Mattson Technology, Inc. (NASDAQ: MTSN), a leading supplier of
advanced process equipment used to manufacture semiconductors,
today announced results for the 2011 fourth quarter and year ended
December 31, 2011.
Business Highlights:
- Fourth quarter 2011 net sales of $41.7 million increased 1.1
percent, compared with fourth quarter 2010; 2011 net sales of
$184.9 million increased 34 percent, compared with 2010.
- The Company's balance sheet continues to be strong, with
working capital of $56.2 million, cash of $32.9 million and no
debt.
- Etch systems 2011 net sales grew 77 percent year-over-year, and
etch products now comprise 34 percent of systems sales.
"We solidified our new product positions in 2011," noted David
L. Dutton, Mattson Technology's president and chief executive
officer, "and we are now looking to 2012 to monetize these wins to
achieve higher revenue growth and return to profitability. Even
with challenging industry conditions, we grew 2011 net sales 34
percent over 2010, driven by a 77 percent growth in etch systems.
These high growth rates are in a year in which wafer fabrication
equipment spending is forecasted to be up approximately 10
percent.
"In 2011, we made great strides in our strategic plan to expand
RTP into the logic/foundry market. Our Millios™ has become the
process tool of choice at advanced nodes at three major
foundry/logic customers, and our Helios® XP exited 2011 with full
production acceptance at three major foundry customers. While 2011
primarily remained an investment year for Mattson Technology, I
believe these achievements have put the Company on a very strong
growth path. We are excited about the rapid progress of our new
etch and RTP positions, and our goal is to turn this momentum into
higher levels of profitable and sustainable growth in 2012."
Mr. Dutton concluded, "As the quarter progressed, we have seen
an improved visibility from our customers, resulting in strong
order growth for the Company. We would expect that with a stronger
semiconductor capital equipment investment cycle, our new product
positions would outperform the industry."
Fourth Quarter and 2011 Financial Results
Working capital at the end of the fourth quarter was $56.2 million,
compared with $57.6 million at the end of the third quarter of 2011
and $51.1 million at December 31, 2010. Cash, cash equivalents,
short-term investments and restricted cash at December 31, 2011
were $32.9 million, compared with $38.1 million at the end of the
third quarter of 2011 and compared with $23.0 million at December
31, 2010.
Fourth quarter net sales of $41.7 million decreased 7.2 percent,
compared with $44.9 million in the third quarter of 2011, and
increased 1.1 percent, compared with $41.3 million in the fourth
quarter of 2010. Gross margin for the fourth quarter was 33.3
percent, compared with the 34.5 percent gross margin in the third
quarter of 2011 and a six-point increase over the 26.9 percent
gross margin in the fourth quarter of 2010. Operating expenses for
the fourth quarter were $18.7 million and included $1.8 million of
restructuring costs. Operating expenses excluding the impact of
restructuring charges were $16.9 million, a $1.1 million decline
when compared with $18.0 million in the third quarter of 2011,
excluding $0.2 million of restructuring charges.
The sequential decline in operating expenses and the
restructuring charges incurred during the fourth quarter were in
connection with the Company's cost reduction program. The
restructuring charges represented costs incurred to amend a
facility lease to reduce the overall commitment by $5.8 million,
plus severance and related costs associated with a reduction in
force. During the fourth quarter, in addition to the $1.8 million
restructuring charges, the Company recorded a number of significant
items that included the establishment of a $3.7 million valuation
allowance against certain foreign deferred tax assets, a $2.7
million tax benefit from the release of a reserve due to a lapse of
the statute of limitations, and a net $1.6 million benefit
primarily from the extinguishment of certain liabilities associated
with a dormant foreign operation. The net impact of all of these
items is a reduction to net income of $1.2 million, or $0.02 per
share.
Net loss for the fourth quarter was $4.2 million, or $0.07 loss
per share. This compares with a net loss for the 2011 third quarter
of $2.3 million, or $0.04 loss per share, and a net loss of $7.9
million, or $0.16 loss per share, reported in the fourth quarter of
2010.
For the year 2011, net sales of $184.9 million increased 33.7
percent, compared with $138.3 million last year. Gross margin for
the year was 30.4 percent, just under a two percent improvement
over the 2010 gross margin of 28.5 percent. Operating expenses for
2011 were $72.8 million and included $1.9 million of restructuring
costs. Operating expenses excluding the impact of restructuring
charges were $70.9 million, a $1.7 million improvement when
compared with $72.6 million in 2010.
Net loss for the year was $18.0 million, or $0.32 loss per
share, compared with a net loss of $33.4 million, or $0.67 loss per
share in 2010.
Attached to this news release are unaudited condensed
consolidated statements of operations and balance sheets. The
Company noted that certain prior period amounts have been
reclassified to conform to the reporting in the current period
financial statements. Specifically, in the fourth quarter of 2010,
the twelve months ended December 31, 2010 and for the three and
nine months ended October 2, 2011, respectively, approximately
$1.2, $5.2, $1.2 and $3.7 million of prior period costs, related to
the allocation of costs to the spare parts business, were
reclassified from selling, general and administrative expense to
cost of sales in order to more appropriately reflect the costs
associated with revenue generating activities. These
reclassifications do not affect net income, cash flows or
stockholders' equity.
Conference Call Wednesday, February 1,
2011, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time), Mattson
Technology will hold a conference call to review the following
topics: 2011 fourth quarter and year financial results, current
business conditions, the near-term business outlook and guidance
for the first quarter of 2012. 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 (970) 315-0417.
Mattson Technology 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: potential
future net sales, profit, cash flow, cash position and other
financial results, future customer demand and industry and economic
conditions, Company strategies and the market opportunity and
acceptance of Company products in various customer markets.
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: Company expectations with respect to continued
growth of its business; growth of the industry and the size of the
Company's served available market; 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 cash position
overall, especially as a result of payments made for inventory and
the related collections upon shipment of such inventory; end-user
demand for semiconductors, including the growing mobility
electronics industry; customer demand for semiconductor
manufacturing equipment, including as a result of Greenfield fab
plans; the Company's ability to timely manufacture, deliver and
support ordered products; the Company's ability to bring new
products to market, to gain market share with such products and the
overall mix of the Company's 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. 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. We are a leading supplier of plasma and rapid thermal
processing equipment to the global semiconductor industry, and
operate in three primary product sectors: dry strip, rapid thermal
processing and etch. Through manufacturing and design innovation,
we have produced technologically advanced systems that provide
productive and cost-effective solutions for customers fabricating
current and next-generation semiconductor devices. For more
information, please contact Mattson Technology, Inc., 47131 Bayside
Parkway, Fremont, CA, 94538. Telephone: (800) MATTSON/(510)
657-5900. Internet:www.mattson.com.
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
------------ ------------ ------------ ------------
Net sales $ 41,694 $ 41,259 $ 184,947 $ 138,336
Cost of sales 27,827 30,153 128,699 98,952
------------ ------------ ------------ ------------
Gross profit 13,867 11,106 56,248 39,384
------------ ------------ ------------ ------------
Operating expenses:
Research,
development and
engineering 6,296 7,391 26,189 27,791
Selling, general
and
administrative 10,601 11,345 44,720 44,902
Restructuring
charges 1,786 (50) 1,889 (114)
------------ ------------ ------------ ------------
Total operating
expenses 18,683 18,686 72,798 72,579
------------ ------------ ------------ ------------
Loss from operations (4,816) (7,580) (16,550) (33,195)
Interest and other
income (expense),
net 2,136 (343) 270 113
------------ ------------ ------------ ------------
Loss before income
taxes (2,680) (7,923) (16,280) (33,082)
Provision for
(benefit from)
income taxes 1,494 (22) 1,670 321
------------ ------------ ------------ ------------
Net loss $ (4,174) $ (7,901) $ (17,950) $ (33,403)
============ ============ ============ ============
Net loss per share:
Basic and
Diluted $ (0.07) $ (0.16) $ (0.32) $ (0.67)
Shares used in
computing net loss
per share:
Basic and
Diluted 58,276 50,153 55,299 50,073
MATTSON TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2011 2010
(unaudited) (1)
---------------- ----------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 31,073 $ 19,014
Restricted cash 1,877 4,026
Accounts receivable, net 25,278 24,127
Advance billings 5,071 3,177
Inventories 29,203 34,673
Prepaid expenses and other assets 9,024 5,770
---------------- ----------------
Total current assets 101,526 90,787
Property and equipment, net 10,552 15,011
Other assets 1,765 5,826
---------------- ----------------
Total assets $ 113,843 $ 111,624
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,785 $ 20,860
Accrued liabilities 16,447 13,452
Deferred revenue 12,117 5,349
---------------- ----------------
Total current liabilities 45,349 39,661
Income taxes payable, non-current 1,312 4,287
Other liabilities 7,037 5,021
---------------- ----------------
Total liabilities 53,698 48,969
---------------- ----------------
Stockholders' equity:
Common stock 62 54
Additional paid-in capital 650,111 634,944
Accumulated other comprehensive income 20,472 20,207
Treasury stock (37,986) (37,986)
Accumulated deficit (572,514) (554,564)
---------------- ----------------
Total stockholders' equity 60,145 62,655
---------------- ----------------
Total liabilities and
stockholders' equity $ 113,843 $ 111,624
================ ================
(1) Derived from audited financial statements
Mattson Technology Contact J. Michael Dodson Chief
Financial Officer Mattson Technology, Inc. tel 510-657-5900
fax 510-492-5963 Investor & Media Contact Laura
Guerrant-Oiye Principal Guerrant Associates tel 808-882-1467
lguerrant@guerrantir.com
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