Veeco's LED equipment urgent order is expected to ease shipments

Veeco Instruments Inc. announced on April 22 that the accounting treatment assessment based on the revenue recognition announced on November 15, 2012 is still in progress, so it is still not possible to publish the full financial report for the first quarter of 2013.

Veeco said on the 22nd that the amount of orders received in the first quarter fell to $70 million from the previous quarter's $92.3 million; among them, the MOCVD department received a single amount of $37 million, and the molecular beam epitaxy (MBE) product division received a single order of 6 million. The US dollar and data storage departments received orders of US$27 million.

Veeco's MOCVD and data storage divisions experienced a significant seasonal decline in system shipments in the first quarter; Veeco continues to face severe bidding pressure due to the small number of MOCVD transactions.

Veeco CEO John R. Peeler pointed out that the operating environment in the first quarter is still full of challenges, not only the system shipments are very small, but also the number of orders has reached a new low since the beginning of 2009.

However, Peeler said that although the terminal market conditions of MOCVD are mixed, it seems to be gradually developing in the positive direction; some important LED customers are near full capacity, and Veeco has received some urgent orders, which is the first time in two years. What's more, some customers in mainland China have already borrowed funds for MOCVD equipment and are also preparing to expand their plants. It is reported that as of 2011, Veeco's largest customers include Guangdong Dehao Runda Electric and Sanan Optoelectronics.

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