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Mattson Technology (MTSN)
Q1 2011 Earnings Call
April 27, 2011 5:30 pm ET
Laura Guerrant-Oiye -
Andrew Moring - Chief Financial Officer, Chief Accounting Officer, Executive Vice President of Finance and Secretary
David Dutton - Chief Executive Officer, President and Director
Patrick Ho - Stifel, Nicolaus & Co., Inc.
Edwin Mok - Needham & Company, LLC
Benedict Pang - Caris & Company
Previous Statements by MTSN
» Mattson Technology CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Mattson Technology Inc. CEO Discusses Q3 2010 Earnings - Call Transcript
» Mattson Technology, Inc. Q2 2010 Earnings Call Transcript
Thank you, Patrick, and good afternoon, everyone. Thank you for joining us today to discuss Mattson Technology's financial results for the first quarter of fiscal 2011, which ended April 3. In addition to outlining the company's financial results for the quarter, we will also provide guidance for the second quarter of fiscal 2011. On today's call are Dave Dutton, Mattson Technology's President and Chief Executive Officer; and Andy Moring, the company's Chief Financial Officer.
Before turning the call over to Dave, 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, earnings per share, tax rate 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.
On another note, the management of Mattson Technology will be participating in the Credit Suisse Semicap Conference in Boston on May 11, the SRA conference in San Francisco on May 24, the Craig-Hallum Midwest Forum in Minneapolis on June 1, and we'll be participating in the CEO Summit on July 13 during SEMICON West. Additionally, the company will be hosting the 2011 Analyst Event at the company's headquarters on Wednesday, May 18. We look forward to seeing many of you at the event
And with that, I'll turn the call over to Dave. Dave?
Thank you, Laura, and good afternoon, everyone. Thank you for joining our first quarter 2011 financial results conference call. I would like to provide an outline for today's call. First, I will give you an overview of the business. Then Andy will provide the financial results. And last, I will close with our business outlook and guidance.
Q1 2011 marked our 8th consecutive quarter growth, one in which we grew at a robust rate of 14% over Q4 2010, driven by a record Etch order and continued strength from our Foundry Strip business. According to Gartner, in 2010, Mattson Technology system revenue grew over 330%. The fastest rate of any of our direct competitors and more than twice that of the industry average. In addition, Etch and Strip also grew several times over 2009 levels due to the share gains and market recovery. In fact, according to Gartner, all 3 of Mattson Technology's product areas significantly outgrew the industry in 2010 and we expect this trajectory of outpacing industry growth will continue through 2011.
We also achieved several important accomplishments in expanding our product positions. During the first quarter, we booked and shipped our largest Etch order ever, the result of extending into new applications, which effectively doubles our available application set. The paradigmE system is now in volume production for DRAM and the NAND fabs. To build upon our growth in strip, we introduced the SUPREMA XP5, a streamlined, more efficient yet significantly higher throughput strip system. In RTP, our newest most anneal system is shipping this quarter to a major customer for 16-nanometer and below processes. Few companies, if any, have organically expanded into the highly competitive areas such as Etch, while still driving growth in their core products. Compared to other companies that have recently attempted to enter the Etch market, we have achieved significantly better results with far less of an investment. A bold move of this nature requires investments in R&D and technology, which can be at the expense of profits. This is a strategic decision that we made, knowing that for a period of time, we would be in essence be somewhat akin to a start-up in the Etch market.
In the first quarter, we managed to reduce outbacks by 5%, while achieving double-digit growth. As we exited this product start-up phase, we will expect improving gross margins will drive more earnings per revenue dollar compared to any other point in the customers history.
At Mattson Technology, our thoughts and prayers have been with the people of Japan as they recover from the tragedy that struck the country's northern region in March of 2011. Across the globe, our employees have responded with donations to aid the recovery in Japan. From a business perspective, we have maintained close contact with our suppliers and our supply chain has not been materially impacted by this crisis. Our customers in the affected zone of Japan have been moved from the assessment phase and we are providing support and service along with our partner, Canon Marketing Japan to bring our customers' fabs back to pre-incident production levels.