News Article
Mattson margins tighten
Mattson announces huge reduction in revenue
Mattson Technology, Inc. Reports Results for the First Quarter 2009.
Mattson Technology has announced results for its first quarter of 2009 with net sales for the first quarter of $5.6 million, compared to $13.1 million in the fourth quarter, and $48.7 million in the first quarter of 2008. Gross margin for the first quarter was negative $7.9 million, compared to $0.6 million in the fourth quarter, and $20.8 million in the first quarter of 2008. The decline in gross margin is primarily attributable to manufacturing under-absorption at these low revenue volumes, and $9.3 million of additional reserves for excess inventory and vendor commitments.
Operating expenses for the first quarter were $20.4 million, compared to $60.1 million in the fourth quarter and $24.7 million for the first quarter of 2008. First quarter operating expenses included charges of $0.9 million relating to prior year restructuring plans. Operating expenses for the fourth quarter included $30.9 million related to restructuring charges, and the impairment of goodwill, intangibles and long-lived assets. Operating expenses for the fourth quarter also included $5.5 million in SG&A costs related to accelerated amortization on evaluation tools placed at customer sites and incremental receivable reserves.
Net loss for the first quarter was $27.2 million, or $0.55 loss per share, compared with a net loss of $60.5 million, or $1.22 loss per share, for the fourth quarter and net loss of $4.2 million, or $0.09 loss per share, for the first quarter of 2008. Included in the net loss for the first quarter were restructuring charges of $0.9 million or $0.02 loss per share compared to restructuring and impairment charges totaling $30.9 million or $0.62 loss per share in the fourth quarter.
Cash, cash equivalents and short-term investments at the end of the first quarter were $91.6 million, compared to $103.4 million at the end of the fourth quarter. The rate of decrease in cash slowed as compared to prior periods, despite lower revenue levels. Cash decreased by $11.8 million in the first quarter, compared to a decrease of $14.3 million in the fourth quarter and a decrease of $18.0 million in the third quarter.
David L. Dutton, Mattson Technology's president and chief executive officer, noted, "Our strict cost containment measures have resulted in reduced operating expenses of approximately 30 percent over the past six months, and we have continued to achieve our stated cash targets."
Dutton also commented on the current momentum in business conditions. "Recently, there have been incrementally positive indications from the market that the industry is showing signs of stabilization. Industry utilization rates have improved, and specific to Mattson Technology, customer activity has increased, particularly involving technologies in our new product portfolio. The recently announced follow-on order for our Nexion™ etch systems is testament to the differentiated and advanced technical solutions that we provide to our global customer base."
Mattson Technology has announced results for its first quarter of 2009 with net sales for the first quarter of $5.6 million, compared to $13.1 million in the fourth quarter, and $48.7 million in the first quarter of 2008. Gross margin for the first quarter was negative $7.9 million, compared to $0.6 million in the fourth quarter, and $20.8 million in the first quarter of 2008. The decline in gross margin is primarily attributable to manufacturing under-absorption at these low revenue volumes, and $9.3 million of additional reserves for excess inventory and vendor commitments.
Operating expenses for the first quarter were $20.4 million, compared to $60.1 million in the fourth quarter and $24.7 million for the first quarter of 2008. First quarter operating expenses included charges of $0.9 million relating to prior year restructuring plans. Operating expenses for the fourth quarter included $30.9 million related to restructuring charges, and the impairment of goodwill, intangibles and long-lived assets. Operating expenses for the fourth quarter also included $5.5 million in SG&A costs related to accelerated amortization on evaluation tools placed at customer sites and incremental receivable reserves.
Net loss for the first quarter was $27.2 million, or $0.55 loss per share, compared with a net loss of $60.5 million, or $1.22 loss per share, for the fourth quarter and net loss of $4.2 million, or $0.09 loss per share, for the first quarter of 2008. Included in the net loss for the first quarter were restructuring charges of $0.9 million or $0.02 loss per share compared to restructuring and impairment charges totaling $30.9 million or $0.62 loss per share in the fourth quarter.
Cash, cash equivalents and short-term investments at the end of the first quarter were $91.6 million, compared to $103.4 million at the end of the fourth quarter. The rate of decrease in cash slowed as compared to prior periods, despite lower revenue levels. Cash decreased by $11.8 million in the first quarter, compared to a decrease of $14.3 million in the fourth quarter and a decrease of $18.0 million in the third quarter.
David L. Dutton, Mattson Technology's president and chief executive officer, noted, "Our strict cost containment measures have resulted in reduced operating expenses of approximately 30 percent over the past six months, and we have continued to achieve our stated cash targets."
Dutton also commented on the current momentum in business conditions. "Recently, there have been incrementally positive indications from the market that the industry is showing signs of stabilization. Industry utilization rates have improved, and specific to Mattson Technology, customer activity has increased, particularly involving technologies in our new product portfolio. The recently announced follow-on order for our Nexion™ etch systems is testament to the differentiated and advanced technical solutions that we provide to our global customer base."
