Veeco's yearly revenue up 18 percent to $393 million
Veeco Instruments have announced its financial results for Q4 and year ended December 31, 2014, and the market responded with a share price rise of 2.27 percent. "Veeco achieved significant milestones during 2014 as part of the transition back to growth and profitability," commented John R. Peeler, chairman and CEO.
"For the full year, revenue increased 18 percent to $393 million, bookings were up more than 50 percent to $510 million, and we returned to adjusted EBITDA profitability," he said. "We developed differentiated new products, lowered operating expenses and improved gross margins. We also completed the acquisition of Solid State Equipment LLC (now Veeco Precision Surface Processing or PSP) in the fourth quarter, improving access to high growth markets through complementary technology that will drive increased sales and profitability."
Fourth quarter results were within guidance for revenue and above guidance for gross margin and adjusted EBITDA performance. Bookings totaled $196 million, the highest quarterly level since 2011. MOCVD booked $142 million, primarily due to orders for our next generation EPIK700TM MOCVD system. Data Storage bookings of $45 million were also the highest level since 2011, as customers invested in both capacity and technology.
Veeco successfully demonstrated its FAST-ALD technology for flexible OLED encapsulation, but at the same time the incumbent deposition technology has progressed to satisfy the current market requirements. As a result, Veeco lowered the near term revenue forecasts for its ALD technology and took an asset impairment charge (goodwill, intangibles and property, plant and equipment) in the fourth quarter. The company will lower its spending rate in ALD, refocus R&D efforts on semiconductor and other applications, and continue to monitor the flexible OLED market opportunity.
Veeco has begun shipping its new EPIK700 MOCVD system, a product that improves LED customers' productivity and yield and lowers their total cost of ownership. As is standard practice with new product introductions, accounting rules require deferral of revenue on initial system shipments. The company expects to ship over $25 million of EPIK700 systems in the first quarter.
The value of these shipments will largely appear as deferred revenue on the balance sheet, and, as a result, Veeco's first quarter 2015 revenue is currently forecasted to be between $92 and $100 million. Loss per share is currently forecasted to be between ($0.59) to ($0.53) on a GAAP basis and ($0.13) to ($0.07) on a non-GAAP basis. Please refer to the attached financial table for more details.
Peeler added: "I am highly confident that 2015 will be another year of improved performance for Veeco, fueled by great new products targeted at growth opportunities in LED, power electronics and mobile devices. We have a strong team focused on keeping our organisation streamlined and improving both gross margin and bottom line performance."