Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of
advanced process equipment used to manufacture semiconductors,
today announced results for the fourth quarter and year-ending
December 31, 2008.
Fourth Quarter 2008 Financial Results
Net sales for the fourth quarter were $13.1 million, compared to
$30.0 million in the previous quarter, and $52.3 million in the
fourth quarter of 2007. Net sales for the fourth quarter of 2007
included royalties from DNS of $2.9 million. Gross margin for the
fourth quarter was 4.6 percent, compared to 25.5 percent in the
previous quarter, and 47.1 percent in the fourth quarter of 2007.
The decline in gross margin is primarily attributable to inventory
reserves of $4.3 million and manufacturing under-absorption at
these low revenue volumes.
Operating expenses for the fourth quarter were $60.1 million,
compared to $28.8 million in the third quarter and $23.5 million
for the fourth quarter of 2007. Fourth quarter operating expenses
included the following: i) previously announced significant items
totaling $30.9 million related to restructuring charges of $3.4
million, impairment of goodwill of $18.1 million, and impairment of
intangibles and long-lived assets of $9.4 million, and ii) $5.5
million in SG&A costs related to accelerated amortization on
evaluation tools placed at customer sites and incremental
receivable reserves. Third quarter 2008 operating expenses included
$1.9 million in restructuring expenses.
Net loss for the fourth quarter was $60.5 million, or $1.22 loss
per share, compared with a net loss of $20.7 million, or $0.42 loss
per share, for the previous quarter and net income of $4.8 million,
or $0.09 earnings per diluted share, for the fourth quarter of
2007. Included in the net loss for the fourth quarter were
restructuring and impairment charges totaling $30.9 million or
$0.62 loss per share, compared to restructuring charges of $1.9
million or $0.04 loss per share in the previous quarter.
Cash, cash equivalents and short-term investments at the end of
the fourth quarter were $103.4 million, compared to $117.7 million
at the end of the previous quarter, and $152.6 million at the end
of 2007. Cash decreased by $14.3 million in the fourth quarter
compared to a decrease of $18.0 million in the third quarter,
despite lower revenue levels.
David L. Dutton, Mattson Technology's president and chief
executive officer, noted, "The semiconductor industry is clearly
experiencing the most difficult period in its history, driven by
the continuing deterioration of the global economy. We responded by
taking decisive actions to reduce costs, and align our operating
plans and structure with the business environment in order to
improve our operating efficiency. Due to the limited visibility, we
are prepared for what could be a broad-based and protracted
downturn. Our strategy is to continue with our aggressive cost
reduction programs to preserve our balance sheet, while protecting
our investment in new products in order to successfully penetrate
the new markets of dielectric etch and millisecond anneal."
Dutton concluded, "We have not just restructured the Company for
the down-cycle. Rather, we have strategically built a new and more
efficient Mattson Technology that has increased customer centricity
and operating efficiencies. Upon a return to improved market
conditions, we believe that our operating model will generate
higher earnings and cash flow per revenue dollar, while leveraging
our new market positions."
Attached to this news release are preliminary unaudited
condensed consolidated statements of operations and balance
sheets.
Conference Call
On Wednesday, February 4, 2009, at 2:00 PM Pacific Time (5:00 PM
Eastern Time), Mattson Technology will hold a conference call to
review the following topics: 2008 fourth quarter and year-end
financial results, current business conditions, the near-term
business outlook and guidance for the first quarter of 2009. The
conference call will be simultaneously webcast at www.mattson.com
under the "Investors" section. In addition to the live webcast, a
replay will be available to the public on the Mattson Technology
website for one week following the live broadcast.
To access the live conference call, please dial (719)
325-4769.
Mattson will also webcast a slide presentation in conjunction
with the conference call, which can also be accessed at
www.mattson.com under the "Investors" section.
"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 and plans,
including, but not limited to: our cost reduction plans, potential
future earnings and cash flow, expansion into new markets, and the
potential results of this expansion. 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. designs, manufactures, and markets
semiconductor wafer processing equipment used in the fabrication of
integrated circuits. The Company is a leading supplier of dry strip
and rapid thermal processing equipment to the global semiconductor
industry. Its 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. Mattson is expanding into the
etch market with innovative products targeting high volume
dielectric etch applications, and is also expanding into the
millisecond annealing and thermal oxidation markets. The Company
expects that entry into these new markets will enhance its
technical leadership and deliver revenue and profitability gains.
Mattson was founded in 1988 and is headquartered in Fremont,
California. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
----------- ----------- ----------- ------------
Net sales $ 13,065 $ 52,321 $ 133,551 $ 267,286
Cost of sales 12,468 27,653 86,005 144,075
----------- ----------- ----------- ------------
Gross margin 597 24,668 47,546 123,211
----------- ----------- ----------- ------------
Operating expenses:
Research, development
and engineering 9,375 8,013 36,833 34,116
Selling, general
and administrative 19,715 15,350 68,530 64,343
Amortization of
intangibles 128 128 512 511
Restructuring
charges 3,374 - 5,989 -
Impairment of
goodwill 18,076 - 18,076 -
Impairment of
intangibles and
long-lived assets 9,431 - 9,431 -
----------- ----------- ----------- ------------
Total operating
expenses 60,099 23,491 139,371 98,970
----------- ----------- ----------- ------------
Income (loss) from
operations (59,502) 1,177 (91,825) 24,241
Interest and other
income, net 671 1,919 1,973 8,213
----------- ----------- ----------- ------------
Income (loss) before
income taxes (58,831) 3,096 (89,852) 32,454
Provision for (benefit
from) income taxes 1,625 (1,687) 2,311 4,901
----------- ----------- ----------- ------------
Net income (loss) $ (60,456) $ 4,783 $ (92,163) $ 27,553
=========== =========== =========== ============
Net income (loss) per
share:
Basic $ (1.22) $ 0.09 $ (1.86) $ 0.53
Diluted $ (1.22) $ 0.09 $ (1.86) $ 0.52
Shares used in
computing net income
(loss) per share:
Basic 49,614 50,598 49,471 51,771
Diluted 49,614 51,335 49,471 52,716
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2008 2007
(unaudited) (1)
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 103,387 $ 152,567
Accounts receivable, net 14,477 36,011
Advance billings 140 2,576
Inventories 48,410 51,073
Inventories - delivered systems 956 -
Prepaid expenses and other assets 5,765 10,996
----------- -----------
Total current assets 173,135 253,223
Property and equipment, net 27,144 28,600
Goodwill - 18,076
Intangibles, net - 7,080
Other assets 7,932 10,791
----------- -----------
Total assets $ 208,211 $ 317,770
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,205 $ 18,097
Accrued liabilities 21,241 26,900
Deferred revenue 4,198 7,207
----------- -----------
Total current liabilities 32,644 52,204
Income taxes payable, noncurrent 13,467 14,147
Other liabilities 5,264 6,136
----------- -----------
Total liabilities 51,375 72,487
----------- -----------
Stockholders' equity:
Common stock 54 54
Additional paid-in capital 628,632 623,527
Accumulated other comprehensive income 20,255 19,032
Treasury stock (37,986) (35,374)
Accumulated deficit (454,119) (361,956)
----------- -----------
Total stockholders' equity 156,836 245,283
----------- -----------
Total liabilities and stockholders'
equity $ 208,211 $ 317,770
=========== ===========
(1) Derived from audited financial statements
Mattson Technology Contact Andy Moring Mattson Technology, Inc.
tel 510-492-6530 fax 510-492-5963 andy.moring@mattson.com Investor
& Media Contact Laura Guerrant-Oiye Guerrant Associates tel
808-882-1467 fax 808-882-1267 lguerrant@guerrantir.com
Mattson Technology, Inc. (NASDAQ:MTSN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Mattson Technology, Inc. (NASDAQ:MTSN)
Historical Stock Chart
From Sep 2023 to Sep 2024
