Another tough quarter for Veeco
Veeco Instruments has announced financial results for its second fiscal quarter ended June 30, 2016.
Revenues were $75.3 million compared to $131.4 in Q2 2015; GAAP net loss per share of $0.82 (includes a pre-tax charge of ~$16 million associated with the restructuring plans); non-GAAP net loss per share of $0.19; while non-GAAP adjusted EBITDA was negative $2.8 million.
Results summary: US dollars in millions, except per share data
"Veeco closed out a difficult first half of 2016 delivering second quarter results which were in line with our expectations and underscore our focus on operational execution," commented John R. Peeler, chairman and CEO.
"As previously communicated, we have taken decisive steps aimed at improving our through-cycle profitability by reducing fixed costs and streamlining our operations. This plan will enable us to lower our quarterly adjusted EBITDA breakeven level to between $75 and $80 million in revenue, without compromising our ability to capitalise on growth opportunities. Looking ahead, we see positive indications that should lead to a pick-up in demand for our MOCVD equipment over the near term," Peeler concluded.
The restructuring plan involves the consolidation of three manufacturing operations and streamlining of field and administrative functions. The plan is expected to be substantially completed by the end of 2016 and to result in annualized savings of approximately $20 million starting in the first quarter of 2017. As a result of these actions, the company recorded a pre-tax charge of approximately $16 million in the second quarter.
Guidance and Outlook
The following guidance is provided for Veeco's third quarter 2016:
Revenue is expected to be in the range of $70 million to $85 million. GAAP Net Income (loss) is expected to be in the range of ($24) million to ($18) million and earnings (loss) per share is expected to be in the range of ($0.62) to ($0.46). Non-GAAP Net Income (loss) is expected to be in the range of ($10) million to ($4) million and earnings (loss) per share is expected to be in the range of ($0.26) to ($0.10). Adjusted EBITDA (loss) is expected to be in the range of ($6) million to breakeven.