SOURCE: Mattson Technology, Inc.

Mattson Technology, Inc.

February 12, 2015 16:10 ET

Mattson Technology, Inc. Reports a 49% Increase in Net Revenue for the Year Ended December 31, 2014

FREMONT, CA--(Marketwired - February 12, 2015) - Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the fourth quarter and year ended December 31, 2014.

Business Highlights:

  • Net revenue in 2014 was $178.4 million, an increase of $59.0 million, or 49 percent, as compared to $119.4 million in net revenue in 2013.
  • Net revenue in the fourth quarter of 2014 was $54.7 million, representing an increase of $16.3 million, or 42 percent, compared to net revenue of $38.4 million in the third quarter of 2014 and an increase of $14.0 million, or 34 percent, compared to net revenue of $40.8 million in the fourth quarter of 2013.
  • Net income for the fourth quarter of 2014 was $5.0 million, or $0.07 per diluted share. This compares to a net income of $0.5 million, or $0.01 per diluted share, in the third quarter of 2014, and a net income of $2.5 million, or $0.04 per diluted share, in the fourth quarter of 2013.

"This year was pivotal for Mattson, as increased spending by our customers and market share gains resulted in a 49 percent increase in revenue from the prior year," noted Fusen Chen, Mattson Technology's President and Chief Executive Officer. "This growth in revenue, coupled with the operating leverage achieved from the restructuring activities completed in 2013, led to a profitable 2014, with the fourth quarter marking our sixth consecutive profitable quarter on a non-GAAP basis."

Fourth Quarter 2014 Financial Results

Net revenue in the fourth quarter of 2014 was $54.7 million, representing an increase of $16.3 million, or 42 percent, compared to net revenue of $38.4 million in the third quarter of 2014 and an increase of $14.0 million, or 34 percent, compared to net revenue of $40.8 million in the fourth quarter of 2013. 

Gross margin in the fourth quarter of 2014 was approximately 33 percent, a 1 percentage point decrease compared to the 34 percent gross margin reported in the third quarter of 2014, and a slight increase as compared to the 32 percent gross margin reported in the fourth quarter of 2013. 

Total operating expense was $13.1 million in the fourth quarter of 2014, an increase of $0.6 million, or 5 percent, compared to $12.5 million of total operating expense in the third quarter of 2014, and an increase of $1.9 million, or 17 percent, compared to $11.1 million of total operating expense in the fourth quarter of 2013.

Excluding restructuring and other charges, non-GAAP operating expense was $13.1 million in the fourth quarter of 2014, which represents an increase of $0.9 million, or 7 percent, compared to $12.2 million in the third quarter of 2014, and an increase of $1.9 million or 17 percent, compared to $11.1 million in the fourth quarter of 2013. There were $0.3 million in restructuring and other charges in the third quarter of 2014. Due to the absence of restructuring and other charges in the fourth quarter of 2014 and the fourth quarter of 2013, there is no difference between GAAP and non-GAAP operating expense in these periods.

Net income for the fourth quarter of 2014 was $5.0 million, representing net income of $0.07 per diluted share. This compares to a net income of $0.5 million, or $0.01 per diluted share, in the third quarter of 2014, and a net income of $2.5 million, or $0.04 per diluted share, as reported in the fourth quarter of 2013. 

Excluding restructuring and other charges, non-GAAP net income per diluted share was $0.07 in the fourth quarter of 2014. This compares with a non-GAAP net income of $0.01 and $0.04 per diluted share as reported in the third quarter of 2014 and the fourth quarter of 2013, respectively. Due to the absence of restructuring charges in the fourth quarter of 2014 and the fourth quarter of 2013, there is no difference between GAAP and non-GAAP net income per diluted share for these periods.

Fiscal Year 2014 Financial Results

Net revenue in 2014 was $178.4 million, an increase of $59.0 million, or 49 percent, as compared to $119.4 million in net revenue in 2013.

Gross margin for 2014 was approximately 33 percent, a 2 percentage point increase compared to the 31 percent gross margin reported in 2013.

Total operating expense was $48.7 million in 2014, an increase of $0.3 million, or 1 percent, compared to $48.4 million of total operating expense in 2013.

Excluding restructuring and other charges, non-GAAP operating expense was $48.3 million for 2014, which represents an increase of $3.5 million, or 8 percent, compared to $44.8 million in 2013. Restructuring and other charges for 2014 and 2013 were $0.4 million and $3.7 million, respectively.

Net income for 2014 was $9.9 million, representing net income of $0.13 per diluted share. This compares to a net loss of $11.0 million, or a $0.19 net loss per share, in 2013. Excluding restructuring and other charges, non-GAAP net income per diluted share was $0.14 in 2014 and non-GAAP net loss per share was $0.12 in 2013.

Conference Call

On Thursday, February 12, 2015, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), Mattson Technology will hold a conference call to review the following topics: 2014 fourth quarter and annual financial results, current business conditions, the near-term business outlook and guidance for the first quarter of 2015. The conference call will be simultaneously webcast at www.mattson.com under the Investors section. To access the live conference call, please dial (877) 430-4657.

Use of Non-GAAP Measures

In addition to U.S. Generally Accepted Accounting Principles (GAAP) results, this press release contains certain non-GAAP financial measures. The Company's non-GAAP results for total operating expenses and net loss per share exclude amounts listed as restructuring and other charges in the accompanying tables. Management uses non-GAAP operating expenses and net income/loss per basic and diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing the investors' ability to view the Company's results from management's perspective. Restructuring and other charges in the fourth quarter of 2014, third quarter of 2014, and fourth quarter of 2013 were zero, $0.3 million, and zero, respectively. Restructuring and other charges were $0.4 million and $3.7 million for the years ended December 31, 2014 and 2013, respectively.

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, and operate in three primary product sectors: Dry Strip, Etch, Rapid Thermal Processing and Millisecond Anneal. 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.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements regarding the Company's financial and operational projections and performance, technology, product performance and reliability, anticipated demand for the Company's products, ability to convert new market opportunities and plans, strategies and objectives of management for future operations, cost-control initiatives, liquidity, uses of cash and availability and terms related to our existing line of credit. Forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such forward-looking statements and assumptions. Such risks and uncertainties include, but are not limited to: macroeconomic and geopolitical trends and events; 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. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. The Company assumes no obligation to update the information provided in this news release.

 
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
 
   Three Months Ended   Twelve Months Ended  
   December 31,
 2014
 September 28,
 2014
 December 31,
 2013
  December 31,
 2014
 December 31,
 2013
 
Net revenue  $54,747  $38,430  $40,783   $178,404  $119,434  
Cost of goods sold   36,870   25,432   27,636    119,587   82,028  
 Gross margin   17,877   12,998   13,147    58,817   37,406  
Operating expenses:                       
 Research, development and engineering   5,607   4,849   4,350    19,426   16,915  
 Selling, general and administrative   7,453   7,302   6,768    28,866   27,842  
 Restructuring and other charges   -   301   -    412   3,662  
  Total operating expenses   13,060   12,452   11,118    48,704   48,419  
Income (loss) from operations   4,817   546   2,029    10,113   (11,013 )
Interest and other income (expense), net   216   101   (109 )  107   (504 )
Income (loss) before income taxes   5,033   647   1,920    10,220   (11,517 )
Provision for (benefit from) income taxes   70   110   (592 )  339   (542 )
Net income (loss)  $4,963  $537  $2,512   $9,881  $(10,975 )
Net income (loss) per share:                       
 Basic  $0.07  $0.01  $0.04   $0.14  $(0.19 )
 Diluted  $0.07  $0.01  $0.04   $0.13  $(0.19 )
Shares used in computing net income (loss) per share:                       
 Basic   73,861   73,731   59,127    71,897   58,944  
 Diluted   75,486   75,023   60,830    73,403   58,944  
                   
                   
 
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
 
   December 31,
 2014
 December 31,
 2013
ASSETS
Current assets:        
Cash and cash equivalents  $22,760  $14,578
Accounts receivable, net   33,578   26,245
Advance billings   4,653   3,346
Inventories   40,579   34,126
Prepaid expenses and other current assets   9,767   5,267
 Total current assets   111,337   83,562
Property and equipment, net   7,534   9,216
Intangibles, net   -   250
Restricted cash   1,993   2,087
Other assets   623   808
  Total assets  $121,487  $95,923
         
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:        
Accounts payable  $22,434  $26,624
Accrued compensation and benefits   4,601   2,713
Deferred revenues, current   9,110   9,107
Revolving credit facility   -   14,000
Other current liabilities   6,630   4,122
 Total current liabilities   42,775   56,566
Deferred revenues, non-current   1,160   1,971
Other long-term liabilities   2,442   3,237
 Total liabilities   46,377   61,774
Stockholders' equity   75,110   34,149
  Total liabilities and stockholders' equity  $121,487  $95,923
         
       

Contact Information

  • Mattson Technology Contact 
    J. Michael Dodson 
    Mattson Technology, Inc. 
    tel 1-510-657-5900 
    fax 1-510-492-5963