Thursday, February 19, 2015

Veeco has decided to lower its spending rate in FAST-ALD

Veeco's Q4 MOCVD revenue up 55% year-on-year while orders almost triple and during Q4/2014, Veeco successfully demonstrated its FAST-ALD (atomic layer deposition) technology for flexible organic light-emitting diode (OLED) encapsulation at a key customer. However, at the same time, the incumbent deposition technology has progressed to satisfy the current market requirements, and Veeco has not received any sizable orders for OLED encapsulation tools. While this opportunity "may not be permanently off the table", the firm has hence lowered the near-term revenue forecasts for its ALD technology and taken a non-cash asset impairment charge (goodwill, intangibles and property, plant and equipment) of $55m in Q4. Veeco has also decided to lower its spending rate in ALD, refocus R&D efforts on semiconductor and other applications, and continue to monitor the flexible OLED market opportunity.