-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M3W86or1mx9zrjtD+mrvAwEBLEqm7LKsYOl4GNznddHEuR3o7n40bLAy+3PGpfSy D7gXTXM4LxDoerIz0oGLWA== 0001104659-03-007479.txt : 20030428 0001104659-03-007479.hdr.sgml : 20030428 20030428171759 ACCESSION NUMBER: 0001104659-03-007479 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030428 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VEECO INSTRUMENTS INC CENTRAL INDEX KEY: 0000103145 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 112989601 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16244 FILM NUMBER: 03667375 BUSINESS ADDRESS: STREET 1: TERMINAL DR CITY: PLAINVIEW STATE: NY ZIP: 11803 BUSINESS PHONE: 5163498300 FORMER COMPANY: FORMER CONFORMED NAME: VACUUM ELECTRONIC MANUFACTURING CORP DATE OF NAME CHANGE: 19700408 8-K 1 j9943_8k.htm 8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):  April 28, 2003

 

 

VEECO INSTRUMENTS INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Delaware

 

0-16244

 

11-2989601

(State or other
jurisdiction

of incorporation)

 

(Commission
File Number)

 

 (IRS Employer
Identification No.)

 

100 Sunnyside Boulevard, Woodbury, New York

 

11797

 (Address of principal executive offices)

 

 (Zip Code)

 

 

 

(516) 677-0200

(Registrant’s telephone number, including area code)

 

 

 

Not applicable

(Former name or former address, if changed since last report.)

 

 



 

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

 

(c)  Exhibits.

 

Exhibit

 

Description

 

 

 

99.1

 

Press release issued by Veeco Instruments Inc. dated April 28, 2003.

 

Item 9.  Regulation FD Disclosure.

 

On April 28, 2003, Veeco Instruments Inc. issued a press release, the text of which is attached hereto as Exhibit 99.1.

 

The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 9 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section.  Furthermore, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:  April 28, 2003

 

 

VEECO INSTRUMENTS INC.

 

 

 

By:

/s/ Gregory A. Robbins

 

 

Gregory A. Robbins
Vice President and General Counsel

 

2



 

EXHIBIT INDEX

 

Exhibit

 

Description

 

 

 

99.1

 

Press release issued by Veeco Instruments Inc. dated April 28, 2003.

 

3


EX-99.1 3 j9943_ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS

 

Veeco Instruments Inc., 100 Sunnyside Blvd., Woodbury, NY 11797 Tel. 516-677-0200  FAX 516-677-0380

FOR IMMEDIATE RELEASE

Financial Contact:  Debra Wasser, VP of IR & Corp. Comm., 516-677-0200, x1472

Trade Contact: Fran Brennen, Dir. of Marketing Communications, 516-677-0200 x1222

 
VEECO REPORTS FIRST QUARTER 2003 RESULTS

 

Woodbury, NY, April 28, 2003 –Veeco Instruments Inc. (Nasdaq: VECO) today announced its financial results for the first quarter ended March 31, 2003. Results were above quarterly guidance provided by Veeco on February 11, 2003.  Veeco reports its results on a GAAP basis, and also provides results excluding certain charges. Investors should refer to the attached table for further details of the reconciliation of GAAP (loss) earnings to earnings excluding certain charges.

 

First Quarter 2003 Results

 

Veeco’s sales for the first quarter of 2003 were $65.8 million, an 18% decrease from the $80.1 million reported for the first quarter of 2002 and a 4% sequential decline from the fourth quarter of 2002.  Metrology sales were $36.2 million in the first quarter of 2003 compared to $35.3 million in the first quarter of 2002.  Veeco’s Process Equipment sales were $29.6 million in the first quarter of 2003 compared with $44.8 million in the first quarter of 2002.  Veeco’s sales by market in the first quarter of 2003 were 29% data storage, 17% semiconductor, 10% telecommunications/wireless and 44% scientific research.

 

Veeco’s bookings for the first quarter of 2003 were $72.7 million, up 4% from the $70.2 million reported in the first quarter of 2002, and a 2% sequential increase from the fourth quarter of 2002.  First quarter 2003 Metrology bookings were $34.4 million, an 8% increase from the $31.8 million reported in the first quarter of 2002.  First quarter 2003 Process Equipment bookings were $38.3 million, flat compared to the $38.4 million reported in the first quarter of 2002.  Veeco’s bookings by market in the first quarter were 41% data storage, 16% semiconductor, 14% telecommunications/wireless and 29% scientific research. The Company’s first quarter book-to-bill ratio was 1.11.

-more-

 



 

Veeco incurred an operating loss of $0.8 million in the first quarter of 2003, compared to an operating loss of $3.3 million in the first quarter of 2002.  Excluding $0.7 million in first-quarter restructuring charges, primarily severance, Veeco’s first quarter 2003 earnings before interest, taxes and amortization (EBITA) was $3.0 million compared to EBITA of $1.3 million for the first quarter of 2002, which also excludes restructuring charges.

 

Veeco’s first quarter 2003 net loss was $1.7 million (($0.06) per share) compared to a net loss of $3.5 million (($0.12) per share) in the first quarter of 2002.  Excluding certain charges, first quarter 2003 earnings per diluted share was $0.03 compared to $0.00 per diluted share in the first quarter of 2002.  Veeco’s guidance was for first quarter 2003 net income excluding certain charges to be between $0.00-0.02 per diluted share.

 

Management Review of Results

 

Edward H. Braun, Veeco’s Chairman and Chief Executive Officer commented, “Despite continued worldwide economic uncertainty, Veeco’s order trend (+2% quarter over quarter; +4% year over year) indicates both improved stability in our served markets and a continued demand for our enabling technology products.  We are pleased to report that Veeco’s bookings, revenues and earnings were above our guidance. We have met our plan to be profitable in both Process Equipment and Metrology on an EBITA basis in the first quarter of 2003 as a result of our cost-reduction actions.  We currently expect to achieve GAAP profitability by year-end.

 

Mr. Braun continued, “Veeco’s bookings of $72.7 million indicate continued stabilization of our overall business, a validation that our diversification strategy often counteracts individual market volatility and cyclicality.  Data storage orders increased 67% sequentially, as customers proceed with their 80GB platter programs.  Our telecom/wireless business reported improved bookings (up 25% sequentially) tied to development of wireless fidelity (WiFi) and next-generation cell phone applications.  While semiconductor orders decreased sequentially (down 21%), our customers made select AFM technology buys for advanced etch, CMP and lithography applications for 0.13mm feature sizes.  Scientific research bookings were down 31% sequentially related to seasonality in governmental budget cycles.”

 

2



 

“Veeco’s cost reduction efforts greatly improved our profitability in the first quarter.  EBITA increased $6.4 million sequentially, despite reduced revenue, as a result of significantly improved gross margins and reduced operating spending.  Gross margins improved to 47.4% in the first quarter of 2003 from 40.1% (excluding Q4 inventory write-off) in the fourth quarter of 2002,” Mr. Braun commented.

 

Mr. Braun concluded, “Customer interest in Veeco’s new Process Equipment and Metrology systems has been strong, in particular our data storage Ion Beam Deposition (IBD) systems and our Dimension X3D AFMs for semiconductor photomask applications.”

 

Veeco’s Outlook

 

Mr. Braun commented, “Despite the continued worldwide uncertainty and weak capex environment, Veeco remains focused on delivering improved earnings in 2003. Our diversification of markets and new product strategy should continue to help Veeco in these challenging times. Our positive book-to-bill ratio for the last two quarters should translate into increased revenues as we go forward in 2003. We will continue to implement our cost reduction program while investing in Veeco’s core leadership products to meet our customers’ next-generation product roadmaps.”

 

Veeco currently forecasts that second quarter 2003 bookings will be in the range of $68-$73 million.  Veeco currently estimates that second quarter 2003 sales will be in the range of $64 - $67 million, and that it will lose between ($0.07 and $0.04) per share on a GAAP basis.  Veeco currently estimates that it will earn between $0.01 and $0.04 per share excluding amortization of $3.1 million and charges of approximately $700,000 (principally severance related to the Company’s fourth quarter 2002 restructuring initiatives), using a 35% tax rate.

 

Investor Conference Call/ Webcast

 

Veeco will host an investor conference call this morning, April 28, at 10 am ET to review these first quarter results.  You may listen to the call live at 1-800-289-0518 or through an audio

 

3



 

webcast at http://www.veeco.com (Investor Information).  This call will be archived for future reference.  A telephonic playback of the conference call will also be available starting this afternoon at 888-203-1112 or 719-457-0820 code 524029 or on the Veeco website.

 

About Veeco

 

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco’s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

 

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco’s products, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made.  These factors include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.

 

-Financial Tables Attached-

 

4



 

Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

 

 

Three months ended
March 31,

 

 

 

(Unaudited)

 

 

 

2003

 

2002

 

 

 

 

 

 

 

Net sales

 

$

65,779

 

$

80,149

 

Cost of sales

 

34,573

 

46,414

 

Gross profit

 

31,206

 

33,735

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Selling, general and administrative expense

 

17,585

 

19,037

 

Research and development expense

 

11,488

 

13,329

 

Amortization expense

 

3,142

 

3,747

 

Other (income) expense, net

 

(873

)

49

 

Restructuring expense

 

668

 

837

 

 

 

 

 

 

 

Operating loss

 

(804

)

(3,264

)

 

 

 

 

 

 

Interest expense, net

 

1,767

 

1,486

 

 

 

 

 

 

 

Loss before income taxes from continuing operations

 

(2,571

)

(4,750

)

 

 

 

 

 

 

Income tax benefit

 

(874

)

(1,598

)

 

 

 

 

 

 

Net loss from continuing operations

 

(1,697

)

(3,152

)

 

 

 

 

 

 

Loss from discontinued operations

 

 

(346

)

 

 

 

 

 

 

Net loss

 

$

(1,697

)

$

(3,498

)

 

 

 

 

 

 

Net loss per common share from continuing operations

 

$

(0.06

)

$

(0.11

)

Loss from discontinued operations

 

 

(0.01

)

Net loss per common share

 

$

(0.06

)

$

(0.12

)

 

 

 

 

 

 

Diluted net loss per common share from continuing operations

 

$

(0.06

)

$

(0.11

)

Loss from discontinued operations

 

 

(0.01

)

Diluted net loss per common share

 

$

(0.06

)

$

(0.12

)

 

 

 

 

 

 

Weighted average shares outstanding

 

29,224

 

29,021

 

Diluted weighted average shares outstanding

 

29,224

 

29,021

 

 

5



 

Veeco Instruments Inc.
Reconciliation of GAAP (loss) earnings to earnings (loss) excluding certain charges
(In thousands, except per share data)

 

 

Three months ended
March 31,

 

 

 

(Unaudited)

 

 

 

2003

 

2002

 

 

 

 

 

 

 

Operating loss

 

$

(804

)

$

(3,264

)

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Amortization expense

 

3,142

 

3,747

 

 

 

 

 

 

 

Restructuring expense

 

668

 

837

 

 

 

 

 

 

 

Earnings excluding certain charges before interest and income taxes (“EBITA”)

 

3,006

 

1,320

 

 

 

 

 

 

 

Interest expense, net

 

1,767

 

1,486

 

 

 

 

 

 

 

Earnings (loss) excluding certain charges before income taxes

 

1,239

 

(166

)

 

 

 

 

 

 

Income tax provision (benefit) at 35%

 

434

 

(58

)

 

 

 

 

 

 

Earnings (loss) excluding certain charges

 

$

805

 

$

(108

)

 

 

 

 

 

 

Earnings (loss) excluding certain charges per diluted share

 

$

0.03

 

$

(0.00

)

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

29,384

 

29,021

 

 

NOTE - The above reconciliation is intended to present Veeco’s operating results, excluding certain charges and related provision (benefit) for income taxes. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles, and may be different from similar measures presented by other companies.  Management of the Company evaluates performance of its business units based on EBITA and thus believes that the presentation of this financial measure provides useful information.

 

6



 

Veeco Instruments Inc.

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

March 31,
2003

 

December 31,
2002

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

208,561

 

$

214,295

 

Accounts receivable, net

 

74,840

 

68,777

 

Inventories

 

88,636

 

86,250

 

Prepaid expenses and other current assets

 

17,187

 

18,392

 

Deferred income taxes

 

35,370

 

31,549

 

Total current assets

 

424,594

 

419,263

 

 

 

 

 

 

 

Property, plant and equipment, net

 

55,021

 

55,872

 

Goodwill

 

30,658

 

30,658

 

Long-term investments

 

17,620

 

17,483

 

Deferred income taxes

 

28,078

 

28,888

 

Other assets, net

 

51,709

 

54,654

 

Total assets

 

$

607,680

 

$

606,818

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

17,867

 

$

13,078

 

Accrued expenses

 

45,901

 

44,993

 

Deferred profit

 

2,082

 

5,966

 

Current portion of long-term debt

 

319

 

312

 

Income taxes payable

 

4,873

 

3,808

 

Total current liabilities

 

71,042

 

68,157

 

 

 

 

 

 

 

Long-term debt

 

230,187

 

230,273

 

Other non-current liabilities

 

871

 

815

 

Total non-current liabilities

 

231,058

 

231,088

 

 

 

 

 

 

 

Shareholders’ equity

 

305,580

 

307,573

 

Total liabilities and shareholders’ equity

 

$

607,680

 

$

606,818

 

 

7


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