Please ensure Javascript is enabled for purposes of website accessibility

Veeco Instruments, Inc. Reports Mixed Q4 Results; Shares Jump 3.5%

By Anders Bylund – Feb 19, 2014 at 10:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Veeco Instruments is struggling to turn a profit amid an unfavorable business climate, but flexible OLED products could help turn the tide in 2014.

Image source: Veeco.

Shares of Veeco Instruments (VECO 0.11%) jumped 3.5% in after-hours trading, reacting to a mixed fourth-quarter report.

The maker of manufacturing equipment for LED lights, hard drive components, and other high-tech components saw sales fall 31% year over year to $73.2 million. Non-GAAP net losses per share increased from $0.09 to $0.42.

Wall Street analysts were looking for a net loss of $0.33 per share on sales of $70 million, so Veeco beat the revenue target while missing on the bottom line.

The outlook for the first quarter of 2014 is anything but mixed, however. Veeco sees revenues coming in between $85 million and $95 million, while analysts currently expect $81 million. Fourth-quarter gross margins sat at 21% but should bounce back to roughly 34%.

Doing the math on Veeco's guidance, the midpoints of everything work out to a $15 million operating loss. This compares to a $34 million operating loss in the fourth quarter, and to a $19 million operating loss in the year-ago period.

"While 2013 was a challenging year, we remain positive about trends in LED lighting and our new growth opportunity in flexible OLED encapsulation for mobile phone," said Veeco CEO John Peeler in a prepared statement. For example, Veeco got an order for prototype next-generation OLED-making machines from Samsung after the fourth quarter's closing.

But it's not all wine and roses: "Fourth bookings remained weak at $85 million, down 7% sequentially. We haven't yet seen a recovery in business conditions," Peeler said.

Anders Bylund and The Motley Fool have no position in any of the stocks mentioned.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Veeco Instruments Stock Quote
Veeco Instruments
$18.67 (0.11%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.