Veeco posts Q2 results
MOCVD orders 80 percent higher due to LED demand
Veeco Instruments has announced its financial results for the second quarter ended June 30, 2014. Veeco achieved $95 million in revenues, up 5 percent from the first quarter of 2014, and an adjusted EBITA loss of $7 million. The company ended the quarter with a cash balance of $485 million, up $2 million from the prior quarter.
"Our second quarter 2014 orders were $104 million, up when compared with the first quarter of 2014," commented John R. Peeler, chairman and CEO. "We continue to see positive trends in the LED market, including strong LED chip demand, very high LED fab utilisation rates and solid customer quoting activity.
He added: "First half 2014 MOCVD orders were up nearly 80 percent from the first half of last year. We had several significant wins during the quarter from LED customers in China and Korea who selected Veeco MOCVD equipment for their capacity expansions. Orders for MOCVD, Data Storage and MBE in the second quarter of 2014 were $75 million, $23 million and $6 million, respectively."
Third Quarter 2014 Guidance
Veeco's third quarter 2014 revenue is currently forecasted to be between $92 million and $100 million. Earnings per share is currently forecasted to be between ($0.43) to ($0.34) on a GAAP basis, and ($0.15) to ($0.07) on a non-GAAP basis. GAAP guidance includes the impact of a planned $2.6 million restructuring charge related to the Company's business and facility streamlining activities this quarter.
Business Update and Outlook
"MOCVD business conditions have improved from last year, but we have seen no sustained improvement in our other businesses. We have been working to streamline our business operations and reduce our expense structure, enabling investments in high growth opportunities such as LED and OLED display," commented Peeler. "These activities are planned through the rest of 2014, and are expected to result in an approximately 10 percent reduction in operating expenses as we exit 2014."
He continued: "LED market trends remain favourable, as indicated by our MOCVD first half order and revenue patterns. While quarterly MOCVD order patterns are lumpy, we see solid growth ahead. We currently expect orders in the second half of fiscal 2014 to be better than the first half, driven primarily by growth in MOCVD. We remain focused on delivering improved results by: 1) developing and launching game-changing new products that enable cost effective LED lighting, flexible OLED display encapsulation and other emerging technologies; 2) improving customer cost of ownership as well as our gross margins; 3) driving process improvement initiatives to make us more efficient; and 4) lowering expenses. It is our goal to get the Company back to double-digit adjusted EBITDA profitability by 2015 through a combination of improved business conditions, execution on our growth initiatives, a more streamlined Veeco, and lower operating expenses."
