Veeco Reports First Quarter 1999 Results; Record Process Equipment Orders
Business Wire - April 26, 1999 18:09
PLAINVIEW, N.Y.--(BUSINESS WIRE)--April 26, 1999--Veeco Instruments Inc. (NASDAQ: VECO), today reported financial results for the first quarter ended March 31, 1999.
Sales for the quarter ended March 31, 1999 increased 4% to $56.0 million from $53.7 million for the first quarter of 1998. Compared with the first quarter of 1998, Veeco's first quarter 1999 Process Equipment product sales increased 29%, while Metrology product sales decreased 6%. Operating income increased 5% to $8.0 million in the first quarter of 1999 from $7.6 million in the first quarter of 1998. Net income of $5.1 million for the first quarter of 1999 compares to $5.7 million ($4.6 million pro forma fully taxed) in the first quarter of 1998. Diluted earnings per share were $0.32 for the first quarter of 1999 versus $0.39 per share ($0.31 per share pro forma fully taxed) for the corresponding period of 1998.
Bookings for the first quarter of 1999 were $65.0 million, compared to the record $65.9 million Veeco reported in the prior year's first quarter, and represented a 5% sequential increase over the fourth quarter of 1998. Veeco's Process Equipment group booked a record $36.2 million in orders, up 65% and 59%, respectively, from the first and fourth quarters of 1998. Veeco believes that this record quarter for the Process Equipment group demonstrates continued acceptance of Veeco's ion beam deposition, ion beam etch, and physical vapor deposition equipment for next generation giant magnetoresistive (GMR) thin film head manufacturing by the leading data storage companies worldwide. Veeco's Metrology group booked a total of $25.0 million in orders during the first quarter compared to $39.4 million in last year's first quarter. Veeco's book/bill ratio for the first quarter of 1999 was 1.16.
"Veeco's strong sales and bookings in the first quarter of 1999 reflect the data storage industry's accelerated transition to GMR thin film magnetic head development, which utilize Veeco's process equipment and in-line metrology products," noted Chairman, President and CEO Edward H. Braun. "Veeco continues to benefit from our breadth of product line and breadth of markets strategy. Our focus on two core product lines - Process Equipment and Metrology, as well as our exposure to three customer markets - data storage, semiconductor and materials science/research, helped Veeco's performance this quarter. In addition, our move to direct sales in Japan and Asia Pacific improved our penetration of various worldwide markets - 70% of first quarter sales came from outside of the U.S. Our strong backlog of orders provides us with improved visibility and optimism for the remainder of 1999."
Mr. Braun added, "During the first quarter, Veeco also raised approximately $49 million through an equity offering, strengthening our balance sheet and providing additional capital for future growth."
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-------------
Three Months Ended
March 31,
1999 1998
-----------------------------------
Net sales $55,979 $53,659
Gross Profit 26,517 24,141
Research and development expense 7,131 6,490
Selling, general and admin. expense 11,474 10,047
Other, net (71) (35)
-----------------------------------
Operating income 7,983 7,639
Interest expense, net (141) 198
-----------------------------------
Income before income taxes 8,124 7,441
Income taxes 3,006 1,733
-----------------------------------
Net income $5,118 $5,708
===================================
Diluted net income per common share $0.32 $0.39
Pro forma diluted net income per share N/A $0.31 (1)
Diluted weighted average
shares outstanding 16,012 14,733
===================================
(1) Pro forma diluted net income per share 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)
March 31, December 31,
1999 1998
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $70,017 $23,492
Accounts and notes receivable 54,008 43,018
Inventories 53,622 53,324
Other current assets 8,465 7,298
-------------- --------------
Total current assets 186,112 127,132
Property, plant &
equipment at cost, net 36,889 37,204
Excess of cost over
net assets acquired 4,155 4,187
Other assets 4,294 4,314
-------------- --------------
Total Assets $231,450 $172,837
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $44,733 $41,606
Long term liabilities 18,011 18,007
Shareholders' equity 168,706 113,224
-------------- --------------
Total Liabilities &
shareholders' equity $231,450 $172,837
============== ==============
CONTACT: Veeco Instruments Inc., Plainview
Investor and Financial Media Contact:
Debra Wasser, 516/349-8300, x1472
or
Trade Media Contact:
Fran Brennen, 516/349-8300, x 1222
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