Mattson Technology, Inc. Reports Results for the 2012 Fourth Quarter and Year

Mattson Technology, Inc. Reports Results for the 2012 Fourth Quarter and Year 
FREMONT, CA -- (Marketwire) -- 02/27/13 --  Mattson Technology, Inc.
(NASDAQ: MTSN), a leading supplier of advanced process equipment used
to manufacture semiconductors, today announced results for the fourth
quarter and the year ended December 31, 2012.  
Business Highlights: 


 
--  At December 31, 2012, working capital was $42 million, with cash, cash
    equivalents, and restricted cash of $16.2 million.
--  Gross margin increased by five percentage points to 35.5 percent in
    2012 compared to 30.4 percent 2011.
--  Excluding restructuring charges, non-GAAP operating expenses of $12.7
    million in the fourth quarter of 2012 represent a decrease of $4.2
    million, or 24.8 percent, as compared to $16.9 million in the fourth
    quarter of 2011.
--  Excluding restructuring charges, non-GAAP operating loss in 2012
    decreased by $0.5 million to $14.2 million compared to $14.7 million
    in 2011.
--  Net loss for the fourth quarter of 2012 was $8.8 million, or a $0.15
    net loss per share. This compares with a net loss of $6.0 million, or
    a $0.10 net loss per share, in the third quarter of 2012. Excluding
    restructuring charges of $3.1 million, non-GAAP net loss per share was
    $0.10 in the fourth quarter of 2012, compared to the non-GAAP net loss
    per share of $0.10 in the third quarter of 2012, excluding
    restructuring charges of $0.5 million.

  
"We finished the year continuing our strong execution against our cost
reduction and gross margin improvement programs. Year over year,
despite the decrease in industry demand in the second half of 2012,
we improved our gross margin by five percentage points and excluding
restructuring charges, reduced our operating expenses by $11.8
million," noted Fusen Chen, Mattson Technology's president and chief
executive officer. "In addition, leaving the first quarter of 2013
with the completion of Phase IV of our cost-reduction program, we
expect our quarterly operating expense run-rate to approximate $10
million and our quarterly net sales cash flow breakeven level to be
mid to high $20 million." 
Mr. Chen concluded, "When the business demand returns, we believe
that we will be well positioned to grow net sal
es through key product
penetrations and be able to leverage our streamlined operations for
strong profitability and cash generation." 
Fourth Quarter 2012 Financial Results  
Fourth quarter 2012 net sales of $20.7 million increased $0.3
million, or 1.7 percent, compared to $20.4 million in the third
quarter of 2012, and decreased $21.0 million, or 50.3 percent,
compared to $41.7 million in the fourth quarter of 2011.  
Gross margin in the fourth quarter of 2012 was 34 percent, compared
to 38 percent in the third quarter of 2012 and 33 percent gross
margin in the fourth quarter of 2011.  
Total operating expenses were $15.8 million for the fourth quarter of
2012, a $1.9 million increase compared to the third quarter of 2012.
Excluding restructuring charges, non-GAAP operating expenses were
$12.7 million in the fourth quarter of 2012, a $0.7 million decrease
compared with $13.4 million in the third quarter of 2012 and a $4.2
million decrease compared with $16.9 million in the fourth quarter of
2011.  
Net loss for the fourth quarter of 2012 was $8.8 million or a $0.15
net loss per share. This compares with a net loss of $6.0 million, or
a $0.10 net loss per share, in the third quarter of 2012, and a net
loss of $4.2 million, or a $0.07 net loss per share, reported in the
fourth quarter of 2011. Excluding restructuring charges, the non-GAAP
net loss per share in the fourth quarter of 2012 was $0.10 as
compared to a non-GAAP net loss per share of $0.10 in the third
quarter of 2012 and a non-GAAP net loss per share of $0.04 in the
fourth quarter of 2011.  
2012 Financial Results  
For the year ended December 31, 2012, net sales of $126.5 million,
decreased $58.4 million or 31.6 percent, compared to $184.9 million
in the prior year. Gross margin for 2012 was 35.5 percent, a five
percentage point improvement over the 2011 gross margin of 30.4
percent.  
Operating expenses for 2012 were $64.2 million, a $8.6 million
decrease compared to 2011. Excluding restructuring charges, 2012
non-GAAP operating expenses were $59.1 million, a $11.8 million
improvement compared to $70.9 million in 2011. 
Net loss for the year was $19.3 million, or $0.33 loss per share,
compared to a net loss of $18.0 million, or $0.32 loss per share in
2011. Excluding restructuring charges, the non-GAAP net loss per
share was $0.24 in 2012 as compared to a non-GAAP net loss per share
of $0.29 per share in 2011.  
Conference Call 
On Wednesday February 27, 2013, at 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time), Mattson Technology will hold a conference call to
review the following topics: 2012 fourth quarter and annual financial
results, current business conditions, the near-term business outlook
and guidance for the first quarter of 2013. The conference call will
be simultaneously webcast at www.mattson.com under the Investors
section. To access the live conference call, please dial (970)
315-0417.  
Use of Non-GAAP Measures 
In addition to U.S. Generally Accepted Accounting Principles (GAAP)
results, this press release contains certain non-GAAP financial
measures. The Company's non-GAAP results for total operating expenses
and net loss per share exclude amounts listed as restructuring
charges in the accompanying tables. Management uses non-GAAP
operating expenses and net income/loss per basic and diluted share to
evaluate the Company's operating and financial results. The Company
believes the presentation of non-GAAP results is useful to investors
for analyzing business trends and comparing performance to prior
periods, along with enhancing the investors' ability to view the
Company's results from management's perspective. Restructuring
charges in the fourth quarter of 2012, third quarter of 2012, and
fourth quarter of 2011 were $3.1 million, $0.5 million, and $1.8
million, respectively. Restructuring charges were $5.1 million and
$1.9 million for the years ended December 31, 2012 and 2011,
respectively. 
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: expectations regarding net sales and operating
expenses, continued cost-reduction initiatives, product positions and
penetration, market opportunity and acceptance of Company products in
various customer markets, future customer demand and industry and
economic conditions, and potential future profitable growth, cash
generation and other improved financial results. Forward-looking
statements address matters that are subject to a number of risks and
uncertainties that can cause actual results to differ materially.
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 positio
n 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; 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; the Company's dependence on international sales;
volatility in the Company's stock price and any potential delisting
of the stock from NASDAQ for the failure to maintain a minimum bid
price; 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  September   December   December   December 
                         31,        30,        31,        31,        31,    
                         2012       2012       2011       2012       2011   
                      ---------  ---------  ---------  ---------  --------- 
Net sales             $  20,740  $  20,398  $  41,694  $ 126,526  $ 184,947 
Cost of sales            13,763     12,664     27,827     81,626    128,699 
                      ---------  ---------  ---------  ---------  --------- 
    Gross profit          6,977      7,734     13,867     44,900     56,248 
                      ---------  ---------  ---------  ---------  --------- 
Operating expenses:                                                         
  Research,                                                                 
   development and                                                          
   engineering            4,690      5,217      6,296     22,328     26,189 
  Selling, general                                                          
   and administrative     8,009      8,205     10,601     36,786     44,720 
  Restructuring                                                             
   charges                3,066        453      1,786      5,070      1,889 
                      ---------  ---------  ---------  ---------  --------- 
    Total operating                                                         
     expenses            15,765     13,875     18,683     64,184     72,798 
                      ---------  ---------  ---------  ---------  --------- 
Loss from operations     (8,788)    (6,141)    (4,816)   (19,284)   (16,550)
Interest and other                                                          
 income (expense),                                                          
 net                        283         (9)     2,136        449        270 
Loss before income                                                          
 taxes                   (8,505)    (6,150)    (2,680)   (18,835)   (16,280)
Provision for                                                               
 (benefit from)                                                             
 income taxes               315       (116)     1,494        484      1,670 
                      ---------  ---------  ---------  ---------  --------- 
Net loss              $  (8,820) $  (6,034) $  (4,174) $ (19,319) $ (17,950)
                      =========  =========  =========  =========  ========= 
Net loss per share:                                                         
  Basic and diluted   $   (0.15) $   (0.10) $   (0.07) $   (0.33) $   (0.32)
Shares used in                                                              
 computing net loss                                                         
 per share:                                                                 
  Basic and diluted      58,638     58,586     58,276     58,538     55,299 
                                                                            
                                                                            
                                                                            
                          MATTSON TECHNOLOGY, INC.                          
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                                                            
                                                                            
                                                 December 31,  December 31, 
                                                      2012          2011    
                                                 ------------- -------------
                                   ASSETS                                   
Current assets:                                                             
Cash and cash equivalents                        $      14,354 $      31,073
Restricted cash                                          1,877         1,877
Accounts receivable, net                                15,660        25,278
Advance billings                                         1,720         5,071
Inventories                                             33,309        29,203
Prepaid expenses and other current assets                4,561         9,024
                                                 ------------- -------------
  Total current assets                                  71,481       101,526
Property and equipment, net                              7,387        10,552
Intangibles, net                                           500           750
Other assets                                               701         1,015
                                                 ------------- -------------
    Total assets                                 $      80,069 $     113,843
                                                 ============= =============
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities:                                                        
Accounts payable                                 $      11,767 $      16,785
Accrued compensation and benefits                        4,496         5,781
Deferred revenue-current                                 6,189        12,117
Other current liabilities                                7,518        10,666
                                                 ------------- -------------
  Total current liabilities                             29,970        45,349
Deferred revenues, non-current                           3,059         3,158
Other long-term liabilities                              3,748         5,191
                                                 ------------- -------------
  Total liabilities                                     36,777        53,698
Stockholders' equity                                    43,292        60,145
                                                 ------------- -------------
    Total liabilities and stockholders' equity   $      80,069 $     113,843
                                                 ============= =============

  
Mattson Technology Contact
J. Michael Dodson
Mattson Technology, Inc.
tel 1-510-657-5900
fax 1-510-492-5963 
 
 
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