Veeco Instruments Inc. reported a net revenue of $717.3 million for the fiscal year ending December 31, 2024, marking an increase of 8% from $666.4 million in 2023. The company's gross profit rose to $304.0 million, up from $285.1 million, although gross margins slightly decreased from 43% to 42%. The increase in revenue was primarily driven by a 13% growth in the Semiconductor market, which accounted for 65% of total sales, reflecting strong demand for laser annealing systems among leading-edge logic and memory customers. In contrast, the Compound Semiconductor market saw a decline in revenue, dropping 11% to $77.6 million.
In terms of operational developments, Veeco made significant strides in its product offerings, including the shipment of its first Nanosecond Annealing system and multiple Laser Annealing systems to major customers. The company also secured over $50 million in orders for its Wet Processing systems, driven by demand in Advanced Packaging applications. Geographically, sales in China increased by 17% to $255.6 million, while the EMEA region experienced a decline of 20%. The company’s total backlog at the end of 2024 was $409.6 million, down from $490.7 million in the previous year.
Strategically, Veeco completed the acquisition of Epiluvac AB in 2023, which has expanded its capabilities in Silicon Carbide technology. However, the company recorded a non-cash impairment charge of $28.1 million related to this acquisition, indicating that market penetration has not met expectations. Research and development expenses increased by 10% to $124.5 million, reflecting the company's commitment to innovation and maintaining its competitive edge in the semiconductor equipment market.
Looking ahead, Veeco anticipates continued growth driven by advancements in semiconductor technology, particularly in AI and high-performance computing. However, the company also noted potential challenges, including a projected decline in revenue from its China operations and a decrease in demand from the Data Storage market, which is expected to drop by $60 to $70 million in 2025. Overall, Veeco remains focused on capturing growth opportunities in its largest served markets while navigating the complexities of a rapidly evolving industry landscape.
About VEECO INSTRUMENTS INC
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