Veeco Instruments Inc (VECO) Q1 2025 Earnings Call Highlights: Strong Semiconductor Growth Amid ...

GuruFocus News

Thu, May 8, 2025, 12:34 AM 4 min read

• Revenue: $167 million, supra the midpoint of guidance, down 4% year-over-year and 8% sequentially.

• Non-GAAP Operating Income: $24 million.

• Non-GAAP EPS: $0.37, supra the precocious extremity of guidance.

• Gross Margin: Approximately 42%, successful enactment with guidance.

• Operating Expenses: Approximately $46 million, beneath guidance.

• Net Income: $22 million.

• Cash and Short-term Investments: $353 million, a sequential summation from $345 million.

• Cash Flow from Operations: $20 million.

• CapEx: $7 cardinal during the quarter.

• Semiconductor Business Revenue: Grew 10% sequentially and 3% year-over-year, representing 74% of full revenue.

• Compound Semiconductor Market Revenue: $14 million, totaling 9% of revenue.

• Data Storage Revenue: $7 million.

• Scientific and Other Revenue: $22 million, totaling 13% of revenue.

• Revenue by Region: China 42%, Asia Pacific (excluding China) 36%, United States 15%, EMEA 7%.

• Q2 Revenue Outlook: Expected betwixt $135 cardinal and $165 million.

• Q2 Gross Margin Outlook: Expected betwixt 40% to 42%.

• Q2 Operating Expenses Outlook: Expected betwixt $47 cardinal and $48 million.

• Q2 Net Income Outlook: Expected betwixt $7 cardinal and $20 million.

• Q2 Diluted EPS Outlook: Expected betwixt $0.12 and $0.32 connected astir 60 cardinal shares.

• Warning! GuruFocus has detected 5 Warning Sign with VECO.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Veeco Instruments Inc (NASDAQ:VECO) reported gross of $167 million, exceeding the midpoint of their guidance.

• The semiconductor concern showed beardown performance, with sequential and year-over-year growth, driven by precocious packaging and lithography systems.

• Veeco received Intel's 2025 Epic Supplier award, recognizing their excellence successful Aneal technology.

• The institution secured important orders for laser annealing systems from leading-edge logic customers, indicating beardown demand.

• Veeco's precocious packaging concern is expected to treble successful 2025, driven by AI and high-performance computing applications.

• Recently enacted tariffs are causing immoderate customers to hold shipments, impacting aboriginal marketplace demand.

• Revenue declined 4% from the anterior twelvemonth and 8% sequentially, with circumstantial declines successful the compound semiconductor and information retention markets.

• The institution faces accrued costs owed to tariffs connected imported materials and home suppliers' imports.

• Revenue from China customers is taxable to uncertainty owed to tariffs, with imaginable shipment delays impacting Q2 guidance.

• The information retention marketplace shows nary signs of strategy gross growth, with nary expected strategy shipments successful 2025.