Mattson Technology : Reports Results for the First Quarter of 2014

FREMONT, CA--(Marketwired - Apr 24, 2014) -  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, 2014.

Business Highlights:

• Net revenue for the first quarter of 2014 was $43.2 million, representing a $2.4 million, or 6 percent, increase compared to net revenue of $40.8 million in the fourth quarter of 2013 and a $23.0 million, or 113 percent, increase compared to net revenue of $20.2 million in the first quarter of 2013.
• Gross margin in the first quarter of 2014 was approximately 34 percent, a 2 percentage point improvement compared to approximately 32 percent gross margin reported in the fourth quarter of 2013, and a 12 point improvement compared to approximately 22 percent gross margin reported in the first quarter of 2013.
• Net income for the first quarter of 2014 was $2.5 million, representing net income of $0.04 per diluted share. This compares to a net income of $2.5 million, or a $0.04 net income per diluted share, in the fourth quarter of 2013, and a net loss of $9.5 million, or a $0.16 net loss per share, in the first quarter of 2013.
• In February 2014, Mattson completed a 14.1 million share public stock offering that raised approximately $31 million in net proceeds. As a result, working capital increased to $60.1 million.

"The first quarter of 2014 marked the third consecutive profitable quarter, on a non-GAAP basis, and exhibits our continuing commitment to maintaining a cost-effective operating structure," noted Fusen Chen, Mattson Technology's President and Chief Executive Officer. "Further, our previously announced successes with the Millios millisecond anneal system and for new process applications with our paradigmE XP system demonstrate that investment in the success of our customers can be achieved while maintaining positive bottom line results."

First Quarter 2014 Financial Results  

Net revenue for the first quarter of 2014 was $43.2 million, representing a $2.4 million, or 6 percent, increase compared to net revenue of $40.8 million in the fourth quarter of 2013 and a $23.0 million or 113 percent, increase compared to net revenue of $20.2 million in the first quarter of 2013.

Gross margin in the first quarter of 2014 was approximately 34 percent, a 2 percentage point improvement compared to approximately 32 percent gross margin reported in the fourth quarter of 2013, and a 12 point improvement compared to approximately 22 percent gross margin reported in the first quarter of 2013.

Total operating expense was $11.9 million in the first quarter of 2014, a $0.8 million, or 7 percent, increase compared to $11.1 million of total operating expense in the fourth quarter of 2013 and a $2.2 million, or 15 percent, decrease compared to $14.1 million of total operating expense in the first quarter of 2013.

Excluding restructuring and other charges, non-GAAP operating expense was $11.9 million in the first quarter of 2014, which represents a $0.8 million, or 7 percent, increase compared to $11.1 million in the fourth quarter of 2013 and flat compared to $11.9 million in the first quarter of 2013. There were no restructuring and other charges in either the first quarter of 2014 or the fourth quarter of 2013. Restructuring and other charges in the first quarter of 2013 were $2.3 million. Due to the absence of restructuring and other charges in the first quarter of 2014 and fourth quarter of 2013, there is no difference between GAAP and non-GAAP operating expense in these periods.

Net income for the first quarter of 2014 was $2.5 million, representing net income of $0.04 per diluted share. This compares to a net income of $2.5 million, or a $0.04 net income per diluted share, in the fourth quarter of 2013, and a net loss of $9.5 million, or a $0.16 net loss per share, as reported in the first quarter of 2013.

Excluding restructuring and other charges, the Company had a $0.04 non-GAAP net income per diluted share in both the first quarter of 2014 and the fourth quarter of 2013. This compares with a $0.12 non-GAAP net loss per share in the first quarter of 2013. Due to the absence of restructuring and other charges in the first quarter of 2014 and fourth quarter of 2013, there is no difference between GAAP and non-GAAP net income per diluted share for these periods.

In February 2014, Mattson completed a 14.1 million share public stock offering that raised approximately $31 million in net proceeds. As a result, working capital increased to $60.1 million. As of March 30, 2014 no amount was outstanding under the Company's revolving credit facility.

Conference Call

On Thursday April 24, 2014, at 3:00 p.m. Pacific Time (6:00 p.m. Eastern Time), Mattson Technology will hold a conference call to review the following topics: 2014 first quarter financial results, current business conditions, the near-term business outlook and guidance for the second quarter of 2014. 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 other charges in the first quarter of 2014, fourth quarter of 2013, and first quarter of 2013 were zero, zero and $2.3 million, respectively.

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, Etch, Rapid Thermal Processing and Millisecond Anneal. 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.