Veeco Q4 earnings expectations are optimistic about the growth momentum of LED

Metal organic chemical vapor deposition system (MOCVD) equipment manufacturers of America (Veeco Instruments Inc.) Veeco released the latest in the fourth quarter of 2016 and the year ended December 31, 2016 in the fourth quarter earnings, net loss is reduced, and the gross margin increased for three consecutive years, the company optimistic.

Q4 Veeco reported this quarter revenue reached $93 million 600 thousand, a net loss of $5 million net loss to shrink, it is reduced to $0.13 per share; 2016 annual net loss widened to $122 million, or $3.11 per share loss, but the overall performance is better than Wall Street analysts expected.

Veeco CEO John R. Peeler said: "in a challenging year, still with a strong finish. Gross profit margin increased for three consecutive years, but also to achieve gross profit margin of up to 40% or more targets. "In 2017, Peeler believes that LED industry still has plenty of growth momentum, coupled with the company and OSRAM Opto Semiconductors (OSRAM Opto Semiconductors) signed an exclusive cooperation agreement for the supply of MOCVD and surface precision processing (PSP) system that will be used in OSRAM in Malaysia (Kulim) opened a large LED chip plant.

In addition, Veeco recently announced the acquisition of U.S. light etching system supplier (Ultratech, Inc. and super micro), Peeler argues that the development of the company advanced packaging applications is a big boost, expects the transaction will be completed in the second quarter of this year.

As for the quarter earnings, Veeco estimates between revenue of $85 million to $100 million, a net loss per share of between $0.28 to $0.12.

LEDinside said, Veeco is better than the market expected earnings this quarter, in addition to large LED production line to benefit from OSRAM to build in, in advanced packaging applications market entry, as well as the MOCVD product line for new market adjustment, the future is the key observation. (Lindsay/ LEDinside)

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