Veeco Instruments Inc. Earnings: Revenues and Net Income Fall

Veeco Instruments Inc. (NASDAQ:VECO) posted a decrease in profit as revenue declined. 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 First Quarter

Results: Net income for Veeco Instruments Inc. fell to $16.5 million (42 cents per share) vs. $52.6 million ($1.24 per share) a year earlier. This is a decline of 68.7% from the year-earlier quarter.

Revenue: Fell 45.1% to $139.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Veeco Instruments Inc. beat the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $126 million.

Quoting Management: John R. Peeler, Veeco’s Chief Executive Officer, commented, “We are executing well during the downturn in MOCVD demand. Veeco’s first quarter revenue reached the top of our guidance at $140 million. Adjusted EBITA and non-GAAP earnings per share were $25 million and $0.49, respectively, on strong performance on the gross margin line and good expense management.” Veeco generated about $42 million in cash flow from operations, ending the quarter with $524 million in cash and short term investments. First quarter LED & Solar revenues were $96 million, including $82 million in MOCVD and $14 million in MBE. Data Storage revenues were $44 million.”As anticipated, we experienced a weak bookings environment in Q1, with total orders of approximately $113 million,” continued Mr. Peeler. “LED & Solar orders totaled $85 million, with $70 million in MOCVD and $15 million in MBE. MOCVD orders increased 19% sequentially, with system orders from customers in Korea, China, Taiwan, Japan and North America. MBE orders increased 71% sequentially on production orders from wireless customers. Data Storage bookings declined 62% sequentially to $29 million as customer consolidation activity temporarily stalled capacity investments.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the fourth quarter of the last fiscal year, net income fell 89.7% while the figure fell 58.4% in the third quarter of the last fiscal year and 63.3% in the second quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the fourth quarter of the last fiscal year, by 19 cents in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

Revenue has fallen for the last three quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 36.1% to $191.7 million while the figure fell 3.3% in the third quarter of the last fiscal year from the year earlier.

Gross margins grew to 68.3% last quarter, a 17.5 percentage points difference from the year-earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 29 cents per share to 19 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 98 cents per share, down from $1.64 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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