VEECO Restructures Manufacturing Facilities; Realigns Process Equipment Operations to Reduce Spending and Improve Performance
PLAINVIEW, N.Y.--(BUSINESS WIRE)--May 23, 2000--Veeco Instruments Inc. (Nasdaq:VECO) today announced the restructuring of its Process Equipment manufacturing operations, forming "Centers of Excellence" to better serve the data storage and optical telecommunication markets and reduce duplicate manufacturing sites.
In light of the current continued weakness in the data storage business, Veeco will close the former CVC/Commonwealth Scientific facility in Alexandria, Virginia, will enact limited workforce reductions in its data storage Process Equipment operations in Plainview and Rochester, New York, and is evaluating potential cost savings in other locations. In total, Veeco expects to reduce its worldwide workforce by approximately 13% or 180 people. Simultaneously, Veeco continues to expand optical telecommunication manufacturing at its Ion Tech subsidiary in Fort Collins, CO.
Veeco's Plainview and Rochester, New York facilities will now be "Centers of Excellence" for ion beam etch and deposition and physical vapor deposition products, primarily focused on the data storage industry. Veeco's Fort Collins, Colorado facility will be a "Center of Excellence" for ion beam deposition equipment serving the optical telecommunications market, and was recently expanded to respond to the dramatic increase in demand for these products.
Edward H. Braun, Chairman and CEO of Veeco commented, "The combined product strengths of Veeco and CVC are compelling, and provide us with the industry's broadest line of physical vapor deposition, ion beam deposition and ion beam etch equipment. We are establishing "Centers of Excellence" to focus on the best technology for our market growth opportunities. Furthermore, the opportunities for synergistic cost reductions are significant. This realignment of our manufacturing operations is a critical step in reducing fixed plant and headcount expenses. Annual savings are expected to exceed $6 million."
Veeco Instruments Inc., headquartered in Plainview, New York, is a worldwide leader in metrology tools for the data storage, semiconductor and research markets, and process equipment etch and deposition tools for the data storage and optical telecommunications industries. 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 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 data storage, optical telecommunications and semiconductor industries, 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
CONTACT: Veeco Instruments Inc. (Financial Community)
Debra Wasser, 516/349-8300, x1472
or
Veeco Instruments Inc. (Trade Media)
Fran Brennen, 516/349-8300 x1222
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