MATTSON TECHNOLOGY, INC. ANNOUNCES
FIRST QUARTER 2004 FINANCIAL RESULTS
FREMONT, Calif., April 21, 2004 -- Mattson Technology,
Inc. (Nasdaq: MTSN), a leading supplier of advanced process
equipment used to manufacture semiconductors, today is reporting
financial results for the first quarter of 2004.
Highlights of this report include:
- The Company increased net profits in the
first quarter of 2004 to 6.2% of net sales, from 2.5% of
net sales in the previous quarter.
- Net sales of $53.1 million were 22% higher
than the previous quarter. Shipments rose 23% over the
same period.
- Bookings increased 21% to $58.7 million in
the first quarter of 2004 from the fourth quarter of 2003.
- The Company raised approximately $46.3 million,
net, in an underwritten public offering.
“Our first quarter’s results reflect the enhanced
operating leverage gained from our new cyclically flexible
enterprise business model and the continuing benefits of
our operational initiatives implemented over the last year,” said
David L. Dutton, president and chief executive officer of
Mattson Technology.
Dutton continued, “We experienced another quarter
of strong demand, especially for our 300 mm products, driven
by continued momentum in the semiconductor capital equipment
market and the strength of our strip and RTP technology solutions.
We are focusing on extending our technology leadership by
further advancing our product lines. Our planned innovations,
coming over the course of this year, should position us well
for continued growth and increased market share gains.”
Net sales for the quarter were $53.1 million, a 22% increase
from $43.4 million in the fourth quarter of 2003, and a 22
% decrease from $67.8 million in the first quarter of 2003.
Net sales for the first quarter of 2004 consisted of $49.9
million in sales of RTP and Strip products, and royalties
of $3.2 million related to the settlement of the patent infringement
suit with Dainippon Screen Manufacturing Co., Ltd. (DNS).
Net sales in the first quarter of 2003 included sales of
products from the wet products division, which Mattson divested
on March 17, 2003. Net sales in the fourth quarter of 2003
included $1.3 million recognized upon customer acceptance
of a wet tool excluded from the divestiture of the wet products
division. Net sales of RTP and Strip products were $39.1
million for the fourth quarter of 2003, and $32.5 million
for the first quarter of 2003. Net sales of RTP and Strip
products in the first quarter of 2004 increased 28% compared
to the fourth quarter of 2003, and increased 54 % compared
to the first quarter of 2003.
Net income for the first quarter of 2004 was $3.3 million,
or $0.07 per share, compared to $1.1 million or $0.02 per
share for the fourth quarter of 2003, and a net loss of $16.0
million or $(0.36) per share for the first quarter of 2003.
The first quarter 2003 loss included a $10.3 million charge
related to the disposition of the wet products division.
Shipments for the quarter were $51.7 million, a 23% increase
from $42.1 million in the fourth quarter of 2003, and a 31%
increase from $39.5 million in the first quarter of 2003.
Again, shipment in the first quarter of 2003 included products
from the wet products division.
Gross margin for the first quarter of 2004 was 42.2%, an
increase of 0.5 percentage points from 41.7% for the fourth
quarter of 2003, and an increase of 14.8 percentage points
from 27.4% gross margin for the first quarter of 2003.
Net bookings for the first quarter of 2004 were $58.7 million,
a 21% increase from $48.5 million in the fourth quarter of
2003, and a 71% increase from $34.4 million in the first
quarter of 2003, which included bookings from the wet products
division. Net bookings in the first quarter of 2004 resulted
in a book-to-bill ratio of 1.14 to 1.
Operating expenses for the quarter were $18.2 million, an
increase of $1.6 million from $16.6 million in expenses for
the fourth quarter of 2003, and a decrease of $7.4 million
from $25.6 million in expenses for the first quarter of 2003.
The $1.6 million increase in the first quarter of 2004 is
primarily attributable to increased compensation amounts
and to diminished cost sharing, relative to the preceding
quarter, with an alliance partner in connection with an R&D
project that is scheduled for completion this year. In the
first quarter of 2004, operating expenses decreased to 34%
of net sales compared to 38% of net sales in fourth quarter
of 2003 and 38% of net sales in first quarter of 2003.
Deferred revenue, which represents tools shipped and awaiting
customer acceptance and pre-paid royalties received from
DNS, was $43.6 million at the end of the first quarter of
2004, $4.9 million higher than the balance of $38.7 million
at the end of the fourth quarter of 2003, and $19.2 million
higher than the balance of $24.4 million at the end of the
first quarter of 2003. The $43.6 million in deferred revenue
includes $14.5 million in payments related to DNS royalties.
The increase in deferred revenue results primarily from higher
sequential shipments.
The company ended the first quarter of 2004 with cash, cash
equivalents and restricted cash of $103.6 million, an increase
of $26.0 million from $77.6 million at end of fourth quarter
of 2003, and an increase of $21.3 million from $82.3 million
at the end of first quarter of 2003. During the first quarter
of 2004, the company received net proceeds of approximately
$46.3 million through an underwritten public offering by
selling approximately 4.3 million shares of its common stock
at $11.50 per share. Working capital at the end of first
quarter of 2004 increased to $105.8 million from $56.9 million
at end of fourth quarter of 2003, and from $59.5 million
at end of first quarter of 2003.
Attached to this news release are unaudited condensed consolidated
statements of operations and balance sheets.
Forward-Looking Guidance: New order bookings in the second
quarter of 2004 are expected to increase by approximately
9%-13%. Net sales in the second quarter of 2004 are
expected to range between $57 million and $60 million,
and gross
margin in the second quarter is expected to be approximately
41%- 44%.
On Wednesday, April 21, 2004, at 6:30 AM (Pacific Time),
Mattson will hold a conference call to review the following
topics: first quarter of 2004 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
Time (9:30 AM Eastern Time), April 21, 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. 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
semiconductor manufacturing equipment; the timing of significant
customer orders for the Company’s products; customer
acceptance of delivered products and the Company’s
ability to collect amounts due upon shipment and upon acceptance;
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; customer rate of adoption of new technologies;
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.
