MTSN Mattson Technology, Inc.

FREMONT, Calif., April 23 /PRNewswire-FirstCall/ -- Mattson Technology, Inc. (NASDAQ:MTSN), a leading supplier of advanced process equipment used to manufacture semiconductors, today announced results for the first quarter ended March 30, 2008. First Quarter 2008 Business Highlights: -- Mattson shipped its 100th Suprema(TM) photoresist strip system, within just two years of the official introduction of the product. The system was shipped to a customer in China for one of the newest 300mm semiconductor foundries in the world. -- The Company received multiple orders for Suprema from a new customer, expanding Mattson's presence into the Singapore market for advanced technology. -- Mattson received an order for multiple Nexion(TM) Etch systems. The initial order marks the Company's expansion into the Etch market, doubles Mattson's served-available-market and broadens the Company's future growth opportunities. First Quarter 2008 Financial Results Net sales for the current quarter were $48.7 million, down 7.0 percent from $52.3 million for the previous quarter, and down 30.4 percent from $69.9 million in the first quarter of 2007. Net sales for the fourth quarter of 2007 included royalties of $2.9 million related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. ("DNS"). Net loss for the current quarter was $4.2 million, or $(0.09) per diluted share, compared with net income of $4.8 million, or $0.09 per share, for the previous quarter, and $7.7 million, or $0.14 per share, for the first quarter of 2007. Gross margin for the current quarter was 42.8 percent, down 4.3 percentage points from 47.1 percent for the previous quarter, and down 1.8 percentage points from 44.6 percent for the first quarter of 2007. Operating expenses for the current quarter were $24.7 million, compared to $23.5 million for the previous quarter and $25.2 million reported for the first quarter of 2007. Interest and other income (expense) for the current quarter reflected a loss of $(0.2) million. This compares with interest and other income for the previous quarter of $1.9 million and $2.6 million in the first quarter of 2007. The decline in other income was primarily attributable to a $1.3 million reduction due to the weakening dollar and $0.5 million reduction due to lower yields on the Company's investments. Cash, cash equivalents and short-term investments at the end of the first quarter were $145.8 million, down $6.8 million from $152.6 million at the end of 2007. During the current quarter, the Company repurchased $2.6 million of shares of common stock under its previously announced share repurchase program. David L. Dutton, chief executive officer of Mattson Technology, commented, "While financial results for the first quarter reflect the industry's continued weakness and further declines in memory capex spending, we are on track with the Company's strategic new product investments and end market diversification." Dutton continued, "We are expanding into new markets with our existing products and are gaining traction with our new products. The Suprema product adoption by our customers is the fastest product ramp in the Company's history, and is further validation of our market leadership with photoresist strip products. In addition, during the quarter we expanded our presence into the etch market, securing an initial order for multiple Nexion systems." Dutton concluded, "Although current industry conditions are challenging, our long-term initiatives are laying the proper framework for growth, and we are executing on our business plan. Our new product traction, coupled with a strong balance sheet, optimally positions us to outperform the industry as the next cycle unfolds." Attached to this news release are preliminary unaudited condensed consolidated statements of operations and balance sheets. Guidance - 2008 Second Quarter The Company's guidance for the second quarter of 2008 is predicated on a protracted weakness in the DRAM market. For the second quarter, Mattson expects the following: -- Revenues in a range of $40 million to $45 million -- Gross margins between 39 percent and 41 percent -- Earnings in a range of loss per share of ($0.17) to loss per share of ($0.10) -- Fully diluted share count of 49.5 million. Web Cast On Wednesday, April 23, 2008, at 2:30 PM Pacific Time (5:30 PM Eastern Time), Mattson will hold a conference call to review the following topics: first quarter 2008 financial results, current business conditions and the near-term business outlook. To access the live conference call, dial (617) 614-3670. The Passcode for the conference call is 18710818. The conference call will be simultaneously web cast at http://www.mattson.com/ under the "Investors" section. Mattson will also web cast a slide presentation in conjunction with the conference call, which can also be accessed at http://www.mattson.com/ under the "Investors" section. In addition to the live web cast, 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, margins, earnings per share, market share, tax rate and fully diluted shares outstanding 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 a 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/. (consolidated financial tables follow) MATTSON TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share amounts) Three Months Ended March 30, December 31, April 1, 2008 2007 2007 Net sales $ 48,655 $ 52,321 $ 69,941 Cost of sales 27,821 27,653 38,713 Gross margin 20,834 24,668 31,228 Operating expenses: Research, development and engineering 7,846 8,013 9,111 Selling, general and administrative 16,775 15,350 15,979 Amortization of intangibles 128 128 127 Total operating expenses 24,749 23,491 25,217 Income (loss) from operations (3,915) 1,177 6,011 Interest and other income (expense), net (167) 1,919 2,602 Income (loss) before income taxes (4,082) 3,096 8,613 Provision for (benefit from) income taxes 134 (1,687) 962 Net income (loss) $ (4,216) $ 4,783 $ 7,651 Net income (loss) per share: Basic $ (0.09) $ 0.09 $ 0.15 Diluted $ (0.09) $ 0.09 $ 0.14 Shares used in computing net income (loss) per share: Basic 49,362 50,598 52,562 Diluted 49,362 51,335 53,540 MATTSON TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 30, December 31, 2008 2007 (unaudited) (1) ASSETS Current assets: Cash, cash equivalents and short-term investments $ 145,835 $ 152,567 Accounts receivable, net 35,811 36,011 Advance billings 7,241 2,576 Inventories 52,181 51,073 Inventories - delivered systems 3,762 - Prepaid expenses and other assets 9,624 10,996 Total current assets 254,454 253,223 Property and equipment, net 32,105 28,600 Goodwill 17,952 18,076 Intangibles, net 6,952 7,080 Other assets 10,629 10,791 Total assets $ 322,092 $ 317,770 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 18,729 $ 18,097 Accrued liabilities 26,349 26,900 Deferred revenue 11,435 7,207 Total current liabilities 56,513 52,204 Income taxes payable, non-current 14,981 14,147 Other liabilities 5,791 6,136 Total liabilities 77,285 72,487 Stockholders' equity: Common stock 53 54 Additional paid-in capital 624,787 623,527 Accumulated other comprehensive income 24,126 19,032 Treasury stock (37,987) (35,374) Accumulated deficit (366,172) (361,956) Total stockholders' equity 244,807 245,283 Total liabilities and stockholders' equity $ 322,092 $ 317,770 (1) Derived from audited financial statements Mattson Technology Contact Investor & Media Contact William Turner Laura Guerrant Mattson Technology, Inc. Guerrant Associates tel 510-492-6241 tel 808-882-1467 fax 510-492-5963 fax 808-882-1417 DATASOURCE: Mattson Technology, Inc. CONTACT: Mattson Technology Contact, William Turner of Mattson Technology, Inc., +1-510-492-6241, fax, +1-510-492-5963, ; or Investor & Media Contact, Laura Guerrant of Guerrant Associates, +1-808-882-1467, fax, +1-808-882-1417, , for Mattson Technology, Inc. Web site: http://www.mattson.com/

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