SAN JOSE, Calif.--(BUSINESS WIRE)--July 21, 2011--Ultratech, Inc. (Nasdaq: UTEK), today announced unaudited results for the three-month and six-month periods ended July 2, 2011.

For the second quarter of fiscal 2011, Ultratech reported net sales of $53.9 million as compared to $31.6 million during the second quarter of fiscal 2010. Ultratech’s net income for the second quarter of 2011 was $9.7 million, or $0.36 per share (diluted), as compared to net income of $3.6 million, or $0.15 per share (diluted) for the same quarter last year.

For the first six months of 2011, Ultratech reported net sales of $101.3 million compared to net sales of $59.1 million in the first six months of 2010. Ultratech reported net income of $17.6 million or $0.66 per share (diluted) during the first half of 2011, compared to net income of $5.6 million or $0.23 per share (diluted) for the first half of 2010.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated, “Our financial results for the second quarter of 2011 demonstrate another strong quarter for Ultratech, with record quarterly revenue and net income. These results show Ultratech's market and technology leadership and the dedication of our global workforce, driven by our culture of innovation and focus on the customer.”

“We believe the strength of our business model, our profits and cash generation ability, as well as our continued commitment to delivering industry-leading financial performance enabled us to return value to stockholders at a level that has set the company apart from our technology peers,” concluded Zafiropoulo.

At July 2, 2011, Ultratech had $219 million in cash, cash equivalents and short-term investments. Working capital was $252 million and stockholders’ equity was $10.28 per share based on 25,629,046 total shares outstanding as of July 2, 2011.

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, 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, July 27, 2011. You may access the telephone replay by dialing 800-406-7325 and entering access code: 4456808.

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, 2010 and our quarterly report on Form 10-Q for the quarter ended April 2, 2011. 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						Six Months Ended
	July 2,			July 3,			July 2,			July 3,
(In thousands, except per share amounts)		2011			2010			2011			2010
Total net sales*	$	53,949		$	31,551		$	101,328		$	59,054
Cost of sales:
Cost of products sold		22,019			11,968			42,078			22,734
Cost of services		4,446			2,929			8,057			5,613
Total cost of sales		26,465			14,897			50,135			28,347
Gross profit		27,484			16,654			51,193			30,707
Operating expenses:
Research, development and engineering		5,759			4,839			11,483			9,630
Selling, general, and administrative		10,998			8,062			20,817			15,457
Operating income		10,727			3,753			18,893			5,620
Interest expense		(5	)		(5	)		(11	)		5
Interest and other income, net		106			22			113			196

Income before income taxes		10,828			3,770			18,995			5,821
Provision for income taxes		1,100			153			1,400			256

Net income	$	9,728		$	3,617		$	17,595		$	5,565
Earnings per share - basic:
Net income	$	0.38		$	0.15		$	0.69		$	0.23
Number of shares used in per share calculations - basic		25,731			24,155			25,488			24,100
Earnings per share - diluted:
Net income	$	0.36		$	0.15		$	0.66		$	0.23
Number of shares used in per share calculations - diluted		26,888			24,587			26,551			24,450

* Systems sales	$	44,484		$	24,800		$	82,362		$	45,822
Parts sales		4,169			2,837			9,091			5,783
Service sales		4,971			3,789			9,425			7,324
License sales		325			125			450			125
Total sales	$	53,949		$	31,551		$	101,328		$	59,054


ULTRATECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS



	July 2,		December 31,
(In thousands )	2011		2010*
ASSETS	(Unaudited)

Current assets:
Cash, cash equivalents and short-term investments	$	218,796	$	184,290
Accounts receivable		32,774		32,825
Inventories		41,114		37,088
Prepaid expenses and other current assets		8,289		7,777
Total current assets		300,973		261,980

Equipment and leasehold improvements, net		14,729		14,835
Other assets		4,026		4,479

Total assets	$	319,728	$	281,294


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Notes payable	$	3,000	$	6,000
Accounts payable		11,586		13,154
Deferred product and service income		18,144		13,641
Other current liabilities		16,214		12,028
Total current liabilities		48,944		44,823

Other liabilities		7,314		5,344

Stockholders' equity		263,470		231,127

Total liabilities and stockholders' equity	$	319,728	$	281,294

* The balance sheet as of December 31, 2010 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
Email: lrebouche@ultratech.com