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Veeco Instruments Inc. Reports Operating Results (10-Q)

July 27, 2012 | About:
10qk

10qk

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Veeco Instruments Inc. (VECO) filed Quarterly Report for the period ended 2012-06-30.

Veeco Instruments Inc. has a market cap of $1.27 billion; its shares were traded at around $33.68 with a P/E ratio of 8.6 and P/S ratio of 1.3.

Highlight of Business Operations:

On August 24, 2010, our Board of Directors authorized the repurchase of up to $200 million of our common stock. During the three months ended June 30, 2011, we purchased 165,288 shares for $7.8 million (including transaction costs) under the program at an average cost of $46.91 per share. This stock repurchase is included as a reduction to Equity in the Condensed Consolidated Balance Sheet. All funds for this repurchase program were exhausted as of August 19, 2011. Repurchases were made from time to time on the open market in accordance with applicable federal securities laws. During the three months ended June 30, 2012, we cancelled and retired the 5,278,828 shares of treasury stock we purchased under the repurchase program. As a result of this transaction, we recorded a reduction in treasury stock of $200.2 million and a corresponding reduction of $200.1 million and $0.1 million in retained earnings and common stock, respectively.

sale securities of $0.1 million and $0.2 million for the three and six months ended June 30, 2012, respectively, have been included in accumulated other comprehensive income. During the three and six months ended June 30, 2011, available-for-sale securities were sold for total proceeds of $252.0 million and $374.2 million, respectively. The gross realized gains on these sales were $0.2 million for the three and six months ended June 30, 2011. Net unrealized holding gains on available-for-sale securities amounting to $0.2 million for the three and six months ended June 30, 2011, have been included in accumulated other comprehensive income.

storage customers to replace equipment destroyed by flooding in customer facilities in Thailand. LED & Solar sales represented 63.6% of total sales for the three months ended June 30, 2012, down from 82.8% in the prior year. Data Storage sales accounted for 36.4% of net sales, up from 17.2% in the prior year period. By region, net sales decreased by 52.6% in Asia Pacific, primarily due to a significant decrease in MOCVD sales in China. Net sales in the Americas and EMEA also decreased 26.5% and 40.0%, respectively. We believe that there will continue to be period-to-period variations in the geographic distribution of sales.

By segment, LED & Solar sales decreased 58.0% in 2012 primarily due to a 64.7% decrease in MOCVD reactor shipments from the prior year period as a result of industry overcapacity following over two years of strong customer investments. Data Storage sales increased 9.9%, primarily as a result of an increase in shipments to data storage customers to replace equipment destroyed by flooding in customer facilities in Thailand. LED & Solar sales represented 66.0% of total sales for the six months ended June 30, 2012, down from 83.5% in the prior year. Data Storage sales accounted for 34.0% of net sales, up from 16.5% in the prior year period. By region, net sales decreased by 49.1% in Asia Pacific, primarily due to the decrease in MOCVD sales in China. Net sales in the Americas and EMEA also decreased 28.6% and 51.1%, respectively. We believe that there will continue to be period-to-period variations in the geographic distribution of sales.

Cash provided by investing activities of $37.4 million during the six months ended June 30, 2012, consisted primarily of $99.5 million in proceeds from sales of short-term investments and $3.8 million of proceeds from sale of assets from discontinued segment, partially offset by $49.0 million of purchases of short-term investments, $16.6 million of capital expenditures and $0.3 million in transfers to restricted cash. Cash used in investing activities of $24.8 million for the six months ended June 30, 2011, consisted primarily of $361.1 million of purchases of short-term investments, $31.3 million of capital expenditures and $28.3 million of payments for net assets of businesses acquired, partially offset by proceeds of $374.2 million from the sale of short-term investments and $21.7 million of transfers from restricted cash.

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