Veeco Instruments Inc. Earnings Cheat Sheet: Revenue Falls After Four Straight Increases, Net Income Drops

Veeco Instruments Inc. (NASDAQ:VECO) reported its results for the third quarter. Veeco Instruments designs and manufactures enabling solutions for customers in the high brightness light emitting diode (HB-LED), solar, data storage, semiconductor, scientific research and industrial markets.

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Veeco Instruments Earnings Cheat Sheet for the Third Quarter

Results: Net income for the semiconductor equipment and materials company fell to $35.9 million (90 cents per share) vs. $86.2 million ($2.04 per share) a year earlier. This is a decline of 58.4% from the year earlier quarter.

Revenue: Fell 3.3% to $268 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VECO reported adjusted net income of $1.33 per share. By that measure, the company beat the mean estimate of $1.14 per share. It beat the average revenue estimate of $252.6 million.

Quoting Management: John R. Peeler, Veeco’s Chief Executive Officer, commented, “Veeco reported a solid third quarter, with revenues of $268 million, non-GAAP net income and earnings per share of $53 million and $1.33, respectively, all at the mid to high end of our guidance. LED & Solar revenues increased 7% sequentially to $234 million, including $220 million in MOCVD, while Data Storage revenues were $34 million, down 25% sequentially. Veeco has continued to execute within the challenging overall business environment, particularly in China, where customer facility readiness and credit tightening remain significant issues. Veeco’s new MaxBright MOCVD System represented nearly half of the quarter’s MOCVD revenue, including broad-scale customer acceptance at tier one LED manufacturers.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 13 cents in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 63.3% from the year earlier quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.01 per share, a drop from $1.22. The average estimate for the fiscal year is $4.69 per share, down from $5.27 ninety days ago.

Competitors to Watch: Applied Materials, Inc. (NASDAQ:AMAT), Aixtron AG (NASDAQ:AIXG), CVD Equipment Corporation (NASDAQ:CVV), Cree, Inc. (NASDAQ:CREE), Intevac, Inc. (NASDAQ:IVAC), Amtech Systems, Inc. (NASDAQ:ASYS), Zygo Corporation (NASDAQ:ZIGO), Canon Inc. (NYSE:CAJ), MEMC Electronic Materials, Inc. (NYSE:WFR), and Novellus Systems, Inc. (NASDAQ:NVLS).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)