Ultratech, Inc.
Jan 27, 2011

Ultratech Announces Fourth Quarter and Year-End 2010 Results

SAN JOSE, Calif.--(BUSINESS WIRE)-- Ultratech, Inc. (Nasdaq: UTEK), today announced unaudited results for the three-month and one-year periods ended December 31, 2010.

For the fourth quarter of fiscal 2010, Ultratech reported net sales of $43.6 million as compared to $26.6 million during the fourth quarter of fiscal 2009. Ultratech's net income for the fourth quarter of 2010 was $6.3 million, or $0.25 per share (diluted), as compared to net income of $1.4 million, or $0.06 per share (diluted) for the same quarter last year. Ultratech's net sales for the year ended December 31, 2010 were $140.6 million, as compared to $95.8 million for fiscal 2009. Ultratech posted net income for the year ended December 31, 2010 of $16.8 million, or $0.67 per share (diluted), as compared to net income of $2.1 million, or $0.09 per share (diluted) in fiscal 2009.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, "Robust product demand in each of our major end markets, certain geographies and product offerings, coupled with solid execution by the company resulted in strong financial results in the fourth quarter. During the quarter, we introduced the LSA100L, a new dual-beam laser spike anneal system for leading-edge logic devices. With this new system introduction, Ultratech continues its commitment to develop cost-effective, advanced technology solutions that are designed to enable the realization of the technology and extend the served market for middle-of-line product roadmaps of its customers worldwide."

"Ultratech ended a very strong year by delivering results that exceeded expectations," continued Zafiropoulo. "The company is executing at a high level and delivering growth in financial performance. Our focus on operational and financial excellence gives us the confidence that we can adequately fund the necessary investments in technology while enhancing our return to investors."

"As we look to the future, Ultratech's market leadership, customer focus and the breadth of our technologies, including advanced packaging flip-chip lithography solutions, high-brightness LEDs low cost lithography products, and our low cost-of-ownership laser spike anneal millisecond annealing systems, we believe, position the company to capitalize on industry growth and to deliver strong financial performance as we progress through the cycle. Of course, the driving force behind our success is our strong support and collaboration of our customers and business partners as well as the execution of our worldwide workforce," concluded Zafiropoulo.

At December 31, 2010, Ultratech had $184 million in cash, cash equivalents and short-term investments. Working capital was $217 million and stockholders' equity was $9.36 per share based on 24,739,040 total shares outstanding December 31, 2010.

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, January 27, 2011. To listen to the call over the internet or to obtain dial-in information for the call, please go to the investor relations section of the Ultratech website at http://ir.ultratech.com.

If you are unable to attend the live conference call, a replay will be available on Ultratech's website. If you do not have Internet access, a replay of the call will be available three hours after the conclusion of the call and run until 9:00 p.m. Pacific Time, February 3, 2011. You may access the telephone replay by dialing 800-642-1687 for domestic callers, 706-645-9291 for international callers and entering access code: 37341048.

Profile

Ultratech, Inc. (Nasdaq: UTEK) designs, manufactures and markets photolithography and laser processing equipment. Founded in 1979, the company's market-leading advanced lithography products deliver high throughput and production yields at a low, overall cost of ownership for bump packaging of integrated circuits and high-brightness LEDs (HB-LEDs). A pioneer of laser processing, Ultratech developed laser spike anneal technology, which increases device yield, improves transistor performance and enables the progression of Moore's Law for 45-nm and below production of state-of-the-art consumer electronics. Visit Ultratech online at: www.ultratech.com.

Certain of the statements contained herein, which are not historical facts and which can generally be identified by words such as "anticipates," "expects," "thinks," "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 timing, delays, deferrals and cancellations of orders by customers, including as a result of semiconductor manufacturing capacity as well as our customers' financial condition and demand for semiconductors; demand for consumer devices; industry growth within the company's served markets; continued delivery of financial performance and value; cyclicality in the semiconductor and nanotechnology industries; general economic and financial market conditions including impact on capital spending, as well as difficulty in predicting changes in such conditions; rapid technological change and the importance of timely product introductions; customer concentration; 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; pricing pressures and product discounts; high degree of industry competition; intellectual property matters; changes in pricing by us, our competitors or suppliers; international sales and operations; timing of new product announcements and releases by us or our competitors; ability to volume produce systems and meet customer requirements; sole or limited sources of supply; effect of capital market fluctuations on our investment portfolio; 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 our achieving and maintaining profitability and the market price of our stock; mix of products sold; 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; changes to financial accounting standards; effects of certain anti-takeover provisions; future acquisitions; volatility of stock price; foreign government regulations and restrictions; 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, 2009 and Quarterly Report on Form 10Q for the quarter ended October 2, 2010. 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 affect any event or circumstance that may arise after the date of this release.

ULTRATECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
         
 
                   
Three Months Ended Twelve Months Ended
December 31 December 31 December 31 December 31
(In thousands, except per share amounts)   2010   2009 2010   2009
Total net sales* $ 43,612 $ 26,623 $ 140,603 $ 95,813

Cost of sales:

Cost of products sold 17,427 10,462 56,435 38,813
Cost of services     3,773       3,259     12,527       12,010  
Total cost of sales     21,200       13,721     68,962       50,823  
Gross profit 22,412 12,902 71,641 44,990

Operating expenses:

Research, development and engineering 5,296 4,551 19,906 18,759
Selling, general, and administrative     10,103       7,147     34,194       27,333  
Operating income 7,013 1,204 17,541 (1,102 )
Interest expense (14 ) (5 ) (15 ) 288
Interest and other income, net     137       152     425       2,873  
Income before income taxes 7,136 1,351 17,951 2,059
Provision (benefit) for income taxes     822       (33 )   1,170       (70 )
Net income   $ 6,314     $ 1,384     $ 16,781     $ 2,129  

Earnings per share - basic:

Net income $ 0.25 $ 0.06 $ 0.69 $ 0.09
Number of shares used in per share calculations - basic 24,879 23,801 24,468 23,690

Earnings per share - diluted:

Net income $ 0.25 $ 0.06 $ 0.67 $ 0.09
Number of shares used in per share calculations - diluted     25,618       24,191       25,043       23,852  
 
* Systems sales $ 36,208 $ 20,301 $ 112,824 $ 70,022
Parts sales 2,999 2,062 11,802 10,518
Service sales 4,280 4,135 15,602 15,066
License sales     125       125     375       207  
Total sales   $ 43,612     $ 26,623     $ 140,603     $ 95,813  

     
 
 
 
ULTRATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
               
December 31 December 31
(In thousands )         2010   2009*
ASSETS (Unaudited)
 

Current assets:

Cash, cash equivalents and short-term investments $ 184,290 $ 160,341
Accounts receivable 32,825 31,426
Inventories 37,088 25,881
Prepaid expenses and other current assets     7,777     4,163
Total current assets 261,980 221,811
 
Equipment and leasehold improvements, net 14,835 9,841
Other assets           4,479     2,929
 
Total assets         $ 281,294   $ 234,581
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
 

Current liabilities:

Notes payable $ 6,000 $ 6,000
Accounts payable 13,154 7,112
Deferred product and service income 13,641 8,846
Other current liabilities         12,028     6,720
Total current liabilities 44,823 28,678
 
Other liabilities 4,822 5,935
 
Stockholders' equity         231,649     199,968
 
Total liabilities and stockholders' equity   $ 281,294   $ 234,581
 
* The balance sheet as of December 31, 2009 has been derived from the audited financial statements as of that date.
 

(UTEK-F)

Ultratech, Inc.
Bruce R. Wright, 408-321-8835
Senior Vice President & CFO
or
Laura Rebouché, 408-321-8835
Vice President of Investor Relations
Fax: 408-577-3379
lrebouche@ultratech.com

Source: Ultratech, Inc.

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