News Article
Veeco Q2 2010 Revenue Up 250% At $253 Million
LED & Solar revenues were $186 million, with approximately $175 million in MOCVD, with 81 MOCVD systems shipped.
Veeco Instruments has announced its financial results for the second quarter ended June 30, 2010 on both a Generally Accepted Accounting Principles (GAAP) basis, and also provides results excluding certain items (non-GAAP basis).
John R. Peeler, Veeco's CEO, commented, "Veeco has once again delivered tremendous results. Second quarter revenue was $253 million, a new record for Veeco, an increase of approximately 250% from last year and 55% sequentially. All three of our businesses, LED & Solar, Data Storage and Metrology, continue to execute extremely well, with sequential improvements in revenue and EBITA. Of particular note, our LED & Solar revenues were $186 million, with approximately $175 million in MOCVD. We shipped 81 MOCVD systems, quadrupling shipments since the third quarter of last year and remained on track with our commitments to customers. EBITA was a record $68.4 million, or 27% of sales, resulting in record quarterly GAAP EPS of $1.20 per share and non-GAAP EPS of $1.01 per share. Veeco's balance sheet performance was also excellent - we generated approximately $67 million in cash from operations during the second quarter.”
"Veeco's second quarter bookings were $347 million, setting a new Company record, up approximately 250% from the prior year and 30% sequentially," continued Peeler. "LED & Solar orders were a record $260 million, up 23% sequentially. We received $251 million in MOCVD orders, with customer wins in all regions, including the U.S., Europe, Taiwan, Japan and Korea, and experienced accelerating demand from LED companies expanding facilities in China. Veeco's Data Storage orders were $50 million, up 90% sequentially, as customers invested in both technology and capacity additions.”
“ Metrology orders were $37 million, our best quarterly performance in several years and up 22% sequentially on the strength of new products and improved business conditions in semiconductor and data storage markets. We are extremely proud of the performance of all of our businesses in the second quarter", he commented.
Veeco's Q2 '10 book-to-bill ratio was 1.37, with a record backlog of $597 million at the end of the quarter.
Regarding Veeco's outlook, Peeler commented, "Business conditions in LED remain at a similar pace to what we have experienced the last several quarters, and we believe that Q3 will be another very strong bookings quarter for our MOCVD business. In particular, China's initiative to subsidize the LED industry via seven national 'industrial parks' is spurring strong order quoting patterns for Veeco, both from local companies as well as from Korean and Taiwanese customers that are partnering with Chinese entities. Veeco's market-leading TurboDisc K465i MOCVD System is also enabling us to continue to win business as the best-performing, lowest cost-of-ownership system in production today."
Peeler continued, "We currently plan to ship approximately 100 MOCVD tools this quarter and plan to reach a production capacity of 120 tools or more by the fourth quarter. As a result of our variable-cost, outsourced manufacturing strategy, we have dramatically increased our production capacity with the ability to flex our actual MOCVD shipments up or down each quarter depending upon specific customer demand and delivery requirements."
Veeco's third quarter 2010 revenue is currently forecasted to be between $290 and $315 million. Earnings per share are currently forecasted to be between $1.55 to $1.82 on a GAAP basis.
Peeler concluded, "Based upon Veeco's strong backlog and current order visibility, the Company is currently forecasting that 2010 revenues will be over $1 billion, with strong year-over-year growth from 2009 in revenue and profitability in all three business segments."
A conference call reviewing these results was held on 26 July and a replay of the call is currently available from the Veeco website until August 9, 2010.
