Mattson Technology, Inc. Announces Third Quarter 2002 Financial Results
Thursday November 7, 4:36 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 7, 2002--Mattson Technology, Inc. (Nasdaq:MTSN - News), a leading supplier of advanced process equipment used to manufacture semiconductors, today is reporting financial results for the third quarter of 2002.
Net sales for the quarter were $60.8 million, an increase of $13.5 million or 29 percent from $47.3 million in the second quarter of 2002, and an increase of $24.2 million or 66 percent from the third quarter of 2001 net sales of $36.6 million. Shipments for the quarter were $57.8 million, an increase of $15.3 million or 36 percent from $42.5 million in the second quarter of 2002, and a decrease of $9.6 million or 14 percent from the third quarter of 2001 shipments of $67.3 million. Revenues included $3.0 million of royalty income related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (DNS).
Net loss for the third quarter of 2002 was $12.0 million, or $(0.27) per share, compared with a net loss of $24.5 million, or $(0.58) per share for the second quarter of 2002, and a net loss of $186.9 million, or $(5.05) per share, for the third quarter of 2001. Results for the third quarter of 2002 included a $6.2 million restructuring charge related to the shutdown of Mattson's Exton/Malvern, Pennsylvania facilities, the transfer of rapid thermal processing (RTP) development activities to Dornstadt, Germany and the reorganization of EPI operations. Results for the third quarter of 2002 also included $15 million of non-operating other income related to the settlement of the patent infringement suit with DNS. Results in the third quarter of 2001 included a non-cash charge of $127.7 million to recognize the impairment of goodwill, intangible assets and certain other long-lived assets related to the acquisition of CFM Technologies, Inc. and the semiconductor equipment division of STEAG in January 2001.
Net bookings for the third quarter of 2002 were $51.1 million, slightly down compared with net bookings in the second quarter of 2002 of $55.9 million, resulting in a book-to-bill ratio of 0.88 to 1.00.
Gross margin for the third quarter of 2002 was 22.2 percent, an increase of 2.2 percentage points from 20.0 percent for the second quarter of 2002, and an increase from negative 54.7 percent gross margin for the third quarter of 2001. Gross margin in the third quarter of 2001 included a non-cash charge of $21.3 million for excess inventories.
Deferred revenue at the end of the third quarter of 2002 was $114.3 million, a decrease of $3.1 million from $117.4 million at the end of the second quarter of 2002, and a decrease of $22.3 million from $136.6 million at December 31, 2001.
The company ended the third quarter of 2002 with cash and cash equivalents, restricted cash and investments of $77.1 million, a decrease of $20.0 million from $97.1 million at December 31, 2001. The company used $37.7 million during the third quarter of 2002 to timely repay two notes that were outstanding with STEAG, and is now debt free. Working capital at the end of the third quarter of 2002 was $82.2 million, an increase of $4.9 million from $77.3 million at December 31, 2001.
David L. Dutton, president and chief executive officer, said, "Over the course of 2002, we have rigorously attacked our product portfolio and cost position and have increased our focus on our core businesses. The weak macroeconomic and industry conditions continue to put pressure on our business. However, our third quarter revenue and bookings performance clearly demonstrates improvements."
Dutton continued, "To right-size the company for a protracted downturn, we started another round of cost-cutting measures in the third quarter and continue to examine our product lines and operations to bring the company to positive cash flow from operations. With our strengthened focus on core business activities and customer relations as well as our investment in innovative, competitive products, we are confident that Mattson Technology will emerge from the downturn with good traction going forward."
Attached to this news release are unaudited condensed consolidated statements of operations for three and nine month periods ending September 29, 2002 and September 30, 2001 and balance sheets as of September 29, 2002 and December 31, 2001.
At 2:00 pm Pacific Time today, Thursday, November 7, Mattson will hold a conference call to review the following topics: third quarter 2002 financial results, current business conditions, and the near-term business outlook. The conference call will be publicly available via the Internet (www.mattson.com, under "Investor Line"), beginning with a live webcast at 2:00 pm Pacific Time, November 7, 2002. In addition to the live webcast, replays will be available to the public on the Mattson website for one week following the live broadcast. Users can access the replay one hour after the call.
This press release contains forward looking statements regarding, among other matters, the Company's future prospects and near-term outlook and changes in customer demand and the effect of the economic downturn. Forward looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. In addition to the general risks associated with the slowdown in the semiconductor industry and development of complex technology, our future results will depend on a variety of factors, including the timing of significant orders, our ability to timely manufacture and deliver ordered products, our ability to bring new systems to market, the timing of new product releases by our competitors, our ability to reduce cost in response to market conditions, and other competitive factors. Reference is made to the Company's filings with the Securities and Exchange Commission for further discussion of risks and uncertainties regarding the Company's business. The Company assumes no obligation to update the information in this press release.
Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in "front-end" fabrication of integrated circuits. The company is a leader in dry strip, RTP, PECVD and wet processing equipment markets and its products combine advanced process technology on high-productivity platforms backed by industry-leading support. Since beginning operations in 1989, the company's core vision has been to help bring technology leadership and productivity gains to semiconductor manufacturers worldwide. Headquartered in Fremont, Calif., the company maintains sales and support centers throughout the United States, Europe and Asia. For more information, please contact Mattson Technology, Inc., 2800 Bayview Drive, Fremont, Calif. 94538. Telephone: (800) MATTSON/(510) 657-5900. Fax: (510) 226-8241. Internet: www.mattson.com.
MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
---------------------- ----------------------
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $ 60,808 $ 36,643 $ 154,276 $ 181,497
Cost of sales 47,307(a) 56,697 123,903 163,214
--------- --------- --------- ---------
Gross profit (loss) 13,501 (20,054) 30,373 18,283
--------- --------- --------- ---------
Operating expenses:
Research,
development
and engineering 10,003 12,734 28,915 47,743
Selling, general
and administrative 22,058 26,196 65,253 81,529
In-process research
and development -- -- -- 10,100
Amortization of
goodwill and
intangibles 1,687 8,730 5,061 28,753
Non-recurring,
restructuring
and other charges 6,171 127,684 6,171 127,684
--------- --------- --------- ---------
Total operating
expenses 39,919 175,344 105,400 295,809
--------- --------- --------- ---------
Loss from
operations (26,418) (195,398) (75,027) (277,526)
Interest and
other income
(expense), net 15,728 2,309 13,724 4,105
--------- --------- --------- ---------
Loss before
provision for
income taxes (10,690) (193,089) (61,303) (273,421)
Provision for
(benefit from)
income taxes 1,346 (6,231) 1,033 (3,822)
--------- --------- --------- ---------
Net loss $ (12,036) $(186,858) $ (62,336) $(269,599)
========= ========= ========= =========
Net loss
per share:
Basic $ (0.27) $ (5.05) $ (1.51) $ (7.33)
========= ========= ========= =========
Diluted $ (0.27) $ (5.05) $ (1.51) $ (7.33)
========= ========= ========= =========
Shares used in
computing net loss
per share:
Basic 44,696 36,985 41,379 36,801
========= ========= ========= =========
Diluted 44,696 36,985 41,379 36,801
========= ========= ========= =========
(a) Cost of sales includes approximately $2.5 million of inventory
charges related to restructuring activities.
MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS
Sept. 29, Dec. 31,
2002 2001
--------- ---------
Current assets:
Cash and cash equivalents $ 65,830 $ 64,057
Restricted cash 1,330 27,300
Short-term investments 9,917 5,785
Accounts receivable, net 35,713 38,664
Advance billings 44,419 61,874
Inventories 53,707 65,987
Inventories -- delivered systems 57,169 74,002
Prepaid expenses and other current assets 20,594 18,321
--------- ---------
Total current assets 288,679 355,990
Property and equipment, net 23,636 33,508
Goodwill and intangibles 32,565 40,616
Other assets 1,713 2,591
--------- ---------
$ 346,593 $ 432,705
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable -- STEAG Electronic Systems
AG, a shareholder $ -- $ 44,613
Current portion of long-term debt -- 289
Line of credit -- 4,589
Accounts payable 15,704 14,175
Accrued liabilities 76,461 78,459
Deferred revenue 114,289 136,580
--------- ---------
Total current liabilities 206,454 278,705
--------- ---------
Long-term liabilities:
Long-term debt -- 1,001
Deferred income taxes 7,721 11,261
--------- ---------
Total long-term liabilities 7,721 12,262
--------- ---------
Total liabilities 214,175 290,967
--------- ---------
Stockholders' equity:
Common stock 45 37
Additional paid-in capital 542,004 497,536
Accumulated other comprehensive income (loss) 1,987 (6,553)
Treasury stock (2,987) (2,987)
Accumulated deficit (408,631) (346,295)
--------- ---------
Total stockholders' equity 132,418 141,738
--------- ---------
$ 346,593 $ 432,705
========= =========
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Contact:
Mattson Technology, Inc.
Ludger Viefhues, 510/492-5954
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Source: Mattson Technology |
