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Technology Stocks : Veeco Instruments-Who? -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (2505)	10/26/1999 9:02:00 PM
From: B.G. Mayers	Read Replies (1) \| Respond to of 3069

Some very strong results for the quarter: Qtr 9Months 99 98 99 98 Gross Profit% 48.9 46.0 48.4 46.0 Net Income % 10.7 8.4 10.0 5.3 9/30/99 12/31/98 Book Value Per Share $ 11.30 $ 7.64 Cash & ST Invest $80 mill $ 23 mill Current Assets $199 Mill $127 mill Current Liab $ 52 mill $ 41 mill Equity $183 mill $113 mill On the new acquisitions: Second sentence(positioning means something) of today's release "....merger with Ion Tech is expected to close in next two weeks." Ion Tech is in BANDWIDTH!!! Braun said in the Ion Tech release of 10/14 that "Ion Tech will be accretive to Veeco's First Call consensus 2000 earnings estimate." IOn Tech backlog was reported as $17.5 million on 10/14 and 1999 sales of $20 million. The purchase price is 1.5 million shares of stock. Optimag is a developmental stage company & I did not see any sales numbers. Also, the price paid for Optimag was not disclosed. In this release Braun says that "the two combined will contribute $45 million to Veeco's revenues". This means that Ion Tech will double its sales from $20 to $45 Mill or that Optimag product line is ready to be shipped. Or a combo of both. But this looks huge. My reading: Results for quarter were very strong. 39cents beat consensus of 35cents. Financials are very strong. BTB was disappointing but Braun says that "we expect to recapture these orders during the next two quarters". How much of the order delay by storage customers is Y2K, earthquake or other reason is unknown. The two acquisitions will be positives to future(in two weeks)- BTB, revenues & profits. I don't know how the pros will react. Your thoughts?