Company reports recovery in LED industry conditions and a healthy sales pipeline
Process equipment company Veeco Instruments has announced financial results for Q1 ended March 31, 2017 with revenues of $94.4 million up 21 percent compared with the same period last year.
“Veeco’s first quarter sales were above seasonal average and increased by more than 20 percent year-over-year, reflecting a recovery in LED industry conditions. We are continuing to build backlog and see a healthy sales pipeline, which supports top line growth in the second half of 2017,” commented John R. Peeler, chairman and CEO.
“Our Q1 gross margin reflects, among other factors, the temporary impact of our manufacturing consolidation efforts. We now expect to complete these plans in the third quarter. We believe our consolidation efforts combined with sustained cost discipline will drive positive operating leverage, as revenues scale,” he added.
“In addition, we are pleased with the progress we’ve made towards completing the Ultratech acquisition, which we expect to close in late May. Integration planning is well under way and we expect to hit the ground running on day one,” Peeler concluded.
Guidance and Outlook
The following guidance is provided for Veeco’s second quarter 2017: revenue is expected to be in the range of $85 million to $100 million; adjusted EBITDA is expected to be in the range of $4 million to $10 million; GAAP earnings (loss) per share are expected to be in the range of ($0.14) to $0.02 and includes a pre-tax interest expense estimated to be ~$5 million associated with the 2023 Convertible Notes.
Non-GAAP earnings per share are expected to be in the range of ($0.05) to $0.09 and includes a pre-tax interest expense estimated to be ~$2 million associated with the 2023 Convertible Notes