Veeco Reports Continued Revenue Growth Despite Tumbling Shares

Process equipment provider Veeco reported on 3rd August its financial results in 2Q17. The company ended the second quarter with a solid revenue of USD 115.1 million, up 52.9% YoY. Yet, shares of the company slumped by 20% at 1 p.m. the next day after the financial announcement, as The Motley Fool carried in its report.

(Image: Veeco Instruments)

According to the report issued last Thursday, compared with USD 75.3 million in the prior year period, Veeco’s 2Q17 revenue surged drastically at USD 115.1 million, with one month of revenue from its division Ultratech, a California-based company supplying lithography, laser-processing, and inspection systems. Its GAAP net loss stood at USD 18.4 million, 76.6% of which was spent on acquisitions and related expense.

Veeco completed the procurement of Ultratech on May 26th for USD 862 million. The two company signed a definitive agreement earlier in February in hope to address more advanced semiconductor applications. “The integration of Ultratech is proceeding well and we are very optimistic about the potential synergies in both revenue and costs,” said John Peeler, Chairman and CEO of Veeco.

Shares of Veeco; however, dropped by 20% after the Q2 financial report came out. Non-GAAP EPS was USD 0.15 while GAAP EPS came in at a loss of USD 0.43. The tumbling stock was possibly a result of weak guidance for non-GAAP EPS. Veeco’s Peeler still believed the company can achieve a stronger second half of 2017 for conditions of the LED industry will continue to improve.

The MOCVD provider expects to generate a revenue in the range of USD 125 million to USD 145 million, without approximately USD 20-25 million of deferred revenue from orders for its new high-productivity MOCVD systems that will not be recognized until early 2018 when the tools ordered are installed and placed into production. The non-GAAP EPS of Veeco’s third quarter 2017 is expected between a loss of USD 0.09 and a gain of USD 0.09.

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