SOURCE: Mattson Technology, Inc.

Mattson Technology, Inc.

October 20, 2010 16:45 ET

Mattson Technology, Inc. Reports Results for the Third Quarter 2010

FREMONT, CA--(Marketwire - October 20, 2010) - Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the third quarter ended September 26, 2010.

Recent Business Highlights:

 -- Revenues increased sequentially 24 percent over the second quarter of 
    2010
 -- Cash, cash equivalents and short-term investments grew from the second 
    quarter
 -- Rapid Thermal Process (RTP) shipments made to a foundry customer and 
    continued etch shipments underscore the Company's growth strategy

Third Quarter 2010 Financial Results

Net sales for the third quarter were $39.8 million, compared with $32.1 million in the second quarter. Gross margin for the third quarter was $14.5 million or 37 percent, compared with $9.9 million or 31 percent for the second quarter.

Operating expenses for the third quarter were $19.5 million, virtually flat compared with the second quarter.

Net loss for the third quarter was $6.4 million, or $0.13 loss per share, compared with a net loss of $8.4 million, or $0.17 loss per share, for the second quarter.

Cash, cash equivalents, short-term investments and restricted cash at the end of the third quarter were $45.3 million, compared with $42.5 million at the end of the second quarter.

David L. Dutton, Mattson Technology's president and chief executive officer, noted, "We have had several significant accomplishments that highlight the continued success of our growth strategy. Most notably, we are making significant advancements in etch. During the third quarter we shipped a number of our paradigmE® etch systems for use in volume production, and we expect that etch will continue to make significant contributions to the Company.

"The Suprema® photoresist strip system continues to gain position as evidenced by the multiple wins we have announced. Additionally we shipped multiple Helios® XP systems into the foundry market, which represents a new market for our RTP division." Mr. Dutton concluded, "As we look to the future, Mattson Technology is now a broader-based company, showing continued growth and positioned to generate increasing revenue and profitability."

Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets.

Conference Call

On Wednesday, October 20, 2010, at 3:00 PM Pacific Time (6:00 PM Eastern Time), Mattson Technology will hold a conference call to review the following topics: 2010 third quarter financial results, current business conditions, the near-term business outlook and guidance for the fourth quarter of 2010. 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.

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: potential future revenue, profit, cash flow, cash position and other financial results, future customer demand and industry and economic conditions, Company strategies, and the market opportunity and acceptance of Company products in various customer markets. 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 and the semiconductor industry cycle; 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, 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          Nine Months Ended
                    --------------------------  --------------------------  
                   September 26, September 27,  September 26, September 27,
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------ 
Net sales           $     39,762  $     11,187  $     97,077  $     24,827
Cost of sales             25,248         8,722        64,875        31,886
                    ------------  ------------  ------------  ------------ 
    Gross margin          14,514         2,465        32,202        (7,059)
                    ------------  ------------  ------------  ------------ 
Operating expenses:
  Research, 
   development and
   engineering             6,935         5,818        20,400        19,277
  Selling, general
   and
   administrative         12,550        11,611        37,481        35,970
  Restructuring
   charges                    13         1,738           (64)        2,556
                    ------------  ------------  ------------  ------------ 
    Total
     operating
     expenses             19,498        19,167        57,817        57,803
                    ------------  ------------  ------------  ------------ 
Loss from
 operations               (4,984)      (16,702)      (25,615)      (64,862)
Interest and other
 income (expense),
 net                      (1,425)         (248)          456         1,205
                    ------------  ------------  ------------  ------------ 
Loss before income
 taxes                    (6,409)      (16,950)      (25,159)      (63,657)
Provision for
 (benefit from)
 income taxes                (43)       (8,393)          343        (7,977)
                    ------------  ------------  ------------  ------------ 
Net loss            $     (6,366) $     (8,557) $    (25,502) $    (55,680)
                    ============  ============  ============  ============ 
Net loss per share:
    Basic and
     Diluted        $      (0.13) $      (0.17) $      (0.51) $      (1.12)
Shares used in
 computing net loss
 per share:
    Basic and
     Diluted              50,094        49,884        50,044        49,795



 
                         MATTSON TECHNOLOGY, INC.                          
                  CONDENSED CONSOLIDATED BALANCE SHEETS                    
                              (in thousands)                               

     
                                              September 26,  December 31,
                                                  2010           2009
                                               (unaudited)        (1)
                                              -------------  ------------- 
ASSETS
Current assets:
  Cash, cash equivalents and short-term
   investments                                $      41,236  $      58,435
  Restricted cash                                     4,018          2,000
  Accounts receivable, net                           14,113         10,420
  Advance billings                                    3,102            905
  Inventories                                        28,155         25,804
  Prepaid expenses and other assets                   5,836          5,848
                                              -------------  ------------- 
    Total current assets                             96,460        103,412
Property and equipment, net                          15,763         21,643
Intangibles, net                                      1,063          1,250
Other assets                                          5,878          6,768
                                              -------------  ------------- 
      Total assets                            $     119,164  $     133,073
                                              =============  ============= 




LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                            $      15,375  $       7,514
  Accrued liabilities                                18,388         18,293
  Deferred revenue                                    5,863          2,150
                                              -------------  ------------- 
    Total current liabilities                        39,626         27,957
Income taxes payable, non-current                     4,496          4,458
Other liabilities                                     5,066          5,952
                                              -------------  ------------- 
      Total liabilities                              49,188         38,367
                                              -------------  ------------- 
Stockholders' equity:
  Common stock                                           54             54
  Additional paid-in capital                        633,935        631,785
  Accumulated other comprehensive income             20,636         22,014
  Treasury stock                                    (37,986)       (37,986)
  Accumulated deficit                              (546,663)      (521,161)
                                              -------------  ------------- 
    Total stockholders' equity                       69,976         94,706
                                              -------------  ------------- 
      Total liabilities and
       stockholders' equity                   $     119,164  $     133,073
                                              =============  ============= 

(1)  Derived from audited financial statements

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