MTSN » Topics » Sales and Marketing

This excerpt taken from the MTSN 10-K filed Mar 23, 2005.

Sales and Marketing

        Our marketing and sales efforts are focused on building long-term relationships with our customers. We sell our systems primarily through our direct sales force. Our sales personnel work closely with our customers to develop solutions to meet their processing needs. In addition to the direct sales force resident in our Fremont, California headquarters, we have sales and support offices in China, France, Germany, Italy, Japan, Korea, Singapore, Taiwan and the United States. In January 2005, we opened a regional sales office in Israel.

        In 2004, we maintained our distribution relationship with PTS SARL, which supports our direct sales and support organization, Mattson International France SARL, and has expanded our sales representation in France. Similarly, we have established distribution relationships with CSD Ltd. in the United Kingdom, MICL Ltd. in Israel and SemiQuip Inc. in the United States.

        In addition to maintaining our wholly-owned subsidiary in Japan, we have continuing relationships with Canon Sales Company for the distribution of our RTP systems in Japan, and with NOAH Corporation for regional sales activities of our plasma strip products in Japan.

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        Our international sales accounted for 87% of our net sales in 2004 and 2003, and 75% in 2002. We anticipate that international sales will continue to account for a significant portion of our future net sales. Asia has been a particularly important region for our business. Our sales to customers located in China, Japan, Taiwan and other Asian countries accounted for 79% of our net sales in 2004, 71% of our net sales in 2003 and 50% in 2002. Our foreign sales are also subject to certain governmental restrictions, including the Export Administration Act and the regulations promulgated under this Act. For a discussion of the risks associated with our international sales, see "Risk Factors That May Affect Future Results and Market Price of Stock — We are highly dependent on international sales and face significant economic and regulatory risks."

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