Exhibit 99.1

                             Financial Update by CFO

                                  June 23, 2005


     This quarter is proving to be extraordinarily non-linear from a revenue
recognition standpoint. This means that more systems than normal are still in
the process of being accepted at customers' sites, making accurate forecasting
very difficult. Many of these systems are large dollar value and have widely
varying gross margins. In spite of all this, the previous top line revenue
guidance range for the quarter of up 10% to down 10% sequentially from 1Q05
still looks to be valid. Operating expenses look to be more than expected, due
primarily to higher than forecasted legal costs for the quarter. In total for
the 2Q05, legal costs could impact EPS to the tune of about ($0.06) - ($0.09).
Cash flow still looks to be negative, as we continue to fund efforts needed in
our laser processing installations and higher legal costs, in addition to the
effects from the above mentioned non-linearity.


     Regarding laser processing orders, we have received an order in 2Q05 from
another of the top logic device manufacturers. This means that we have now
received orders for our laser processing system from eight of the top ten logic
device manufacturers. We believe we remain on track to book 8-10 laser
processing orders this year, to manufacture and ship about seven laser
processing systems, and revenue a handful of laser processing systems, most
likely in the second half of the year. We also still believe our financial
guidance for the year remains valid for annual revenue growth on the order of
20%-25% compared with 2004, gross margin of 48%-49%, 5%-7% operating margin, and
earnings per share (diluted) of $0.35-$0.45.

Safe Harbor Statement
---------------------
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 pricing 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  sources 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


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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 10-Q 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.


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