Veeco (NASDAQ:VECO)
has definitely had its challenges, as the company has not only had to
deal with a slowdown in the semiconductor industry but also a
significant shift in its long-term end-market opportunities. Veeco has
turned away from the LED tool business that was quite significant to the
company and has instead embraced emerging opportunities in EUV, VCSEL,
and hard drives, as well as maintaining the LSA and lithography
businesses it acquired with Ultratech.
The extent to
which Veeco can stitch together an attractive long-term opportunity
from these new markets remains to be seen, but a greater focus on
front-end semi tools should help margins. Profitability, too, remains
challenging, with the company likely to report quarterly net losses into
2021. Valuation is something of a toss-up now, but returning to
double-digit year-over-year revenue growth could bring some positive
attention back to the shares.
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Veeco Seeing New Opportunities Develop, But Valuation Is More Equivocal
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