News Details

PLAINVIEW, N.Y., Feb 07, 2011 (BUSINESS WIRE) --

Veeco Instruments Inc. (Nasdaq: VECO) announced its financial results for the fourth quarter and full-year ended December 31, 2010. Veeco reports its results on a U.S. generally accepted accounting principles ("GAAP") basis, and also provides results excluding certain items. Please refer to the attached table for details of the reconciliation between GAAP operating results and Non-GAAP operating results. All results presented herein are for Veeco's "Continuing Operations" which excludes the Metrology business sold to Bruker Corporation on October 7, 2010.

John R. Peeler, Veeco's Chief Executive Officer, commented, "The fourth quarter of 2010 was the best in our history, and we are extremely proud of our performance. Revenues were $300 million, gross margin was 51% and net income was $97 million. Veeco's revenues grew 8% sequentially and 152% from the fourth quarter of last year. Both Veeco segments delivered excellent performance: LED & Solar revenues were up 6% sequentially to a record $258 million, and Data Storage revenues were up 21% to $42 million, our best quarter since 2008. Full year 2010 results were also at record levels, with revenue of $933 million and net income of $261 million. These results were achieved through a combination of world-class products, a focus on high-growth market opportunities, operational excellence, our flexible manufacturing strategy, and a deep commitment to satisfying our global customers."

"Veeco's fourth quarter bookings totaled $295 million," continued Mr. Peeler, "with another very strong quarter in LED & Solar of $253 million, which was up about 4% sequentially. Orders for MOCVD systems were placed by twenty customers across all regions, with strength continuing in China. Data Storage orders were $42 million, up 20% sequentially as technology buys for new Veeco deposition systems continue." The Company's Q4 2010 book-to-bill ratio was .98 to 1, and quarter end backlog was $555 million.

On August 24 ^th , Veeco announced that its Board of Directors had authorized the repurchase of up to $200 million of the Company's common stock through August 2011. During the fourth quarter, Veeco purchased 189,218 shares of its common stock at an average price of $34.33 per share, for a total of approximately $6.5 million bringing the total purchased under the Company's share repurchase program during 2010 to $38 million, or about 1.1 million shares.

Veeco Launches MaxBright MOCVD System

Mr. Peeler commented, "We currently estimate that the total available market for MOCVD from 2011 through 2015 is greater than 5,000 reactors. In order to capitalize on this opportunity, drive our business, and continue to gain market share, today we launched the TurboDisc(R) MaxBright(TM) Multi-reactor ("cluster") MOCVD system. By dramatically accelerating our new product roadmap to create MaxBright, the most productive MOCVD system on the market, Veeco will help enable the industry's transition to LED lighting."

First Quarter and Full-Year 2011 Guidance

Veeco's first quarter 2011 revenue is currently forecasted to be between $215 and $265 million. Earnings per share are currently forecasted to be between $0.94 to $1.31 on a GAAP basis and $1.02 to $1.39 on a non-GAAP basis. Please refer to the attached financial table for more details.

Commenting on Q1 2011 guidance, Mr. Peeler stated, "Q1 2011 revenues will be lower than Q4 2010 because we are planning to ship 12-20 MOCVD reactors in the new MaxBright "cluster" format, and will not be recording any revenue on these systems in the first quarter. Timing of revenue is also being impacted by the longer order-to-revenue cycle times associated with the high percentage of business currently coming from China, primarily due to customer facility readiness. The average time to convert orders to revenue is currently several months longer in China than in other regions."

"With starting backlog of $555 million, and anticipating strong first half 2011 bookings, we currently forecast that Veeco's 2011 revenues will be greater than $1 billion, resulting in non-GAAP earnings per share of greater than $5.00," continued Mr. Peeler. "We are optimistic about the future and confident that we are well positioned from a technology, product, and operational standpoint to grow our LED & Solar and Data Storage businesses in 2011 and beyond."

Conference Call Information

A conference call reviewing these results has been scheduled for 5:00pm ET today at 1-888-349-9585 (toll free) or 1-719-325-2142 using passcode 4065533. The call will also be webcast live on the Veeco website at www.veeco.com . A replay of the call will be available beginning at 8:00pm ET tonight through 8:00pm ET on February 21, 2011 at 888-203-1112 or 719-457-0820, using passcode 4065533, or on the Veeco website. Please follow along with our slide presentation also posted on the website.

About Veeco

Veeco makes equipment to develop and manufacture LEDs, solar panels, hard disk drives and other devices. We support our customers through product development, manufacturing, sales and service sites in the U.S., Korea, Taiwan, China, Singapore, Japan, Europe and other locations. Please visit us at www.veeco.com .

To the extent that this news release discusses expectations 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 risks discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2009 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on adjusted EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes adjusted EBITA reports baseline performance and thus provides useful information.

NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 33% effective rate. By the end of 2010, the Company had fully utilized all prior NOL and tax credit carryfowards. As a result, beginning in 2011, the Company will use an effective tax rate in its calculation of non-GAAP net income and earnings per share. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on adjusted EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes adjusted EBITA reports baseline performance and thus provides useful information.

** Refer to footnotes on 'Reconciliation of operating income (loss) to non-GAAP net income from continuing operations' for further details.

SOURCE: Veeco Instruments Inc.

Veeco Instruments Inc.



Financial:

Debra Wasser, SVP Investor Relations & Corporate Communications, 516-677-0200 x1472

Media:

Fran Brennen, Senior Director Marcom, 516-677-0200 x1222