Mattson Technology, Inc. Reports Results for the Second Quarter of 2013

Mattson Technology, Inc. Reports Results for the Second Quarter of 2013 
FREMONT, CA -- (Marketwired) -- 07/24/13 --  Mattson Technology, Inc.
(NASDAQ: MTSN), a leading supplier of advanced process equipment used
to manufacture semiconductors, today announced results for the second
quarter ended June 30, 2013.  
Business Highlights: 


 
--  Net sales for the second quarter were $24.6 million, representing an
    increase of more than 20 percent as compared with net sales of $20.2
    million in the first quarter of 2013.
    
    
--  Gross margin was 34 percent in the second quarter of 2013, a 12
    percentage point improvement compared with the gross margin of 22
    percent the first quarter of 2013.
    
    
--  Net loss for the second quarter of 2013 was $3.6 million, or a $0.06
    net loss per share. This compares to a net loss of $9.5 million, or a
    $0.16 net loss per share, in the first quarter of 2013. Excluding
    restructuring and other charges of $0.4 million, non-GAAP net loss per
    share was $0.05 in the second quarter of 2013, as compared to a
    non-GAAP net loss per share of $0.12 in the first quarter of 2013,
    excluding restructuring and other charges of $2.3 million.
    
    
--  At June 30, 2013, cash, cash equivalents, and restricted cash was
    $17.0 million, working capital was $29.4 million and we had $10
    million outstanding under our revolving credit facility.

  
"The second quarter of 2013 was in-line with our expectations at this
point in the cycle and, with the majority of our cost reduction
efforts behind us, we are well positioned for growth when customer
demand accelerates," noted Fusen Chen, Mattson Technology's president
and chief executive officer. "We continue to focus on strengthening
our positions at key customers while providing cost-effective and
innovative solutions to our customers' needs to expand our positions
further." 
Second Quarter 2013 Financial Results 
Second quarter 2013 net sales were $24.6 million, a $4.3 million, or
22 percent, increase compared with $20.2 million in the first quarter
of 2013, and a decrease of $10.3 million, or 30 percent, compared to
net sales $34.9 million in the second quarter of 2012. 
Gross margin in the second quarter of 2013 was 34 percent, a 12
percentage point improvement compared with the 22 percent gross
margin reported in the first quarter of 2013 and a four percentage
point deterioration compared with the 38 percent gross margin in the
second quarter of 2012. The significant improvement in gross margin
in the second quarter compared to the prior quarter is primarily due
to a more typical product mix of system sales as compared to the last
quarter when approximately 85 percent of our system shipments
consisted of our lower margin strip products. 
Total operating expenses were $11.5 million for the second quarter of
2013, which represents a $2.6 million, or 18 percent, decrease as
compared with the first quarter of 2013 and $4.8 million, or 29
percent, decrease as compared with the second quarter of 2012.
Excluding restructuring and other charges, non-GAAP operating
expenses were $11.1 million in the second quarter of 2013, which
represents a $0.7 million, or 6 percent, decrease compared with the
first quarter of 2013 and a $4.4 million, or 28 percent, decrease as
compared to the second quarter of 2012. 
Net loss for the second quarter of 2013 was $3.6 million, or a $0.06
net loss per share. This compares to a net loss of $9.5 million, or a
$0.16 net loss per share, in the first quarter of 2013, and a net
loss of $3.3 million, or a $0.06 net loss per share, reported in the
second quarter of 2012. Excluding restructuring and other charges,
the non-GAAP net loss per share in the second quarter of 2013 was
$0.05 as compared to a non-GAAP net loss per share of $0.12 in the
first quarter of 2013 and a non-GAAP net loss per share of $0.04 in
the second quarter of 2012. Restructuring and other charges in the
second quarter of 2013, first quarter of 2013, and second quarter of
2012 were $0.4 million, $2.3 million, and $0.8 million, respectively. 
At June 30, 2013, cash, cash equivalents, and restricted cash was
$17.0 million and working capital was $29.4 million. We had $10
million outstanding borrowing under our revolving credit facility. 
Conference Call
 On Wednesday July 24, 2013, at 2:30 p.m. Pacific
Time (5:30 p.m. Eastern Time), Mattson Technology will hold a
conference call to review the following topics: 2013 second quarter
and annual financial results, current business conditions, the
near-term business outlook and guidance for the third 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 and other 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 and charges in the second quarter of 2013,
first quarter of 2013, and second quarter of 2012 were $0.4 million,
$2.3 million, and $0.8 million, respectively. 
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995 
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: This news release contains forward-looking
statements. All statements other than statements of historical fact
are statements that could be deemed forward-looking statements,
including but not limited to statements of the plans, strategies and
objectives of management for future operations and the Company,
market demand and industry outlook. Forward-looking statements
address matters that are subject to a number of risks and
uncertainties that can cause actual results to differ materially from
those expressed or implied by such forward-looking statements and
assumptions. Such risks and uncertainties include, but are not
limited to: Company expectations with respect to continued growth of
its business and improved operating results; 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; compliance with financial covenants related to the
Company's revolving credit facility; 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        Six Months Ended  
                          -----------------------------  ------------------ 
                          June 30,  March 31,  July 1,   June 30,  July 1,  
                            2013       2013      2012      2013      2012   
                          --------  ---------  --------  --------  -------- 
Net sales                 $ 24,574  $  20,237  $ 34,884  $ 44,811  $ 85,388 
Cost of sales               16,107     15,869    21,629    31,976    55,199 
                          --------  ---------  --------  --------  -------- 
  Gross profit               8,467      4,368    13,255    12,835    30,189 
                          --------  ---------  --------  --------  -------- 
Operating expenses:                                                         
    Research, development                                                   
     and engineering         4,170      4,313     5,791     8,483    12,421 
    Selling, general and                                                    
     administrative          6,952      7,550     9,705    14,502    20,572 
    Restructuring and                                                       
     other charges             404      2,258       831     2,662     1,551 
                          --------  ---------  --------  --------  -------- 
  Total operating                                                           
   expenses                 11,526     14,121    16,327    25,647    34,544 
                          --------  ---------  --------  --------  -------- 
Loss from operations        (3,059)    (9,753)   (3,072)  (12,812)   (4,355)
Interest and other income                                                   
 (expense), net               (496)       299      (238)     (197)      175 
Loss before income taxes    (3,555)    (9,454)   (3,310)  (13,009)   (4,180)
Provision for income                                                        
 taxes                          12         54        36        66       285 
                          --------  ---------  --------  --------  -------- 
Net loss                  $ (3,567) $  (9,508) $ (3,346) $(13,075) $ (4,465)
                          ========  =========  ========  ========  ======== 
Net loss per share:                                                         
    Basic and diluted     $  (0.06) $   (0.16) $  (0.06) $  (0.22) $  (0.08)
Shares used in computing                                                    
 net loss per share:                                                        
    Basic and diluted     $ 58,891  $  58,728  $ 58,507  $ 58,810  $ 58,463 
                                                                            
                                                                            
                                                                            
                          MATTSON TECHNOLOGY, INC.                          
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                          (Unaudited, in thousands)                         
                                                                            
                                                    June 30,    December 31,
                                                      2013          2012    
                                                  ------------ -------------
                                   ASSETS                                   
Current assets:                                                             
Cash and cash equivalents                         $     14,924 $      14,354
Restricted cash                                          2,075         1,877
Accounts receivable, net                                10,453        15,660
Advance billings                                         2,355         1,720
Inventories                                             33,176        33,309
Prepaid expenses and other current assets                4,628         4,561
                                                  ------------ -------------
  Total current assets                                  67,611        71,481
Property and equipment, net                              6,493         7,387
Intangibles, net                                           375           500
Other assets                                               895           701
                                                  ------------ -------------
    Total assets                                  $     75,374 $      80,069
                                                  ============ =============
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
Current liabilities:                                                        
Accounts payable                                  $     14,405 $      11,767
Accrued compensation and benefits                        2,994         4,496
Deferred revenue-current                                 6,661         6,189
Revolving credit facility                               10,000            --
Other current liabilities                                4,133         7,518
                                                  ------------ -------------
  Total current liabilities                             38,193        29,970
Deferred revenues, non-current                           2,619         3,059
Other long-term liabilities                              3,524         3,748
                                                  ------------ -------------
  Total liabilities                                     44,336        36,777
Stockholders' equity                                    31,038        43,292
                                                  ------------ -------------
    Total liabilities and stockholders' equity    $     75,374 $      80,069
                                                  ============ =============

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