Ultratech, Inc.
Jul 21, 2005

Ultratech Announces Second Quarter 2005 Results

SAN JOSE, Calif., Jul 21, 2005 (BUSINESS WIRE) -- Ultratech, Inc. (Nasdaq:UTEK) today announced unaudited results for the three-month period ended July 2, 2005.

For the second quarter of fiscal 2005, Ultratech reported net sales of $28.8 million compared to $22.5 million during the second quarter of 2004. Ultratech's net loss for the second quarter of 2005 was $2.0 million or $0.08 per share (diluted) compared to a net loss of $2.3 million or $0.10 per share (diluted) for the same quarter last year.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer stated, "Ultratech continued to gain traction in the deployment of the laser spike anneal (LSA) tools as evidenced by additional orders received during the quarter, which we believe is the critical benchmark in validating the company's laser processing technology. Currently, we have received orders from eight out of the top ten largest logic manufacturers from all major geographic regions including the US, Europe, Asia and Japan, for insertion at the 65nm technology node."

"During the quarter, the Company's backlog approached historically high levels with bookings across all product lines," continued Zafiropoulo. "Ultratech continues to remain focused on prudent financial and operational management, while also providing our customers with market leading solutions that offer significant technological advantages and cost effectiveness in our served markets."

At July 2, 2005, Ultratech had $146 million in cash, cash equivalents and short-term investments and a current ratio of 6.7:1. Working capital was $169 million and stockholders' equity was $7.99 per share based on 24,006,783 shares outstanding on July 2, 2005.

Conference Call Information

The conference call will be broadcast live over the Internet beginning at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on Thursday, July 21, 2005. To listen to the call over the Internet or to obtain telephone dial-in information for the call, please go to Ultratech's web site at www.ultratech.com.

If you are unable to attend the live conference call, a replay will be available on Ultratech's web site. If you do not have Internet access a replay of the call will be available by dialing 1-888-286-8010, or 1-617-801-6888 for international participants, and entering access code 54902696.


Ultratech, Inc. (Nasdaq:UTEK) designs, manufactures and markets photolithography equipment used worldwide in the fabrication of semiconductor and nanotechnology devices, and has expanded its technology scope in pioneering laser processing technology for IC manufacturing. Founded in 1979, Ultratech is a market leader in gold and solder bump lithography. Its products are designed to substantially reduce the cost of ownership for manufacturers in the electronics industry. The company's home page on the World Wide Web is located at www.ultratech.com.

Certain of the statements contained herein, which are not a historical fact and which can generally be identified by words such as "anticipates," "expects," "intends," "will," "could," "believes," "estimates," "continue," and similar expressions, are forward-looking statements under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, such as risks related to our dependence on new product introductions and market acceptance of new products and enhanced versions of our existing products; lengthy sales cycles, including the timing of system installations and acceptances; lengthy and costly development cycles for laser-processing and lithography technologies and applications; integration, development and associated expenses of the laser processing operation; delays, deferrals and cancellations of orders by customers; cyclicality in the semiconductor and nanotechnology industries; pricing pressures and product discounts; high degree of industry competition; intellectual property matters; expiration of licensing arrangements, and the resulting adverse impact on our licensing revenues; changes to financial accounting standards; changes in prices by us, our competitors or suppliers; customer concentration; international sales; timing of new product announcements and releases by us or our competitors; ability to volume produce systems and meet customer requirements; sole or limited source of supply; ability and resulting costs to attract or retain sufficient personnel to achieve our targets for a particular period; dilutive effect of employee stock option grants on net income per share, which is largely dependent upon us achieving and maintaining profitability and the market price of our stock; mix of products sold; rapid technological change and the importance of timely product introductions; outcome of litigation; manufacturing variances and production levels; timing and degree of success of technologies licensed to outside parties; product concentration and lack of product revenue diversification; inventory obsolescence; asset impairment; effects of certain anti-takeover provisions; future acquisitions; volatility of stock price; business interruptions due to natural disasters or utility failures; environmental regulations; and any adverse effects of terrorist attacks in the United States or elsewhere, or government responses thereto, or military actions in Iraq, Afghanistan and elsewhere, on the economy, in general, or on our business in particular. Such risks and uncertainties are described in Ultratech's SEC reports including its Annual Report on Form 10-K filed for the year ended December 31, 2004 and on Form 10Q for the quarter ended April 2, 2005. Due to these and additional factors, the statements, historical results and percentage relationships set forth herein are not necessarily indicative of the results of operations for any future period. These forward-looking statements are based on management's current beliefs and expectations, some or all of which may prove to be inaccurate, and which may change. We undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date of this report.


Jul. 2, Dec. 31, (In thousands ) 2005 2004 ------------------------------------------------------------ ASSETS (Unaudited)

Current assets: --------------- Cash, cash equivalents, and short-term investments $146,255 $151,627 Accounts receivable 19,576 19,907 Inventories 29,448 27,842 Taxes receivable 704 509 Prepaid expenses and other current assets 3,236 1,654 ------------------------------------------------------------ Total current assets 199,219 201,539

Equipment and leasehold improvements, net 22,339 21,992

Intangible assets, net -- 95

Demonstration inventories, net 2,913 4,223

Other assets 2,972 2,697 ------------------------------------------------------------

Total assets $227,443 $230,546 ============================================================

------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities: -------------------- Notes payable $6,597 $7,900 Accounts payable 10,583 13,587 Deferred product and service income 3,435 1,244 Deferred license income -- 1,041 Other current liabilities 9,281 8,146 ------------------------------------------------------------ Total current liabilities 29,896 31,918

Other liabilities 5,826 5,338

Stockholders' equity 191,721 193,290 ------------------------------------------------------------

Total liabilities and stockholders' equity $227,443 $230,546 ============================================================


------------------------------------------------------------------ Three Months Ended Six Months Ended ------------------ ------------------ (In thousands, except per Jul. 2 Jul. 3 Jul. 2 Jul. 3 share amounts) 2005 2004 2005 2004 ---------------------------------------------- ------------------ Total net sales(a) $28,826 $22,497 $56,788 $49,108

Cost of sales: ---------------------------- Cost of products sold 14,752 10,151 28,144 21,844 Cost of services 2,385 2,173 4,677 4,031 ---------------------------------------------- ------------------ Total cost of sales 17,137 12,324 32,821 25,875 ---------------------------------------------- ------------------

Gross profit 11,689 10,173 23,967 23,233

Operating expenses: ------------------- Research, development, and engineering 6,833 6,248 14,336 12,458 Amortization of intangible assets -- 95 95 190 Selling, general, and administrative 8,196 7,160 15,731 14,247 ---------------------------------------------- ------------------ Operating loss (3,340) (3,330) (6,195) (3,662)

Interest expense (99) (20) (190) (55)

Interest and other income, net 1,149 857 2,063 1,816 ---------------------------------------------- ------------------ Loss before tax (2,290) (2,493) (4,322) (1,901)

Income taxes (benefit) (296) (227) (432) (162) ---------------------------------------------- ------------------

Net loss ($1,994) ($2,266) ($3,890) ($1,739) ==================================================================

Earnings per share - basic: ---------------------------- Net loss ($0.08) ($0.10) ($0.16) ($0.07)

Number of shares used in per share calculations - basic 23,944 23,705 23,912 23,675

Earnings per share - diluted: ---------------------------- Net loss ($0.08) ($0.10) ($0.16) ($0.07)

Number of shares used in per share calculations - diluted 23,944 23,705 23,912 23,675 ==================================================================

(a)Systems Sales $21,243 $15,977 $41,537 $36,419 Parts Sales 4,455 2,713 7,897 5,061 Service Sales 2,839 2,879 5,937 5,772 License Sales 289 928 1,417 1,856 ------------------------------------------------------------------ Total Sales $28,826 $22,497 $56,788 $49,108 ==================================================================

SOURCE: Ultratech, Inc.

Ultratech, San Jose
Bruce Wright or Laura Rebouche', 408-321-8835