Veeco Instruments Inc. Monday reported sharply lower revenue and a wider net loss for the second quarter as the company continued to restructure in order to lower costs.
The Plainview-based maker of tools for manufacturing light-emitting diodes, hard disk drives and wireless chips posted revenue of $75.3 million, down 42.7 percent from $131.4 million in the year-ago quarter.
The company’s net loss was $32.1 million, or 82 cents per diluted share, versus a net loss of $8.4 million, or 21 cents per diluted share, in the 2015 quarter.
“Veeco closed out a difficult first half of 2016 delivering second quarter results which were in line with our expectations and underscore our focus on operational execution,” said John R. Peeler, chairman and chief executive.
The company has been facing falling demand in Asia for equipment used to make LEDs.
Peeler said the restructuring, expected to be complete by year end, is designed to bring the quarterly cash-flow break even point to between $75 million and $80 million in revenue. The company took a pretax charge of about $16 million connected to the restructuring plan, which is expected to shave about $20 million a year in fixed costs.
The company forecast third quarter revenue of $70 million to $85 million and a net loss of $24 million to $18 million.
Despite the quarter’s weak results, Veeco said the LED environment is “stabilizing” and LED TV shipments are forecast to improve in 2017.
Veeco’s shares were unchanged in after-hours trading at $16.84. They are down 18 percent year to date.