Veeco Reports Second Quarter and Six Month 1999 Results
Business Wire - July 28, 1999 17:34
PLAINVIEW, N.Y.--(BUSINESS WIRE)--July 28, 1999--
Second Quarter Operating Profit Increased 44% from Prior Year...
Record First Half Bookings
Veeco Instruments Inc. (NASDAQ: VECO), today reported financial results for the second quarter and six months ended June 30, 1999.
Second Quarter Results
Sales for the second quarter of 1999 increased 8% to $55.2 million from $51.1 million for the second quarter of 1998. Veeco's Process Equipment sales were a record $25.4 million in the
second quarter of 1999, an increase of 114% over the $11.9 million reported in the second quarter of 1998, as the data storage industry accelerates its transition to higher areal density giant
magnetoresistive (GMR) thin film head manufacturing. Veeco's Metrology sales decreased 26% to $25.5 million in the second quarter of 1999 compared with $34.4 million in the second
quarter of last year.
Operating income for the second quarter of 1999 increased 44% to $8.6 million from $5.9 million for the second quarter of 1998, exclusive of previously announced non-recurring merger
related charges in 1998. Net income for the second quarter of 1999 was $5.7 million compared with a net loss of $1.8 million ($3.6 million net income pro forma fully taxed, excluding merger
charges) in 1998. Diluted net income per share was $0.35 in the second quarter of 1999, compared with a net loss of $0.12 per share ($0.24 net income per share pro forma fully taxed,
excluding merger charges) for the corresponding period of 1998.
Bookings for the second quarter of 1999 were $53.6 million, a 7% increase from the $50.0 million reported in the prior year second quarter. Veeco's Process Equipment bookings nearly
doubled to $24.8 million in the second quarter of 1999 from $13.0 million in the second quarter of 1998. Metrology bookings were $25.3 million in the second quarter of 1999, compared with
$32.6 million in last year's corresponding quarter. Veeco's book/bill ratio for the second quarter of 1999 was 0.97.
First Half Results
Sales for the six month period ended June 30, 1999 increased 6% to $111.2 million from $104.8 million in the first half of 1998. Process Equipment sales were a record $44.9 million in the
first half of 1999, a 66% increase over the $27.0 million reported in the first half of last year. Veeco's Metrology sales were $56.4 million in the first half of 1999 compared with $67.3 million in
last year's first half.
Operating income for the first half of 1999 increased 22% to $16.5 million, from $13.6 million for the first half of 1998, excluding previously announced non-recurring merger charges in 1998.
Net income for the first half of 1999 was $10.8 million, compared with $3.9 million ($8.2 million pro forma fully taxed, excluding merger charges) in 1998. Diluted net income per share was
$0.67 in the first six months of 1999 compared with $0.27 per share ($0.56 pro forma fully taxed, excluding merger charges) in the corresponding 1998 period.
Bookings for the first half of 1999 were a record $118.6 million, compared with $115.9 million reported in the first half of last year. Process Equipment bookings increased 75% to a record
$61.0 million from $34.9 million in the first half of 1998. Metrology bookings were $50.3 million in the first half of 1999 compared with $72.0 million in last year's first half. Veeco's book/bill
ratio for the first half of 1999 was 1.07.
Edward H. Braun, Chairman, President and CEO of Veeco commented, "Veeco's revenue and strong earnings growth in the second quarter and first six months of 1999 continue to reflect the
data storage industry's accelerated transition to GMR thin film magnetic head production. Despite difficult data storage industry conditions, Veeco continues to benefit from our breadth of
product line, advanced technology for GMR head manufacturing and metrology, our critical mass and our strong strategic customer relationships."
Mr. Braun added, "While our second quarter bookings rate reflected the data storage industry's response to financial pressures and desire to limit capital expenditures to essential programs, our
record first half bookings of $118.6 million show that GMR process technology is indeed considered essential by Veeco's customers."
"Continued breakthroughs in higher areal densities now indicate that advanced GMR technology is extendable to allow future hard drive areal densities approaching 100Gb/in2 by 2004. Veeco
has started the development of next generation etch and deposition equipment products to meet this data storage market requirement. In addition, advanced GMR manufacturing will require
new integrated metrology products to provide much needed yield improvement. As Veeco's data storage and semiconductor customers continue to seek deeper relationships with fewer
worldwide suppliers, we see further opportunities to grow Veeco through both internal development and acquisitions. We therefore remain optimistic regarding Veeco's growth," concluded Mr.
Braun.
Veeco Instruments Inc., headquartered in Plainview, New York, is a worldwide leader in Metrology tools for the data storage and semiconductor industries, and Process Equipment etch and
deposition tools for the data storage industry. Manufacturing and engineering facilities are located in New York, California and Arizona. Global sales and service offices are located throughout
the United States, Europe, Japan and Asia Pacific.
To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of the Company'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 data storage and semiconductor industry, 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 the Company's Report on Form 10-K and Annual Report to Shareholders.
Veeco Instruments Inc.
Consolidated Results of Operations
(In thousands, except per share data)
-----Unaudited------ -----Unaudited-----
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---------------------- ---------------------
Net sales $55,177 $51,147 $111,156 $104,806
Gross Profit 26,936 24,099 53,453 48,240
Research and
development
expense 7,207 7,007 14,338 13,497
Selling, general
and admin.
expense 11,187 11,184 22,661 21,231
Merger and
reorganization
expense 0 7,500 0 7,500
Other, net (18) (26) (89) (61)
------------------ -----------------------------
Operating income
(loss) 8,560 (1,566) 16,543 6,073
Interest (income)
expense, net (446) 267 (587) 465
------------------- -----------------------------
Income (loss)
before income
taxes 9,006 (1,833) 17,130 5,608
Income tax expense
(benefit) 3,332 (51) 6,338 1,682
------------------- -----------------------------
Net income (loss) $5,674 ($1,782) $10,792 $3,926
=================== =============================
Diluted net income
(loss) per
common share $0.35 ($0.12) $0.67 $0.27
Pro forma diluted
net income per
share, excluding
charges N/A $0.24 (1) N/A $0.56 (1)
Diluted weighted
average shares
outstanding 16,228 14,827 16,130 14,774
==================== =============================
(1) 1998 pro forma diluted net income per share excludes
non-recurring merger and reorganization expenses of $7.5 million
and presents income taxes as if Digital Instruments, Inc., which
was merged with the Company in May 1998 in a transaction
accounted for as a pooling of interests, had been a "C"
corporation and, therefore, subject to federal income taxes at
the corporation level. Prior to the merger, Digital had elected
"S" corporation status for income tax purposes and, therefore,
was not subject to federal income taxes.
Veeco Instruments Inc.
Consolidated Condensed Balance Sheets
(In thousands)
-----Unaudited-----
June 30, December 31,
1999 1998
-------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $84,567 $23,492
Accounts and notes receivable 42,882 43,018
Inventories 57,542 53,324
Other current assets 7,526 7,298
-------------- --------------
Total current assets 192,517 127,132
Property, plant & equipment
at cost, net 37,109 37,204
Excess of cost over net
assets acquired 4,122 4,187
Other assets 4,254 4,314
-------------- -------------
Total Assets $238,002 $172,837
============== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $53,589 $41,606
Long term liabilities 10,016 18,007
Shareholders' equity 174,397 113,224
-------------- -------------- ---------------------- ----------------------
Total Liabilities &
shareholders' equity $238,002 $172,837
============== ==============
CONTACT: Investor and Financial Media Contact, Plainview
Debra Wasser
516/349-8300 x1472
or
Trade Media Contact
Fran Brennen
516/349-8300 x1222 |
