Veeco Instruments Inc. (VECO) saw its loss narrow to $8.39 million, or $0.21 a share for the quarter ended Jun. 30, 2015. In the previous year period, the company reported a loss of $15.21 million, or $0.39 a share. Revenue during the quarter surged 38.15 percent to $131.41 million from $95.12 million in the previous year period. Gross margin for the quarter expanded 509 basis points over the previous year period to 37.34 percent. Operating margin for the quarter stood at negative 3.06 percent as compared to a negative 16.58 percent for the previous year period.
Operating loss for the quarter was $4.03 million, compared with an operating loss of $15.77 million in the previous year period.
"We delivered solid second quarter results, achieving financial performance in line with our expectations across all P&L guided metrics. Revenue grew by ~38% year-over-year and adjusted EBITDA increased to nearly 10% of revenue. These results illustrate our continued focus on driving growth and operational execution," commented John R. Peeler, chairman and chief executive officer.
Operating cash flow turns positive
Veeco Instruments Inc. has generated cash of $11.96 million from operating activities during the first half as against cash outgo of $16.78 million in the last year period.
Cash flow from investing activities was $31.29 million for the first half, up 0.78 percent or $0.24 million, when compared with the last year period. It has incurred net capital expenditure of $6 million on net basis during the first six months, up 337.50 percent or $8.52 million from year ago period.
The company has spent $0.18 million cash to carry out financing activities during the first six months as against cash inflow of $7.12 million in the last year period.
Cash and cash equivalents stood at $313.85 million as on Jun. 30, 2015, up 35.09 percent or $81.52 million from $232.33 million on Jun. 30, 2014.
Working capital declines
Veeco Instruments Inc. has witnessed a decline in the working capital over the last year. It stood at $383.50 million as at Jun. 30, 2015, down 24.15 percent or $122.12 million from $505.62 million on Jun. 30, 2014. Current ratio was at 2.73 as on Jun. 30, 2015, down from 4.95 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 70 days for the quarter from 83 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 67 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 40 for the same period last year.
Debt comes down
Veeco Instruments Inc. has recorded a decline in total debt over the last one year. It stood at $1.69 million as on Jun. 30, 2015, down 15.13 percent or $0.30 million from $2 million on Jun. 30, 2014. Total debt was 0.18 percent of total assets as on Jun. 30, 2015, compared with 0.21 percent on Jun. 30, 2014. Interest coverage ratio improved to 32.47 for the quarter from 146.03 for the same period last year.
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