Veeco Reports First Quarter 2002 Results.Business EditorsWOODBURY Woodbury. 1 Residential city (1990 pop. 10,904), seat of Gloucester co., SW N.J., in the Philadelphia–Camden metropolitan area; settled 1683, inc. as a city 1871. It is a trade and service center, and petrochemical companies are nearby. , N.Y.--(BUSINESS WIRE)--April 26, 2002 Veeco Veeco Vacuum Electronic Equipment Company Instruments Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : VECO VECO Vernier Engine Cut Off ) today announced its financial results for the first quarter ended March 31, 2002. Veeco reported revenues of $80.1 million, a net loss of $3.5 million (($0.12) per share), and cash earnings per share of $0.00 (break-even). First quarter bookings of $70.2 million increased 5% from the prior quarter. First Quarter 2002 Results Veeco's sales for the first quarter of 2002 were $80.1 million, a 36% decrease from the $125.4 million reported for the first quarter of 2001. Veeco's Process Equipment sales were $44.8 million compared with $80.3 million in the first quarter of last year. Metrology metrology Science of measurement. Measuring a quantity means establishing its ratio to another fixed quantity of the same kind, known as the unit of that kind of quantity. sales were $35.3 million compared to $45.1 million in the first quarter of 2001. Veeco's sales by market in the first quarter of 2002 reflect the Company's broad end-market focus and were 36% data storage, 21% telecommunications/wireless, 8% semiconductor and 35% research. Veeco incurred an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $3.3 million for the first quarter of 2002, compared to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $19.6 million for the first quarter of 2001. Excluding amortization in both periods and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $837,000 in the first quarter of 2002, Veeco's first quarter 2002 operating income was $1.3 million compared to $21.0 million for the first quarter of 2001. (First quarter amortization expense was $3.7 million and $1.4 million for 2002 and 2001, respectively). Veeco's first quarter 2002 net loss was $3.5 million (($0.12) per share) compared to net income of $12.9 million ($0.51 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) in the first quarter of 2001. Net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first quarter of 2002 was $3.2 million (($0.11) per share) compared to net income from continuing operations of $13.2 million ($0.52 per diluted share) for the first quarter of 2001. Cash earnings per share for the first quarter of 2002 was $0.00 (break-even) compared with $0.56 in the first quarter of 2001. (Cash earnings per share is calculated by adjusting diluted net (loss) income per share ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis") to a 35% tax rate and excluding amortization expense, restructuring charge and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. .) Veeco's bookings for the first quarter of 2002 were $70.2 million, down 36% from the $110.2 million reported in the first quarter of 2001, but up 5% sequentially from the fourth quarter of 2001. First quarter 2002 Process Equipment bookings were $38.4 million compared with $72.9 million in the first quarter of 2001. First quarter 2002 Metrology bookings were $31.8 million compared to $37.3 million in the first quarter of 2001. The Company's first quarter book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can was 0.88. Veeco's bookings in the first quarter were 35% data storage, 20% telecommunications/wireless, 13% semiconductor and 32% research. Management Review of Results Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide H. Braun Braun , Eva 1912-1945. German lover and later wife of Adolf Hitler. They began living together in 1936, but the liaison was kept secret, and she was never seen in public with him. They were married hours before their double suicide on April 30, 1945. , Veeco's Chairman, President and Chief Executive Officer commented, "While industry conditions remain difficult, we are pleased to have surpassed both our revenue and earnings forecasts for the first quarter, delivering a break-even quarter at the cash operating level rather than a loss as forecasted. These results were achieved through cost reductions and higher than forecasted revenues, despite a 36% decrease in revenues from the prior year first quarter." "Veeco's bookings in the first quarter of 2002 decreased 36% from the prior year first quarter, but improved 5% sequentially, in line with our guidance. New technology buys prompted a 38% increase in data storage orders over the prior quarter, a 27% increase in semiconductor orders and a 22% increase in telecommunications/wireless orders. We experienced seasonal weakness in research bookings, which while higher than the first quarter of 2001, were down 26% compared to the fourth quarter. Veeco's first quarter orders from the Asia Pacific region were up 149% sequentially, reflecting significant activity in wireless and semiconductor applications. Net bookings were up sharply in the first quarter versus the prior quarter, as order cancellations were insignificant. We are pleased that Veeco's market diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. has enabled us to report two consecutive quarters of modest order improvement despite swings within our different industry groups. We expect additional technology order growth to continue in the second quarter." Veeco's Outlook Veeco currently estimates that second quarter 2002 sales will be in the range of $75-80 million, with cash earnings per share again approximating break-even (using a 35% tax rate and excluding amortization expense). Veeco currently forecasts that second quarter 2002 bookings will be greater than $70 million, sequentially up from the first quarter. Veeco continues to expect overall market recovery to result in sequential bookings and revenue growth in the second half of 2002. Investor Conference Call/ Webcast As previously announced, Veeco is hosting an investor conference call this morning, Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 26th, at 10 am ET to review the Company's financials and operations for the first quarter of 2002. Interested parties may listen to the call live by calling 800-314-7867 or through an audio webcast at http://www.veeco.com (click on Investor Information), where this call will be archived for future reference. A telephonic playback Playback could mean:
About Veeco Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . Global sales and service offices are located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Japan and Asia Pacific. Additional
information on Veeco can be found at http://www.veeco.com.
To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco's products, or otherwise makes statements about the future, such statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial sections of Veeco's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Annual Report to Shareholders.
Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Unaudited
Three Months Ended
March 31,
2002 2001
------------- -------------
Net sales $80,149 $125,386
Cost of sales 46,414 66,696
------------- -------------
Gross profit 33,735 58,690
Costs and expenses:
Research and development expense 13,329 15,107
Selling, general and administrative
expense 19,037 21,134
Amortization expense 3,747 1,436
Restructuring expense 837 -
Other expense, net 49 1,406
------------- -------------
Operating (loss) income (3,264) 19,607
Interest expense (income), net 1,486 (767)
------------- -------------
(Loss) income from continuing
operations before income taxes (4,750) 20,374
Income tax (benefit) provision (1,598) 7,158
------------- -------------
(Loss) income from continuing
operations (3,152) 13,216
Loss from discontinued operations,
(net of income taxes) - (343)
Loss on disposal of discontinued
operations, (net of income taxes) (346) -
------------- -------------
Net (loss) income $ (3,498) $ 12,873
============= =============
(Loss) income per common share from
continuing operations $ (0.11) $ 0.54
Loss from discontinued operations (0.01) (0.02)
------------- -------------
Net (loss) income per common share $ (0.12) $ 0.52
============= =============
Diluted (loss) income per common share
from continuing operations $ (0.11) $ 0.52
Loss from discontinued operations (0.01) (0.01)
------------- -------------
Diluted net (loss) income per
common share $ (0.12) $ 0.51
============= =============
Cash earnings per share $ (0.00)(1) $ 0.56 (2)
Weighted average shares outstanding 29,021 24,678
Diluted weighted average shares
outstanding 29,413 25,230
============= =============
(1) Cash earnings per share for the quarter ended March 31, 2002 is
calculated by adjusting diluted net (loss) per common share to a
35% tax rate and excludes amortization expense of $3.7 million and
a $0.8 million charge to earnings for severance expenses related
to the cost reduction efforts that were initiated in the fourth
quarter of 2001. The calculation also excludes $0.3 million of
losses (net of taxes) on the disposal of the discontinued
operations.
(2) Cash earnings per share for the quarter ended March 31, 2001 is
calculated by adjusting diluted net income per common share to a
35% tax rate and excludes amortization expense of $1.4 million and
$0.3 million of losses (net of taxes) from the discontinued
operations.
Veeco Instruments Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2002 2001
------------- -------------
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $219,108 $203,154
Accounts receivable, net 69,815 88,449
Inventories 99,273 101,419
Other current assets 65,160 69,468
------------- -------------
Total current assets 453,356 462,490
Property, plant and equipment, net 76,699 78,547
Excess of cost over net assets
acquired, net 125,585 125,585
Long-term investments 34,912 23,519
Other assets, net 63,054 65,378
------------- -------------
Total assets $753,606 $755,519
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Other current liabilities $76,847 $89,901
Deferred gross profit 9,265 14,566
------------- -------------
Current liabilities 86,112 104,467
Long-term liabilities 247,088 227,081
Shareholders' equity 420,406 423,971
------------- -------------
Total liabilities and
shareholders' equity $753,606 $755,519
============= =============
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