What: Shares of small electronic materials and parts company Veeco Instruments (VECO +2.77%) jumped as high as 18.8% on Tuesday, following the company's better-than-expected second-quarter results. The stock finished the trading day up just over 10%.
Veeco MOCVD system. Image source: Veeco Instruments.
So what: For the second quarter, Veeco reported a per share loss of $0.82 on revenue of $75.3 million. The company's adjusted loss per share was $0.19. Analysts, on average, expected the company to report a loss of $0.21.
Veeco's $75 million in second-quarter revenue was down significantly from its $131 million in the year-ago period, highlighting the company's continued difficult first half of 2016. Lower revenue, though, was expected. The company's second-quarter results were in line with management's expectations.
Now what: Veeco maintains its restructuring plan to consolidate three of its manufacturing operations and to streamline field and administrative functions -- a move the company expects to be complete by the end of 2016, and one that will save it around $20 million a year, starting in the first quarter of 2017.
Notably, Veeco CEO John Peeler said the company sees "positive indications that should lead to a pick-up in demand for our Metal Organic Chemical Vapor Deposition (MOCVD) equipment over the near term."
The company said it expects third-quarter revenue of between $70 million and $85 million and a non-GAAP loss per share between $0.26 and $0.10.
