Fuelled by strong demand for MOCVD systems for LED production, especially from China, Veeco Instruments order backlog stands at US$530 million at the end of equipment suppliers first quarter. Combined with forecasted Q2 revenue increase of approximately 25%, Veeco expects second quarter revenue of between US$255 and US$285 million and full year 2011 revenue of over US$1 billion.
The company reported first quarter 2011 revenue of US$255 million, down from the previous quarter but within guidance previously given. Gross margin was 51% and non-GAAP net income of US$57 million. LED & Solar sales in the quarter were reported as US$198 million.
“We currently forecast Q2 2011 orders at 25% or more above the Q1 level, and we have visibility for continued order strength through Q3,” noted John R. Peeler, Veeco’s Chief Executive Officer. “We are experiencing extremely strong levels of quoting activity, very positive customer reaction to MaxBright, and a large number of multi-system deals currently on the table. We expect MOCVD order patterns to remain lumpy from quarter to quarter depending upon the timing of customer deposits. We see order strength continuing in China as it builds its LED infrastructure for solid state lighting, and quoting activity in Korea and Taiwan is also picking up with improved utilization rates being reported at key customers. Orders for our Data Storage products should also improve sequentially as customer quoting activity for technology and capacity buys are improving to support anticipated hard drive unit growth in the second half of 2011.”
In February, Veeco had announced the introduction of its newest generation MOCVD system, the ‘TurboDisc’ ‘MaxBright’ Multi-Reactor (“cluster”) MOCVD System, which the company noted had received strong quoting and purchase order activity from top tier Taiwanese LED makers, as well as from key customers in Korea and China.
“We are optimistic about the future and confident that we are well positioned from a technology, product, and operational standpoint to grow our LED & Solar and Data Storage businesses in 2011 and beyond,” added Peeler.