Forward-looking statements address matters that are subject to a number of risks or uncertainties that can cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, those described in today's news release and in the company's Forms 10-K, 10-Q and other filings with the SEC. The company assumes no obligation to update the information provided in this conference call.
And with that, I'd like to turn the call over to Dave. Dave?
David L. Dutton
Thank you, Laura, and good afternoon, everyone. Thank you for joining us for our first quarter 2012 financial results conference call. In today's call, I will give you an overview of the business. Then Mike will provide the financial results and progress to our cost improvement program. And last, I will close with our business outlook and guidance.
The first quarter of 2012 was a solid start for Mattson Technology as we delivered results that were at the top end of our guidance. Our revenue grew 21% versus the fourth quarter of 2011. In the first quarter, we saw a strong demand from foundry and demand customer. We are currently expecting 2012 wafer fab equipment CapEx spending to be flat to slightly down. In 2012, foundry spending is forecasted to remain strong due to the 20-nanometer capacity build up. We expect our NAND business to soften in Q2 as our customers digest recent capacity adds with a return to more aggressive spending later in the year. With this current view, we are expecting our revenue growth to be above the industry average for the year. With our revenue growth and our cost reduction programs, we expect the end result will be a profitable 2012.
I will now review our progress in each product area starting with our Etch products.
Etch grew stronger in 2011, and according to Gartner, an independent research firm, Mattson Technology moved up from #8 to #5 in the Etch market with a market share of 1.2% in this $4 billion market. Our paradigmE Etch recently won an acceptance at a leading semiconductor manufacturer for production at their advanced foundry facility, and at a major CMOS image center manufacturing in Asia. The paradigmE is now in volume production in foundry, NAND, DRAM, packaging and image sensor. Looking further in 2012, we plan to add at least 2 new Etch applications to the paradigmE portfolio for sub 20-nanometer manufacturing capability. This should further extend our third available market, which we'd expect to drive incremental revenue gains going forward.