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Veeco stock jumps on analysts' positive report
Shares of Veeco Instruments Inc. jumped 11 percent Monday after analysts said the market for LED manufacturing equipment appeared to have hit bottom and that the company’s accounting issues would most likely be resolved in May.
The Plainview company’s stock hit $38.76 in early trading, up 26 percent from one year ago.
Veeco has postponed releasing its full fourth-quarter sales figures, pending the outcome of an accounting review that began in November to determine whether the company recorded sales revenue at the proper time.
Veeco declined to comment on the analysts’ report, by Canaccord Genuity of Toronto. The company has not said when its accounting review would be complete.
Veeco’s sales slumped last year after climbing to nearly $1 billion in 2011. That boom stemmed primarily from sales in China, where government subsidies caused LED manufacturers to build aggressively. But the Chinese market for LED equipment became saturated, and demand dropped sharply.
The report by Canaccord predicted sales for LED manufacturing equipment would rise, saying demand for new lighting systems was poised to eclipse the saturated market for the technology's use in flat-screen televisions.