Mattson CC notes:
First, this only covers what I judge to be the high points. It is not comprehensive, and I'm sure I made a mistake or two in note taking, but, ... .
1) Orders this quarter really really stunk: $5M. Brad (if I may take the liberty since Mattson would be unclear) said that that was due to two factors. The first is the general industry slowdown, and the second is that management was distracted by the merger. He expects orders to pick up substantially next quarter, and he expects next quarters revenues to be less than $13M (but probably more than $10M). As has been stated before on this board he expects Q4 to be very good even without a recovery due to the sale of new products. He expects $20M in Q4 (of which more than 50% is expected to be new orders).
2) Europe is the only area showing strength for Mattson now, although Brad thought that that was largely due to significantly increased market share, not necessarily general European health.
3) Merger info: Good Will and In-Process R&D is from $5-7M. With the merger the expected operating expenses will be $11M and thus the new breakeven revenues are now $22M per quarter.
4) Product lines:
a) Strip is doing poorly right now because it is overly exposed to Asia, it tends to be a capacity buy (vs. a technology buy), and most of the in-place strips are good to 0.18u.
b) CVD - shipped 1 system and booked another this Q, a 300mm is to be shipped to Japan for development group in the next Q.
c) HTP/Concept - being folded together, the epitaxial products offered in the near future will be the batch systems of Concept, and the single wafer systems of Mattson. The market for epitaxial is $310M total, $120M batch, and expected growth is 19%/year. RTP, which is being folded in with Concept is expected to do well since RTP is a technology buy.
Note: The Mattson management sounded pretty stressed, although part of that was just the fact that they were reading their talks instead of just some notes.
Clark |
