8-K 1 d8k.htm FORM 8-K Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 28, 2004

 

MATTSON TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware   0-21970   77-0208119

(State or other jurisdiction of

incorporation)

   (Commission File Number)  

(IRS Employer Identification

No.)

 

47131 Bayside Parkway

Fremont, California 94538

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (510) 657-5900

Item 5. Other Events and Regulation FD Disclosure

 

On January 28, 2004, we announced its financial results for the fourth quarter and year ended December 31, 2004.

 

Net sales for the quarter were $43.4 million, a 33% increase from $32.6 million in the third quarter of 2003, and a 12 % decrease from $49.2 million in the fourth quarter of 2002. Net sales for the fourth quarter of 2003 consisted of $39.1 million in sales of RTP and Strip products, royalties of $3.0 million related to the settlement of the patent infringement suit with Dainippon Screen Manufacturing Co., Ltd. (“DNS”), and $1.3 million recognized upon customer acceptance of a wet tool excluded from the divestiture of the wet products division. Net sales in the fourth quarter of 2002 included sales of products from the wet products division, which Mattson divested on March 17, 2003. Net sales of RTP and Strip products were $29.6 million for the third quarter of 2003, and $22.9 million for the fourth quarter of 2002. Net sales of RTP and Strip products in the fourth quarter of 2003 increased 32% compared to the third quarter of 2003, and increased 71 % compared to the fourth quarter of 2002.

 

Net income for the fourth quarter of 2003 was $1.1 million, or $0.02 per share, compared to a net loss of $3.9 million or $(0.09) per share for the third quarter of 2003, and a net loss of $31.9 million or $(0.71) per share for the fourth quarter of 2002. The third quarter 2003 loss included a $0.5 million charge related to restructuring, and the fourth quarter 2002 loss included an $11.1 million charge related to restructuring.

 

Shipments for the quarter were $42.1 million, a 77% increase from $23.8 million in the third quarter of 2003, and an increase of $1.6 million from $40.5 million in the fourth quarter of 2002. Again, shipment in the fourth quarter of 2002 included products from the wet products division.

 

Gross margin for the fourth quarter of 2003 was 41.7%, an increase of 2.6 percentage points from 39.1% for the third quarter of 2003, and an increase of approximately 21 percentage points from 20.5% gross margin for the fourth quarter of 2002.

 

Net bookings for the fourth quarter of 2003 were $48.5 million, a 24% increase from $39.0 million in the third quarter of 2003, and a 10% increase from $44.2 million in the fourth quarter of 2002, which included bookings from the wet products division. Net bookings in the fourth quarter of 2003 resulted in a book-to-bill ratio of 1.15 to 1.0.

 

Operating expenses were down for the fourth consecutive quarter. The $16.6 million of operating expenses in the fourth quarter of 2003 was $1.3 million lower than in the previous quarter. Operating expenses for the quarter were $16.6 million, a decrease of about $1.3 million from $17.9 million in expenses for the third quarter of 2003, and a decrease of $25.5 million from the $42.1 million in expenses for the fourth quarter of 2002. The $1.3 million reduction achieved in the fourth quarter of 2003 is attributable to additional cost-reduction efforts and cost sharing with an alliance partner in connection with an R&D project scheduled for completion this year.

 

Deferred revenue, which represents tools shipped and awaiting customer acceptance and pre-paid royalties received from DNS, was $38.7 million at the end of the fourth quarter of 2003, $10.2 million higher than the balance of $28.5 million at the end of the third quarter of 2003, and $70.0 million lower than the balance of $108.7 million at the end of 2002, which included wet products. The $38.7 million in deferred revenue includes $17.7 million in payments related to DNS royalties. The decline in deferred revenue compared to the fourth quarter of 2002 results primarily from the sale of the wet products division, which had accounted for the majority of our deferred revenue.

 

Net sales for fiscal 2003 were $174.3 million, a decrease of 14% from fiscal 2002 net sales of $203.5 million. Net sales of RTP and Strip products for fiscal 2003 were $128.7 million, an increase of 8% from fiscal 2002 net sales of RTP and Strip products of $119.7 million.

 

Net loss for 2003 decreased 70% compared to 2002. Net loss for fiscal 2003 was $28.4 million or $(0.63) per share, compared to a fiscal 2002 net loss of $94.3 million or $(2.23) per share. Net loss for fiscal 2003 includes restructuring charges of $0.5 million and a loss on the disposition of the wet products division of $10.3 million, and net loss for fiscal 2002 includes restructuring charges of $17.3 million.

 

Shipments for fiscal 2003 were $131.4 million, a 25% decrease from shipments of $174.6 million in fiscal 2002. Results in fiscal 2002 and the first quarter of 2003 included shipments of products from the wet products division.

 

Gross margin for fiscal 2003 was 35.3%, an increase of approximately 15 percentage points from 19.9% for fiscal 2002.

 

Operating expenses for fiscal 2003 were $79.9 million, a decrease of about $67.6 million from the $147.5 million operating expenses in fiscal 2002. The significant reduction in operating expenses in fiscal 2003 is primarily attributable to cost savings resulting from the divestiture of the wet products division and additional cost-reduction efforts.

 

We ended fiscal 2003 with cash, cash equivalents and restricted cash of $77.6 million, a decrease of $5.9 million from $83.5 million at September 28, 2003, and a decrease of $11.4 million from $89.0 million at the end of fiscal 2002. During the fourth quarter of 2003, we received a $6.0 million payment from DNS. In addition, we made payment of $4.4 million to SCP towards our remaining obligation. Working capital at the end of fiscal 2003 increased to $56.9 million from $48.9 million at September 28, 2003, and

decreased from $62.1 million at December 31, 2002. We ended fiscal 2003 with no long-term debt on the balance sheet.

 

MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

     THREE MONTHS ENDED
     YEAR ENDED
  
     DEC. 31,
     DEC. 31,
     DEC. 31,
     DEC. 31,
  
     2003     2002     2003     2002  

Net sales

    $ 43,376     $ 49,244     $ 174,302     $ 203,520  

Cost of sales

      25,288       39,160       112,783       163,063  
    
 
 
 

Gross margin

      18,088       10,084       61,519       40,457  
    
 
 
 

Operating expenses:

                                 

Research, development and engineering

      4,272       8,480       22,988       37,395  

Selling, general and administrative

      11,983       20,965       54,292       86,218  

Amortization of intangibles

      328       1,530       2,151       6,591  

Restructuring and other charges

      —         11,136       489       17,307  
    
 
 
 

Total operating expenses

      16,583       42,111       79,920       147,511  
    
 
 
 

Income (loss) from operations

      1,505       (32,027 )     (18,401 )     (107,054 )

Loss on disposition of Wet Business

      —         —         (10,257 )     —    

Interest and other income (expense), net

      (212 )     (1,088 )     653       12,636  
    
 
 
 

Income (loss) before provision for income taxes

      1,293       (33,115 )     (28,005 )     (94,418 )

Provision (benefit) for income taxes

      208       (1,180 )     350       (147 )
    
 
 
 

Net income (loss)

    $ 1,085     $ (31,935 )   $ (28,355 )   $ (94,271 )
    
 
 
 

Net income (loss) per share:

                                 

Basic

    $ 0.02     $ (0.71 )   $ (0.63 )   $ (2.23 )
    
 
 
 

Diluted

    $ 0.02     $ (0.71 )   $ (0.63 )   $ (2.23 )
    
 
 
 

Shares used in computing net income (loss) per share:

                                 

Basic

      45,245       44,753       44,997       42,239  
    
 
 
 

Diluted

      47,249       44,753       44,997       42,239  
    
 
 
 

 

MATTSON TECHNOLOGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

 

ASSETS

    

Dec. 31,

2003

    

Dec. 31,

2002

  
      

Current assets:

                 

Cash and cash equivalents

    $ 77,115     $ 87,879  

Restricted cash

      509       1,105  

Accounts receivable, net

      34,260       34,834  

Advance billings

      20,684       27,195  

Inventories

      27,430       50,826  

Inventories—delivered systems

      6,549       47,444  

Prepaid expenses and other current assets

      12,995       13,676  
    
 

Total current assets

      179,542       262,959  

Property and equipment, net

      16,211       18,855  

Goodwill

      8,239       12,675  

Intangibles, net

      2,626       15,254  

Other assets

      769       2,416  
    
 

Total assets

    $ 207,387     $ 312,159  
    
 
LIABILITIES AND STOCKHOLDERS’ EQUITY  

Current liabilities:

                 

Accounts payable

    $ 21,340     $ 14,346  

Accrued liabilities

      62,608       77,795  

Deferred revenue

      38,680       108,698  
    
 

Total current liabilities

      122,628       200,839  
    
 

Long-term liabilities:

                 

Deferred income taxes

      1,055       5,215  
    
 

Total long-term liabilities

      1,055       5,215  
    
 

Total liabilities

      123,683       206,054  
    
 

Stockholders’ equity:

                 

Common stock

      45       45  

Additional paid-in capital

      546,099       542,482  

Accumulated other comprehensive income

      9,468       7,131  

Treasury stock

      (2,987 )     (2,987 )

Accumulated deficit

      (468,921 )     (440,566 )
    
 

Total stockholders’ equity

      83,704       106,105  
    
 
     $ 207,387     $ 312,159  
    
 

 

Item 7. Financial Statements and Exhibits

 

(c) Exhibits.

 

Exhibit
No.
   

Description

99.1    Press release dated January 28, 2004 *

 

* Pursuant to Item 12 of Form 8-K, Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 12. Results of Operations and Financial Condition

 

On January 28, 2004, Mattson Technology, Inc. (the “Company”) issued a press release regarding the Company’s financial results for its fourth fiscal quarter and year ended December 31, 2003. The full text of the Company’s press release is attached hereto as Exhibit 99.1.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

       

MATTSON TECHNOLOGY, INC.

Date: January 28, 2004       By:  

/s/ Ludger Viefhues

             
               

Ludger Viefhues,

Executive Vice President and

Chief Financial Officer

 

3

EXHIBIT INDEX

 

Exhibit No.
   

Description

99.1    Press release dated January 28, 2004 *

 

* Pursuant to Item 12 of Form 8-K, Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing