Printer Friendly

Veeco Reports First Quarter 2002 Results.

Business Editors

WOODBURY, N.Y.--(BUSINESS WIRE)--April 26, 2002

Veeco Instruments Inc. (NASDAQ: VECO) 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 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 of $3.3 million for the first quarter of 2002, compared to operating income of $19.6 million for the first quarter of 2001. Excluding amortization in both periods and a restructuring charge 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 share) in the first quarter of 2001. Net loss from continuing operations 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 basis") to a 35% tax rate and excluding amortization expense, restructuring charge and discontinued operations.)

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 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 H. Braun, 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 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, 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 of the conference call will also be available starting this afternoon at 888-203-1112 (confirmation number 553202).

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, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, 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 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 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 sections of Veeco's Report on Form 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
 ============= =============
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Apr 26, 2002
Words:1557
Previous Article:SEDONA Satisfies Nasdaq SmallCap Listing Requirements; Company Notified By Nasdaq That It Now Meets $1.00 Listing Criteria.
Next Article:PRAECIS PHARMACEUTICALS INCORPORATED Reports First Quarter 2002 Financial Results.
Topics:


Related Articles
Veeco Reports Second Quarter and Six Month 1999 Results.
Veeco Instruments Reports Third Quarter and First Nine Month 1999 Results.
Veeco Reports First Quarter 2000 Results.
Veeco Reports Record Second Quarter Bookings; Optical Telecommunications Bookings Over $40 million.
Veeco Reports Second Quarter and Six Month Results; Record Second Quarter Sales and Bookings; Explosive Optical Telecommunications Activity.
Veeco Reports First Quarter 2001 Results; Record Quarterly Sales, Operating Profit and Net Income; Company Establishes $100M Revolving Credit...
Veeco Provides Business Update At Bear Stearns Conference.
Veeco Upcoming Investor Events.
Veeco Reports 2001 Fourth Quarter and Year-End Results.
Veeco Upcoming Investor Events.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters