Veeco Instruments Inc (VECO) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $69.60 million, or $ 1.78 a share in the quarter, against a net profit of $5.31 million, or $0.13 a share in the last year period. On adjusted basis, net loss for the quarter stood at $1.76 million, or $0.05 a share compared with a net profit of $13.64 million, or $0.33 a share in the last year period. Revenue during the quarter plunged 39.26 percent to $85.48 million from $140.74 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 39.14 percent. Operating margin for the quarter stood at negative 80.39 percent as compared to a positive 4.67 percent for the previous year period.
Operating loss for the quarter was $68.72 million, compared with an operating income of $6.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.94 million compared with $21.79 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1204 basis points in the quarter to 3.44 percent from 15.48 percent in the last year period.
“Veeco executed well in the third quarter, delivering revenue above the top end of our guidance range and generating positive adjusted EBITDA and cash flows from operations,” commented John R. Peeler, Chairman and Chief Executive Officer. “We are seeing a clear improvement in LED industry conditions and solid demand for our MOCVD products. We continue to win LED lighting and display opportunities with our TurboDisc EPIKTM700 Metal Organic Chemical Vapor Deposition (“MOCVD”) system and expand our positions in red, orange and yellow LEDs with our TurboDisc K475i™ Arsenic Phosphide (“As/P”) system.
For the fourth-quarter, Veeco Instruments projects revenue to be in the range of $85 million to $100 million. Veeco Instruments expects net loss to be in the range of $13 million to $7 million for the fourth-quarter. The company forecasts diluted loss per share to be in the range of $0.34 to $0.19 for the fourth-quarter. On an adjusted basis, the company forecasts diluted loss per share to be in the range of negative $0.07 to $0.07 for the fourth-quarter.
Working capital declines
Veeco Instruments Inc has witnessed a decline in the working capital over the last year. It stood at $360.60 million as at Sep. 30, 2016, down 9.72 percent or $38.82 million from $399.42 million on Sep. 30, 2015. Current ratio was at 3.44 as on Sep. 30, 2016, up from 3.43 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 83 days for the quarter from 76 days for the last year period. Days sales outstanding went up to 72 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has increased to 77 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went up to 65 days for the quarter from 38 for the same period last year.
Debt comes down
Veeco Instruments Inc has recorded a decline in total debt over the last one year. It stood at $1.28 million as on Sep. 30, 2016, down 20.63 percent or $0.33 million from $1.61 million on Sep. 30, 2015. Total debt was 0.17 percent of total assets as on Sep. 30, 2016, compared with 0.18 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
