Those of us who are shareholderders received this info from Veeco investor relations within the past few days:
on 7/12, Jerry Fleming, of Hancock Institutional (small boutique firm, really a research clearing house for Sutro & Co. on West coast and Tucker Anthony on East coast), reduced 96E from $1.38 to $1.35 and 97E from $1.58 to $1.50. As of that day, he had estimated earnings for the just released quarter of $0.33 (actual=$0.35). Fleming likes the company's prospects because they are a technology leader and are insulated from semi downturns by their large HD manufacturer revenue stream. Fleming was a WSJ Institutional All-Star analyst for semi cap equip stocks this past year. He was a VERY early champion of Tencor and is one of the few analysts in the biz with a technical degree in EE.
on 7/26, Len Sanders of Needham & Co, which I know much less about, reduced 96E from $1.38 to $1.30 and 97E from $1.63 to $1.39. Sanders had 2QE of $0.34. His explanation for reducing earnings is "reduced visibility and sluggish growth in the semiconductor business." However, HD revenue accounts for >50% of revenue and distinguishes Veeco from most of the other semi cap equip makers. Product mix continues to shift away from lower margin industrial products to higher margin disk drive systems. Other new products are on the way, including the next gen ion beam deposition system (with 12" deposition capability as Don Fuller pointed out) and the Atomic Force Microscope for which Veeco holds the exclusive marketing agreement (IBM developed this semi cap equip tool, Veeco has improved and peddles it). The flat panel display market has been overlooked by the Street for some time and Veeco has entered it also (Customers include Casio, IBM Japan, Samsung, Sharp, Sumitomo and Toshiba).
Book Value=$9.02
Income Growth by Segment, 1st 6 months of 96 vs. 1st 6 of 95
Ion Beam Systems +71%
Surface Metrology +34%
Industrial Measurement +15%
Net Income Growth +52%
Net Sales Growth +45%
NO FOOLIN' there's a slowdown in the industry (margins did tighten during the quarter), but I challenge you to find a company in the sector with numbers that rival Veeco's.
Please verify everything and do your homework. I bought Veeco awhile back and watched it soar, but didn't sell. IMHO, I think its worth the wait.
Evan Lurie |
