Veeco to cut back Atomic Layer Deposition developments
Process equipment company Veeco Instruments has announced it will significantly reduce future investments in its Atomic Layer Deposition (ALD) technology development.
These ALD cost reduction activities are expected to be complete by year end 2016 and are in addition to previously announced restructuring plans, which targeted $20 million in annual savings. In total, these initiatives are expected to generate $30 million in annual savings.
"While we have continued to make progress with our ALD technology development for advanced semiconductor applications, the expected timing for revenue realisation has been delayed," said John R. Peeler, chairman and CEO. "Consequently, we have made the difficult decision to lower investments in our ALD program. We plan to retain the intellectual property and technology capabilities and continue to assess future market opportunities."
In the third quarter, the company expects to record total asset impairment and restructuring charges of between $56 and $62 million, or $1.44 and $1.59 on a per share basis. Of these charges, the vast majority are non-cash relating to an intangible ALD asset impairment, while approximately $2 million are cash restructuring charges.
Q3 2016 Revenue Update
Veeco says that overall LED industry conditions and demand for its products have continued to improve. As a result, revenues for the third quarter 2016 are expected to be at the high end of the previously announced guidance range of $70 million to $85 million.
Veeco plans to issue third quarter 2016 financial results and host a conference call to discuss these results in further detail on November 1, 2016.
