Ultratech Acquisition Boosts Veeco Q2 Results

Veeco Instruments has announced its Q2 financial results (ended June 30, 2017) with revenues if $115.1 million compared to $75.3 for Q2 2016. Net income was $6.4 million compared to a loss of $7.6 million in Q2 2016.

“Veeco delivered another quarter of solid results with revenue of $115 million and non-GAAP EPS of $0.15,” commented John R. Peeler, chairman and CEO. “We achieved a key milestone in the quarter having closed the acquisition of Ultratech on May 26, 2017. As such, our Q2 results include approximately one month of Ultratech’s business. Excluding Ultratech, our Q2 results were in line with our guidance. Importantly, backlog continued to grow and bookings increased sequentially from the first quarter.

“The integration of Ultratech is proceeding well and we are very optimistic about the potential synergies in both revenue and costs. In addition, LED industry conditions continue to improve, and we believe we can achieve a stronger second half of 2017,” concluded Peeler.

Guidance and Outlook

For Veeco’s third quarter 2017: revenue is expected to be in the range of $125 million to $145 million, while non-GAAP operating income is expected to be in the range of $0 million to $9 million, GAAP earnings (loss) per share are expected to be in the range of ($0.53) to ($0.34). Non-GAAP earnings (loss) per share are expected to be in the range of ($0.09) to $0.09.

The revenue guidance range above does not include approximately $20-$25 million of deferred revenue relating to orders for Veeco’s new high-productivity MOCVD systems that are expected to ship in the third quarter. Veeco says it will recognise this revenue once the tools are installed and customers place them into production, which we expect to occur in early 2018.