Veeco Instruments Beats; Guides Higher (VECO)

Veeco Instruments Inc. TRH reports Q2 earnings of $1.01 versus estimates of $0.83. Veeco Instruments Inc. reports Q2 revenues of $253 million versus $232 million. Revenues increased 251.4% year over year. The company issued upside guidance for Q3 as well; it now sees EPS of $1.23 to $1.43 on revenues of $290 to $315 million vs. the Street estimate of $1.05 per share on revenue of $282.60 million. Regarding Veeco's outlook, Mr. Peeler commented, "Business conditions in LED remain at a similar pace to what we have experienced the last several quarters, and we believe that Q3 will be another very strong bookings quarter for our MOCVD business. In particular, China's initiative to subsidize the LED industry via seven national 'industrial parks' is spurring strong order quoting patterns for Veeco, both from local companies as well as from Korean and Taiwanese customers that are partnering with Chinese entities. Veeco's market-leading TurboDisc(R) K465i MOCVD System is also enabling us to continue to win business as the best-performing, lowest cost-of-ownership system in production today." Mr. Peeler added, "Based upon Veeco's strong backlog and current order visibility, the Company is currently forecasting that 2010 revenues will be over $1 billion, with strong year-over-year growth from 2009 in revenue and profitability in all three business segments." Shares of VECO were bid significantly higher in the after-hours.