Veeco Instruments Inc. CEO: Q3 outlook is conservative
Data storage company Veeco Instruments Inc. (Nasdaq: VECO) expects third quarter revenue to be in the range of $92 million to $97 million and a loss in the range of $0.25 to $0.18 per share, CEO John Peeler reiterated during a morning conference call. The company also expects bookings in the range of $100 million to $115 million for the three months ending Sept. 30.
“Clearly the third quarter of ‘07 is a transition quarter for Veeco as we are being impacted by the introduction of critical new products that have slow growth margins,” Peeler said during the call. “Certain other new tools have acceptances which have been delayed until the fourth quarter, accounting for the relatively low revenue guidance being provided.”
The company’s bookings for the third quarter are flat, but Peeler acknowledged during the call that the guidance is conservative.
Before the opening bell, Veeco reported lower second-quarter revenue of $98.8 million, from $111.6 million in the year-ago period. The company recorded a net loss of $2.6 million, or $0.08 per share, for the three months ended June 30, compared with a profit of $3 million, or $0.10 per share, a year earlier. The earnings were below Veeco’s guidance range of a $0.03 loss per share and earnings of $0.02 per share.
Excluding restructuring charges of $1.3 million, amortization expenses and using a 35% tax rate in both periods, Veeco reported earnings of $0.05 per share in the second quarter, compared with $0.18 per share in second quarter 2006.
Wall Street analysts were looking for earnings-per-share of $0.09 on $103.2 million in revenue.
Due to customer consolidation and a slower-than-expected recovery in capital spending, the company is experiencing a challenging data storage market, Peeler said in a statement.
In today’s trading, shares of the small-cap company are down $1.57, or 7.95%, at $18.17. Over the previous 52 weeks, shares have ranged between $16.91 and $24.75.
