new product releases by our competitors,
our ability to reduce costs in response
to market conditions, our actual costs
from disposition of our Wet Products Division,
and other factors. Reference is made to
the company's filings with the Securities
and Exchange Commission for further discussion
of risks and uncertainties regarding the
company's business. The company assumes
no obligation to update the information
in this news release.
About Mattson Technology, Inc.
Mattson
Technology, Inc. is a leading supplier
of semiconductor wafer processing equipment
used in "front-end" fabrication
of integrated circuits. The company is a market leader in
dry strip and RTP equipment, and its products combine advanced
process technology on high-productivity platforms backed
by industry-leading support. Since beginning operations in
1989, the company’s core vision has been to help bring
technology leadership and productivity gains to semiconductor
manufacturers worldwide. Headquartered in Fremont, Calif.,
the company maintains sales and support centers throughout
the United States, Europe and Asia. For more information,
please contact Mattson Technology, Inc., 47131 Bayside Parkway,
Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900.
Fax: (510) 492-5911. Internet: www.mattson.com.
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