Veeco Instruments Earnings Call Transcripts
Fiscal Year 2026
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Attendees were welcomed, and all proposals—including director elections, incentive plan amendment, executive compensation, and auditor ratification—were approved without questions from shareholders.
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Q1 2026 saw strong order momentum, $158M revenue, and major $250M+ orders for indium phosphide laser tools, with shipments ramping in 2027. Guidance for 2026 is reiterated, with growth driven by AI, advanced packaging, and silicon photonics.
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Stockholders approved the merger with Axcelis Technologies, Inc., related executive compensation, and the adjournment proposal, with all items passing by the required majorities. The company will become a wholly owned subsidiary of Axcelis Technologies, Inc.
Fiscal Year 2025
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Record semiconductor revenue in 2025 and strong order momentum set the stage for 2026 growth, with revenue guidance of $740M–$800M and all segments except scientific expected to grow. Pending Axcelis merger and AI-driven demand are key drivers.
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Q3 revenue and EPS exceeded guidance, driven by strong demand in AI and advanced packaging. The pending Accellis merger is expected to expand market reach and product offerings, while Q4 guidance anticipates lower gross margins due to product mix.
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The merger creates a leading semiconductor equipment company with a broad, complementary product portfolio and strong financial profile. Expected to close in 2H 2026, the all-stock deal targets $35M in cost synergies and significant revenue growth from cross-selling and innovation, with minimal regulatory hurdles anticipated.
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The company has transformed into a leading semiconductor equipment provider, focusing on advanced technologies for AI and high-performance computing. Market opportunities are expanding, with AI-related revenue expected to double by 2025 and strong growth in compound semiconductors and photonics.
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Q2 2025 results exceeded guidance with $166M revenue and strong semiconductor growth, especially in advanced packaging for AI. Gross margin was 43%, and China revenue declined as expected. Q3 outlook projects $150M-$170M revenue and continued focus on AI-driven demand.
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Q1 2025 revenue and EPS exceeded guidance, driven by strong semiconductor and advanced packaging growth, despite a year-over-year revenue decline. Tariffs are delaying China shipments and increasing costs, but advanced packaging and gate-all-around are expected to double in 2025, offsetting headwinds.
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The business is seeing strong growth in laser annealing, GAA, and advanced packaging, with AI-related revenue expected to double in 2025. China exposure is set to decline, but new opportunities in DRAM, gallium nitride, and advanced packaging are driving long-term expansion.
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The conference highlighted a strategic shift to semiconductor markets, with strong growth in AI, advanced packaging, and new product platforms. Financial guidance was raised for 2024, while China and data storage segments face headwinds. AI and advanced packaging are set to drive revenue growth in 2025.
Fiscal Year 2024
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Record 2024 revenue and profitability were driven by semiconductor and Advanced Packaging growth, with strong AI and leading-edge demand offsetting China and Data Storage headwinds. 2025 guidance anticipates flat-to-up revenue, margin pressure from mix shift, and robust growth in Advanced Packaging.
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Q3 revenue and earnings exceeded guidance, led by record semiconductor sales and strong AI-driven demand. Full-year outlook was raised, with continued growth expected in advanced packaging and laser annealing, though China and data storage markets face headwinds.
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The company has transformed into a semiconductor-focused business, driving growth through laser spike annealing, nanosecond annealing, and ion beam deposition. Financial performance is strong, with semiconductor revenue now over 60% of total and new products positioned for further market share gains, especially in logic and memory. Expansion is focused on leading-edge markets outside China.
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Q2 revenue and earnings met guidance, with strong semiconductor performance led by record laser annealing and ongoing HBM adoption. Full-year guidance was tightened, with semiconductor growth expected and data storage up 5%-10% year-over-year.
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The company has transformed its focus to advanced semiconductor capital equipment, with laser annealing and ion beam deposition driving strong revenue growth and market expansion. New products like Nanosecond Annealing and entry into memory and compound semiconductors position it for continued outperformance and margin improvement.