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Mattson Technology (MTSN)
Q3 2013 Earnings Call
October 22, 2013 5:00 pm ET
J. Michael Dodson - Chief Financial Officer, Chief Operating Officer, Executive Vice President and Secretary
Fusen Ernie Chen - Chief Executive Officer, President and Director
Y. Edwin Mok - Needham & Company, LLC, Research Division
Christian D. Schwab - Craig-Hallum Capital Group LLC, Research Division
Benedict Pang - Northland Capital Markets, Research Division
Previous Statements by MTSN
» Mattson Technology, Inc. (MTSN) Management Discusses Q2 2013 Results - Earnings Call Transcript
» Mattson Technology Management Discusses Q1 2013 Results - Earnings Call Transcript
» Mattson Technology Management Discusses Q4 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 third quarter of 2013. Fusen will give you an overview of the business, then I will provide the detailed financial results and last, Fusen will close with our business outlook and guidance for the fourth 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, compliance with line of credit covenants, cash balances, revenue, margins, operating expenses, earnings per share, tax provisions and 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, Mike, and welcome to Mattson Technology's Third Quarter 2013 Earning Call. I'm very pleased to begin our earning call with the results for the third quarter of 2013. After much hard work, Mattson's financial results exceeded our guidance ranges with net sales of $33.8 million and the most importantly, a net profit of $0.01 per share, excluding restructuring charges.
I would like to thank all of Mattson's employees and the management for their focus and the dedication that has led the company back to profitability. I will also like to thank all of the companies that work with Mattson, our customers and the suppliers. This milestone marks a turning point for Mattson and set the stage for us to continue our growth and provide value to our shareholders.
Over the past 3 quarters, Mattson has settled into an operational model that is controlling expenses while at the same time, supporting our customers and growing revenue. We feel that we are much closer today than at the beginning of the year to achieving an optimal level of operational efficiency. We are setting up all of our operations to be efficient, agile and responsive, and then we'll continue to invest in our growth. This means we are taking care to remain focused on investing in the areas needed to support our growing business. One example is upgrading our premium facility to consolidate RTP manufacturing with the strip and the Etch manufacturing, gaining the cost saving of improved operational efficiency. And at the same time, we remain focused on the needs of our customers and in the first quarter of Fremont based RTP manufacturing, we shipped the highest number of Helios XPs within a quarter in the company's history.
I will now briefly discuss our view of the industry and the technology trend. Cautious spending due to overall economic weakness drove down semiconductor revenue at the end of 2012 and the first half of 2013. We are now seeing a recovery with quarterly semiconductor revenues growing from the mid-$60 billion range for the first half of 2013 to over $75 billion in the second half of this year. As we anticipate last quarters, one major driver for the semi equipment business in the second half of 2013 is the memory companies purchasing capital equipments to begin production of 2x nanometer DRAM and 3D NAND IC unit in 2014. We also see 20-nanometer device production ramping in foundries with sub 20-nanometer coming in 2014. Mattson is planning to support this production requirements of our memory and the foundry customers in the back half of 2013 and into 2014.
I will now give an overview of our product positions in these markets. In less than [ph] 1 year, during the third quarter, we have shipped a record number of Helios XP into foundry customers and are scheduled to continue this pace into 2014. The Helios XP's industry leading pattern loading effect performance continues to provide advantage to our customers' overall complete offering. We are also seeing the Helios XP expanding the number of applications for which it is used by our customers. The increase in the market share from this expansion will be a major growth driver for Mattson in 2014. In millisecond anneal, the Millios, utilizing Mattson's proprietary upland [ph] technology, has achieved superiors on wafers results at multiple customer size. The Millios continue to run extensive production testing and is expected to be released for high-volume and advanced logic production within the next few months. The design of our Millios with the processes the entire wafer surface in milliseconds provides the highest throughput for the most critical applications. With Mattson's advanced wafer stress management, the Millios runs [ph] optimized production processes with minimal wafer breakage. We believe that Mattson's combination of performance and the cost of ownership advantage provides the most effective production solution for our customers.