MATTSON TECHNOLOGY, INC. ANNOUNCES
SECOND QUARTER 2004 FINANCIAL RESULTS
FREMONT, Calif., July 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 second quarter of 2004.
Highlights of this report include:
- The Company sequentially increased net profits
in the second quarter of 2004 to 12.2% of net sales,
from 6.2%
of net sales in the previous quarter.
- Net sales of $60.2 million were 13% higher than
the previous quarter. Shipments rose 13% over the
same period.
- Bookings increased 17% to $68.4 million in the
second quarter of 2004 from the first quarter of 2004.
- Earnings per share doubled to $0.14 per share
in the second quarter of 2004 over the previous quarter.
"We had a terrific second quarter," said David
L. Dutton, president and chief executive officer of Mattson
Technology. “We
doubled our earnings per share. We also leveraged our 300
mm position and won new 300 mm accounts in Japan, Korea and
Singapore. These new customer wins reflect our successful
effort in focusing on driving market share gains in our core
areas of strip and RTP."
Dutton continued, "Over the last quarter, we announced
expansions in our product portfolio with the introduction
of three products extendible down to the 65 nm technology
node: our new Aspen III ICPHT strip and our LPA module and
Helios RTP system. The pending acquisition of Vortek Industries'
Flashfire millisecond annealing system will fit well into
Mattson's ultra-shallow junction roadmap and, with its advanced
features, will give us an opportunity to reach new potential
customers."
Net sales for the quarter were $60.2 million, a 13% increase
from $53.1 million in the first quarter of 2004, and a
97 % increase from $30.5 million in the second quarter
of 2003. Net sales for the second quarter of 2004 and 2003
included royalties of $3.2 million and $3.0 million, respectively,
related to the settlement of the patent infringement suit
with Dainippon Screen Manufacturing Co., Ltd. (DNS).
Net income for the second quarter of 2004 was $7.4 million,
or $0.14 per diluted share, compared to $3.3 million or $0.07
per share for the first quarter of 2004, and a net loss of
$9.5 million or $(0.21) per share for the second quarter
of 2003.
Shipments for the quarter were $58.2 million, a 13% increase
from $51.7 million in the first quarter of 2004, and a 124%
increase from $26.0 million in the second quarter of 2003.
Gross margin for the second quarter of 2004 was 43.2%, an
increase of 1.0 percentage points from 42.2% for the first
quarter of 2004, and an increase of 3.6 percentage points
from 39.6% gross margin for the second quarter of 2003.
Net bookings for the second quarter of 2004 were $68.4 million,
a 17% increase from $58.7 million in the first quarter of
2004, and a 173% increase from $25.1 million in the second
quarter of 2003. Net bookings in the second quarter of 2004
resulted in a book-to-bill ratio of 1.18 to 1.
Operating expenses for the quarter were $19.2 million, an
increase of $1.0 million from $18.2 million in expenses for
the first quarter of 2004, and a decrease of $0.6 million
from $19.8 million in expenses for the second quarter of
2003. The $1.0 million increase in the second quarter of
2004 is primarily attributable to increased variable compensation
related to improved business performance and to cessation
of cost sharing with an alliance partner in connection with
an R&D project that was completed in the first quarter
of 2004. In the second quarter of 2004, operating expenses
decreased to 32% of net sales compared to 34% of net sales
in first quarter of 2004 and 65% of net sales in second quarter
of 2003.
Deferred revenue, which represents tools shipped and awaiting
customer acceptance and pre-paid royalties received from
DNS, was $43.7 million at the end of the second quarter of
2004, relatively flat with the balance of $43.6 million at
the end of the first quarter of 2004, and $11.5 million higher
than the balance of $32.2 million at the end of the second
quarter of 2003. The $43.7 million in deferred revenue includes
$17.3 million in payments related to DNS royalties. The increase
in deferred revenue results primarily from higher sequential
shipments.
The company ended the second quarter of 2004 with cash,
cash equivalents and restricted cash of $98.5 million, a
decrease of $5.1 million from $103.6 million at end of first
quarter of 2004, and an increase of $13.7 million from $84.8
million at the end of second quarter of 2003. Working capital
at the end of second quarter of 2004 increased to $108.4
million from $105.8 million at end of first quarter of 2004,
and from $54.2 million at end of second 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 third
quarter of 2004 are expected to increase by approximately
8%-12%. Net sales in the third quarter of 2004 are expected
to range between $66 million and $69 million, and gross margin
in the third quarter is expected to be in the range of approximately
43%- 46%.
On Wednesday, July 21, 2004, at 6:30 AM (Pacific Time),
Mattson will hold a conference call to review the following
topics: second 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), July 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.
About
Mattson Technology, Inc.
Mattson Technology, Inc. is a
leading supplier of semiconductor wafer
processing equipment used in the fabrication
of integrated circuits. The company’s
dry strip and RTP equipment utilize innovative
technology to deliver advanced processing
capabilities on high-productivity platforms
for the fabrication of current- and next-generation
devices. Since beginning operations in
1989, the company’s core vision has
been to help bring technology leadership
and productivity gains to semiconductor
manufacturers worldwide. 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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