MTSN CC notes and other
Pr Info
Revenue and shipments for the fourth quarter 2000 were $62.3 million, a revenue increase of 74 percent over fourth quarter of 1999 reported revenue of $35.8 million. Pro-forma fourth quarter of 2000 net income was $8.3 million or 40 cents per diluted share, an increase of 471 percent and 400 percent, respectively, when compared to the fourth quarter of 1999 reported net income of $1.5 million or 8 cents per diluted share. Fourth quarter of 2000 bookings were $67.3 million, an increase of 33 percent from the fourth quarter of 1999, and backlog increased 96 percent to $109.9 million, compared to $56.1 million at the end of the fourth quarter of 1999.
Quarter-to-quarter pro-forma net sales increased 7 percent, up from $58.2 million in the third quarter of 2000. Pro-forma net income for the fourth quarter represents a 2% decrease from the third quarter's net income of $8.5 million, or 39 cents per diluted share. Bookings decreased 12 percent, down from $76.6 million in the third quarter of 2000, resulting in a book-to-bill ratio of 1.08 to 1.0. Backlog increased 4.8 percent to $109.9 million, up from $104.9 million at the end of the third quarter of 2000.
Brad Mattson, CEO of Mattson Technology, stated, ``We are ending the quarter and the year with more than just record earnings, we have also completed a three-way merger that dramatically increases our size and prominence with customers, increased our backlog to record levels and signed a number of significant sales agreements. I am proud of the level of performance throughout the Mattson team, and congratulate them all.'' He continued, ``Even though we managed to double our revenues in 2000 compared to the year before and post a 74% better quarter than the year before, the early signs of the industry-wide slowdown are starting to appear. Bookings are slowing quarter-to-quarter, with customers pushing out delivery dates. Our book-to-bill ratio is also slowly declining from 1.3 in Q3, 2000 to 1.08 in Q4.'' Mattson added. ``But we believe absolutely in Mattson Technology's long term ability to prosper and grow through the combined product, technological and market strengths of our merger with STEAG and CFM.''
Q4 CC notes
Brad Mattson
Introduced new CFO, Ludger Viefhues (from Steag)
- Will close merger on January 1 as planned
- Historically account method
- 62.3M of revs, ninth q of seq growth, 7% q2q
- 213M total sales,
- 1.30 EPS for the year
- 8.3M in earnings
- 12% decrease in booking to 63.7M
- positive book to bill of 1.08 and better than industry
- Ludger comment
- Steag issued 11.8M share or 32% ownership,
- CFM issues 4.1M shares or 12% ownership in new company
- 56% existing ownership by existing ownerships
- SAB 101 is complex story
- Before SBA 101 Figures
- 62.3M revs, up 74% vs. 35.8M y2y sales, up 7% q2q
- Net in 8.3M or 0.40 EPS, up from 0.08 y2y
- Net inc decline slightly from q3 from 8.5M
- Q4 booking were 67.3M, up 33% y2y, and 12% q2q
- 57.3M in bookings and 12% decline q2q
- 109.9M in backlog 56.1M y2y vs. 104.9M q3
- book to bill 1.08 for MTSN
- 232M in rev for yr,
- SAB 101 affect rev
- Equipment sales and spare parts sales (no effect)
- New equipment sales – rev rec on customer acceptance
- Equipment sales to existing sales – rec upon title transfer
- Rest is deferred revs
- Spare part rec rev on shipment
- SBA 101 effect on quarter
- Rev becomes 47.9M vs. 62.3M of shipment
- Netincome 1.1M or 0.05 EPS
- Full year rev become 180.6M for the tear 213M of shipments
- Net inc 9.6M or 0.45 EPS for the year
- 40.7M of deferred rev at end of year
- We are precluded from recognizing deferred revs of new acquisitions
- We do dual reporting for a year
- Sales before SAB – NA 39% vs. 29% in q3, Japan 9% vs 14%, PacRim 17% from 41% , Europe 35% from 16%
- Europe and US are up reflecting strong orders in 300mm tools
- Book to bill in line with industry
- Book to bill geographically, NA 23%, Japan 7%, Pacrim 51%, Europe 19%
- Pacrim up from strong order from Taiwan and Singapore
- Gross Margins 51.4% up 50.45 in q3, CVD products, Strip and 300Mmm tools are main increases
- Headcount 641 not including steag and cfm
- 113M in cash and equivalent, decrease due to increase rev
- DSO flat at 83 day
- Inventory 137 days vs. 120 days reflect plant shipment, want 120 days for future sales
- Model is GM 50%, R%D 12%, sga 18, profits 20, will not meet it next two quarter but trying to achieve it
- Brad comments on product division – no steag and cfm
- Strip line BTB 1.24, 100% output increase y2y, grew market share and extend as leader in sector
- ASPEN-III installed at most 300mm fabs
- CVD line decreased market share due to aggressive moves by NVLS, did grow but not fast as should
- RPT – four year head start in area, Steag making progress, AMAT picked up market share though
- RPT3000 - 300MM has picked up 7 customer in q4
- EPI – shipped 4 EPIpro 5000 in Q4, getting repeat orders
- Wet products – CFM integration working well, group is production limited, must increase capacity, well positioned for 300mm applications
- Pipeline operation – wanted to show common sales face, some IT linkage issues came up
- ISO 9000 for the Fremont site
- Outlook
- Forecast in industry is neg 5% growth 2001 coming from 80% up year in 2000
- Bottom Q2, Q3 recover and Q4 pick up, MTSN concurs with two quarter of softness
- Inventory correction vs. overcapacity
- RPT loss was due to inability to delivery limitation
- Need time to integration during slowdown to improve delivery
- Backlog good for Q1 and Q2
- Hiring freeze in Q4, reduced some budgets
- Acceptance of wet tool lags sector
- Believe rev peaked in Q4 but should not drop off too much in Q1
- 130M in rev for Q1 projected
- Revise rev downward to 600M from 750M previous, up from 2000 combined company number
- EPS 1.40 targeted vs. 1.70 previous
- The value of the critical mass has been interpretation negative by press. We have a record of gaining share during industry slowdown.
- Two divisions at capacity limited and lead in three areas.
- Top 15 semi equipment companies in the world
- Q&A
- MSDW – congrat on great year, CVD lost share what doing about it?
- A: CVD is slow but sure, GM for division was busy for acquisition so not devoted as much time, tough competitor. We grew but not as fast as others. Did get a second 300mm account in Europe, but low volume
- Market share pentration?
- Not change short term
- NVLS gasonic acquisiton?
- Bad news is NVLS will target us. NVLS tough to attack in CVD. Gasonic model and NVLS model is different is margin. Gasonic often attack on pricing, but not NVLS. Latest head to head has resulted in larger products since NVLS not has many product lines. Neutral overall though.
- Wet process cap constrain?
- Pick up in business with ligitation settled on CFM/Steag. Strong in 300mm side. Not seeing business trending down in q2. Gut feeling is it will be higher in q2 as % of bus
- JPM – 130M rev – GM?
- Not changing guidance due so many accounting methods in the merger prior. Hiring freeze to max profits
- Pushouts?
- Foundry pushout. Not geographic vs. certain companies. Hyundai prob, Samsung no prob. Europe is strong and not seeing pushouts. TXN seeing softening. Communication is soft.
- Baxton Research – how much reduction in each three companies?
- Will get it has soon as possible. Ludger discuss financial model. Market has deteriorated so will adjusted models. Some companies predicted down 20% for the year vs down 5%
- Balance sheet on receivables?
- Have to convert from German Gap. Steag was private and numbers were not closed. Still working on balance sheet for Steag. No major long term debt. $10 a share for closing price. 200M in current assets from Steag. Huge amount.
- When update?
- 1-2 months
- Etown – 2002?
- 12% sga on LAM. KLAC and NVLS was low too. Will attack this ineffieciencies in SG&A. target 18%.
- Intergration issues?
- Five dif accounting methods used, trying to be one company vs. seven companies
- Tax rate?
- We are working on it, but complicated, try 33%
- Lehman – Market share?
- Leader in estimates is not accurate, everyone waits until AMAT. NVLS, and LAM then everyone goes off their numbers. We show growth this year. Most will be wet processing. Will increase share in Strip. Main competition is Fusion not gasonics. Hasve 50% of design wins. Gasonic strong in 200mm not 300mm. We are on 7 of 12 sites buying 300mm tools.
- RPG lost share and did grow. AMAT grew faster though. Will compete head to head to AMAT.
- Wit capital – IT linkage issue?
- Have to put in a common network. Be about six months. Standard is Windows NT and Outlook for e-mail. Couldn’t e-mail at first to all. Not decided on a financial system. Three types used now.
- 641 headcount? Total company?
- 2001 end may be the same as we are now. Approx 2000 for all three. Depends on industry trend.
- 300mm vs. 200mm?
- Get good margin on 200mm, but 300mm has higher market share. 300mm market is not as big yet. 300mm may be growing 40% for the year for the industry. In 2000, 12% was 300mm for MTSN, probably 20-30% by 2001.
- Dave Owens – will report both SBA and proforma?
- Yes. Wet methods be 80-100% deferred revs. Plasma should see no effect. Thermal will affect 20% of revs. Wil create a large pool of deferred revs.
- 200M more of new Steag assets?
- Part of contract and goes to new company. Triples cash position.
- Brad thanks everyone.
Long CC, but I like listening to Brad Mattson’s discussion on the market share. I read these analyst downgrades so this upbeat mood was surprising. Some new analysts on so maybe these acronyms went by too fast. Also, the Steag acquisition is cloudy to analysts for revs and EPS since MTSN lost share to NVLS during the merger.
Jack |
