Veeco Instruments announced its financial results for the second quarter ended June 30, 2012.
The firm reported second-quarter 2012 revenues of US$136.5 million with net income of US$11 million. Both figures are lower than second-quarter 2011.
John R Peeler, Veeco's chairman and CED, commented, "Veeco continues to deliver solid results in a soft market. Second quarter revenue was US$137 million, with gross margins of 45%. Veeco generated about US$19 million in cash flow from operations, ending the quarter with US$540 million in cash and short term investments." Second-quarter LED & Solar revenues were US$87 million, including US$75 million in MOCVD and US$12 million in MBE, stated Veeco.
"As anticipated, we experienced a challenging bookings environment in the second quarter, with total orders of approximately US$103 million," continued Peeler. "Across our markets, macro-economic concerns and weakness in TV, PC and consumer electronics sales are delaying customers' capex purchases." Veeco's LED & Solar orders totaled US$77 million, with MOCVD flat sequentially at US$70 million and MBE declining 50% to US$7 million. Veeco's book-to-bill ratio was 0.75 to 1 and quarter-end backlog, after a US$30 million adjustment, was US$241 million, according to the firm.
Veeco provided outlooks for third-quarter 2012 revenue. The third-quarter revenues are currently forecast to be between US$120-140 million, said Veeco.
Peeler commented, "We are executing on our plan to deliver solid profitability in a down revenue year while investing for future growth. At the mid-point of the year, we are tightening our 2012 revenue guidance to between US$520-560 million. Assuming macro-economic conditions do not worsen, we currently anticipate a gradual order recovery in the second half of 2012."
Peeler continued, "MOCVD orders appear to be bumping along the bottom and we have not yet seen a meaningful inflection in customer buying. However, utilization rates are up at key customer facilities in China, Taiwan and Korea, and we have seen a pick-up in quoting activity as customers plan future capacity expansions to ensure their position in LED lighting for 2013 and beyond."
