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Veeco Instruments Inc VECO
Q4 2010 Earnings Call Transcript

Transcript Call Date 02/07/2011

Operator: Good day, everyone, and welcome to Veeco Fourth Quarter and Year End 2010 Earnings Conference Call. Today's call is being recorded. For opening remarks and introductions, I'd like to turn the conference over to Senior Vice President of Corporate Communications and Investor Relations, Ms. Debra Wasser. Please go ahead.

Debra Wasser - SVP IR and Corporate Communications: Thank you, operator, and thank you all for joining today's call. With me today are our CEO, John Peeler, and our CFO, Dave Glass.

Today's earning's release is available on the Veeco website. Please note that we have prepared a slide presentation to accompany today's webcast and we encourage you to follow along with the slides on veeco.com.

This call is being recorded by Veeco Instruments and is copyrighted material. It cannot be recorded or rebroadcast without Veeco's expressed permission. Your participation implies consent to our taping.

To the extent that this call discusses expectations about market conditions, market acceptance, and future sales of the Company's products, future disclosures, future earnings expectations, or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made.

These factors are discussed in the business description and management's discussion and analysis sections of the Company's report on Form 10-K and Annual Report to shareholders and in our subsequent quarterly reports on Form 10-Q, current reports, and Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements, including those made on this call, to reflect future events or circumstances after the date of such statements.

During this call, management may address non-GAAP financial measures. Information regarding such non-GAAP financial measures, including reconciliation to GAAP measures of performance, is available on our website.

Lastly, please note that all results presented today are for Veeco's continuing operations excluding results of the former Metrology business, which was sold to Bruker Corporation.

I'll now turn the call over to John for opening remarks.

John R. Peeler - CEO: Thanks Deb, and thank you all for joining our call. We're going to do things a little differently today. We'll start off with Dave talking about our outstanding financial results and then I'll take over and cover our new MaxBright product and our financial outlook. Dave?

David D. Glass - EVP and CFO: Thank you, John. Turning to slide five; Veeco's fourth quarter 2010 revenue was $300 million, an 8% increase from the third quarter and up a 152% from the prior year. Net income was $97 million compared to $16 million in Q4 '09; that's slightly higher than last quarter's earnings as taxes took a bigger bite of the Q4 earnings.

Non-GAAP net income was $67 million compared to about $14 million last year. GAAP EPS was $2.30 and non-GAAP EPS was a $2.62. Gross margin was 51%, which was at the high end of our guidance range. Higher volumes, good traction on driving down material cost, and higher-valued products in the mix this quarter all helped our margin story. These results were in line with the guidance we gave at the beginning of the quarter.

Read our Earnings Call Transcript disclaimer.
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