February 9, 2009, 5:01 pm
Veeco Cutting Staff 26%; Issues Q1 Warning
Posted by Eric Savitz
Veeco Instruments (VECO) this afternoon said it began a cost-cutting program in the December quarter which includes a 26% reduction in force. The company previously had just over 1,200 employees.
Veeco, which makes equipment used in the manufacturing of semiconductors, solar systems, data sotrage products and other technology goods, also said it cut senior management salaries, reduced board compensation and installed a wage freeze.
For Q4, Veeco posted revenue of $110.3 million and non-GAAP profits of 11 cents a share, beating the Street at $109.8 million and 8 cents.
However, for Q1, the company sees revenue dropping to $60 million to $70 million, a decline of 36%-45%, with bookings down sequentially from the fourth quarter. The company expects a non-GAAP loss for the quarter of 17-25 cents a share. The Street consensus has been for $88.5 million and a loss of 7 cents.
In the regular session, VECO was up 3 cents at $6.22. |
