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What: Shares of Veeco Instruments (NASDAQ:VECO) crashed by as much as 10% today, after the company said that it was delaying its third quarter earnings report.
So what: Veeco said it needs additional time before it can file its 10-Q quarterly report because it needs to review the timing of revenue recognition related to the sale of certain Metal Organic Chemical Vapor Deposition systems and associated upgrades. CEO John R. Peeler reiterated that the accounting issues don't relate to product performance or customer acceptance.
Now what: Any press release containing the words "delay," "revenue recognition," and "accounting issue" will inevitably always spook investors, because there are generally no positive associations with those phrases. Peeler said that these systems have already been delivered and paid in full, but Veeco just needs more time to figure out in which accounting period it's most appropriate to book the revenue. Veeco continues to work with its independent auditor, Ernst & Young LLP, to sort out the issues.
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