News Article
Veeco affected by weak data storage and MOCVD market
The firm's system shipments were at very low levels and bookings were the weakest since early 2009
Veeco Instruments is providing select financial metrics and business highlights for the quarter ended March 31st, 2013.
Due to the accounting review announced on November 15th, 2012, the company is unable to report revenue and earnings information.
The company's unaudited cash balance at March 31st, 2013 was $588 million, up from $579 million at December 31st, 2012.
First quarter system shipments declined sharply, on a sequential basis, in both MOCVD and Data Storage.
With few MOCVD deals available, Veeco continues to experience significant competitive pricing pressure.
John R. Peeler, Veeco's Chairman and Chief Executive Officer, comments, "First quarter business conditions remained extremely challenging, with system shipments at very low levels and bookings the weakest we have seen since early 2009. We are pleased that Veeco continues to weather this business downturn with a strong cash position."
"Looking ahead, end market signals in MOCVD are mixed but appear to be trending in a positive direction," adds Peeler. "Some key LED customers are operating at close to full utilisation rates, and we are now booking some rush purchase orders - the first we have seen in two years. In particular, some Chinese customers with committed funding for MOCVD equipment are planning fab expansions. In Data Storage, customers are making technology buys and we are seeing an increase in quotations for MBE systems for research applications. While visibility remains limited, we anticipate meaningfully higher bookings in the second quarter."
Peeler concludes, "It is a top priority to conclude our accounting review as soon as possible. Veeco's other key focus areas for 2013 are our plans to fortify and build on our leadership positions in our core markets, especially in LED lighting which we believe is a huge market opportunity in front of us, and to leverage our technologies into adjacent markets like power electronics, OLED, MEMS and EUV."
Veeco's process equipment solutions enable the manufacture of LEDs, power electronics, hard drives, MEMS and wireless chips. The firm provides MOCVD, MBE, Ion Beam and other advanced thin film process technologies.
Due to the accounting review announced on November 15th, 2012, the company is unable to report revenue and earnings information.
The company's unaudited cash balance at March 31st, 2013 was $588 million, up from $579 million at December 31st, 2012.
First quarter system shipments declined sharply, on a sequential basis, in both MOCVD and Data Storage.
With few MOCVD deals available, Veeco continues to experience significant competitive pricing pressure.
John R. Peeler, Veeco's Chairman and Chief Executive Officer, comments, "First quarter business conditions remained extremely challenging, with system shipments at very low levels and bookings the weakest we have seen since early 2009. We are pleased that Veeco continues to weather this business downturn with a strong cash position."
"Looking ahead, end market signals in MOCVD are mixed but appear to be trending in a positive direction," adds Peeler. "Some key LED customers are operating at close to full utilisation rates, and we are now booking some rush purchase orders - the first we have seen in two years. In particular, some Chinese customers with committed funding for MOCVD equipment are planning fab expansions. In Data Storage, customers are making technology buys and we are seeing an increase in quotations for MBE systems for research applications. While visibility remains limited, we anticipate meaningfully higher bookings in the second quarter."
Peeler concludes, "It is a top priority to conclude our accounting review as soon as possible. Veeco's other key focus areas for 2013 are our plans to fortify and build on our leadership positions in our core markets, especially in LED lighting which we believe is a huge market opportunity in front of us, and to leverage our technologies into adjacent markets like power electronics, OLED, MEMS and EUV."
Veeco's process equipment solutions enable the manufacture of LEDs, power electronics, hard drives, MEMS and wireless chips. The firm provides MOCVD, MBE, Ion Beam and other advanced thin film process technologies.
