FREMONT, Calif.--(BUSINESS WIRE)--Feb. 10, 1999--Mattson
Technology Inc. (Nasdaq:MTSN.O), a leading supplier of advanced process
technology for semiconductor manufacturing, today announced financial
results for the quarter and year ended Dec. 31, 1998.
Net sales for the fourth quarter of 1998 were $13.9 million,
compared to $24.5 million for the fourth quarter of 1997, a decrease
of 43 percent. The Company recorded a net loss for the fourth quarter
of $5.1 million or 33 cents per diluted share, compared to net income
of $1.0 million or 7 cents per diluted share, for the fourth quarter
of 1997. Fourth quarter bookings were $14.7 million, a decrease of 43
percent from the fourth quarter of 1997, and backlog decreased 45
percent to $22.7 million, compared to $41.5 million in the fourth
quarter of 1997.
Quarter-to-quarter net sales increased 47%, up from $9.4 million
for the third quarter of 1998. Net loss for the fourth quarter of
$5.1 million, or 33 cents per diluted share, represents a decrease
from a net loss of $14.8 million, or $1.00 per diluted share last
quarter. Bookings increased 33 percent, up from $11.0 million in the
third quarter of 1998, resulting in a book-to-bill ratio of 1.06 to
1.0.
Net sales for the year ended Dec. 31, 1998 decreased 23 percent
to $59.2 million, compared to $76.7 million for the year ended Dec.
31, 1997. Net loss for the year ended Dec. 31, 1998 was $22.4 million,
or $1.52 per diluted share, compared to net income of $1.4 million, or
9 cents per diluted share, for the year ended Dec. 31, 1997.
Brad Mattson, CEO of Mattson Technology, stated, "Although
business has been down as a result of the worst year for the equipment
industry in 25 years, I'm optimistic about our business prospects for
1999. In Q4, per our plan, more than 50% of our revenues and bookings
were for non Strip products. Our multi-product strategy is starting
to work, and we can see the benefit with increased revenues. We
expect to continue to see a return on investment in these new products
in 1999."
The Company is amending its third quarter condensed consolidated
financial statements as a result of recent SEC comments regarding
accounting for acquisition-related in-process research and
development. In connection with the Company's acquisition of Concept
Systems Design Inc. ("Concept") in July 1998, the Company initially
wrote off in-process research and development of approximately $5.8
million in the third quarter ended Sept. 27, 1998. The Company has
not received any inquiry from the SEC regarding this matter, but
decided to proactively address the SEC concerns. The Company believes
that the write-off of in-process research and development which it had
taken was made in accordance with established industry practice at the
time. In addition, the write-off was based upon a valuation provided
by an independent appraiser. As a result of the recent SEC comments,
the in-process charge resulting from the acquisition of Concept was
reduced from $5.8 million to $4.2 million. The resulting net change
of approximately $1.6 million increases goodwill which will be
amortized over a five year period. The increased quarterly
amortization is approximately $80,000.
This press release contains forward-looking statements regarding,
among other matters, the Company's future financial performance.
Forward looking statements address matters which are subject to a
number of risks and uncertainties. In addition to the general risks
associated with the development of complex technology, future results
of the Company will depend on a variety of factors, including the
timing of significant orders, the ability of the Company to bring new
systems to market, the timing of new product releases by the Company's
competitors, slowdowns in the semiconductor industry, 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.
Mattson Technology Inc. is a multiple product supplier of
semiconductor process equipment for photoresist strip, isotropic etch,
chemical vapor deposition, epitaxial and rapid thermal processing.
The Company's products combine advanced process technology on a high
productivity platform, backed by industry leading support. Since
beginning operations in 1989, the Company's core vision is to bring
dramatic productivity gains to semiconductor manufacturers worldwide.
Headquartered in Fremont, the Company maintains sales and support
centers throughout the United States, Europe, Asia/Pacific and Japan.
For more information, please contact: Mattson Technology Inc.,
3550 W. Warran Avenue, Fremont, CA 94538, Tel: 510/657-5900.
Fax: 510/657-0165. Internet: mattson.com.
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MATTSON TECHNOLOGY INC.
INCOME STATEMENT
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
---------------------------- -----------------
Dec. 31 Dec. 31 Sept. 27 Dec. 31 Dec. 31
1998 1997 1998 1998 1997
------- ------- -------- ------ --------
Net sales $13,869 $24,503 $ 9,420 $59,186 $76,730
Cost of sales 9,054 11,623 8,920 37,595 37,130
------- ------- ------- ------- -------
Gross profit 4,815 12,880 500 21,591 39,600
------- ------- ------- -------- -------
Operating expenses:
Research,
development &
engineering 4,292 4,633 4,107 16,670 14,709
Selling, general
& administrative 5,880 7,302 6,294 24,542 24,495
Acquired in-process
research &
development -- -- 4,220 4,220 --
------ ------ ------ ------ ------
Total operating
expenses 10,172 11,935 14,621 45,432 39,204
------ ------ ------ ------ ------
Income (loss)
from operations (5,357) 945 (14,121) (23,841) 396
Interest and other
income (expense),
net 391 288 431 1,811 1,486
------ ------ ------- ------- ------
Income (loss) before
income taxes (4,966) 1,233 (13,690) (22,030) 1,882
Benefit from
income taxes 137 239 1,109 337 451
------- ------- -------- -------- --------
Net income
(loss) $(5,103) $ 994 $(14,799) $(22,367) $ 1,431
======== ======== ======== ======== ========
Net income (loss)
per share:
Basic $ (.33) $ .07 $ (1.00) $ (1.52) $ .10
======== ======= ========= ========= ========
Diluted $ (.33) $ .07 $ (1.00) $ (1.52) $ .09
======== ======= ========= ========= ========
Weighted average
common & common
equivalent shares:
Basic 15,315 14,159 14,839 14,720 14,117
====== ====== ====== ====== ======
Diluted 15,315 15,278 14,839 14,720 15,311
====== ====== ====== ====== ======
MATTSON TECHNOLOGY, INC.
BALANCE SHEET
(in thousands)
(unaudited)
Assets
Dec. 31, Dec. 31,
1998 1997
Current assets:
Cash and cash equivalents $11,863 $25,583
Short-term investments 8,128 8,598
Accounts receivable, net 9,614 14,784
Inventories 10,924 19,068
Prepaid expenses and other current assets 8,745 5,222
------ ------
Total current assets 49,274 73,255
Property and equipment, net 12,090 11,188
Other assets 6,756 --
------- -------
$68,120 $84,443
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,399 $ 3,349
Accrued liabilities 14,841 12,910
------ ------
Total current liabilities 18,240 16,259
Total stockholders' equity 49,880 68,184
------- -------
$68,120 $84,443
======= =======
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CONTACT: Mattson Technology Inc.
Rich Mora, 510/657-5900 |
