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Mattson Technology (MTSN)
Q1 2013 Earnings Call
April 24, 2013 6:00 pm ET
J. Michael Dodson - Chief Operating Officer, Chief Financial Officer, Executive Vice President of Finance and Secretary
Fusen Ernie Chen - Chief Executive Officer, President and Member of The Board of Directors
Edwin Mok - Needham & Company, LLC, Research Division
Benedict Pang - B. Riley Caris, Research Division
Christian D. Schwab - Craig-Hallum Capital Group LLC, Research Division
Previous Statements by MTSN
» Mattson Technology Management Discusses Q4 2012 Results - Earnings Call Transcript
» Mattson Technology Management Discusses Q3 2012 Results - Earnings Call Transcript
» Mattson Technology Management Discusses Q2 2012 Results - Earnings Call Transcript
J. Michael Dodson
Good afternoon, and thank you for joining us today to discuss Mattson Technology's financial results for the first quarter of 2013. Fusen will give you an overview of the business, then I will provide the financial results and progress on our cost-reduction program. And last, Fusen will close with our business outlook and guidance for the second quarter of 2013.
Before going into the specifics of the call, I'd like to remind everyone that information provided in today's conference call contains forward-looking statements regarding the company's future prospects, including but not limited to, anticipated market position, revenue, margins, operating expenses, earnings per share, tax rate, fully diluted shares outstanding for future periods. 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, those described in today's news release and in the company's Forms 10-K, 10-Q and other filings with the SEC. The company assumes no obligation to update the information provided in this conference call. And now, let me turn the call over to Fusen Chen. Fusen?
Fusen Ernie Chen
Thank you. Good afternoon, everyone, and welcome to our first quarter 2013 Earnings Conference Call. I have been now 2 months with Mattson and this is my second earning calls. This has been certainly a very busy and exciting first 2 months for me as I have made numerous trip across the globe and engaged in various meetings and conference calls with our customers, our employees and our shareholders. Our customers have shown their continuing support and their confidence in Mattson. Our employees are committed and our shareholders are hopeful for the direction that we are taking. We are still facing challenges but we certainly are seeing much brighter days ahead. Now let me provide an overview of our market. I would like to point out a few factors that we're likely be revising the demand for semiconductor equipment. The semiconductor market is showing signs of recovery following the cyclical slowdown in the past couple of quarters with inventories across the electronic supply chain at a relatively lean labors. We would expect overall global semiconductor demand to strengthen. The demand for mobile products is on the rise. These devices drive demand for DDNH foundry capacities. The market leaders are aggressively ramping up at advanced nodes. There is a growing capacity for the 28-nanometer node and they're ramping up for 20-nanometer node by semiconductor companies. This momentum is expected to extend through 2014 as sub-20-nanometers investment will follow. Mobile devices are also driving demand for NAND flash memory particularly in the 14K to 3D NAND transition. In addition, the diversification of memory use like a cloud, data warehouse, will drive long-term memory growth as witnessed by DRAM price uptick. This is a good indication of an inflection of the DRAM market. The PC-related chip market remains flat. However, the popularity of tablet and the Ultrabooks will drive growth in this segment.
Let me now provide an update for each of our product areas starting with our RTP products. The Helios XP is differentiated from our competitor's resolution due to its reduced CMOS stress across the wafer and the superior cost of ownership. Consequently, The Helios XP product [indiscernible] continues to strengthen its position in the Foundries segment, reflected by an additional shipment at a customer in Asia. Furthermore, we will shipped repeat orders for systems shipment to another foundries. These orders are target to address 20-nanometer capacity RAMs, and the [indiscernible] Helios XP DTEC capability to address pattern-loading effect will serve foundry as an evaluation system to qualify for the 20-nanometer [indiscernible] the application. DTEC stand for differential thermal energy control and it enables heating from the wafer's backside while actively compensating for heat loss on the wafer's front side. We are now looking forward to continued growth in foundries based on our system's leading capacities. Our second summer product line, millisecond anneal system, the Millios. This has successfully transferred to our operation in Germany. There, we have completed the first system build and it is currently undergoing intensive high-volume production testing. Based on this testing, we have significantly improved the reliability of this system for high-volume manufacturing environment. We believe that Millios has differentiation in wafer stress management for [indiscernible] wafer breakage, high productivity and the superior strong wafer electrical performance. In Etch, Mattson continues to hold a strong position in advanced DRAM, thanks to the 2x technology node and has developed a strong position for 3D NAND. In the first quarter, Mattson focused on enhancing capabilities of our paradigmE products to meet requirements for advanced 2x nanometer DRAM and the 3D NAND technologies. As both of these technology go into production, Mattson will realize an increased revenue contribution from our Etch products. In the Foundries segment, this quarter, we focused on qualifying for advanced transistor process flow. We have an Etch system for leading Etch technology node development at an Asian foundry and they have complete in-house development for another major foundry. Mattson's dry strip account for a significant portion of our revenue as the Foundries segment invest in increased 28-nanometer production capacity. Our system will continue to be used through the 20-nanometer technology node and also in use for sub-20-nanometer technologies that are currently in development. In Memory segment, the Suprema product continue to hold strong market positions as number of high memory transition to 3D NAND technologies.