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Mattson Technology, Inc.: Mattson Technology, Inc. Reports Improved Second Quarter 2009 Results

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  Published in Science and Technology on Wednesday, July 29th 2009 at 14:14 GMT, Last Modified on 2009-07-29 14:14:14 by Market Wire
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FREMONT, CA--(Marketwire - 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 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 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 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 at [ www.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 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 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 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