Seeking Alpha

Veeco (VECO) +8.6% AH after providing a Q1 business update that was better than feared. Bookings...

Veeco (VECO) +8.6% AH after providing a Q1 business update that was better than feared. Bookings for the quarter totaled $70M, down 24% Q/Q and 38% Y/Y. LED/solar bookings amounted to $43M, -49% Y/Y, while hard drive equipment bookings fell 7% to $27M. The company's cash balance rose by $9M Q/Q to $588M. Veeco, whose earnings reports have been delayed as it does an accounting review, says MOCVD end market signals "are mixed but appear to be trending in a positive direction," with some LED customers operating at close to full capacity. Aixtron (AIXG) could rally in sympathy. (Q4 bookings)
Comments (4)
  • I do not see how this was better than feared. The analyst estimates for this quarter are 104 M revenues and .11 EPS. Veco will not disclose revenues or EPS, but based on the bookings they disclosed there is no way they are going to hit those numbers. Note that bookings in the previous quarter (Q4) were 92M and the quarter before that were 83.7M. I do not see where the expected 104M revenues will come from.

     

    The stock went up due to a random comment from the CEO about them getting rush orders for MOCVD equipment. That kind of anecdote reporting can be highly misleading. Even if demand picks up slightly estimates are for much fewer systems to be sold this year and government subsidized Chinese competitors are starting production. The latter already forced Veco to drop prices quite drastically.

     

    When they actually produce financial reports, expect a lot of ugliness and loss of profitability.
    22 Apr 2013, 04:52 PM Reply Like
  • Were they working off a backlog? If so, $70m in new orders is pretty good.
    22 Apr 2013, 05:11 PM Reply Like
  • The last time they reported backlog was june of last year and then they had 240M backlog. Seeing as that was three full quarters ago, there isn't that much to work off.
    22 Apr 2013, 08:05 PM Reply Like
  • I inferred that because their cash flow was also still excellent.... In any event, hopefully today's 17% rise doesn't fall into the '6 billion flies can't be wrong....' category. <grin>
    23 Apr 2013, 11:46 AM Reply Like
DJIA (DIA) S&P 500 (SPY)