MTSN Mattson Technology, Inc.

Mattson Technology, Inc. Announces First Quarter 2005 Results FREMONT, Calif., April 20 /PRNewswire-FirstCall/ -- Mattson Technology, Inc. (NASDAQ:MTSN) today reported results for the quarter ended March 27, 2005. Highlights of this report include: -- Delivered sixth consecutive profitable quarter. -- Leveraged Cyclically Flexible Enterprise business model to achieve profitability despite quarter-over-quarter decline in revenue. -- Expanded global customer base, penetrating a new 300 millimeter Taiwanese fab. -- Increased market share in 2004 in RTP while achieving number one position in Strip, according to a recent industry research report. Net sales for the current quarter were $55.1 million, down 22.9 percent from $71.4 million for the previous quarter, and up 3.7 percent from $53.1 million in the first quarter of 2004. Net sales for the first quarters of both 2005 and 2004 included royalties of $3.2 million related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. ("DNS"). Net income for the current quarter was $1.0 million or $0.02 per diluted share, compared with $15.7 million or $0.30 per share for the previous quarter, and $3.3 million or $0.07 per share for the first quarter of 2004. Gross margin for the current quarter was 40.5 percent, down 3.7 percentage points from 44.2 percent for previous quarter, and down 1.7 percentage points from 42.2 percent for the first quarter of 2004. Operating expenses for the current quarter decreased to $21.0 million from $23.4 million for the previous quarter as a result of improved expense management. Operating expenses for the current quarter were $2.8 million higher than the $18.2 million reported for the first quarter of 2004 as that quarter included a non-recurring expense reimbursement of $1.2 million for an R&D project. Operating expenses as a percentage of net sales were 38.1 percent for the current quarter, compared with 32.8 percent for the previous quarter and 34.2 percent in the first quarter of 2004. Shipments for the current quarter were $52.3 million, down 27.1 percent from $71.7 million for the previous quarter, and up 1.2 percent from $51.7 million for the first quarter of 2004. Net bookings for the current quarter were $41.4 million, down 28.1 percent from $57.6 million for the previous quarter, and down 29.5 percent from $58.7 million for the first quarter of 2004. Net bookings in the current quarter resulted in a book-to-bill ratio of 0.79 to 1. Deferred revenues (which represents unrecognized revenues and pre- paid royalties received from DNS) were $28.0 million at the end of the current quarter compared with $30.3 million at the end of the previous quarter, and $43.6 million at the end of the first quarter of 2004. Cash, cash equivalents, short-term investments and restricted cash at the end of the current quarter were $83.8 million, down $8.9 million from $92.7 million at the end of the prior quarter, and down $19.8 million from $103.6 million at the end of the first quarter of 2004. "This quarter marks the first in the company's history in which we maintained profitability despite a decrease in revenue from the previous quarter," said David L. Dutton, president and chief executive officer of Mattson Technology. "This validates that we are successfully leveraging our Cyclically Flexible Enterprise business model to generate shareholder value through changing industry cycles." "Our continued investments in technology have resulted in share gains in both of our key market segments. We achieved the number one position in the dry strip market in 2004, with a 34.3 percent market share and were the second largest RTP supplier with a 16.7 percent market share, according to a recent industry research report. With our leading technology and market share positions, best-of-breed products and growing loyal customer base, we believe that we are well-positioned for future growth and are optimistic about Mattson's prospects for the rest of 2005," Dutton concluded. Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets. Forward-Looking Guidance: New order bookings in the second quarter of 2005 are expected to range between $37 million and $42 million. Second quarter 2005 revenues are expected to range between $53 million and $57 million. Gross margin in the second quarter is expected to be in the range of approximately 40 percent to 45 percent. On Wednesday, April 20, 2005, at 5:30 PM Eastern Time (2:30 PM Pacific Time), Mattson will hold a conference call to review the following topics: first quarter of 2005 financial results, current business conditions and the near-term business outlook. The conference call will be simultaneously webcast at http://www.mattson.com/ under "Investors" section. 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. "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements regarding the company's future prospects, including, but not limited to: anticipated bookings, revenue and margins for future periods. Forward-looking statements address matters that are subject to a number of risks and uncertainties that can cause actual results to differ materially. Such risks and uncertainties include, but are not limited to: end-user demand for semiconductors; customer demand for semiconductor manufacturing equipment; the timing of significant customer orders for the company's products; customer acceptance of delivered products and the company's ability to collect amounts due upon shipment and upon acceptance; the company's ability to timely manufacture, deliver and support ordered products; the company's ability to bring new products to market and to gain market share with such products; customer rate of adoption of new technologies; risks inherent in the development of complex technology; the timing and competitiveness of new product releases by the company's competitors; the company's ability to align its cost structure with market conditions; and other risks and uncertainties described in the company's Forms 10-K, 10-Q and other filings with the Securities and Exchange Commission. Results for the current quarter are preliminary and subject to adjustment. The company assumes no obligation to update the information provided in this news release. About Mattson Technology, Inc. Mattson Technology, Inc. is the leading supplier of dry strip equipment and the second largest supplier of rapid thermal processing equipment in the global semiconductor industry. The company's strip and RTP equipment utilize innovative technology to deliver advanced processing performance and productivity gains to semiconductor manufacturers worldwide for the fabrication of current- and next-generation devices. 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: http://www.mattson.com/. Contact: Ludger Viefhues Chief Financial Officer Mattson Technology, Inc. (510) 492-5954 MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended March 27, December 31, March 28, 2005 2004 2004 Net sales $55,065 $71,447 $53,125 Cost of sales 32,789 39,861 30,717 Gross margin 22,276 31,586 22,408 Operating expenses: Research, development and engineering 6,313 7,099 4,896 Selling, general and administrative 14,175 15,882 12,947 Amortization of intangibles 500 444 328 Total operating expenses 20,988 23,425 18,171 Income from operations 1,288 8,161 4,237 Interest and other income (expense), net (412) 1,682 (654) Income before income taxes 876 9,843 3,583 Provision (benefit) for income taxes (112) (5,810) 269 Net income $988 $15,653 $3,314 Net income per share: Basic $0.02 $0.31 $0.07 Diluted $0.02 $0.30 $0.07 Shares used in computing net income per share: Basic 51,344 50,817 47,463 Diluted 52,812 52,295 49,275 MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 27, December 31, March 28, 2005 2004 2004 (unaudited) (1) (unaudited) ASSETS Current assets: Cash and cash equivalents $79,375 $89,653 $80,185 Short-term investments 3,915 2,488 22,900 Restricted cash 512 511 509 Accounts receivable, net 57,395 58,288 50,794 Advance billings 18,840 16,793 24,414 Inventories 44,243 43,509 35,841 Inventories - delivered systems 6,074 5,258 8,540 Prepaid expenses and other assets 12,159 11,233 12,182 Total current assets 222,513 227,733 235,365 Property and equipment, net 25,601 27,396 17,058 Goodwill 24,451 24,451 8,239 Intangibles, net 12,397 12,897 2,298 Other assets 1,108 950 1,044 Total assets $286,070 $293,427 $264,004 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $21,560 $19,122 $26,076 Accrued liabilities 41,038 47,705 59,939 Deferred revenue 27,961 30,313 43,555 Total current liabilities 90,559 97,140 129,570 Long-term liabilities: Deferred income taxes 4,711 4,901 875 Total long-term liabilities 4,711 4,901 875 Total liabilities 95,270 102,041 130,445 Stockholders' equity: Common stock 52 52 50 Additional paid-in capital 612,038 610,690 592,796 Accumulated other comprehensive income 13,105 16,027 9,307 Treasury stock (2,987) (2,987) (2,987) Accumulated deficit (431,408) (432,396) (465,607) Total stockholders' equity 190,800 191,386 133,559 $286,070 $293,427 $264,004 (1) Derived from audited financial statements DATASOURCE: Mattson Technology, Inc. CONTACT: Ludger Viefhues, Chief Financial Officer of Mattson Technology, Inc., +1-510-492-5954 Web site: http://www.mattson.com/

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