Mattson Technology, Inc. Announces First Quarter 2003 Financial Results
Tuesday May 13, 6:25 am ET
FREMONT, Calif., May 13 /PRNewswire-FirstCall/ -- Mattson Technology, Inc. (Nasdaq: MTSN - News), a leading supplier of advanced process equipment used to manufacture semiconductors, today is reporting financial results for the fist quarter of 2003.
Highlights of this report include:
-- The completion of the previously announced divestiture of the
Wet Products Division.
-- Gross margin for the first quarter of 2003 was 27% versus 21% for the
fourth quarter of 2002.
-- Operating expenses decreased to $25.6 million for the first quarter of
2003. Operating expenses were $42.1 million for the fourth quarter of
2002, including $11.1 million non-recurring, restructuring and other
charges.
-- Cash position remains strong with over $82 million on hand at quarter
end. The company has no long-term debt.
"Despite the continued downturn and uncertain macroeconomic environment, we made significant progress, as reflected in our first quarter results," said David L. Dutton, President and chief executive officer. "We took aggressive actions to reduce operating expenses and completed the divestiture of the Wet Products Division. We expect to see further benefits, especially improvements in gross margin, as we move into the second half of this year. We are now concentrating on our strongest technologies, Strip and RTP."
Net sales for the quarter were $67.8 million, an increase of $18.6 million or 38 percent from $49.2 million in the fourth quarter of 2002, and an increase of $21.6 million or 47 percent from the first quarter of 2002 net sales of $46.2 million. Revenues for the quarter included $3.0 million of royalty income related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (DNS).
Shipments for the quarter were $39.5 million, a decrease of $1.0 million or 3 percent from $40.5 million in the fourth quarter of 2002, and an increase of $5.7 million or 17 percent from the first quarter of 2002 shipments of $33.8 million.
Sales of Wet Division products were $32.3 million in the first quarter of 2003, $23.0 million in the fourth quarter of 2002 and $23.7 million in the first quarter of 2002. Shipments of Wet Division products were $6.4 million in the first quarter of 2003. Acceptances of Wet Division tools shipped in prior quarters increased net sales in the first quarter of 2003.
Net loss for the first quarter of 2003 was $16.0 million, or ($0.36) per share, compared to a net loss of $31.9 million, or ($0.71) per share, for the fourth quarter of 2002, and a net loss of $25.8 million, or ($0.70) per share, for the first quarter of 2002. Results for the first quarter of 2003 include a $10.3 million loss related to the disposition of the Wet Products Division, reflecting the sale of net assets associated with that Division and the recording of certain liabilities resulting from the disposition.
Net bookings for the first quarter of 2003 were $34.4 million, compared to net bookings in the fourth quarter of 2002 of $44.2 million, and net bookings of $26.0 million in the year-ago quarter. Net bookings in the first quarter of 2003 resulted in a book-to-bill ratio of 0.9 to 1.0. Bookings of Wet Division products were $6.9 million in the first quarter of 2003. Mattson's book-to-bill ratio without its Wet Division was 0.8 to 1.0.
Gross margin for the first quarter of 2003 was 27 percent, an increase of approximately six percentage points from 21 percent for the fourth quarter of 2002, and an increase from 16 percent gross margin for the first quarter of 2002.
Deferred Revenue, which represents tools shipped and awaiting customer acceptance, was $24.4 million at the end of Q1 2003, $84.3 million less than the year-end balance of $108.7 million and $100.1 million less than $124.5 million at the end of the year-ago quarter. This sharp decline in deferred revenue is primarily the result of the sale of the Wet Division, which until the closing of its sale in March of this past quarter accounted for the majority of Mattson's deferred revenue.
The company ended the quarter with cash, cash equivalents and restricted cash of $82.3 million, a decrease of $6.7 million from $89.0 million at December 31, 2002. Working capital decreased to $59.5 million as of March 30, 2003 from $62.1 million at December 31, 2002.
Second Quarter 2003 Outlook: New order bookings for Strip and RTP products in the second quarter of 2003 are expected to decline between 7 and 12 percent from the first quarter bookings for those products. Net revenue for the second quarter of 2003 is expected to range between $28 and $33 million, and gross margin is expected to rise to the mid-30 percent range.
Attached to this news release are unaudited condensed consolidated statements of operations and balance sheets.
At 6:00 a.m. (Pacific Time), Tuesday, May 13, 2003, Mattson will hold a conference call to review the following topics: first quarter 2003 financial results, current business conditions, and the near-term business outlook. The conference call will be webcast via the Internet (www.mattson.com, under "Investor Line"), beginning at 6:00 am Pacific Time, May 13, 2003. In addition to the live webcast, a replay will be available to the public on the Mattson website for one-week following the live broadcast.
This news release contains forward-looking statements regarding, among other matters, the Company's future prospects and near-term outlook, including anticipated bookings, revenue and margins for future periods, and expected effects from restructurings. 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 risks in the 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 costs in response to market conditions, our actual costs from disposition of our Wet Products Division, and other 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 news release.
About Mattson Technology, Inc.
Mattson Technology, Inc. is a leading supplier of semiconductor wafer processing equipment used in "front-end" fabrication of integrated circuits. The company is a market leader in dry strip and RTP equipment, 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., 47131 Bayside Parkway, Fremont, Calif. 94538. Telephone: 800-MATTSON/510-657-5900. Fax: 510-492-5911. Internet: www.mattson.com.
MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
ASSETS
Mar. 30, Dec. 31,
2003 2002
Current assets:
Cash and cash equivalents $ 81,719 $ 87,879
Restricted cash 586 1,105
Accounts receivable, net 21,960 34,834
Advance billings 21,621 27,195
Inventories 28,624 50,826
Inventories - delivered systems 3,692 47,444
Prepaid expenses and other current assets 21,465 13,676
Total current assets 179,667 262,959
Property and equipment, net 15,591 18,855
Goodwill 8,239 12,675
Intangibles 3,611 15,254
Other assets 144 2,416
$207,252 $312,159
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 810 $ --
Accounts payable 12,409 14,346
Accrued liabilities 82,535 77,795
Deferred revenue 24,413 108,698
Total current liabilities 120,167 200,839
Long-term liabilities:
Deferred income taxes 1,341 5,215
Total long-term liabilities 1,341 5,215
Total liabilities 121,508 206,054
Stockholders' equity:
Common stock 45 45
Additional paid-in capital 542,502 542,482
Accumulated other comprehensive income (loss) 2,741 7,131
Treasury stock (2,987) (2,987)
Retained deficit (456,557) (440,566)
Total stockholders' equity 85,744 106,105
$ 207,252 $ 312,159
MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
THREE MONTHS ENDED
MAR. 30, MAR. 31,
2003 2002
Net sales $67,758 $46,205
Cost of sales 49,167 38,786
Gross profit 18,591 7,419
Operating expenses:
Research, development and engineering 7,550 9,564
Selling, general and administrative 16,873 22,097
Amortization of intangibles 1,167 1,687
Total operating expenses 25,590 33,348
Loss from operations (6,999) (25,929)
Loss on disposition of wet business (10,257) --
Interest and other income, net 1,203 1
Loss before provision for income taxes (16,053) (25,928)
Benefit from income taxes (62) (151)
Net loss $(15,991) $(25,777)
Net loss per share:
Basic $(0.36) $(0.70)
Diluted $(0.36) $(0.70)
Shares used in computing net loss per share:
Basic 44,859 37,079
Diluted 44,859 37,079
CONTACT: Christopher Dennis, Investor Relations of Mattson Technology, Inc., +1-510-492-6294.
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Source: Mattson Technology, Inc. |
