Veeco shares up sharply on filing of delayed earnings reports
Shares of Veeco Instruments Inc. rose sharply Monday after the Plainview manufacturer said it had successfully completed its yearlong accounting review and met a deadline allowing it to remain on the Nasdaq exchange.
The company's stock closed up 10 percent, at $32.29, following an announcement that it had filed its outstanding earnings reports with the U.S. Securities and Exchange Commission, allowing Veeco shares to continue trading on the Nasdaq. The company, which makes manufacturing equipment for LED lighting, also said its accounting review found it does not need to restate any earlier financial results.
"The accounting review is complete, and no restatement is required," Veeco chairman and chief executive John R. Peeler said.
Veeco had not released a full earnings report since October 2012, citing the accounting review it launched one year ago to determine whether revenue was recorded at the proper time.
While Veeco's stock surged Monday, the reports it filed showed the company's sales continue to sag.
Veeco's annual revenue fell to $516 million during 2012, down 47 percent from 2011. The company's annual profit, meanwhile, tumbled 76 percent, to $30.9 million.
During the first six months of 2013, sales fell to $159.2 million, down 42 percent from the same period last year.
Andrew Uerkwitz, an analyst who covers Veeco for New York investment bank Oppenheimer & Co., said now that the company has resolved its accounting woes, it needs to reassure investors.
"The company needs to explain how they are going to grow next year . . . to give investors a reason to hold on to the stock at this point," Uerkwitz said.
Later this week Veeco plans to hold a conference call to discuss its third-quarter financial results.
Veeco's revenue has fallen precipitously after peaking at nearly $1 billion in 2011. That boom stemmed mostly from sales in China, where government subsidies caused LED manufacturers to build aggressively. But the Chinese market for LED equipment became saturated and demand has been falling since.