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Veeco Instruments Inc. (NASDAQ:VECO) saw profit fall amid falling revenue. Veeco Instruments designs and manufactures enabling solutions for customers in the high brightness light emitting diode (HB-LED), solar, data storage, semiconductor, scientific research and industrial markets.
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Veeco Instruments Earnings Cheat Sheet for the Second Quarter
Results: Net income for Veeco Instruments Inc. fell to $11.8 million (30 cents per share) vs. $19.2 million (45 cents per share) a year earlier. This is a decline of 38.5% from the year-earlier quarter.
Revenue: Fell 48.5% to $136.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Veeco Instruments Inc. reported adjusted net income of 37 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. Analysts were expecting revenue of $134.3 million.
Quoting Management: John R. Peeler, Veeco’s Chairman and Chief Executive Officer, commented, “Veeco continues to deliver solid results in a soft market. Second quarter revenue was $137 million, and adjusted EBITA and non-GAAP earnings per share were $20 million and $0.37, respectively, with gross margins of 45%. Veeco generated about $19 million in cash flow from operations, ending the quarter with $540 million in cash and short term investments.” Second quarter LED & Solar revenues were $87 million, including $75 million in MOCVD and $12 million in MBE. Data Storage revenues were $50 million.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 29 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 19 cents in the third quarter of the last fiscal year.
Revenue has fallen in the past four quarters. Revenue declined 45.1% to $139.9 million in the first quarter. The figure fell 36.1% in the fourth quarter of the last fiscal year from the year earlier and dropped 3.3% in the third quarter of the last fiscal year from the year-ago quarter.
Net income has dropped 63.7% year-over-year on average across the last five quarters. Performance was hurt by an 89.7% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 26 cents a share to 33 cents over the last ninety days. The average estimate for the fiscal year is $1.45 per share, a rise from 98 cents ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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