Veeco slashes guidance as orders dive
US-based equipment manufacturer Veeco Instruments has warned that its orders for the quarter ending September 30 will be $40-45 million down on its earlier guidance.
Orders for the third quarter are now expected to be $80 million, compared with $125 million in the previous quarter.
Veeco has also revised its revenue guidance downwards from $105-110 million to $93 million for the current quarter. Revenue in the second quarter was $103 million.
Veeco, accounting under GAAP principles, now expects to make a loss per share of $0.04-0.06 for the third quarter, instead of earnings of $0.06-0.09. This equates to a loss of about $1.4 million, instead of a profit of up to $2.5 million.
Veeco s diminished sales are mainly due to a 70% decrease in orders for MOCVD equipment placed by LED manufacturers. The company puts this down to Asian customers freezing their spending after significant outlays on Veeco s equipment in the first half of 2004.
Veeco s data storage and semiconductor orders declined by 30% from the second quarter, while scientific research orders increased by 20% over the same period.
"In the near term, we expect our customers current capital spending reluctance to continue, but believe it will be outweighed by a need to fund their 2005 new product roadmaps and to invest in the expected growth of next-generation consumer electronics," said Edward Braun, Veeco s CEO.
Veeco s guidance for the fourth quarter of 2004 has also been revised down. It expects revenue of $90-$100 million, and orders of $90-95 million.
