| MATTSON TECHNOLOGY,
INC. ANNOUNCES
SECOND QUARTER
2005 RESULTS
FREMONT, Calif.,
July 20, 2005 — Mattson Technology, Inc. (Nasdaq: MTSN) today reported results for the
second
quarter ended June 26, 2005.
Highlights of this report include:
- Seventh consecutive profitable quarter.
- Cash increased 16.5 percent quarter-over-quarter to $97.6 million.
- Earnings per share increased from $0.02 to $0.06 per share quarter-over-quarter.
- Our next-generation strip tool has been qualified by a leading DRAM manufacturer.
Net sales for the current quarter were $57.1 million,
up 3.6 percent from $55.1 million for the previous
quarter, and down 5.1 percent from $60.2 million in
the second quarter of 2004. Net sales for the second quarter
of 2005 and 2004 included royalties of $3.1 million
and $3.2 million, respectively, related to the settlement
of the patent infringement suit with Dainippon Screen Manufacturing
Co., Ltd. (“DNS”). Net income for the current quarter was
$3.3 million, or $0.06 per diluted share, compared
with $1.0 million, or $0.02 per share, for the
previous quarter, and $7.4 million, or $0.14 per share,
for the second quarter of 2004.
Gross margin for the current quarter was 41.0 percent,
up 0.5 percentage points from 40.5 percent for the previous
quarter, and down 2.2 percentage points from 43.2
percent for the second quarter of 2004. Operating expenses
for the current quarter decreased to $20.4 million
from $21.0 million for the previous quarter as a result
of improved expense management. Operating expenses for
the current quarter were $1.2 million higher than
the $19.2 million reported for the second quarter
of 2004 primarily due to higher investments in R&D
in the current quarter. Operating expenses as a percentage
of net sales were
35.8
percent for the current quarter, compared with 38.1 percent
for the previous quarter and 31.9 percent in the second
quarter of 2004 .
Shipment revenues for the current quarter were $52.2 million,
essentially level with $52.3 million for the previous quarter,
and down 10.3 percent from $58.2 million for the second
quarter of 2004. Net bookings for the current quarter were
$26.6 million, down 35.7 percent from $41.4 million
for the previous quarter, and down 61.1 percent from $68.4 million
for the second quarter of 2004. Net bookings in the current
quarter resulted in a book-to-bill ratio of 0.51 to 1.
Deferred revenues (which represents unrecognized revenues
and pre-paid royalties received from DNS) were $31.1 million
at the end of the current quarter compared with $28.0 million
at the end of the previous quarter, and $43.7 million
at the end of the second quarter of 2004.
Cash, cash equivalents and short-term investments at the
end of the current quarter were $97.6 million, up
$13.8 million from $83.8 million at the end of the
prior quarter, and up $4.9 million from $92.7 million
at the end of 2004.
"Despite a challenging business environment, we delivered our seventh consecutive profitable quarter, reduced our operating expenses and further strengthened our balance sheet," said David L. Dutton chief executive officer of Mattson Technology.
"Mattson is committed to deliver best-of-breed products for every technology node. We recently introduced the Aspen III eHighlands low-k/copper strip system for sub-90 nm manufacturing, which joins our strong portfolio of products that are gaining acceptance from leading chipmakers around the world. Our next-generation strip tool designed for sub-65 nm production has been qualified and is moving into a production environment at a leading DRAM manufacturer.”
“With increasing momentum in our served markets, growing customer base and strong financial performance, we are demonstrating that we are achieving success across all fronts and are well-positioned to leverage future opportunities,” concluded Dutton.
Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets.
Forward-Looking Guidance: New order bookings in the third quarter of 2005 are expected to range between $45 million and $50 million. Third quarter 2005 revenues are expected to range between $47 million and $52 million. Gross margin in the third quarter is expected to be in the range of approximately 40 percent to 45 percent.
On Wednesday, July 20, 2005, at 5:30 PM Eastern Time (2:30
PM Pacific Time), Mattson will hold a conference call to
review the following topics: second quarter 2005 financial
results, current business conditions and the near-term business
outlook. The conference call will be simultaneously webcast
at www.mattson.com under the “Investors” section. 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. Results for the current quarter are preliminary and subject to adjustment. The company assumes no obligation to update the information provided in this news release.
About Mattson Technology, Inc.
Mattson Technology, Inc. is the leading supplier of dry strip equipment and the second largest supplier of rapid thermal processing equipment in the global semiconductor industry. The company's strip and RTP equipment utilize innovative technology to deliver advanced processing performance and productivity gains to semiconductor manufacturers worldwide for the fabrication of current- and next-generation devices. 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.
(consolidated financial tables follow)
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