News Release
Mattson Technology Contact | Investor & Media Contact |
Andy Moring | Laura Guerrant-Oiye |
Mattson Technology, Inc. | Guerrant Associates |
tel 510-657-5900 | tel 808-882-1467 |
fax 510-492-5963 | lguerrant@guerrantir.com |
andy.moring@mattson.com | |
FOR IMMEDIATE RELEASE
MATTSON TECHNOLOGY, INC. REPORTS IMPROVED
SECOND QUARTER 2009 RESULTS
FREMONT, Calif. - July 29, 2009 - Mattson Technology, Inc. (Nasdaq: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for its second quarter of 2009 (ended June 28, 2009).
Second Quarter 2009 Financial Results
Net sales for the second quarter were $8.1 million, compared to $5.6 million in the first quarter, and $41.8 million in the second quarter of 2008. Gross margin for the second quarter was negative $1.6 million, compared to negative $7.9 million in the first quarter, and $18.4 million in the second quarter of 2008. The negative gross margin in both the first and second quarters of 2009 were attributable to manufacturing under-absorption at the current low revenue volumes, and additional reserves for excess inventory and vendor commitments of $3.8 million in the second quarter and $9.3 million for the first quarter.
Operating expenses for the second quarter were $18.2 million, compared to $20.4 million in the first quarter and $25.7 million for the second quarter of 2008. Operating expenses for the second quarter included a $0.1 million release in restructuring reserves. Operating expenses for the first quarter included $0.9 million related to restructuring charges and operating expenses for the second quarter of 2008 included $0.7 million related to restructuring charges.
Net loss for the second quarter was $19.9 million, or $0.40 loss per share, compared with a net loss of $27.2 million, or $0.55 loss per share, for the first quarter and net loss of $6.8 million, or $0.14 loss per share, for the second quarter of 2008.
Cash, cash equivalents, short-term investments and restricted cash at the end of the second quarter were $79.8 million, compared to $91.6 million at the end of the first quarter and $103.4 million at the end of the fourth quarter of 2008. Cash decreased by $11.8 million in each of the first and second quarters, compared to a decrease of $14.3 million in the fourth quarter of 2008.
David L. Dutton, Mattson Technology's president and chief executive officer, noted, "We continue to see an improvement in business conditions in the semiconductor capital equipment sector and the overall semiconductor industry, although we are still in the early stages of industry recovery. Utilization rates and semiconductor demand are clearly on the rise, and specific to Mattson Technology, we are encouraged by our new product traction and sequential increase in revenues for the second quarter. Customer activity continues to increase, especially involving technologies in our new product portfolio." Dutton added, "However, capacity and expansion spending remain muted, with the timeline for more normal industry conditions and a sustainable recovery yet to be determined. While the downward trend in the industry has ended, and we are seeing improved conditions, the industry lacks clarity on the timing and roadmap of a sustained recovery."
The Company also announced incremental cost reduction initiatives, which will continue to reduce the cash loss from operations and improve the operating leverage and efficiency of the
- More -
MATTSON REPORTS 2009 SECOND QUARTER RESULTS | Page 2 of 5 |
Company during the industry recovery. These additional cost reduction initiatives will include reductions-in-force, streamlining of the management structure and extended furloughs in certain regions. Mattson expects to record cash expenditures of $1.8 million primarily in the third quarter as a result of these initiatives.
"We maintain our focus on strict cost containment measures and continue to lower the Company's cost structure, while preserving our investment in our etch technology," said Dutton. "Results for the second quarter improved across the board, and reflect our strategic initiatives to advance etch, coupled with our strict financial discipline. Revenue increased over 40 percent on a sequential basis, while operating expenses decreased quarter-on-quarter and declined 25 percent from a year ago. Our cash position at the end of the second quarter was better than we had anticipated." Dutton concluded, "We intend to insure the long-term viability of Mattson Technology and will exit this downturn with a substantially improved cost structure."
Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets.
Conference Call
On Wednesday, July 29, 2009, at 3:00 PM Pacific Time (6:00 PM Eastern Time), Mattson Technology will hold a conference call to review the following topics: 2009 second quarter financial results, cost reduction initiatives, current business conditions, the near-term business outlook and guidance for the third quarter of 2009. The conference call will be simultaneously webcast atwww.mattson.com under the "Investors" section. In addition to the live webcast, a replay will be available to the public on the Mattson Technology website for one week following the live broadcast.
To access the live conference call, please dial(719) 325- 4837.
Mattson will also webcast a slide presentation in conjunction with the conference call, which can also be accessed atwww.mattson.com under the "Investors" section.
"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 and plans, including, but not limited to: our cost reduction plans, potential future earnings, cash flow, cash position and other financial results, future customer demand and industry and economic conditions, and the market acceptance of Company products. 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. designs, manufactures and markets semiconductor wafer processing equipment used in the fabrication of integrated circuits. We are a leading supplier of plasma and rapid thermal processing equipment to the global semiconductor industry. Through manufacturing and design innovation, we have produced technologically advanced systems that
MATTSON REPORTS 2009 SECOND QUARTER RESULTS | Page 3 of 5 |
provide productive and cost effective solutions for customers fabricating current- and next-generation semiconductor devices. For more information, please contact Mattson Technology, Inc., 47131 Bayside Parkway, Fremont, CA, 94538. Telephone: (800) MATTSON/(510) 657-5900. Internet: www.mattson.com.
MATTSON REPORTS 2009 FIRST QUARTER RESULTS | Page 4 of 5 |
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
| | | | Three Months Ended
| | Six Months Ended
|
| | | | June 28, | | June 29, | | June 28, | | June 29, |
| | | | 2009
| | 2008
| | 2009
| | 2008
|
| | | | | | | | | | |
| | Sales | | | | | | | | |
| | Products | | $ 7,532 | | $ 40,443 | | $ 12,231 | | $ 87,135 |
| | Services | | 536
| | 1,347
| | 1,409
| | 3,310
|
| | Net sales | | 8,068
| | 41,790
| | 13,640
| | 90,445
|
| | Cost of sales | | | | | | | | |
| | Products | | 9,576 | | 22,735 | | 22,706 | | 49,846 |
| | Services | | 101
| | 610
| | 458
| | 1,320
|
| | Cost of sales | | 9,677
| | 23,345
| | 23,164
| | 51,166
|
| | Gross margin | | (1,609)
| | 18,445
| | (9,524)
| | 39,279
|
| | Operating expenses: | | | | | | | | |
| | Research, development and engineering | | 6,810 | | 9,215 | | 13,460 | | 17,061 |
| | Selling, general and administrative | | 11,505 | | 15,592 | | 24,359 | | 32,367 |
| | Amortization of intangibles | | - | | 128 | | - | | 256 |
| | Restructuring charges | | (100)
| | 748
| | 818
| | 748
|
| | Total operating expenses | | 18,215
| | 25,683
| | 38,637
| | 50,432
|
| | Loss from operations | | (19,824) | | (7,238) | | (48,161) | | (11,153) |
| | Interest and other income, net | | 182
| | 906
| | 1,454
| | 739
|
| | Loss before income taxes | | (19,642) | | (6,332) | | (46,707) | | (10,414) |
| | Provision for income taxes | | 254
| | 422
| | 416
| | 556
|
| | Net loss | | $ (19,896)
| | $ (6,754)
| | $ (47,123)
| | $ (10,970)
|
| | Net loss per share: | | | | | | | | |
| | Basic and Diluted | | $ (0.40) | | $ (0.14) | | $ (0.95) | | $ (0.22) |
| | Shares used in computing net loss per share: | | | | | | | | |
| | Basic and Diluted | | 49,772 | | 49,419 | | 49,749 | | 49,391 |
MATTSON REPORTS 2009 FIRST QUARTER RESULTS | Page 5 of 5 |
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| | | June 28, | | December 31, |
| | | 2009 | | 2008 |
| | | (unaudited)
| | (1)
|
| | | | | |
| ASSETS | | | | |
| | | | | |
| Current assets: | | | | |
| Cash, cash equivalents and short-term investments | | $ 77,819 | | $ 103,387 |
| Restricted cash | | 2,000 | | - |
| Accounts receivable, net | | 3,055 | | 14,477 |
| Advance billings | | 100 | | 140 |
| Inventories | | 35,175 | | 48,410 |
| Inventories - delivered systems | | - | | 956 |
| Prepaid expenses and other assets | | 5,319
| | 5,765
|
| Total current assets | | 123,468 | | 173,135 |
| Property and equipment, net | | 25,357 | | 27,144 |
| Other assets | | 7,454
| | 7,932
|
| Total assets | | $ 156,279
| | $ 208,211
|
| | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: | | | | |
| Accounts payable | | $ 6,148 | | $ 7,205 |
| Accrued liabilities | | 16,725 | | 21,241 |
| Deferred revenue | | 2,255
| | 4,198
|
| Total current liabilities | | 25,128 | | 32,644 |
| | | | | |
| Income taxes payable, non-current | | 13,591 | | 13,467 |
| Other liabilities | | 5,719
| | 5,264
|
| Total liabilities | | 44,438
| | 51,375
|
| | | | | |
| Stockholders' equity: | | | | |
| Common stock | | 54 | | 54 |
| Additional paid-in capital | | 630,533 | | 628,632 |
| Accumulated other comprehensive income | | 20,482 | | 20,255 |
| Treasury stock | | (37,986) | | (37,986) |
| Accumulated deficit | | (501,242)
| | (454,119)
|
| Total stockholders' equity | | 111,841
| | 156,836
|
| Total liabilities and stockholders' equity | | $ 156,279
| | $ 208,211
|
| | | | | |
| (1) Derived from audited financial statements | | | | |
