News

25 August 2010

 

Veeco authorizes share repurchases

Epitaxial deposition and process equipment maker Veeco Instruments Inc of Plainview, NY, USA says that its board of directors has authorized the repurchase of up to $200m of the company's common stock over the next year.

The repurchases will be funded using the company’s available cash balances and cash generated from operations. In second-quarter 2010, Veeco generated about $67m in cash from operations (up from $42m in Q1). Also, on 16 August, Veeco said that it had agreed to sell its Metrology business (which generated 13% of the firm’s total revenue in Q2) to Bruker Corp of Billerica, MA, USA for $229m. “Our strong cash position and cash flow from operations will allow us to execute share repurchases while retaining the flexibility to continue to invest in other opportunities to grow our business,” says CEO John R. Peeler.

“This authorization reflects our continued confidence in and positive outlook for our business,” says Peeler. Even without revenue from the divested Metrology business (which generated $31.7m in Q2), Veeco expects the continuing LED & Solar and Date Storage operations to generate third-quarter 2010 revenue of $255–280m and full-year 2010 revenue of $1bn (up from $221.3m in Q2/2010 and just $282m in full-year 2009 for LED & Solar and Date Storage collectively). “Our board of directors strongly believes that Veeco’s stock currently presents an attractive investment for the company and its stockholders,” Peeler adds.

Repurchases are expected to be made from time to time on the open market or in privately negotiated transactions in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares of common stock to be purchased will depend upon market conditions, US Securities and Exchange Commission (SEC) regulations, and other factors.

The share repurchase program does not obligate the firm to acquire any particular amount of common stock and may be modified or suspended at any time at its discretion.

See related items:

Veeco sells Metrology business to Bruker for $229m

Veeco’s record Q2 driven by LED & Solar revenues growing 66% from Q1

See: Veeco Company Profile

Search: Veeco MOCVD MBE

Visit: www.veeco.com