MATTSON
TECHNOLOGY, INC. ANNOUNCES SECOND QUARTER 2003 FINANCIAL
RESULTS
FREMONT, Calif. — July 30, 2003 — Mattson
Technology, Inc. (Nasdaq: MTSN), a leading
supplier of advanced process equipment
used to manufacture semiconductors, today
is reporting financial results for the
second quarter of 2003.
Highlights of this
report include:
-- Gross profit margin increased twelve percentage points,
from 27% in the first quarter of 2003 to 39% in the second
quarter
of 2003.
-- Operating expenses decreased by $5 million, from $25 million
in the first quarter of 2003 to $20 million in the second quarter
of 2003.
-- The company’s cash balance increased $2 million, to
$84 million compared to the previous quarter-end.
“Our second quarter results showed
the benefits of our prior restructuring
actions and cost-reduction efforts, which
helped us to improve our gross margin by
12 percentage points this quarter compared
to last quarter, from 27% to 39%, and to
reduce operating expenses by over $5 million,” said
David L. Dutton, president and chief executive
officer of Mattson Technology. “We
continue to implement our cyclically flexible
enterprise strategy and further cost-reductions,
and expect that the progress on these initiatives
will contribute toward improved financial
performance through the remainder of 2003.”
Dutton continued, “In the second
quarter, we announced several business
wins that show we are strengthening key
customer relationships and extending
our leadership position in our core products,
RTP and strip. We plan to continue to
invest in the development of critical,
next-generation RTP and strip technologies
that support the industry’s move
towards 65 nm processing. We believe
that our technology leadership and strong
financial position will help Mattson
capitalize on opportunities as the market
improves.”
Net sales for the quarter were $30.5
million, a decrease of $37.3 million
or 55 percent from net sales of $67.8
million in the first quarter of 2003,
and a decrease of $16.8 million or 36
percent from net sales of $47.3 million
in the second quarter of 2002. Net sales
for the second quarter of 2003 consisted
of $27.5 million in sales of RTP and
Strip products, and royalties of $3.0
million related to the settlement of
the patent infringement suit with Dainippon
Screen Manufacturing Co., Ltd. (DNS).
Net sales in the previous periods include
sales of products from the Wet Products
Division, which Mattson divested on March
17, 2003. Net sales of RTP and Strip
products were $32.5 million for the first
quarter of 2003, and $32 million for
the second quarter of 2002. Net sales
of RTP and strip products in the second
quarter of 2003 decreased 15 percent
compared to the first quarter of 2003,
and 14 percent compared to the second
quarter of 2002.
Shipments for the quarter
were $26.0 million, a decrease of $13.5
million
or 34 percent from shipments of $39.5
million in the first quarter of 2003,
and a decrease of $16.5 million or 39
percent from shipments of $42.5 million
in the second quarter of 2002. Again,
results in the previous periods included
shipments of products from the Wet Products
Division.
Gross margin for the second
quarter of 2003 was 39 percent, an increase
of
approximately 12 percentage points from
27 percent gross margin for the first
quarter of 2003, and an increase of approximately
19 percentage points from 20 percent
gross margin for the second quarter of
2002.
Net loss for the second quarter
of 2003 was $9.5 million, or ($0.21)
per share,
compared to a net loss of $16.0 million,
or ($0.36) per share, for the first quarter
of 2003, and a net loss of $24.5 million,
or ($0.58) per share, for the second
quarter of 2002. The net loss in the
first quarter of 2003 included a loss
of $10.3 million related to the disposition
of the Wet Products Division.
Net bookings
for the second quarter of 2003 were $25.1
million, compared
to net bookings in the first quarter
of 2003 of $34.4 million and net bookings
of $55.0 million in the same quarter
a year-ago. Net bookings in the second
quarter of 2003 resulted in a book-to-bill
ratio of 1.0 to 1.0.
Deferred revenue, which represents tools
shipped and awaiting customer acceptance
and pre-paid royalties received from
DNS, was $32.2 million at the end of
the second quarter of 2003, $7.8 million
higher than the balance of $24.4 million
at the end of the first quarter of 2003,
and $85.2 million lower than the balance
of $117.4 million at the end of the year-ago
quarter. The $32.2 million in deferred
revenue includes $12.7 million in payments
related to DNS royalties. The decline
in deferred revenue compared to the second
quarter of 2002 results primarily from
the sale of the Wet Products Division,
which had accounted for the majority
of our deferred revenue.
The company ended
the quarter with cash, cash equivalents
and restricted cash
of $84.8 million, an increase of $2.5
million from $82.3 million at March 30,
2003. During the second quarter of 2003,
the company received $11.7 million in
payments from DNS. Working capital at
the end of the second quarter decreased
to $54.2 million from $59.5 million as
of March 30, 2003.
Third Quarter 2003 Outlook:
New order bookings in the third quarter
of 2003
are expected to increase by approximately
20 percent from second quarter bookings.
For the third quarter of 2003, net sales
are expected to be slightly down, $28
million and gross margin is expected
to be approximately 35%.
Attached to this
news release are unaudited, condensed,
consolidated statements of
operations and balance sheets.
At 2:30 PM
(Pacific Daylight Time), Wednesday, July 30, 2003, Mattson
will
hold a conference call to review the
following topics: second 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 “Investors”),
beginning at 2:30 PM Pacific Daylight
Time, July 30, 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. 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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