SAN JOSE, Calif.--(BUSINESS WIRE)--January 27, 2011--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.

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.

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.

CONTACT:
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