Veeco posts 3Q profit as expenses decline

Veeco reports 3rd-quarter profit, but analyst downgrades stock based on value

• On 2:47 pm EDT, Tuesday October 27, 2009

NEW YORK (AP) -- Veeco Instruments Inc. posted a third-quarter profit in contrast to a year-ago loss as the precision manufacturing products maufacturer reduced its expenses.

The results beat Wall Street's expectations, and its shares rose more than 3 percent in afternoon trading.

Stifel Nicolaus analyst Patrick Ho downgraded the company to "Hold" from "Buy," citing "valuation reasons and our expectation that the stock now currently reflects the near-term prospects for the company."

Separately, the company said it has began a public offering of up to 5 million shares. It plans to use the proceeds for general corporate purposes such as acquisitions.

Shares rose 78 cents, or 3.1 percent, to $25.85 in afternoon trading.

The company said after the market closed Monday it earned $1.3 million, or 4 cents per share, versus a loss of $2.4 million, or 8 cents per share, a year earlier.

Excluding items such as restructuring expenses, Veeco earned 16 cents per share, compared with adjusted earnings of 19 cents per share in the year-ago quarter.

Revenue fell 15 percent to $98.9 million from $115.7 million a year ago.

Analysts, on average, were expecting a profit of 1 cent per share on sales of $86.4 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their earnings estimates.

Veeco forecast fourth-quarter earnings of 25 cents to 35 cents per share and adjusted earnings of 29 cents to 35 cents per share. It expects sales of $120 million to $130 million.

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