MATTSON
TECHNOLOGY, INC. ANNOUNCES FOURTH QUARTER AND YEAR-END
2003 FINANCIAL RESULTS
FREMONT, Calif., January 28, 2004 -- Mattson Technology, Inc.
(Nasdaq: MTSN), a leading supplier of advanced process equipment
used to manufacture semiconductors, today reported financial
results for the fourth quarter and year ended December 31,
2003
Highlights of this report include:
- The Company achieved profitability in the fourth
quarter of 2003. Net loss for the year decreased
70% compared to 2002, the result of significant restructuring
actions
to focus the company’s business on its core
technologies and aggressively reduce costs.
- Net sales of $43.4 million were 33% higher than
the previous quarter. Shipments rose 77% over the same
period..
- Bookings increased 24% to $48.5 million in
the fourth quarter of 2003 from the third quarter of 2003.
- Operating expenses were down for the fourth
consecutive quarter. The $16.6 million of operating expenses
in the fourth quarter of 2003 was $1.3 million lower than
in the previous quarter.
"We finished 2003 on a strong note, with a profitable
fourth quarter that exceeded our goals, demonstrating the
success of the repositioning and restructuring of our company," said
David L. Dutton, president and chief executive officer
of Mattson Technology.
"With improving business conditions, 2004 offers us
many opportunities to prove the effectiveness of our new
business model," Dutton continued. "The crisp
execution of our focused strategies has resulted in technology
innovations,
new customer wins and improved cost-efficiencies that should
help us increase profitability and market leadership in
the next industry upturn."
Net sales for the quarter were $43.4 million, a 33% increase
from $32.6 million in the third quarter of 2003, and a 12
% decrease from $49.2 million in the fourth quarter of 2002.
Net sales for the fourth quarter of 2003 consisted of $39.1
million in sales of RTP and Strip products, royalties of
$3.0 million related to the settlement of the patent infringement
suit with Dainippon Screen Manufacturing Co., Ltd. (DNS),
and $1.3 million recognized upon customer acceptance of a
wet tool excluded from the divestiture of the wet products
division. Net sales in the fourth quarter of 2002 included
sales of products from the wet products division, which Mattson
divested on March 17, 2003. Net sales of RTP and Strip products
were $29.6 million for the third quarter of 2003, and $22.9
million for the fourth quarter of 2002. Net sales of RTP
and Strip products in the fourth quarter of 2003 increased
32% compared to the third quarter of 2003, and increased
71 % compared to the fourth quarter of 2002.
Net income for the fourth quarter of 2003 was $1.1 million,
or $0.02 per share, compared to a net loss of $3.9 million
or $(0.09) per share for the third quarter of 2003, and a
net loss of $31.9 million or $(0.71) per share for the fourth
quarter of 2002. The third quarter 2003 loss included a $0.5
million charge related to restructuring, and the fourth quarter
2002 loss included an $11.1 million charge related to restructuring.
Shipments for the quarter were $42.1 million, a 77% increase
from $23.8 million in the third quarter of 2003, and an increase
of $1.6 million from $40.5 million in the fourth quarter
of 2002. Again, shipment in the fourth quarter of 2002 included
products from the wet products division.
Gross margin for the fourth quarter of 2003 was 41.7%, an
increase of 2.6 percentage points from 39.1% for the third
quarter of 2003, and an increase of approximately 21 percentage
points from 20.5% gross margin for the fourth quarter of
2002.
Net bookings for the fourth quarter of 2003 were $48.5 million,
a 24% increase from $39.0 million in the third quarter of
2003, and a 10% increase from $44.2 million in the fourth
quarter of 2002, which included bookings from the wet products
division. Net bookings in the fourth quarter of 2003 resulted
in a book-to-bill ratio of 1.15 to 1.0.
Operating expenses for the quarter were $16.6 million, a
decrease of about $1.3 million from $17.9 million in
expenses for the third quarter of 2003, and $25.5 million
less than
$42.1 million in expenses for the fourth quarter of 2002.
The $1.3 million reduction achieved in the fourth quarter
of 2003 is attributable to additional cost-reduction
efforts and cost sharing with an alliance partner in connection
with
an R&D project scheduled for completion this year.
Deferred revenue, which represents tools shipped and awaiting
customer acceptance and pre-paid royalties received from
DNS, was $38.7 million at the end of the fourth quarter of
2003, $10.2 million higher than the balance of $28.5 million
at the end of the third quarter of 2003, and $70.0 million
lower than the balance of $108.7 million at the end of 2002,
which included wet products. The $38.7 million in deferred
revenue includes $17.7 million in payments related to DNS
royalties. The decline in deferred revenue compared to the
fourth quarter of 2002 results primarily from the sale of
the wet products division, which had accounted for the majority
of our deferred revenue.
Net sales for fiscal 2003 were $174.3 million, a decrease
of 14% from fiscal 2002 net sales of $203.5 million. Net
sales of RTP and Strip products for fiscal 2003 were $128.7
million, an increase of 8% from fiscal 2002 net sales of
RTP and Strip products of $119.7 million.
Net loss for fiscal 2003 was $28.4 million or $(0.63) per
share, compared to a fiscal 2002 net loss of $94.3 million
or $(2.23) per share. Net loss for fiscal 2003 includes restructuring
charges of $0.5 million and a loss on the disposition of
the wet products division of $10.3 million, and net loss
for fiscal 2002 includes restructuring charges of $17.3 million.
Shipments for fiscal 2003 were $131.4 million, a 25% decrease
from shipments of $174.6 million in fiscal 2002. Results
in fiscal 2002 and the first quarter of 2003 included shipments
of products from the wet products division.
Gross margin for fiscal 2003 was 35.3%, an increase of approximately
15 percentage points from 19.9% for fiscal 2002.
Operating expenses for fiscal 2003 were $79.9 million, a
decrease of about $67.6 million from the $147.5 million operating
expenses in fiscal 2002. The significant reduction in operating
expenses in fiscal 2003 is primarily attributable to cost
savings resulting from the divestiture of the wet products
division and additional cost-reduction efforts.
The company ended fiscal 2003 with cash, cash equivalents
and restricted cash of $77.6 million, a decrease of $5.9
million from $83.5 million at September 28, 2003, and a decrease
of $11.4 million from $89.0 million at the end of fiscal
2002. During the fourth quarter of 2003, the company received
a $6.0 million payment from DNS. In addition, the company
made payment of $4.4 million to SCP towards its remaining
obligation. Working capital at the end of fiscal 2003 increased
to $56.9 million from $48.9 million at September 28, 2003,
and decreased from $62.1 million at December 31, 2002.
Ludger Viefhues, chief financial officer said, “With
contributions from substantial margin improvement and a
significant reduction in operating expenses, we are feeling
very positive
about our ability to increase profitability during 2004.
In addition, our financial position remains strong, with
almost $78 million in cash and cash equivalents and no
long-term debt on the balance sheet.”
Attached to this news release are unaudited condensed consolidated
statements of operations and balance sheets.
First Quarter 2004 Outlook: New order bookings in the first
quarter of 2004 are expected to increase by approximately
12%-15%. Net sales in the first quarter of 2004 are expected
to range between $47 million and $49 million, and gross margin
in the first quarter is expected to be approximately 41%-44%.
At 6:30 AM (Pacific Standard Time), Wednesday, January
28, 2004, Mattson will hold a conference call to review
the
following topics: fourth quarter and 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 6:30 AM Pacific Standard Time, January 28,
2004. 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.
“Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: This news release contains
forward-looking statements regarding the Company's future
prospects, including but not limited to: anticipated bookings,
revenue and margins for future periods and expected results
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. Such risks
and uncertainties include, but are not limited to: end-user
demand for semiconductors, customer demand for equipment
and the length and severity of the demand slowdown in those
markets; customer rate of adoption of new technologies; the
timing of significant customer orders; the Company’s
ability to timely manufacture, deliver and support ordered
products; the Company’s ability to bring new products
to market and to gain market share with such products; risks
inherent in the development of complex technology; the timing
and competitiveness of new product releases by the Company’s
competitors; the Company’s ability to align its cost
structure with market conditions; and other risks and uncertainties
described in the Company’s Forms 10?K, 10-Q and other
filings with the Securities and Exchange Commission. The
Company assumes no obligation to update the information
provided in this news release.
