Veeco Instruments Inc. has recently released its 10-K report, providing a detailed look into its operations and financials. The company develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily used in the production of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, and more. Veeco Instruments Inc. serves integrated device manufacturers, foundries, outsourced semiconductor assembly and test companies, hard disk drive and photonics manufacturers, as well as research centers and universities.
In 2024, Veeco Instruments Inc. executed its multi-year growth strategy, achieving several strategic milestones. The company reported solid execution of its growth strategy, highlighted by strategic wins such as shipping its first Nanosecond Annealing system, reaching an agreement to ship an LSA evaluation system to a leading memory customer in 2025, and shipping multiple Laser Annealing systems to Tier 1 logic and memory customers for new architectures and technologies. The company also achieved year-on-year revenue growth, with semiconductor revenue increasing by 13% and outperforming Wafer Fabrication Equipment spending growth for the fourth consecutive year.
The semiconductor industry, in which Veeco operates, is estimated to have experienced year-over-year sales growth in 2024 to around $650 billion. Looking ahead, industry analysts forecast long-term growth driven by trends such as artificial intelligence, high-performance computing, mobile connectivity, and the electrification of the automotive industry. The company's strategy of investing in advanced logic and memory has enabled its semiconductor business to outperform WFE growth for four consecutive years. Veeco's technologies are at the forefront of enabling new technical innovations in the manufacture of high-performance AI chips and High-Bandwidth Memory.
In terms of financial performance, total sales for Veeco Instruments Inc. increased for the year ended December 31, 2024, driven by growth in the Semiconductor and Data Storage markets, partially offset by a decrease in the Compound Semiconductor and Scientific & Other markets. Gross profit increased primarily due to higher sales volume, although gross margins decreased due to an unfavorable product mix of sales and higher service costs. Research and development expenses increased in 2024, primarily due to investment in new research and development initiatives, while selling, general, and administrative expenses also increased but remained flat as a percentage of revenue. The company recorded a non-cash impairment charge related to intangible assets of its SiC technology acquired from Epiluvac in 2023.
Today the company's shares have moved 1.1% to a price of $24.53. If you want to know more, read the company's complete 10-K report here.
