SOURCE: Mattson Technology, Inc.

Mattson Technology, Inc.

July 26, 2012 16:21 ET

Mattson Technology, Inc. Reports Results for the Second Quarter of 2012

FREMONT, CA--(Marketwire - Jul 26, 2012) - Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the second quarter of 2012 ended July 1, 2012. 

2012 Second Quarter Highlights:

  • Net loss for the second quarter of 2012 was $3.3 million, or a $0.06 net loss per share. This compares with a net loss of $1.1 million or a $0.02 net loss per share in the first quarter. Excluding restructuring charges of $0.8 million, non-GAAP net loss per share was $0.04 in the second quarter, compared to the non-GAAP net loss per share of $0.01in the first quarter, excluding restructuring charges of $0.7 million.
  • Gross margins were 38 percent for the second quarter of 2012, compared to 34 percent in the prior quarter. The increase in gross margin was primarily due to a favorable change in net sales deferrals as well as an increase of higher margin net sales of thermal systems and spares. 
  • As a result of our cost reduction efforts, total operating expenses decreased $1.9 million to $16.3 million for the second quarter of 2012, compared to $18.2 million in the prior quarter. Excluding restructuring charges, non-GAAP operating expenses decreased by $2.0 million to $15.5 million for the second quarter of 2012 from $17.5 million in the prior quarter. 
  • At July 1, 2012, working capital was $55.2 million, with cash, cash equivalents, and restricted cash of $30.7 million and no debt. The decrease in cash during the quarter of $6.7 million was primarily due to increased inventory of $5.8 million, which was principally the result of a customer requested delay in the shipment of systems during the quarter.

David L. Dutton, Mattson Technology's president and chief executive officer, commented, "As previously announced on July 10, primarily due to a request from a foundry customer to delay the shipment of systems, net sales for the second quarter were lower than expected at $34.9 million, a decrease of 31 percent from $50.5 million in the first quarter. As we previously reported, we also experienced the NAND business softening during the second quarter. We are addressing the near term weakness in our sector by focusing on additional cost reductions and incremental revenue opportunities. We have invested in leading technology and low cost of ownership product offerings that are currently positioned in major customers that we believe will over time lead to share gains, particularly in the etch and rapid thermal processing markets." 

Dutton continued, "We expect to continue to be challenged with significantly lower net sales in the second half of 2012. We are continuing to focus on cost reduction activities and are seeking to reduce our cash flow break-even point to the mid-$30 million quarterly net sales run rate by the end of 2012. We are also continuing our efforts to secure asset based financing. We believe these measures will provide us with adequate liquidity to address our working capital needs."

Second Quarter 2012 Financial Results

Second quarter 2012 net sales of $34.9 million decreased $15.6 million, or 31 percent, compared with $50.5 million in the first quarter of 2012, and decreased $16.4 million, or 32 percent, compared with $51.3 million in the second quarter of 2011. Gross margin for the second quarter of 2012 was 38 percent as compared to 34 percent in the first quarter of 2012, and represents an eleven-point increase over the 27 percent gross margin in the second quarter of 2011. 

Total operating expenses were $16.3 million for the second quarter of 2012, a decrease of $1.9 million compared to the first quarter of 2012. Excluding restructuring charges, non-GAAP operating expenses were $15.5 million in the second quarter of 2012, a $2.0 million decrease compared with $17.5 million in the first quarter of 2012, and a $2.5 million decrease compared with $18.0 million in the second quarter of 2011. 

Net loss for the second quarter of 2012 was $3.3 million, or a $0.06 net loss per share. This compares with a net loss of $1.1 million, or a $0.02 net loss per share, in the first quarter of 2012, and a net loss of $5.2 million, or a $0.10 net loss per share, reported in the second quarter of 2011. Excluding restructuring charges, the non-GAAP net loss per share in the second quarter of 2012 was $0.04 as compared to a non-GAAP net loss per share of $0.01 in the first quarter of 2012.

Conference Call

On Thursday, July 26, 2012, at 3:00 p.m. Pacific Time (6:00 p.m. Eastern Time), Mattson Technology will hold a conference call to review the following topics: 2012 second quarter financial results, current business conditions, the near-term business outlook and guidance for the third quarter of 2012. 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 (970) 315-0417.

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: increases in our market share in certain markets, reduction of costs to a cash flow break-even point, our ability to secure asset based financing and our ability to address our working capital needs. 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: the slowdown in NAND sales and delay in shipment to certain foundry customers; the Company's expectations with respect to continued growth of its business; growth of the industry and the size of the Company's served available market; 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 cash position overall, especially as a result of payments made for inventory and the related collections upon shipment of such inventory; end-user demand for semiconductors, including the growing mobility electronics industry; customer demand for semiconductor manufacturing equipment; the Company's ability to timely manufacture, deliver and support ordered products; the Company's ability to bring new products to market, to gain market share with such products and the overall mix of the Company's 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. 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, rapid thermal processing and etch. 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  
    July 1,
2012
    July 3,
2011
    July 1,
2012
    July 3,
2011
 
Net sales   $ 34,884     $ 51,259     $ 85,388     $ 98,308  
  Cost of sales     21,629       37,275       55,199       71,443  
    Gross profit     13,255       13,984       30,189       26,865  
Operating expenses:                                
  Research, development and engineering     5,791       6,645       12,421       13,160  
  Selling, general and administrative     9,705       11,380       20,572       22,892  
  Restructuring charges     831       (13 )     1,551       (78 )
    Total operating expenses     16,327       18,012       34,544       35,974  
Loss from operations     (3,072 )     (4,028 )     (4,355 )     (9,109 )
Interest income (expense), net     39       58       70       37  
Other income (expense), net     (277 )     (969 )     105       (2,475 )
Loss before income taxes     (3,310 )     (4,939 )     (4,180 )     (11,547 )
Provision for (benefit from) income taxes     36       274       285       (60 )
Net loss   $ (3,346 )   $ (5,213 )   $ (4,465 )   $ (11,487 )
Net loss per share:                                
  Basic and diluted   $ (0.06 )   $ (0.10 )   $ (0.08 )   $ (0.22 )
Shares used in computing net loss per share:                                
  Basic and diluted     58,507       54,550       58,463       52,395  
                                   
                                   
                                   
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
 
    July 1,
2012
  December 31,
2011
ASSETS
Current assets:            
  Cash and cash equivalents   $ 28,870     $ 31,073  
  Restricted cash     1,877       1,877  
  Accounts receivable, net of allowance for doubtful accounts of $619 as of July 1, 2012 and $684 as of December 31, 2011     19,028       25,278  
  Advance billings     2,418       5,071  
  Inventories     36,581       29,203  
  Prepaid expenses and other current assets     6,783       9,024  
    Total current assets     95,557       101,526  
Property and equipment, net     7,687       10,552  
Intangibles, net     625       750  
Other assets     740       1,015  
      Total assets   $ 104,609     $ 113,843  
                       
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:            
  Accounts payable   $ 15,494     $ 16,785  
  Deferred revenue-current     9,982       12,117  
  Other current liabilities     14,842       16,447  
    Total current liabilities     40,318       45,349  
Deferred revenues, non-current     3,499       3,158  
Other long-term liabilities     4,182       5,191  
    Total liabilities     47,999       53,698  
Commitments and contingencies            
Stockholders' equity:            
  Preferred stock, 2,000 shares authorized; none issued and outstanding     -       -  
  Common stock, par value $0.001, 120,000 shares authorized; 62,744 shares issued and 58,654 shares outstanding as of July 1, 2012; and 62,547 shares issued and 58,366 shares outstanding as of December 31, 2011     63       63  
  Additional paid-in capital     651,110       650,110  
  Accumulated other comprehensive income     20,402       20,472  
  Treasury stock, 4,181 shares as of July 1, 2012 and December 31, 2011     (37,986 )     (37,986 )
  Accumulated deficit     (576,979 )     (572,514 )
    Total stockholders' equity     56,610       60,145  
        Total liabilities and stockholders' equity   $ 104,609     $ 113,843  
                 

Contact Information

  • Mattson Technology Contact
    J. Michael Dodson
    Mattson Technology, Inc.
    tel 1-510-657-5900
    fax 1-510-492-5963
    mike.dodson@mattson.com