Veeco Instruments (VECO) - 500 Beiträge pro Seite

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Profile:Veeco Instruments Inc. designs, manufactures, markets and services a broad line of equipment primarily used by manufacturers in the optical telecommunications, data storage and semiconductor/research industries. These industries produce computer integrated circuits, personal computers, hard disk drives, network servers, fiber optic networks, digital cameras, television set-top boxes and personal digital assistants. The Company`s Process Equipment products precisely deposit or remove (etch) various materials in the manufacturing of advanced thin film magnetic heads for the data storage industry and optical telecommunications components. Veeco`s Metrology equipment is used to provide critical surface measurements on semiconductor devices, thin film magnetic heads and disks used in hard drives and in optical telecommunications and research applications.
http://www.veeco.com

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Veeco Completes Merger With Applied Epi
WOODBURY, NY--(BUSINESS WIRE)--Sept. 19, 2001--Veeco Instruments Inc. (NASDAQ: VECO - news) today announced that it has completed its merger with Applied Epi, Inc., the world`s leading supplier of molecular beam epitaxy (MBE) equipment used in the manufacture of high-speed compound semiconductor devices for telecommunications, optoelectronic and wireless markets.

Applied Epi received approximately 4 million shares of Veeco common stock and $30 million in cash. The merger will be accounted for using the purchase method of accounting.

Edward H. Braun, Chairman, President and CEO of Veeco commented, ``We are pleased to have completed this merger ahead of schedule. As we have mentioned, Applied Epi adds a critical ``high-value`` deposition product line, molecular beam epitaxy (MBE), to our current line of process equipment. By adding Applied Epi`s MBE capabilities, we will be well positioned to play a leading role in the future integration of III-V compound semiconductor and silicon device development. In fact, since the merger was announced, Applied Epi has shipped a dual reactor GEN2000 to IQE, the world`s leading merchant epiwafer supplier for the compound semiconductor industry.``

The GEN 2000 is the world`s first high volume production MBE system integrating ultra high vacuum (UHV) with cluster tool architecture.

Paul Colombo, founder of Applied Epi, said the company will ``leverage Veeco`s worldwide service network and its investment in Applied Epi R&D to better serve our expanding customer base of compound semiconductor manufacturers.``

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.


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Contact:

Veeco Instruments Inc., Woodbury
Financial:
Debra Wasser,
Vice President of Investor Relations,
516-677-0200, x1472
or
Trade Media:
Fran Brennen, Dir. of Marketing Comm.,
516-677-0200 x1222

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Veeco Launches New MRAM Process Development Initiative
Opens MRAM Demo Site in Fremont, CA
WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 3, 2001--Veeco Instruments Inc. (NASDAQ: VECO - news) today announced that it has launched a process development initiative focused on the MRAM (magnetic random access memory) marketplace.

Veeco will open a dedicated MRAM process development site at its Fremont, California technology center. The site will include Veeco process equipment tools such as physical vapor deposition and ion beam etch, and metrology equipment, as well as a dedicated process development team. Leading semiconductor chip manufacturers are currently developing MRAM technology because it offers the promise of combining the density of DRAM, the speed of SRAM (static random access memory) and the low power, non-volatility of flash memory.

According to Robert Hempstead, Ph.D., Veeco`s Chief Technology Officer, ``Veeco is committed to helping leading semiconductor chip manufacturers develop their MRAM production capabilities. While we have already been working with many of these customers, we believe we can more rapidly respond to their R&D efforts by having a focused process development group in Fremont. This will enable customers to have direct access to Veeco`s top process engineering expertise, clean-room facilities, and sample production capabilities.`` This site will also continue to serve as Veeco`s primary process development site for advanced thin film magnetic head development for the data storage industry.

In addition to its family of deposition tools (physical vapor deposition, ion beam deposition and atomic layer deposition) Veeco will also be placing a suite of metrology tools, including magnetic-optical metrology (MOKA), atomic force microscopy (AFM) and quasi-static wafer testers (QSW) in the Fremont facility for customer use in advanced MRAM process development. According to Hari Hegde, Ph.D., Veeco`s VP of Process Development, ``Veeco is uniquely positioned to work with our MRAM customers in their development efforts with both process equipment and metrology tools.``

Veeco has received process equipment and metrology orders from several significant MRAM players who are looking to develop tool sets with magnetic material and tunnel barrier capabilities. According to Dr. Hegde, ``Veeco`s leadership position in thin film magnetic sensors, and our experience with all magnetic materials and processes have proved to be of significant value for the MRAM marketplace.``

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.


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Contact:

Veeco Instruments Inc., Woodbury
Financial:
Debra Wasser, 516/677-0200, x1472
Trade Media:
Fran Brennen, 516/677-0200 x1222

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Veeco`s NeXray First to Market With PRI Automation`s New MetaPort Software Solution
MetaPort, a pre-integrated software interface to factory-automation systems, enables OEM to get its tool to market faster
BILLERICA, Mass., Oct. 18 /PRNewswire/ -- PRI Automation, Inc., (Nasdaq: PRIA, Toronto: PRJ), a global leader in semiconductor factory automation systems, software, and services, today announced the first sale of its newly introduced EquipeSoft(TM) MetaPort configurable system software to NeXray, a global supplier of production film measurement tools and wholly-owned subsidiary of Veeco Instruments, Inc. (Nasdaq: VECO - news). NeXray has selected PRI`s EquipeSoft MetaPort, a pre-integrated software interface to factory automation systems, to automate its Micro-Beam X-Ray Fluorescence (MXRF) tool. The tool shipped to a major fab in Germany after a short eight-week integration with MetaPort.

``The OEM market continues to be a huge opportunity for PRI, as companies such as Veeco`s NeXray seek to outsource the automation components of their process tools,`` said Bill Murvihill, business unit director for PRI`s EquipeSoft group. ``Our MetaPort system software is attractive to process tool manufacturers because it is not only a time-to-market enabler for new semiconductor processes, but it also can save them millions in R&D dollars.``

PRI`s EquipeSoft MetaPort provides semiconductor equipment manufacturers with a pre-integrated software interface to factory automation systems in 200mm and 300mm fabs. It supports all industry-required standards and is configurable for any combination of popular components for equipment front-end modules including load ports, handling robots, centering and aligning units, wafer and carrier ID readers, and other peripheral components. The full set of system-level automation features that EquipeSoft MetaPort provides includes: lot control, wafer flow scheduling, preventive maintenance, exception management, data collection, manual control, and user management.

``Trusted Partner`` provides solution at minimal time and cost to customer

NeXray`s CXR optically collimated MXRF tool produces high-intensity beams less than 100 microns, which will provide the German fab with a high level of accuracy, precision, and reproducibility in its metrology operations. ``We`ve selected PRI`s fully configurable MetaPort system because it can be configured and deployed at minimal time and cost to our customer,`` said Frank Reilly, director of sales and marketing at NeXray. ``In addition, we view PRI`s position in the semiconductor marketplace as a trusted partner, with its products consistently achieving the highest standards of quality, durability and efficiency.``

PRI`s EquipeSoft MetaPort is one of several PRI tool connectivity software solutions that enable semiconductor equipment manufacturers to quickly and easily link their process tools to fab-wide software and hardware systems. These connections enable semiconductor manufacturers to more readily access key production data and make more informed decisions that can improve overall the throughput and productivity of their fabs.

About NeXray

NeXray, headquartered in Ronkonkoma, New York, is a worldwide leader in metrology tools for the microelectronics, optical, telecom and data storage markets. Global sales and service offices are located throughout the United States, Europe, Japan and Asia-Pacific. NeXray, LLC, is a wholly-owned subsidiary of Veeco Instruments, Inc. (Nasdaq: VECO - news). Additional information on NeXray can be found at http://www.veeco.com.

About PRI Automation

PRI Automation, Inc., headquartered in Billerica, Massachusetts, is a leading global supplier of advanced factory automation systems, software, and services to semiconductor manufacturers and OEM equipment suppliers. PRI is the only company to provide a tightly integrated and flexible hardware and software solution that optimizes the flow of materials and information throughout the fab improving the productivity of semiconductor manufacturing. The company has thousands of systems installed at hundreds of locations throughout the world. For more information visit PRI online at www.pria.com.

Safe Harbor Statement

This release includes forward-looking statements, including, without limitation, statements relating to the expected benefits of PRI Automation products. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include the manner in which the customer uses the products and integrates them with third-party components and the following additional factors: the downturn in the semiconductor capital equipment industry is harming our business; fluctuating demand for our products makes it difficult to manage our business efficiently; we have reduced our workforce in response to the industry downturn and reduced demand for our products and our smaller workforce may be inadequate to handle increased demand for our products; we may continue to experience delays and technical difficulties with new product introductions such as our TurboStocker product; 300mm technology, in which we have invested heavily, is being adopted more slowly than we expected and competition for early 300mm orders is intense; our lengthy sales cycle makes it difficult to anticipate sales; our operating results fluctuate significantly in response to a variety of factors; delay in our shipment of a single significant order could substantially decrease our sales for a period; the application of new accounting guidance under SEC Staff Accounting Bulletin number 101 will result in delayed recognition of revenues from our factory automation systems; we typically charge a fixed price for our factory automation systems and therefore, we are vulnerable to cost overruns; we have a limited number of customers, we do not have long-term purchase agreements with our customers, and the loss, cancellation or delay of an order by any of these customers could harm our business; we must continually improve our technology and develop new products to remain competitive; demand for less expensive semiconductor is increasing pressure to reduce our prices; industry consolidation and outsourcing could reduce the number of available customers; our operations outside North America expose us to special risks of doing business internationally; our investments in the Asia-Pacific market may not be successful; we face significant competition from other automation companies; future acquisitions may disrupt our operations; we are increasingly dependent on subcontractors and one or a few suppliers of certain components, subassemblies and manufacturing processes; the failure of our key suppliers to deliver components on time could harm our business; we depend on our executive officers and other key personnel; our software products may contain defects that could result in claims and harm our business; we may be unable to protect our proprietary technology; others might claim that we infringe their technology; rising energy costs may increase our operating expenses; we are subject to pending class action securities litigation that could be costly to defend, divert the attention of our management and, if determined adversely to us, seriously harm our business; and other factors identified in our registration statement on Form S-3, file number 333-60180, filed with the SEC on May 3, 2001. We assume no obligation to update any forward-looking statements included in this release.

EquipeSoft MetaPort is a trademark of PRI Automation, Inc. All other trademarks contained herein are the property of their respective owners.


Media Contacts:
Dave Anderson
Stauch, Vetromile & Mitchell
401-438-0614
[e-mail]

Michelle Goodall Faulkner
PRI Automation, Inc.
978-670-4270 x3161
[e-mail]

SOURCE: PRI Automation, Inc.

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Veeco Develops Advanced Ion Beam Etch Solutions for Nova Crystals
For Development of High-Performance Lasers
WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 23, 2001--Veeco Instruments Inc. (NASDAQ: VECO - news) today announced that it has partnered with Nova Crystals, Inc. in its development of high performance lasers, known as PICSELs (Photonic Integrated Circuit Surface Emitting Lasers). Nova Crystals has purchased a Veeco NEXUS(TM) Ion Beam Etch system, which is being delivered to their San Jose facility this quarter. The system utilizes advanced Reactive Ion Beam Etch (RIBE) and Chemically Assisted Ion Beam Etch (CAIBE) technology. Nova Crystal`s 1310nm PICSEL devices are to be used in a variety of optical networking environments for metro access communications.

According to Kenneth T. Barry, President of Veeco`s NY Process Equipment business, ``Optical component manufacturers need a robust, production etch tool that provides the benefits of high etch rates for facets and controlled surface features, which can be used to pattern high quality optical films. Advanced CAIBE and RIBE technologies that were once primarily research applications are now entering production. Veeco`s position as the world`s leading provider of Ion Beam Etch equipment make us well qualified to address the processing needs of the gallium arsenide (GaAs) and indium phosphide (InP) based laser market. Veeco has received orders from other optical component customers for equipment to etch waveguides, laser facets, modulators, gratings and contact materials.``

According to Ty Mitchell, Nova Crystals` VP and COO, ``Our partnership with Veeco has enabled us to develop a production-worthy solution for the development of our 1310nm PICSELs. No other commercially available tool has the capability to tilt the substrate to enable better definition of the laser facet while at the same time optimizing its surface quality. Veeco`s equipment and process development team have helped support our PICSEL design philosophy, which combines the attractive features of conventional VCSELs (Vertical Cavity Surface Emitting Lasers) with the merits of edge emitting lasers. This allows Nova Crystals to integrate more functionality onto the device.``

Nova Crystal`s mission is to become a leading developer and supplier of optical communications components for telecommunications and data-communications networks. Nova Crystals is focusing its initial efforts on developing high performance long-wavelength surface emitting lasers that will significantly boost the performance of local area network (LAN), wide area network (WAN), metropolitan area networks (MAN) and Access networking environments.

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

Nova Crystals, Inc., founded in September 1998, develops and manufactures high-end fiber-optic data and telecommunications components based on their proprietary chip process and wafer technologies. Nova Crystals is a privately held corporation backed by strategic and venture capital. The company was founded by leading fiber-optic researchers at Cornell University, and is headquartered in San Jose, CA. For more information about Nova Crystals, Inc., call [phone] or visit their website at http://www.novacrystals.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.


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Contact:

Veeco Instruments Inc., Woodbury
Debra Wasser (financial)
Vice President of Investor Relations
516/677-0200, ext. 1472
or
Fran Brennen (trade media)
Dir. of Marketing Comm.
516/677-0200, ext. 1222
or
Nova Crystals
Clari Nolet, Director of Marketing, 408/869-2220

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Veeco Ships Ion Beam Deposition Systems for Advanced Photomask Applications to Two Global Photomask Manufacturers
WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 23, 2001--Veeco Instruments Inc. (Nasdaq:VECO - news) today announced the shipment of two Ion Beam Deposition (IBD) systems for advanced photomask applications.

Kenneth T. Barry, President of Veeco`s NY Process Equipment business commented, ``As photomask device feature sizes shrink industry-wide, there is a need for high-quality optical, phase-shift and Extreme Ultra-Violet (EUV) masks which are more complex to manufacture. Veeco IBD systems have the ability to deposit unusual materials (both metal and dielectric) and provide high control and film purity. The selection of Veeco`s IBD tools by these two leading photomask manufacturers supports its position as the technology of choice for next-generation photomask blanks.``

Veeco`s IBD system is ideal for mask blank applications for phase shift mask technology and next-generation lithography technology such as EUV due to its excellent uniformity and high repeatability, stable energy deposition control and multi-layer capability. IBD systems can also be used for depositing thin anti-reflective (AR) and highly-reflective (HR) coatings to pump and source lasers, and facet coatings to modulators with unsurpassed precision. Veeco`s IBD technology provides customers with superior particle control and the system`s wafer tilt and rotation provides less than 1% uniformity and stress control.

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.


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Contact:

Veeco Instruments Inc.
Financial Contact:
Debra Wasser, Vice President of Investor Relations
516/677-0200, ext. 1472
or
Trade Media Contact:
Fran Brennen, Dir. of Marketing Comm.
516/677-0200, ext. 1222

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Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

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Tuesday December 4, 12:00 pm Eastern Time
UBS Warburg says chip equipment orders are bottoming
NEW YORK, Dec 4 (Reuters) - UBS Warburg on Tuesday said it raised its ratings on several chip equipment stocks, including Applied Materials (NasdaqNM:AMAT - news) and Lam Research (NasdaqNM:LRCX - news), saying that sector orders will bottom in December as it turned positive on the group for the first time in more than a year.
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In a research note, UBS Warburg analyst Byron Walker said he expects chip equipment revenues to bottom in February. While capital spending will remain weak until then, investors can make money as conditions move from ``horrible`` to ``bad.`` ``The semiconductor cycle has turned,`` Walker wrote.

He raised Applied Materials to ``buy`` from ``hold`` with a $51 price target, up from $38. He moved ASM International NV (NasdaqNM:ASMI - news) to ``buy`` from ``hold`` and to a $22 target price, up from $13. Veeco Instruments Inc. (NasdaqNM:VECO - news) goes to a ``buy`` from a ``hold`` with its price target rising to $41 from $35.

He increased Electro Scientific Industries Inc. (NasdaqNM:ESIO - news) to ``strong buy`` from ``hold,`` raising its price target to $69 from $26. He moved Lam Research to ``buy`` from ``hold``, raising its target to $33 from $14.

Walker pushed Novellus Systems Inc. (NasdaqNM:NVLS - news) to ``strong buy`` from ``hold`` with a $66 price target, up from $40. He increased Varian Semiconductor Equipment Inc. (NasdaqNM:VSEA - news) to ``strong buy`` from ``hold`` with a $56 price target, up from $29.

Shares of Applied Materials rose $1.08 or 2.72 percent to $40.34 in early trade on the Nasdaq. Veeco gained 81 cents, or 2.43 percent, to $34.11. Electro Scientific rose $1.06, or 3.73 percent, to $29.51, while Lam Research rose 57 cents, or 2.59 percent, to $22.54

Novellus climed $1.32, or 3.5 percent, to $38.78, and Varian gained $1.58, or 5.1 percent, to $32.76.

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Veeco and Photronics Form Strategic Relationship in Next-Generation Photomask Technology
WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 7, 2002--Veeco Instruments Inc. (NASDAQ: VECO - news) and Photronics, Inc. (NASDAQ: PLAB - news) today announced the formation of a strategic relationship focused on accelerating the development of advanced manufacturing technologies required to fabricate enhanced reticle and next generation lithography mask technologies.

The initial phase of the relationship includes the purchase by Photronics of Veeco`s NEXUS(TM) Ion Beam Deposition (IBD) Low Defect Density (LDD) system for deposition of critical films. Veeco IBD systems have the ability to deposit thin films at extremely low particulate levels with the precise film property controls required for production of next generation masks utilizing chemically amplified resist and other advanced resist platforms. The companies have also agreed to share technology roadmaps, which is expected to enable Veeco to develop additional process equipment and metrology solutions for advanced photomask applications necessary to expand upon Photronics` Sub-Wavelength Reticle Solutions(TM) platform of proprietary process technology.

Constantine ``Deno`` Macricostas, Chairman and Chief Executive Officer of Photronics noted, ``As semiconductor device feature sizes shrink below the exposure wavelength of the lithography tools used to pattern them, demand for advanced reticle technologies will continue to accelerate. Areas where Photronics has emerged as the industry leader, specifically phase-shift technologies and the development of masks to support Extreme Ultra-Violet (EUV) lithography, both require advanced thin film deposition capability. We believe Veeco`s IBD-LDD system is the most viable production thin film deposition solution available in supporting our ability to manufacture these advanced products. Our investment in the IBD-LDD serves to differentiate our development activities by demonstrating our commitment to further engage in the design, development, and manufacture of thin film technology for advanced photomasks.``

Emmanuel Lakios, Veeco`s President of Field Operations commented, ``The decision by Photronics to install our NEXUS IBD-LDD underscores the system`s position as the technology of choice for next-generation photomask blank deposition. The culmination of many years of work by Veeco, this relationship with a leader like Photronics will allow us to leverage our advanced photomask deposition technology development activities in order to provide this industry with additional process equipment and metrology solutions for their most demanding applications. Veeco`s product portfolio is well positioned to capitalize on the demands our mutual customers in the semiconductor industry are placing upon their strategic photomask suppliers to accelerate their technology development activities.``

Veeco`s NEXUS IBD-LDD system was developed specifically for mask blank applications, phase shift masks and next-generation EUV lithography, featuring extremely low particulates, excellent control of optical properties and multi-layer capability.

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

Photronics, Inc. is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors, photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits. They are produced in accordance with circuit designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on Photronics can be accessed at http://www.photronics.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.



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Contact:

Veeco Instruments Inc.
Financial Contact:
Deb Wasser, 516/677-0200 x 1472
Trade Media Contact:
Fran Brennen, 516/677-0200 x 1222
or
Photronics, Inc.
Mike McCarthy, 203/775-9000



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Veeco Receives Approximately $3.0 Million in Orders for Metrology Tools From Leading Thin Film Head Manufacturers
WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 15, 2002--Veeco Instruments Inc. (NASDAQ: VECO - news) today announced that it has received approximately $3.0 million in orders for its OASIS 3000 defect inspection system from three leading manufacturers of thin film magnetic heads.

The orders were received in the fourth quarter of 2001 and the first quarter of 2002, and the tools are currently expected to be shipped to customers` manufacturing facilities by June.

The OASIS 3000 DUV (Deep Ultra Violet) system fulfills two functions in thin film magnetic head process development and production: automatic identification and characterization of defects, and automatic measurement of pole tip critical dimensions to 100nm. The OASIS 3000 system is a critical tool in current 40GB programs, and will also be required for future 60GB applications.

According to Don Kania, Ph.D., President of Veeco Metrology, ``We are pleased that these leading thin film head manufacturers have adopted the OASIS 3000 system as a critical metrology tool based upon its ability to quickly and accurately measure pole tip dimensions. As the world leader in data storage equipment and metrology, Veeco has consistently introduced low cost of ownership, next-generation metrology and inspection tools to respond to the industry`s rapidly decreasing pole dimensions.``

The OASIS 3000 automatically identifies and characterizes a broad range of defects such as coating, chips, voids and etch defects. The OASIS 3000 provides 248nm DUV illumination and imaging to measure writer widths to 100nm, and quantify other critical dimension measurements such as writer height, shield thickness with nanometer accuracy.

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.



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Contact:

Veeco Instruments Inc., Woodbury
Financial Contact: Deb Wasser, 516/677-0200, ext. 1472
Trade Media Contact: Fran Brennen, 516/677-0200 ext. 1222

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Veeco Introduces New Fiber Metallization System At OFC
Turnkey System Increases Device Reliability by Improving Hermetic Sealing
ANAHEIM, Calif.--(BUSINESS WIRE)--March 14, 2002--Veeco Instruments Inc. (NASDAQ: VECO - news) will introduce its new Midas(TM) Fiber Metallization System at the Optical Fiber Conference in Anaheim, CA, March 19-21.

Veeco`s Midas is a fully automated, cylindrical Physical Vapor Deposition (PVD) system which coats fibers with multilayer precious metals in order to provide higher device reliability and stability for hermetically sealed telecommunications components such as lasers, MEMS (micro electro mechanical systems) and free space optics devices.

According to Robert Valentine, President of Veeco-Ion Tech, ``Veeco has created this tool in response to the changing landscape in the telecommunications industry. As our customer base seeks to lower their cost structure, Veeco`s Midas is ideal for R&D next generation device development, as well as high volume environments. Our Midas tool is designed to solve critical challenges for telecommunications device manufacturers and offers superior uniformity, excellent adhesion, fiber flexibility and lower cost when compared to traditional hermetic sealing techniques.``

The Midas Fiber Metallization System uses a cylindrical magnetron for a dry process that uniformly coats fibers at twice the rate and with superior adhesion over wet metallization processes. Traditional hermetic sealing techniques such as planar PVD and wet processes present device manufacturers with challenges, such as non-conformal coverage of planar PVD and the slow throughput and poor adhesion of wet process coatings. In addition to process improvement, Midas dramatically reduces waste of precious metals such as gold and platinum, providing a return on customers` investment in less than 12 months. The Midas is a completely automated, turnkey solution.

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.



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Contact:

Veeco Instruments Inc.
Financial Contact:
Deb Wasser, Investor Relations & Corp Comm.,
516/677-0200, x1472
or
Trade Media Contact:
Cherie Menke, Marketing Comm., 970/221-1807, ext 307

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Friday April 26, 7:33 am Eastern Time
Reuters Business
Veeco reports loss but cash results top estimates

WOODBURY, N.Y., April 26 (Reuters) - Veeco Instruments Inc. (NasdaqNM:VECO - news) on Friday reported a first-quarter loss, reversing a profit from a year earlier, as sales of its precision instruments and test products fell sharply amid weakness across the telecommunications and technology sectors.

Veeco said its net loss totaled $3.5 million, or 12 cents per share, compared with a profit of $12.9 million, or 51 cents per share, a year before. Excluding discontinued operations, its loss was $3.2 million, or 11 cents per share.

On a cash earnings basis, which in addition to discontinued operations also backs out amortization expenses and restructuring charges, the company said it broke even during the quarter, exceeding earlier forecasts of a loss.

Analysts had been looking for a cash loss per share of between 4 cents and 7 cents, with a mean estimate of a loss of 6 cents per share, according to research firm Thomson Financial/First Call.

Looking ahead, the Woodbury, New York, company said it expects second-quarter sales of between $75 million and $80 million, with cash earnings around the breakeven level. Second-quarter bookings should rise from the first quarter, it said.

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Veeco Launches Dimension X3D Automated Atomic Force Microscope
Newest 3D Metrology Tool Extends Veeco`s Portfolio into Critical Lithography and Etch Applications
WOODBURY, N.Y.--(BUSINESS WIRE)--July 9, 2002--Veeco Instruments Inc. (Nasdaq: VECO - News) today introduced the Dimension X3D(TM) in-line metrology tool, the first nondestructive automated atomic force microscope (AFM) to provide 3D resolution for high-volume semiconductor manufacturing.

Based on Veeco`s field-proven AFM technology, the Dimension X3D gives IC manufacturers the ability to thoroughly characterize 90nm and smaller device features in advanced photolithography and etch processes.

"The launch of the Dimension X3D represents an important breakthrough for the chip industry. For the first time, device manufacturers have the ability to take nondestructive 3D measurements in-line on nanometer-scale chip structures," said Don Kania, Ph.D., President of Veeco Metrology. "In the past, device manufacturers have had to rely on destructive techniques to achieve high resolution measurements of advanced device features. The introduction of the Dimension X3D system allows this level of detail without damaging devices or wafers.

"By delivering clear, immediate results on advanced materials and structures, the Dimension X3D reduces the time it takes to develop new device technologies and speed products to market, resulting in a clear competitive advantage for IC manufacturers," Dr. Kania said. "The system can be used on any of the new materials being adopted by today`s leading fabs. This flexibility lowers cost of ownership and simplifies new materials testing, helping to improve overall fab productivity. Onboard reference samples confirm results automatically and ensure that results are unambiguous."

The latest tool to emerge from Veeco`s portfolio of nondestructive AFM systems, the Dimension X3D extends the Company`s metrology leadership into the lithography, etch and photomask arenas and complements its industry-renowned expertise in CMP applications. The system enables three-dimensional (x, y and z) in-line measurement and control of 90nm and smaller critical dimension (CD) features by leveraging Veeco`s AFM scanning probe technology, widely known for its ability to provide exceptional resolution of device features and test structures without damaging the wafer.

"Three-dimensional AFM metrology gives fabs the speed, resolution and accuracy they need to deliver exceptional chip performance in sub-100nm device manufacturing," said Dan Hutcheson, President and CEO of market research firm VLSI Research, San Jose, Calif. "This capability is essential to achieving precise control in lithography and etch processing, particularly as resist shrinkage occurring at 193nm challenges the use of CD-SEM metrology."

The Dimension X3D allows customers to gather detailed data on contact holes, vertical and re-entrant sidewalls, line-edge roughness and photomask features. These measurements are not affected by the multiple layers of materials on the wafer, enabling production of the most demanding gate and shallow trench isolation structures in lithography and etch processes. A gauge-capable system, the Dimension X3D is designed to provide accurate feature shape control, as well as full-sidewall scans and width and depth analysis of CDs with unmatched repeatability and resolution.

Veeco will showcase the Dimension X3D at the SEMICON West tradeshow being held July 22-24, 2002 at San Francisco`s Moscone Center. Customers and press are invited to visit the Veeco booth, number 702 in the South Hall at any time during the show.

Dimension X3D Image Available Upon Request

About Veeco

Veeco Instruments Inc. (NASDAQ:VECO - News) is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona, and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan, and Asia Pacific. Additional information on Veeco can be found at www.veeco.com.

Veeco Metrology supports the semiconductor industry`s leading chipmakers, equipment suppliers and consortiums with its line of automated atomic force microscopes, stylus profilers and atomic force profilers. Veeco was the first company to fully automate an AFM system for in-fab semiconductor metrology, and continues to build on this heritage by developing advanced metrology techniques to help customers reduce costs, improve yields and enhance product quality. Semiconductor metrology applications laboratories and training facilities are located in Santa Barbara, California; Tokyo, Japan; Hsinchu, Taiwan; and Dresden, Germany.



--------------------------------------------------------------------------------
Contact:

Veeco Instruments Inc.
Financial Contact:
Debra Wasser, 516/677-0200, x1472
VP of Investor Relations
Trade Contact:
Fran Brennen, 516/677-0200 x1222
Director of Marketing Communications
or
Agency Contact:
Loomis Group for Veeco Metrology
Jennifer Fenley, 415/882-9494, x349

[panik]

Friday July 12, 3:04 pm Eastern Time
Reuters Business Report
Veeco to Buy FEI for $1 Billion in Stock
By Sinead Carew

NEW YORK (Reuters) - Veeco Instruments Inc. (NasdaqNM:VECO - News) said it will purchase FEI Co. (NasdaqNM:FEIC - News), a maker of gear for the semiconductor industry, for $1 billion in a stock deal that would raise its share in faster growing markets.
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The purchase will make Veeco the No 6. U.S. maker of semiconductor manufacturing equipment and shift the company`s focus toward the burgeoning chip-testing equipment market.

Measurement equipment, also known as metrology, currently accounts for a little over one-third of Veeco`s product base, which consists mainly of instruments for making chips.

Analysts applauded the deal but investors sent Veeco`s shares down about 20 percent.

"There`s a little concern they might have overpaid but I`m not in that camp," said Hoefer & Arnett analyst Mark Miller, who upgraded Veeco to "buy" from "hold" after the deal.

"We think (metrology is) a better growth area and both will gain from the others technology," said Miller, who holds no Veeco or FEI stock.

Veeco Chief Executive Edward Braun explained the logic of shifting the company`s technology focus.

"As chips get more complicated and the dimensions of chips get smaller and down to atomic levels ... you reach a point where the measurement part of your facility starts to grow faster than the (chip production) equipment part," Braun told Reuters.

"From that point of view this is an ideal time to put metrology companies together than have complementary technologies," he said, noting that after the acquisition, two-thirds of Veeco FEI`s products will be in measurement.

`STRATEGICALLY, RIGHT MOVE`

"Strategically it`s the right move because they have complementary products going to the same customers," UBS Warburg analyst Byron Walker said. Walker also has no stock in either company.

Veeco, which has made 11 acquisitions in the past five years, said it is still on the lookout for additional purchases. In particular, Braun told Reuters, he is interested in acquiring products required for nanotechnology research. Nanotechnology is the development of extremely small electronic circuits and devices built at the molecular level.

Although Braun says the deal is about technology and increasing sales rather than cutting costs, the company said it expects to save $8 million to $10 million a year after integrating the companies. This could include job losses of about a couple of percent of the combined work force of 2,900, he said.

Veeco also expects the transaction to boost earnings and help the company exceed current pro-forma estimates in 2003.

Both companies said they expect to meet their previous guidance for the second quarter. Veeco, which reported a first-quarter loss of 12 cents per share, expects to break even on a per-share basis in the second quarter, excluding accounting charges for amortization of assets.

FEI expects second-quarter earnings of 15 cents a share.

Under the agreement, FEI shareholders will receive 1.355 shares of Veeco stock for each FEI share. FEI has 32 million shares outstanding, meaning FEI shareholders would receive about 44 million Veeco shares, the companies said.

Veeco stock dropped some 20 percent or $4.53 to $17.96 in afternoon trade on the Nasdaq while FEI shares were up $1.63, or more than 7 percent at $23.69.

Both boards of directors approved the deal, which is expected to close in the fourth quarter.

Veeco`s Braun will become CEO of the combined company, which will be called Veeco FEI Inc. FEI Chairman and CEO Vahe Sarkissian will become chairman and chief strategy officer at the new company.

Veeco FEI will use the VECO trading symbol on Nasdaq.

The new company will be based at Veeco`s current headquarters in Woodbury, New York, and FEI headquarters in Hillsboro, Oregon, will remain a company facility.

[antec]

Veeco Receives Ion Beam Etch Order From a Major Manufacturer of Surface Acoustic Wave -SAW- Devices
WOODBURY, N.Y.--(BUSINESS WIRE)--July 22, 2002--Veeco Instruments Inc. (NASDAQ: VECO - News) today announced that it has recently received an order for its NEXUS(TM) Ion Beam Etching system from a major manufacturer of Surface Acoustic Wave (SAW) devices.

SAW filters have been an available technology for some years and are now seeing extended applicability in the next-generation wireless market. Not only does Veeco`s etch and deposition process equipment enable SAW device manufacturers to meet these extended demands, it is also being used by these manufacturers to develop new devices for wireless modules, such as advanced resonators, precision resistors, and inductive coils. SAW filters are wireless radio frequency bandpass filters that operate in the megahertz to low gigahertz range. They are similar to optical telecommunications DWDM filters that operate at higher level frequencies.

"Veeco`s production-proven ion beam etching and deposition technology is now becoming critical to wireless device manufacturers," commented Robert Valentine, President of Veeco`s Process Equipment Group. "The NEXUS Ion Beam Etching system was selected for both its ability to provide increased manufacturing capacity, as well as producing controlled feature definition in materials that cannot be processed with other dry etching techniques. This order supports Veeco`s leading position as a process solutions provider to the telecommunications industry."

Veeco`s NEXUS Ion Beam Etching technology offers customers fine feature control through advanced rotation control, and the ability to etch any material and multi-level material stacks that SAW manufacturers require. Precise temperatures and maximum rate control for thin films results in the highest possible yields while maintaining critical dimensions. Mr. Valentine added "The plug and play modularity of this cluster system provides the flexibility to develop processes on the same system in the laboratory as in the fabrication plant, resulting in a much faster time-to-ramp."

Veeco Instruments Inc. is a worldwide leader in process equipment and metrology tools for the optical telecommunications/wireless, data storage, semiconductor and research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the optical telecommunications, data storage and semiconductor industries, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:

Veeco Instruments Inc.
Financial:
Debra Wasser, 516/677-0200 x1472
Trade Media:
Fran Brennen, 516/677-0200 x1222

[panik]

Monday July 29, 2:43 pm Eastern Time
Reuters Company News
Veeco posts 2nd-quarter loss, meets estimates
By Sinead Carew

(adds detail, analyst quotes, executive quote, share price detail, byline, previous dateline WOODBURY, N.Y.)

NEW YORK, July 29 (Reuters) - Veeco Instruments Inc. (NasdaqNM:VECO - News), a maker of gear used to manufacture and test computer chips, on Monday posted a second-quarter loss amid a two-year slump in the semiconductor business.
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But the company`s share price rose more than 9 percent as investors were relieved that it met analysts` quarterly estimates.

"It`s a combination of the market being up and the fact that they`ve made their numbers," Bear Stearns analyst Robert Maire said, noting that some investors could be buying the stock because of its low price.

Veeco posted a net loss of $1.6 million, or 6 cents a share, in the second quarter, compared with net income of $10 million, or 40 cents a share, in the year-ago quarter.

Revenue fell 31 percent to $77.3 million from $112.1 million over the same period.

Although Veeco said the business environment is difficult it expects results to improve in the next two quarters.

"This remains a difficult environment," Veeco Chairman and Chief Executive Edward Braun told analysts on a conference call. "We see incremental growth in the third quarter and the second quarter."

Sales of chip-making equipment roughly halved while revenue from chip-testing gear, otherwise known as metrology equipment, increased slightly, the company said.

Veeco said orders from the semiconductor and scientific research customers increased sequentially while data storage orders increased slightly and orders of communications products fell more than 30 percent.

One analyst was cheered by the increase in orders.

"The quarter went slightly better than we expected," Hoefer & Arnett analyst Mark Miller said, noting that orders from the semiconductor industry rose from the first quarter. Miller had expected order levels to remain flat.

Veeco`s Braun said that while customers are not increasing the volume of semiconductor production they are still buying chip testing, or metrology, products because of the growing complexity of chip technology.

The company said this month it would buy metrology company FEI Co. (NasdaqNM:FEIC - News) in order to increase the metrology share of its business to almost three-quarters, up from one-third last year and about 50 percent in the second quarter.

Excluding one-time charges, Veeco earned 2 cents a share in the latest quarter, down from 46 cents a year earlier. On that basis, analysts polled by Thomson First Call were expecting Veeco to break even in the latest quarter.

The company said it expects to earn between 2 cents and 4 cents a share, excluding one-time items, in the third quarter on revenue of $75 million to $80 million. Analysts have been expecting Veeco to earn 4 cents per share on revenue of $78.43 million in the third quarter.

Veeco`s stock rose $1.29 to $13.98 on Nasdaq in afternoon trading. The stock reached a year-high of $41.70 last August.

[panik]

Adviser Soapbox
Beware Of Nano Pretenders
Josh Wolfe, Forbes/Wolfe Nanotech Report, 08.01.02, 7:00 AM ET

NEW YORK - As tech and telecom stocks continue to languish, investors and media commentators are looking for the next big thing. Nanotechnology fits the bill.


Sign up for Forbes` Free Investment Guru Weekly e-mail.


It`s not surprising to see everyone jumping aboard the nanotech bandwagon. You saw the action in one of my top picks, Veeco Instruments (nasdaq: VECO - news - people ), after Merrill Lynch put the semiconductor equipment maker on its tech stock buy list. It soared 11% in three days.

However, with all the amazing discoveries nanotechnology promises, out of the woodwork comes the hype. Remember in the `80s PC boom, when a slew of companies changed their names to incorporate the phrase "tech" and, more recently, the addition of "dot-com" to brighten up boring corporate logos? Make way for the new "nano" companies:

1) Nanometrics (nasdaq: NANO - news - people )

Great name, but where`s the nano? The Milpitas, Calif.-based company was founded in 1975 and went public in 1984. It makes equipment for the semiconductor industry and provides tools at the microscale (remember, 1,000 times larger than nano) that are used in process and quality control. Don`t let the product line--with names like NanoSpec 9000--fool you. They are merely improved versions of products the company first launched over two decades ago. But no nanotech is involved. Nanometrics has a $220 million market cap despite a mature and cyclical business with lousy recent results. It lost $1.5 million on sales of $8 million in the first quarter, down over 40% from the same period in 2001. If you still think it might be a good long-term nanotech play, don`t just take my word for it. Chief Financial Officer Paul Nolan passed on this clear message to me: "Our company has nothing to do with nanotechnology." At least in Nanometrics` case, it`s had the name for two decades.

2) Nanogen (nasdaq: NGEN - news - people )

Another great name! But, still no nano. Based in the biotech valley of San Diego, the company creates gene chips also known as microarrays, which are used to do genetic research and diagnostics. Its core product, the NanoChip, measures about 0.7cm square, with an array measuring 2mm square. The individual features are 80 microns, or 80,000 nanometers, a far cry from the generally accepted realm of nanotech that is below 100nm. The distance between each array site is 200 microns--or 200,000nm--which makes a Grand Canyon of a difference. Nanogen sells a complete system, consisting of the NanoChip Cartridge, which is placed into the NanoChip Molecular Biology Workstation. The Workstation has a machine that reads the chip and a computer with hardware and software that allows researchers to generate meaningful genetic data.

Nanogen`s stock took a nosedive right before the attacks of Sept. 11 and then sharply recovered amid general public concern over anthrax threats and general investor enthusiasm over tools that might be able to do quick diagnostics. Investors who drove the stock higher on this basis overlooked company statements saying the Nanogen system is intended for research use only and not for use in diagnostic procedures. Last year, revenue fell 1% to $11.2 million, with a net loss of $32.5 million, a drop of nearly 80%.

In general, the gene-chip players are faced with a very competitive landscape: fickle biotech investors, unsure which "-omics" is worthy of their capital, and researchers inundated with a flood of genomics data. It`s like trying to use a straw to sip water being shot through a fire hose. Unless Nanogen acquires a startup working in nanofluidics, which helps it offer a chip system that could perform at least ten times more quickly, accurately or cheaply, I`d caution you to not be mislead by its name.

3) NanoPierce Technologies

This one is traded on the OTC bulletin board. It has nearly doubled since January. My advice: Stay far, far away from this one. In April 2001, the company initiated a lawsuit claiming a slew of promoters were fraudulently manipulating the price of its stock.

The company operates out of Germany, but has corporate offices in Denver, Colo. Denver has been a hot bed for penny-stock hustlers for three decades. It is not surprising that the junk-stock crowd is latching on to nanotechnology. NanoPierce was originally incorporated in 1996 as Sunlight Systems and was also known as Mendell-Denver. The company currently has negative cash flow from operations, and the bulk of its revenue was from a German division--which sells consulting services and software. Revenue was $103,000 for the 12 months ending last December, yet its stock, at a price of $1.05, has a market cap of over $55 million.

NanoPierce has nothing to do with nanotechnology. Its technology revolves around what it calls NCS, NanoPierce Connection System. At its essence, NCS creates electronic connections between the microscale and the macroscale on circuitboards. It hopes to apply the process to smart-card applications.

4) Altair Nanotechnologies (nasdaq: ALTI - news - people )

The company was first known as Altair International; then in August 2001, it changed to Altair Nanotechnologies. It also rebranded its wholly owned subsidiary Altair Technologies as Altair Nanomaterials. The firm`s name has had more alterations than Oprah`s clothes!

So what else has changed besides the name? Altair Chief Executive Bill Long says it now aims to be the No. 1 supplier of nanomaterials worldwide. It doesn`t deal with carbon nanotubes or buckyballs, but instead makes products like metal oxides that are used in sunscreens, paints and catalysts. The company was originally a shell company. Here is how the shell game worked in the `80s: A group would acquire a controlling interest in the stock of a publicly traded shell and then merge an operating company into it. Presto: a quick and easy public offering. Then if the new company had an exciting story--like nanotechnology--you could pump up the stock and then dump the shares.

In the case of Altair, its first business was developing the largest titanium ore body in Camden, Tenn. The idea was to take the titanium and turn it into pigment used in paints and coatings. Two years ago, Altair acquired a pigment process from BHP Broken Hill Proprietary, for about $9.5 million. Altair realized that it couldn`t compete in the international pigment market, where firms in Australia and the U.K. were more established. Altair also realized that while pigments could sell on average for $1 a pound, nanoparticles--depending on what metal oxide--could sell from $8 to $60 a pound.

Now it is trying to produce nanoparticles of lithium titanate, which is used in rechargeable-battery applications. Long, 54, admits he knows little about the rechargeable-battery market, but is happy to report that there is a $6 billion potential. Now Altair is converting the recently acquired plant to nanoparticles. Revenue for 2001 totaled a whopping $43,000; the company is burning through cash at a rate of $640,000 per month and has lost nearly $14 million over the past two years. Its $23 million market cap is ridiculous. This mining-cum-specialty-materials firm has an uphill battle to garner market share against a host of competitors producing metal oxides. Just say no to this nano-come-lately.

5) Nanophase Technologies (nasdaq: NANX - news - people )

What about this Romeoville, Ill.-based company with a market cap of $87 million? Ah, finally a company that is indeed operating at the nanoscale. It makes metal-oxide particles and could be considered one of the few pure-play nanotechnology companies. It has a strong patent position, with 38 issued and applied that cover its production processes of making nanoparticles. Its plant has a capacity of 1 million pounds, and it is aggressively driving down manufacturing costs and increasing production capacity. In 1999, it took one operator for each reactor; today Nanophase is able to have one operator for four reactors. Founded in 1989 as a spinoff from Argonne National Labs, it went public in 1997 at $8 a share and is currently selling at around $6.

In 1999, it began rebuilding and restaffing, bringing on current CEO Joseph Cross to expand its client base. BASF (nyse: BF - news - people ) is its single-largest client, accounting for over 50% of last year`s $4 million in revenue. Cross believes that with the ability to produce 120 different types of nanoparticles, mostly metal-oxides, and two shifts running five days a week, the company can continue to scale its process. Nanophase needs three to four times the current revenue base to break-even by late 2003, but Cross is optimistic. "Its undoubtedly the strongest opportunity that we`ve seen in multiple markets." The biggest markets are in personal health care, nanoparticles used for antimicrobial applications. This one is no nanoimposter, but I`d consider the uphill battle for significant revenue.

Excerpted from the May issue of Forbes/Wolfe Nanotechnology Report

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[panik]

Veeco and Chinese Academy of Sciences Open Nanotechnology Center in Beijing, China
Tuesday September 3, 8:10 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Sept. 3, 2002--Veeco Instruments Inc. (NASDAQ: VECO - News) today announced that it has established a China Nanotechnology Center facility (CNC) in Beijing, China.
The facility will be staffed with local scientists and engineers and equipped with Veeco`s latest Atomic Force Microscope (AFM), Scanning Tunneling Microscope (STM) products and other advanced nanotechnology application modules. The CNC will be jointly operated with the Institute of Chemistry of the Chinese Academy of Sciences (CAS). Day to day operations will be managed by Oliver Yeh, Veeco`s newly appointed General Manager for China. The CAS is a national institution for scientific research and promotes original scientific innovation and integration of key technologies. Institutes organized under the CAS auspices perform first-class research and open up new directions of research, in particular in the area of nanometer sciences.

As published in CMP Cientifica`s The X Report, Professor Ma, Chinese Ministry of Science, recently stated that China sees the field of nanotechnology as one of the most important fields and intends to set up a national nano infrastructure and research centre. The Chinese policy involved recruiting leading scientists, developing IP protection and incentives and building international cooperation. China has budgeted 2 billion yuan (approximately $240 million) in less than five years from the central government and approximately 2-3 billion yuan (approximately $240 -360 million) from local governments. According to Professor Ma in this report, there are already 50 universities, 20 institutes and 100 enterprises focused on furthering nanotechnology.

"China is experiencing rapid growth in nanotechnology, R&D and industrial applications. The newly established CNTC is evidence of Veeco`s continuing commitment to our R&D customers in China and the Asia Pacific region," commented Michael Weiss, Vice President and General Manager of Veeco`s Asian operations. "We will have highly trained scientists working on leading edge AFMs and STMs to further advance state-of-the-art nanotechnology and to broaden its numerous applications in science and industry."

Edward H. Braun, Veeco`s Chairman, President and Chief Executive Officer commented, "Now Chinese researchers and scientists will be able to have access to state-of-the-art Veeco products. In addition to the CNC in Beijing, Veeco has plans to establish sales and support offices in Shanghai and Beijing to better support our existing and future customer base in a rapidly growing China market. We see nanotechnology as a strong growth opportunity for Veeco, given the surge in global government spending, and we will continue to support nanotechnology researchers throughout the world." According to the NanoBusiness Alliance, global government spending on nanotechnology over the last two years is estimated at $2 billion. The U.S.`s National Science Foundation predicts that the total market for nanotech products and services will reach $1 trillion by 2015.

The CNC is located at Bei Yi Street, Zhong Guan Cun District, Beijing, 100080 China, and can be reached at [phone].

The Institute Chemistry under the Chinese Academy of Sciences is one of the leading institutions in China to use advanced AFM and STM technology to further advance knowledge about the atomic and molecular structure of many materials. It has pioneered the use of STM and AFM since the mid 1980s. The key research fields include the structure and properties of polymer catalyst and the surface structure and properties of organic and biological materials. Additional information about the Institute of Chemistry can be found at http://www.icas.ac.cn.

Veeco Instruments Inc. is a worldwide leader in metrology and process equipment for the semiconductor, data storage, telecom/wireless and scientific/research markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Financial:
Debra Wasser, 516/677-0200, x1472
or
Trade Media:
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Fraunhofer Orders GEN200 MBE System From Veeco-Applied Epi for Indium-Phosphide Devices
Monday September 30, 8:06 am ET


ST. PAUL, Minn.--(BUSINESS WIRE)--Sept. 30, 2002--Fraunhofer-Institut fur Angewandte Festkorperphysik IAF (Institute for Applied Solid State Physics), Freiburg, Germany, has ordered a GEN200(TM) molecular beam epitaxy (MBE) system from Veeco-Applied Epi.
Fraunhofer will use the GEN200 for indium phosphide-based microelectronics in a program sponsored by the Federal Ministry of Education and Research of the German government. Indium phosphide-based microelectronic devices are being developed for next generation fiber optic telecommunication, millimeter wave IC, and advanced cellular applications.

"Fraunhofer marks the third major European organization to select our innovative silicon-style MBE systems," said Marlin Braun, General Manager, Veeco-Applied Epi. "The GEN200 to be delivered to Fraunhofer has been specifically designed for phosphide growth, and features today`s most complete and integrated phosphorus solution package."

The GEN200 is an ideal automated lab to fab solution. Its cluster-tool design provides the material source and wafer configuration flexibility for R&D or for multi-wafer production applications. The flexibility of the cluster tool design enables the GEN200 system to deliver higher throughput and lower costs per wafer, in a footprint up to 60% smaller than comparable MBE systems. It can support dual growth modules, allowing facilities to either greatly increase production or grow different materials within a single, integrated system.

The Fraunhofer-Institut fur Angewandte Festkorperphysik is one of 47 German research institutes of the Fraunhofer Society. As one of Europe`s leading centers engaged in applied R&D of compound semiconductor materials, devices and ICs, the institute designs and develops MMICs, mixed signal/digital circuits, and optoelectronic devices based on GaAs, InP, antimonides and Group III nitrides.

Veeco-Applied Epi is the world`s leading supplier of MBE equipment and a subsidiary of Veeco Instruments Inc. (NASDAQ:VECO - News), a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Financial Contact:
Debra Wasser, 516/677-0200, x1472
or
Trade Media Contact:
Jim Trevis, 651/494-5560



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Reports Third Quarter and Nine Month 2002 Results
Monday October 28, 7:03 am ET
Management Reviews Cost Cutting Initiatives
Comments On Status of Pending Merger With FEI Company


WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 28, 2002--Veeco Instruments Inc. (NASDAQ: VECO - News) today announced its financial results for the third quarter and nine months ended September 30, 2002.
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The Company reported sales of $72.8 million, a net loss of $2.1 million (($0.07) per share), and pro forma earnings per share of $0.00 (breakeven). Veeco has provided a comparison of GAAP versus pro forma results in the attached financial tables. Third quarter 2002 bookings of $69.4 million decreased 11% sequentially from the second quarter of 2002. These results reflect industry wide weakness in most of Veeco`s served markets.

Third Quarter 2002 Results

Veeco`s sales for the third quarter of 2002 were $72.8 million, a 36% decrease from the $114.3 million reported for the third quarter of 2001. Metrology sales were $42.3 million in the third quarter of 2002 compared to $48.4 million in the third quarter of 2001. Veeco`s Process Equipment sales were $30.5 million in the third quarter of this year compared with $65.9 million in the third quarter of last year. Veeco`s sales by market in the third quarter of 2002 were 22% data storage, 18% semiconductor, 47% scientific research and 13% telecommunications/wireless.

Veeco incurred an operating loss of $2.1 million for the third quarter of 2002, compared to operating income of $4.7 million for the third quarter of 2001. Excluding amortization expense and a $0.1 million net restructuring expense, Veeco`s third quarter 2002 operating income (EBITA) was $1.2 million compared to $13.9 million for the third quarter of 2001, which excludes amortization expense and an $8.2 million charge for the write-off of purchased in-process technology. (Third quarter amortization expense was $3.2 million in 2002 and $1.0 million in 2001). Veeco`s third quarter 2002 net loss was $2.1 million (($0.07) per share) compared to net income of $1.8 million ($0.07 per diluted share) in the third quarter of 2001.

Pro forma earnings per share for the third quarter of 2002 were $0.00 compared with $0.36 in the third quarter of 2001. Pro forma earnings per share is calculated using a 35% tax rate and excludes net restructuring charges, amortization expense, the charge for the write-off of purchased in-process technology referred to above, and loss from discontinued operations.

Veeco`s bookings for the third quarter of 2002 were $69.4 million, up 13% from the $61.5 million reported in the third quarter of 2001, but down 11% sequentially from the second quarter of 2002. Third quarter 2002 Metrology bookings were $39.2 million, a 34% increase from the $29.2 million reported in the third quarter of 2001. Third quarter 2002 Process Equipment bookings were $30.2 million, a decrease of 7% from the $32.3 million reported in the third quarter of 2001. The Company`s third quarter book-to-bill ratio was 0.95. Veeco`s bookings by market in the third quarter were 29% data storage, 15% semiconductor, 45% scientific research and 11% telecommunications/wireless.

Nine Month 2002 Results

Veeco`s sales for the first nine months of 2002 were $230.2 million, a 35% decrease from the $351.8 million reported for the first nine months of 2001. Metrology sales were $118.0 million in the first nine months of 2002 compared to $132.3 million in the first nine months of 2001. Veeco`s Process Equipment sales were $112.2 million in the first nine months of 2002 compared with $219.4 million in the first nine months of last year. Veeco`s sales by market in the first nine months of 2002 consisted of 33% data storage, 12% semiconductor, 39% scientific research and 16% telecommunications/wireless.

Veeco incurred an operating loss of $7.3 million for the first nine months of 2002, compared to operating income of $39.8 million for the first nine months of 2001. Excluding amortization expense and restructuring charges in both periods and a write-off of in-process technology in 2001, Veeco`s operating income (EBITA) for the first nine months of 2002 was $4.8 million compared to $52.3 million for the first nine months of 2001. (Amortization expense was $10.1 million and $3.4 million for the first nine months of 2002 and 2001, respectively, and net restructuring charges were $2.0 million and $1.0 million for the first nine months of 2002 and 2001, respectively. The charge for the write-off of purchased in-process technology was $8.2 million in 2001.) Veeco`s net loss for the first nine months of 2002 was $7.2 million (($0.25) per share) compared to net income of $24.7 million ($0.97 per diluted share) in the first nine months of 2001.

Pro forma earnings per share for the first nine months of 2002 was $0.01 compared with $1.38 in the first nine months of 2001. Pro forma earnings per share is calculated using a 35% tax rate and excludes net restructuring charges, amortization expense, the write-off of purchased in process technology and the loss from discontinued operations.

Veeco`s bookings for the first nine months of 2002 were $217.9 million compared to $252.0 million reported in the first nine months of 2001. Metrology bookings in the first nine months of 2002 were $112.2 million compared to $106.6 million in the first nine months of 2001. Process Equipment bookings in the first nine months of 2002 were $105.7 million compared with $145.3 million in the first nine months of 2001. The Company`s book-to-bill ratio for the first nine months of 2002 was 0.95. Veeco`s bookings by market in the first nine months of 2002 consisted of 32% data storage, 15% semiconductor, 39% scientific research and 14% telecommunications/wireless.

Management Review of Results

Edward H. Braun, Veeco`s Chairman, CEO and President commented, "Our third quarter orders reflect industry-wide declines and uncertainty in semiconductor, data storage, and telecom/wireless capital spending. Only our scientific research bookings remained stable during the quarter."

Mr. Braun continued, "Our Metrology group continues to benefit from acceptance of new atomic force microscopy (AFM) technology products contributing to third quarter sales of $42.3 million, a 5% sequential increase from the second quarter, with significant profitability. Our Process Equipment group had sales of $30.5 million in the third quarter, a decline of 17% sequentially from the second quarter. Process Equipment remained unprofitable, reflecting continued weakness in the data storage and telecommunications market. We are currently planning to launch significant new Veeco etch and deposition products in the Q4/Q1 timeframe."

"While our base product technology positions remain strong and are aligned with future growth opportunities, we must manage those resources we can best control today: our spending and headcount. We are therefore lowering our headcount by approximately 20%, reducing and eliminating sites, and cutting overall spending with the goal of achieving annualized savings of approximately $24 million. We currently expect that these actions will restore Veeco`s profitability in the first quarter of 2003 on lower revenue levels. Veeco`s leadership products, broad market diversification, enabling technology positions, combined with a strong balance sheet, will allow us to continue to support our worldwide customers," added Mr. Braun.

Veeco-FEI Merger Update

Veeco continues to work towards completing its pending merger with FEI Company (NASDAQ:FEIC - News), including finalizing its preliminary joint proxy statement/prospectus, which was filed with the Securities and Exchange Commission (SEC). As previously announced, on September 18, 2002, Veeco and FEI received a request from the U.S. Department of Justice for additional information regarding the proposed merger. Veeco and FEI are cooperating fully and responding to the request. Veeco and FEI intend to seek stockholder approval of the merger at special meetings to be held in the coming months following the receipt of approval from the Department of Justice. While Veeco and FEI are working to complete the merger as soon as possible, there can be no assurance that the merger will be completed by the end of 2002.

Veeco`s Outlook

Based on existing uncertain industry conditions, Veeco currently forecasts that fourth quarter 2002 bookings will be down approximately 10% compared to the third quarter. Veeco currently estimates that fourth quarter 2002 sales will be in the range of $62 - $66 million, and that it will incur a pro-forma loss between $0.10 and $0.15 per share (using a 35% tax rate and excluding amortization expense). Veeco currently forecasts that as a result of the cost cutting measures outlined above, it will be profitable (on a pro forma basis), without a revenue increase, in the first quarter of 2003.

Investor Conference Call/ Webcast

Veeco will host an investor conference call this morning, Monday, October 28th, at 10 am EST to review these third quarter results. You may listen to the call live at 1-800-289-0572 or through an audio webcast at http://www.veeco.com (Investor Information). This call will be archived for future reference. A telephonic playback of the conference call will also be available starting this afternoon at 888-203-1112 or 719-457-0820 (confirmation # 605035).

SEC Filings

In connection with their proposed merger, Veeco and FEI jointly prepared a proxy statement/registration statement on Form S-4 containing a prospectus relating to the shares to be issued to FEI stockholders and filed such joint proxy statement/registration statement with the SEC. Investors and security holders are urged to read this document because it contains important information about the proposed merger. Investors and security holders may obtain copies of this document as well as other SEC filings of Veeco and FEI, free of charge from the SEC`s website at www.sec.gov as well as from the applicable company by directing a request to Investor Relations for Veeco, at [phone], Ext. 1403 and to Investor Relations for FEI, at [phone] Ext. 7527.

Veeco and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the Veeco and FEI stockholders with respect to the Veeco/FEI transaction. Information regarding such individuals is included in Veeco`s proxy statement dated April 9, 2002 relating to its 2002 annual meeting of stockholders, available free of charge from the SEC and Veeco as indicated above.

FEI and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the FEI and Veeco stockholders with respect to the Veeco/FEI transaction. Information regarding such individuals is included in FEI`s proxy statement dated April 17, 2002 relating to its 2002 annual meeting of stockholders, available free of charge from the SEC and FEI as indicated above.

For information regarding the terms and conditions of the proposed merger, including the consideration to be issued to FEI stockholders and the conditions for consummation of the merger, please refer to the registration statement on Form S-4 filed by Veeco on August 12, 2002 which includes as an appendix a copy of the merger agreement between Veeco and FEI and is incorporated by reference herein. This filing is available free of charge from the SEC and Veeco and FEI.

About Veeco

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.

Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

Three Months Ended
September 30,
2002 2001
Unaudited
-------------------

Net sales $ 72,753 $114,276
Cost of sales 38,405 63,896
-------------------
Gross profit 34,348 50,380

Costs and expenses:
Selling, general and administrative expense 19,033 20,861
Research and development expense 13,915 14,854
Amortization expense 3,197 1,039
Restructuring expense, net 83 -
Write-off of purchased in-process technology - 8,200
Other expense, net 180 765
-------------------
Operating (loss) income (2,060) 4,661

Interest expense (income), net 1,388 (263)
-------------------

(Loss) income from continuing operations before
income taxes (3,448) 4,924

Income tax (benefit) provision (1,366) 2,727

-------------------
(Loss) income from continuing operations (2,082) 2,197

Loss from discontinued operations, net of income
taxes - (349)

-------------------
Net (loss) income $ (2,082) $ 1,848
===================

(Loss) income per common share from continuing
operations $ (0.07) $ 0.09
Loss from discontinued operations - (0.02)
-------------------
Net (loss) income per common share $ (0.07) $ 0.07
===================

Diluted (loss) income per common share from
continuing operations $ (0.07) $ 0.09
Loss from discontinued operations - (0.02)
-------------------
Diluted net (loss) income per common share $ (0.07) $ 0.07
===================

Pro forma diluted net income per share from
continuing operations, excluding charges (1) $ 0.00 $ 0.36
===================

Weighted average shares outstanding 29,137 25,413
Diluted weighted average shares outstanding 29,137 25,669

(1) See separate Pro Forma (Loss) Earnings table
following.


Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

Nine Months Ended
September 30,
2002 2001
Unaudited
---------------------

Net sales $ 230,241 $ 351,757
Cost of sales 126,956 189,548
---------------------
Gross profit 103,285 162,209

Costs and expenses:
Selling, general and administrative expense 57,405 62,709
Research and development expense 41,172 44,766
Amortization expense 10,116 3,356
Restructuring expense, net 1,970 1,000
Write-off of purchased in-process technology - 8,200
Other (income) expense, net (56) 2,397
---------------------
Operating (loss) income (7,322) 39,781

Interest expense (income), net 4,351 (1,427)
---------------------

(Loss) income from continuing operations before
income taxes (11,673) 41,208

Income tax (benefit) provision (4,820) 15,320
---------------------

(Loss) income from continuing operations (6,853) 25,888

Loss from discontinued operations, net of
income taxes (346) (1,167)

---------------------
Net (loss) income $ (7,199) $ 24,721
=====================

(Loss) income per common share from continuing
operations $ (0.24) $ 1.04
Loss from discontinued operations (0.01) (0.05)
---------------------
Net (loss) income per common share $ (0.25) $ 0.99
=====================

Diluted (loss) income per common share from
continuing operations $ (0.24) $ 1.02
Loss from discontinued operations (0.01) (0.05)
---------------------
Diluted net (loss) income per common share $ (0.25) $ 0.97
=====================

Pro forma diluted net income per share from
continuing operations, excluding charges (1) $ 0.01 $ 1.38
=====================

Weighted average shares outstanding 29,081 24,956
Diluted weighted average shares outstanding 29,371 25,373

(1) See separate Pro Forma (Loss) Earnings
table following.


Veeco Instruments Inc.
Pro forma (loss) earnings
(In thousands, except per share data)
(unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
------------------ --------------------

(Loss) income from
continuing operations
before income taxes ($3,448) $4,924 ($11,673) $41,208

Adjustments:

Add back amortization
expense 3,197 1,039 10,116 3,356

Add back restructuring
expense 943 - 2,830 1,000

Deduct income from
settlement of retirement
benefit plan (860) - (860) -

Add back write-off of
purchased in-process
technology - 8,200 - 8,200
-------- ------- --------- --------

Pro forma (loss) earnings
from continuing
operations before income
taxes (168) 14,163 413 53,764

Income tax (benefit)
provision at 35% (59) 4,957 145 18,817
-------- ------- --------- --------

Pro forma (loss) earnings
from continuing
operations ($109) $9,206 $268 $34,947
======== ======= ========= ========

Pro forma earnings per
share $0.00 (1) $0.36 (2) $0.01 (3) $1.38 (4)

Diluted weighted average
shares outstanding 29,137 25,669 29,371 25,373

(1) Pro forma earnings per share for the quarter ended September 30,
2002 is calculated by applying a 35% tax rate and excluding
amortization expense of $3.2 million, a $0.9 million charge to
earnings for severance related costs for both management and
manufacturing employees principally in the Process Equipment
group, as well as $0.8 million of income related to the settlement
of a post-retirement benefit plan.

(2) Pro forma earnings per share for the quarter ended September 30,
2001 is calculated by applying a 35% tax rate and excluding
amortization expense of $1.0 million and an $8.2 million charge to
earnings for the write-off of purchased in-process technology
related to the Applied Epi and ThermoMicroscopes acquisitions. The
calculation also excludes $0.3 million of losses (net of taxes)
related to discontinued operations.

(3) Pro forma earnings per share for the nine months ended September
30, 2002 is calculated by applying a 35% tax rate and excluding
amortization expense of $10.1 million, a $2.8 million charge to
earnings for severance related costs for both management and
manufacturing employees principally in the Process Equipment
group, as well as $0.8 million of income related to the settlement
of a post-retirement benefit plan. The calculation also excludes
$0.3 million of losses (net of taxes) related to discontinued
operations.

(4) Pro forma earnings per share for the nine months ended September
30, 2001 is calculated by applying a 35% tax rate and excluding
amortization expense of $3.4 million, a $1.0 million charge to
earnings principally related to plant consolidations and
work-force reductions, which include both management and
manufacturing employees in all operations of the business and a
$8.2 million charge to earnings for the write-off of purchased
in-process technology related to the Applied Epi and
ThermoMicroscopes acquisitions. The calculation also excludes $1.2
million of losses (net of taxes) related to discontinued
operations.


Veeco Instruments Inc.
Condensed Consolidated Balance Sheets
(In thousands)


September December
30, 31,
2002 2001
----------- ---------
(Unaudited) (Audited)

ASSETS
Current assets:
Cash and cash equivalents $207,640 $203,154
Accounts receivable, net 81,160 88,449
Inventories 106,709 102,103
Other current assets 65,272 68,784
----------- ---------

Total current assets 460,781 462,490

Property, plant and equipment, net 72,655 78,547
Excess of cost over net assets acquired, net 125,585 125,585
Long-term investments 30,651 23,519
Other assets, net 60,244 65,378
----------- ---------

Total assets $749,916 $755,519
=========== =========

LIABILITIES AND SHAREHOLDERS` EQUITY
Other current liabilities $76,641 $89,901
Deferred gross profit 6,872 14,566
----------- ---------

Current liabilities 83,513 104,467

Long-term liabilities 245,180 227,081

Shareholders` equity 421,223 423,971
----------- ---------

Total liabilities and shareholders` equity $749,916 $755,519
=========== =========



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Financial:
Investor Relations
Debra Wasser, 516/677-0200, x1472
Trade:
Marketing Communications
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Wins Multiple Orders for Dimension X3D Metrology Tool
Monday October 28, 7:04 am ET
Veeco`s Newest Automated Atomic Force Microscope Shipping to Customers in U.S., Japan


WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 28, 2002--Veeco Instruments Inc. (NASDAQ: VECO - News) announced today that it is gaining early acceptance for its new Dimension X3D(TM) automated atomic force microscope (AFM), with three orders for the system from customers in the United States and Japan.
Veeco shipped the first Dimension X3D system in the third quarter of this year. The other two systems are scheduled to ship to Japan in the first quarter of 2003. Introduced earlier this year, the Dimension X3D is the first nondestructive in-line metrology tool to provide 3D resolution for semiconductor manufacturing.

"The Dimension X3D orders reflect the semiconductor industry`s need for unprecedented levels of accuracy and productivity in metrology," noted Don Kania, Ph.D., President of Veeco Metrology. "Our customers` newest volume process lines will incorporate a broad range of new materials, as well as next-generation lithography. This trend is driving the significant interest we`re now seeing in three-dimensional AFM," he said. "By combining the benefits of nondestructive AFM metrology with 3D resolution, the X3D gives our customers a clear advantage when it comes to achieving dimensional control of lithography and etch processes in wafer and photomask manufacturing."

With the Dimension X3D, users can take three-dimensional (x, y and z) in-line measurements of nanometer-scale critical dimensions (CD), such as shallow trench isolation structures on wafers and optical proximity correction features in photomasks. The gauge-capable tool produces highly repeatable results, enabling exceptional process control in advanced technology nodes. The system leverages Veeco`s expertise in AFM scanning probe technology, widely used throughout the chip industry for nondestructive measurement and control of device features and test structures.

The Dimension X3D is the newest system in Veeco`s line of nondestructive AFM metrology tools. The system complements Veeco`s industry-renowned expertise in CMP applications, and extends the company`s metrology leadership into the lithography, etch and photomask arenas.

About Veeco

Veeco Instruments Inc. (NASDAQ:VECO - News) is a worldwide leader in process equipment and metrology tools for the data storage, semiconductor, scientific research and telecom/wireless markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona, and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan, and Asia Pacific. Additional information on Veeco can be found at www.veeco.com.

Veeco Metrology supports the semiconductor industry`s leading chipmakers, equipment suppliers and consortiums with its line of automated atomic force microscopes, stylus profilers and atomic force profilers. Veeco was the first company to fully automate an AFM system for in-fab semiconductor metrology, and continues to build on this heritage by developing advanced metrology techniques to help customers reduce costs, improve yields and enhance product quality. Semiconductor metrology applications laboratories and training facilities are located in Santa Barbara, California; Tokyo, Japan; Hsinchu, Taiwan; and Dresden, Germany.



--------------------------------------------------------------------------------
Contact:
Financial:
Veeco Instruments Inc., Woodbury
Deb Wasser, 516/677-0200
Fax: [phone]
[e-mail]
Trade:
Veeco Metrology, California
Victoria Kostka, 805/967-2700
Fax: [phone]
[e-mail]
or
Agency:
Loomis Group, California
Jennifer Fenley, 415/489-7349
Fax: [phone]
[e-mail]



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Wins Multiple Orders for Dimension X3D Metrology Tool
Monday October 28, 7:04 am ET
Veeco`s Newest Automated Atomic Force Microscope Shipping to Customers in U.S., Japan


WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 28, 2002--Veeco Instruments Inc. (NASDAQ: VECO - News) announced today that it is gaining early acceptance for its new Dimension X3D(TM) automated atomic force microscope (AFM), with three orders for the system from customers in the United States and Japan.
Veeco shipped the first Dimension X3D system in the third quarter of this year. The other two systems are scheduled to ship to Japan in the first quarter of 2003. Introduced earlier this year, the Dimension X3D is the first nondestructive in-line metrology tool to provide 3D resolution for semiconductor manufacturing.

"The Dimension X3D orders reflect the semiconductor industry`s need for unprecedented levels of accuracy and productivity in metrology," noted Don Kania, Ph.D., President of Veeco Metrology. "Our customers` newest volume process lines will incorporate a broad range of new materials, as well as next-generation lithography. This trend is driving the significant interest we`re now seeing in three-dimensional AFM," he said. "By combining the benefits of nondestructive AFM metrology with 3D resolution, the X3D gives our customers a clear advantage when it comes to achieving dimensional control of lithography and etch processes in wafer and photomask manufacturing."

With the Dimension X3D, users can take three-dimensional (x, y and z) in-line measurements of nanometer-scale critical dimensions (CD), such as shallow trench isolation structures on wafers and optical proximity correction features in photomasks. The gauge-capable tool produces highly repeatable results, enabling exceptional process control in advanced technology nodes. The system leverages Veeco`s expertise in AFM scanning probe technology, widely used throughout the chip industry for nondestructive measurement and control of device features and test structures.

The Dimension X3D is the newest system in Veeco`s line of nondestructive AFM metrology tools. The system complements Veeco`s industry-renowned expertise in CMP applications, and extends the company`s metrology leadership into the lithography, etch and photomask arenas.

About Veeco

Veeco Instruments Inc. (NASDAQ:VECO - News) is a worldwide leader in process equipment and metrology tools for the data storage, semiconductor, scientific research and telecom/wireless markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona, and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan, and Asia Pacific. Additional information on Veeco can be found at www.veeco.com.

Veeco Metrology supports the semiconductor industry`s leading chipmakers, equipment suppliers and consortiums with its line of automated atomic force microscopes, stylus profilers and atomic force profilers. Veeco was the first company to fully automate an AFM system for in-fab semiconductor metrology, and continues to build on this heritage by developing advanced metrology techniques to help customers reduce costs, improve yields and enhance product quality. Semiconductor metrology applications laboratories and training facilities are located in Santa Barbara, California; Tokyo, Japan; Hsinchu, Taiwan; and Dresden, Germany.



--------------------------------------------------------------------------------
Contact:
Financial:
Veeco Instruments Inc., Woodbury
Deb Wasser, 516/677-0200
Fax: [phone]
[e-mail]
Trade:
Veeco Metrology, California
Victoria Kostka, 805/967-2700
Fax: [phone]
[e-mail]
or
Agency:
Loomis Group, California
Jennifer Fenley, 415/489-7349
Fax: [phone]
[e-mail]



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Duke University Orders GEN II MBE System From Veeco-Applied Epi for Nitride Research
Monday October 28, 7:04 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 28, 2002--Duke University has ordered a GEN II(TM) molecular beam epitaxy (MBE) system from Veeco-Applied Epi.
Duke will use the GEN II for gallium nitride-based research. Gallium nitride-based devices are being developed for a range of high-power wireless applications, including military radar and commercial base station power amplifiers, as well as for visible and ultraviolet optical applications.

"We`re excited that Duke chose our GEN II MBE system," said Marlin Braun, General Manager, Veeco-Applied Epi. "We have vast experience in gallium nitride MBE as evidenced by our effusion cell sources and the GEN II system`s demonstrated excellent performance. Also, our new Process Integration Center (PIC) presents a great opportunity for collaborative research with Duke." Veeco Applied-Epi`s PIC will enable emerging device researchers and manufacturers to develop process and tool solutions together, enabling a more rapid ramp-up of devices from lab to full-scale, high-volume production.

With more than 220 operational systems worldwide, the GEN II is the MBE industry`s single-wafer standard system for R&D. It holds numerous GaAs and AlGaAs performance records, and is leading system for the development of emerging gallium nitride devices.

Duke University`s Pratt School of Engineering in Durham, NC is recognized as one of the leading engineering schools in the United States. It focuses on strategic initiatives in Photonics and Communications, Materials Engineering and Material Systems, and Bioengineering, all working in an interdisciplinary collaborative environment.

Veeco-Applied Epi is the world`s leading supplier of MBE equipment and a subsidiary of Veeco Instruments Inc. (NASDAQ:VECO - News), a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.



--------------------------------------------------------------------------------
Contact:
Financial:
Veeco Instruments Inc., Woodbury
Investor Relations
Debra Wasser, 516/677-0200, x1472
or
Trade Media:
Veeco-Applied Epi, Minnesota
Communications
Jim Trevis, 651/494-5560



--------------------------------------------------------------------------------
Source: Veeco-Applied Epi

[panik]

Veeco Instruments and FEI Company Joint Announcement
Monday December 16, 6:30 pm ET


WOODBURY, N.Y. & HILLSBORO, Ore.--(BUSINESS WIRE)--Dec. 16, 2002-- Veeco Instruments Inc. (Nasdaq: VECO - News) and FEI Company (Nasdaq: FEIC - News) jointly announced today that they will not be able to complete their previously announced merger by December 31, 2002.
Under the terms of the Merger Agreement, if the merger is not consummated by December 31, 2002, either party has the right to terminate the Merger Agreement. The parties are currently discussing modifications to the Merger Agreement, including whether to amend the Merger Agreement to extend the December 31, 2002 date referred to above. The merger also remains subject to the parties obtaining the necessary antitrust and other regulatory approvals. There can be no assurance that the parties will reach agreement on any modifications to the Merger Agreement, that they will extend the date for completing the merger, that the closing conditions to the merger will be met, including obtaining the necessary regulatory approvals, or that the merger will be consummated at all. For more information on the terms of the Merger Agreement, please refer to the registration statement on Form S-4 filed by Veeco with the Securities and Exchange Commission, which is available free of charge from the SEC`s website at www.sec.gov.

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

FEI is the 3D innovator and leading supplier of Structural Process Management(TM) solutions to semiconductor, data storage, structural biology and industrial companies. FEI`s industry leading Dual-Beam(TM) and single column focused ion and electron beam products allow advanced three-dimensional metrology, device editing, trimming, and structural analysis for management of sub-micron structures. Headquartered in Hillsboro, Oregon, FEI has additional development and manufacturing operations located in Peabody, Massachusetts; Sunnyvale, California; Eindhoven, The Netherlands; and Brno, Czech Republic. Additional information on FEI can be found at http://www.feicompany.com.



--------------------------------------------------------------------------------
Contact:
Veeco Financial Contact:
Debra Wasser, 516/677-0200, x1472
VP of IR & Corp. Communications
or
Veeco Trade Contact:
Fran Brennen, 516/677-0200 x1222
Director of Marketing Communications
or
FEI Company Financial Contact:
PondelWilkinson MS&L
Cecilia Wilkinson, 310/207-9300
or
FEI Company Trade Contact:
Dan Zenka, 503/640-7500
Corporate Communications Manager



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Instruments and FEI Company Announce Mutual Termination of Merger Agreement
Thursday January 9, 8:04 am ET


WOODBURY, N.Y. & HILLSBORO, Ore.--(BUSINESS WIRE)--Jan. 9, 2003-- Veeco Instruments Inc. (Nasdaq: VECO - News) and FEI Company (Nasdaq: FEIC - News) jointly announced today that they have mutually terminated the merger agreement that they entered into on July 11, 2002.
Veeco and FEI have determined not to proceed with the merger due to the difficult overall market and economic conditions, and the uncertain timing of an industry recovery. Neither party will pay the other any termination fees or expenses.

"Veeco will continue to be a leading supplier of Metrology and Process Equipment serving long-term growth opportunities in our core markets - semiconductor, data storage, wireless and scientific research," commented Ed Braun, Chairman, CEO and President of Veeco Instruments Inc. "We will focus on maximizing our 2003 performance." Veeco expects to meet or exceed the guidance for its fourth quarter provided on October 28, 2002.

FEI expects to meet or exceed the guidance for its fourth quarter provided in its October 28, 2002 earnings press release. "FEI will continue to build on its strong leadership in 3D metrology for structural process management and nanofabrication," said FEI Chairman and CEO, Vahe Sarkissian. "Creating value-added solutions for our customers in key nanotechnology markets has provided FEI growth in upturns and buoyancy in downturns. We remain focused on continuing to build our business in 2003 and beyond," added Sarkissian.

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

FEI is the 3D innovator and leading supplier of Structural Process ManagementTM solutions to semiconductor, data storage, structural biology and industrial companies. FEI`s industry leading Dual-Beam(TM) and single column focused ion and electron beam products allow advanced three-dimensional metrology, device editing, trimming, and structural analysis for management of sub-micron structures. Headquartered in Hillsboro, Oregon, FEI has additional development and manufacturing operations located in Peabody, Massachusetts; Sunnyvale, California; Eindhoven, The Netherlands; and Brno, Czech Republic. Additional information on FEI can be found at http://www.feicompany.com.

This news release contains forward-looking statements that include statements regarding the companies` respective focus, commitments and goals in the future, their continued success in their markets and success in upturns and downturns, and their expected financial and operating results for the fourth quarter of 2002. Factors that could materially affect these forward-looking statements include, but are not limited to, the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets and downturns or shifts in these markets; lower than expected customer orders and cancelled customer orders; increased competition and new product offerings from competitors; failure of products to find acceptance with customers; fluctuations in interest and exchange rates (including changes in relevant foreign currency exchange rates between time of sale and time of payment); changes in trade policies and tariff regulations; general economic conditions; and unexpected expenses or year-end accounting adjustments or entries. Please also refer to each of Veeco`s and FEI`s respective Form 10-K, Forms 10-Q and other filings made by Veeco and FEI with the U.S. Securities and Exchange Commission for additional information on these factors and other factors that could cause actual results to differ materially from the forward-looking statements.



--------------------------------------------------------------------------------
Contact:
Veeco Financial Contact:
Debra Wasser, 516/677-0200, x1472
or
Veeco Trade Contact:
Fran Brennen, 516/677-0200 x1222
or
FEI Company Financial Contact:
PondelWilkinson MS&L
Cecilia Wilkinson, 323/866-6089
or
FEI Company Trade Contact:
Dan Zenka, 503/640-7500



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

BAD TIMING TORE APART MARRIAGE OF VEECO AND FEI, ANALYSTS SAY
By Jeff Karoub
Small Times Staff Writer

Jan. 17, 2003 – Two small tech equipment makers had hoped that by merging they could offer researchers a package of tools. But as Veeco Instruments and FEI Co. blamed last week`s breakup on bad economic timing, one nanotech analyst said such a marriage just wasn`t meant to be.
"I think the tool market is going to fragment; there won`t be a one-size-fits-all approach to tools," said Neil Gordon, a partner with Montreal-based Sygertech.

"There are so many needs, and so many disciplines. … I don`t see nanotech as having a PC tool set where everyone will have a nanobox on their desk to analyze materials – not in our lifetime."

Veeco and FEI first announced the $1 billion deal in July, and it had been set to take effect at the end of 2002. But in December, with regulatory and shareholder approvals still pending, both firms announced the merger would not meet the year-end deadline. Based on combined 2001 sales of $825 million, the two companies together would have constituted the sixth largest U.S. semiconductor equipment company and the third largest U.S. supplier of metrology equipment.

Both companies offer metrology equipment for measurement and imaging, but each focuses on different areas. Veeco specializes in atomic force microscopes for submicron surface profiling. FEI makes ion and electron beam tools for failure analysis, fab production process control and other tasks.

Still, the small tech market they aimed to serve jointly remains part of each company`s business plan.

"The more products you have to sell, the better. Both companies have noncompetitive scientific research products, but it`s just not the right time (to merge)," said Debra Wasser, Veeco`s vice president of investor relations and corporate communications.

"Each company is a significant player in nanotech and the small tech area. … We`ll continue to go down our separate paths, looking for growth in those markets."

FEI said it will continue to develop nanotech tools, including three-dimensional metrology devices for nanofabrication. Officials have said those efforts have helped the company grow in good economic times and stay afloat in bad.

"Just because the merger didn`t happen doesn`t mean that certain collaborations aren`t possible – or similar collaborations or marketing agreements with other companies," said Jay Lindquist, FEI`s senior vice president of corporate marketing.

"We`re very actively looking for other partners out there. We seek some kind of business relationship where we can grow our business in nanotech."

Gordon said that regardless of future mergers or acquisitions, there are plenty of toolmakers to serve current small tech needs.

He cited an industry report released last year that identified more than 125 companies worldwide making software, visualization, production and other equipment for the MEMS and nanotech markets. He said the number might even be as high 350, when the smallest and most secretive firms are counted.

A great majority of the firms are small and focused on a particular niche, capitalizing on technology spun out of an academic or government lab. He believes that`s key to understanding the future direction of small tech.

As the markets mature, he said, the need increases for specialty tools. Some companies, such as NanoOpto Corp. and Zyvex Corp., are developing tools for their own needs. Other startups are tapping research centers, which typically have unused capacity and seek customers.

"There will always be a need for these mainstream products; Veeco and FEI`s sales will increase over time," he said. "But because the market is growing and moving in different directions, there`s room for these startups."

Lindquist agreed that most companies are not in the business of providing "a one-off kind of tool." But that hasn`t stopped FEI from taking on customers who came with a tool developed in-house and wanted a toolmaker to license the technology and turn it into a workable, marketable product.

For example, FEI worked with the University of Maastricht in the Netherlands to develop the Vitrobot, an automated tool for preparing biological samples in a frozen state for imaging by a transmission electron microscope.

"Many smaller organizations can develop a single tool, but once tools get to the point where there`s a broader market for them or many need to made … they go to someone who can that technology and turn it into a tool," he said.

"To me, it`s all part of the evolution of developing tools and capabilities for new market. Over time it`s going to coalesce. It has to, to be able to deliver real products and solutions that are reliable, manufacturable, and that you can count on being here a year from now."

[panik]

8:40AM Veeco Instruments upgraded at Merrill Lynch (VECO) 14.50: Merrill Lynch upgrades to Buy from Neutral, citing the following factors: lifting of the FEIC merger overhang, improving orders driven by advanced metrology, financial performance out-pacing most peers, potential upside from data storage industry, and attractive valuation; price target is $21.

[panik]

Veeco Receives Order for GEN2000 MBE System from RF Micro Devices for the Manufacture of Semiconductors for Wireless Communications Applications
Monday January 27, 5:55 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 27, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) announced today that it has received an order from RF Micro Devices, a leading provider of proprietary radio frequency integrated circuits (RFICs), for a GEN2000(TM) molecular beam epitaxy (MBE) system.
RF Micro Devices will use the multi-wafer 7x6" MBE system to manufacture compound semiconductors for use in wireless communications applications, most notably power amplifiers and integrated circuits used in wireless handsets and wireless local area networks (WLANs).

"RF Micro Devices was the first company to purchase a 7x6" GEN2000 system in 2001, and we are pleased to announce a second order from this wireless industry leader," said Marlin Braun, General Manager, Veeco MBE group. "We believe it also shows that our "silicon-style" cluster tool platform is today`s choice in high-volume production MBE."

The GEN2000 was the first MBE system to incorporate cluster tool wafer handling architecture from the silicon industry. This innovative design enables the GEN2000 system to deliver higher throughput, longer system uptime and lower costs per wafer, in a footprint up to 60% smaller than comparable MBE systems.

RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops, manufactures and markets proprietary radio frequency integrated circuits (RFICs) primarily for wireless communications products and applications such as cellular and PCS phones, base stations, wireless LANs, and cable television modems. The Company offers a broad array of products - including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers - representing a substantial majority of the RFICs required in wireless subscriber equipment. The Company`s strategy is to focus on wireless markets by offering a broad range of standard and custom-designed RFICs in order to position itself as a "one-stop" solution for its customers` RFIC needs. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. It is the world`s leading supplier of MBE equipment. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Debra Wasser, 516/677-0200, ext. 1472
or
Trade Contact:
Jim Trevis, Veeco St. Paul
651/494-5560



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Announces Joint Development Agreement with International SEMATECH for Next-Generation EUV Photomask Technology
Tuesday January 28, 3:39 pm ET
Veeco NEXUS-LDD System Will Be First Tool Installed at UAlbany International SEMATECH North Site


WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 28, 2003-- Veeco Instruments Inc. (Nasdaq: VECO - News) today announced a joint development agreement with International SEMATECH (ISMT) to utilize Veeco`s NEXUS(TM) Low Defect Density (LDD) Ion Beam Deposition (IBD) System for the development of certain advanced manufacturing technologies required to fabricate next generation extreme ultraviolet (EUV) photomask technology.
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As part of the agreement, International SEMATECH (ISMT) has purchased Veeco`s NEXUS(TM) IBD-LDD system. At a press conference in Albany today, New York Governor George E. Pataki announced that Veeco`s system will be the first tool installed ISMT North, the new EUV lithography development center located at Albany NanoTech of the University at Albany-SUNY.

"The R&D work of ISMT has led to important advancements for the entire semiconductor industry, and we are pleased to be collaborating with them to develop technology critical for next generation photomasks," said Edward H. Braun, Veeco`s Chairman and CEO. "We are pleased to partner with Albany NanoTech and ISMT in this important research, and are grateful to Governor Pataki and the State of New York for the significant investments in university research and high technology commercialization."

Manny Lakios, President of Veeco`s NY Process Equipment Group added, "ISMT`s decision to install our NEXUS IBD-LDD in the Albany facility further validates IBD as a viable technology for EUV photomask deposition. The system has demonstrated the ability to provide low defect density deposition as well as the precise control required for such critical work. Veeco`s collaboration with ISMT will help further the commercialization of EUV technology."

Lawrence Livermore National Laboratory, which has a history of developing EUV photomask technology with Veeco`s first generation LDD system, will also join the partnership. This research will enable semiconductor manufacturers to produce semiconductor devices that have geometries of 45 nanometer (or billionths of a meter) and smaller, at least two generations beyond the current 193 nm technology node. Chips made using EUV technology are projected to be as much as 100 times faster and have 1,000 times the memory capacity of today`s most powerful computer chips.

Albany NanoTech is the centerpiece of the $1B high-tech, bio-tech initiative by New York State Governor Pataki to encourage collaboration of high tech industry with New York`s top academic institutions. The ISMT North program in EUV infrastructure will be funded with approximately $320 million combined from ISMT, Albany NanoTech, and New York State. In his January 8th 2003 State of the State address, Governor Pataki cited Veeco as "one of the companies that will benefit from this initiative."

Veeco`s NEXUS IBD-LDD system, based on award-winning technology, was developed specifically for semiconductor photomask applications and features extremely low particulate deposition and precise control of optical properties for single or multi-layer processes. Both are critical for producing advanced photomasks such as Phase Shift masks and EUV masks.

About International SEMATECH:

International SEMATECH (ISMT) is a global semiconductor technology development consortium that has effectively represented the semiconductor manufacturing industry on innovation issues since 1988. Its members are Agere Systems, AMD, Hewlett- Packard, IBM, Infineon, Intel, Motorola, Philips, Texas Instruments and TSMC. ISMT conducts state-of-the-art research and development, and is a highly regarded technology partner whose mission is to promote the interests common to all chipmakers. It has extensive experience collaborating with equipment and materials suppliers, as well as government and academic research centers, to refine the tools and technology necessary to produce future generations of chips. Additional information may be found at www.sematech.org.

About Albany NanoTech:

Albany NanoTech is the umbrella organization that oversees and coordinates UAlbany`s comprehensive portfolio of academic, research, and outreach programs in nanosciences and nanotechnology. It serves as a fully-integrated research, development, prototyping, and technology deployment resource that manages a strategic portfolio of focus centers that encompass nanoelectronics, micro- and nano-mechanical systems, bioelectronics, telecommunications and wireless communications, optical devices and components, leading edge metrology, and sensor-on-a-chip devices for energy, environment, and defense related applications. Albany NanoTech currently maintains a $125M state-of-the-art infrastructure, including laboratory, prototyping and cleanroom facilities, thereby offering students and faculty the most advanced facilities and equipment available today. Its asset value is projected to exceed $500M once the two 300mm wafer facilities are completed. Additional information may be found at www.albanynanotech.org.

About Lawrence Livermore National Laboratory:

Founded in 1952, Lawrence Livermore National Laboratory is a national security laboratory, with a mission to ensure national security and apply science and technology to the important issues of our time. The Lawrence Livermore National Laboratory is managed by the University of California for the U.S. Department of Energy.

About Veeco:

Veeco Instruments Inc. is a worldwide leader in metrology and process equipment tools for the data storage, semiconductor, scientific research and telecom/wireless markets. Manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments, Woodbury
Debra Wasser, 516/677-0200 x1472
or (Trade Contact)
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments

[panik]

Veeco Reports Fourth Quarter and Year-End 2002 Results
Tuesday February 11, 8:04 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 11, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) today announced its financial results for the fourth quarter and year ended December 31, 2002.
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Results were in line with guidance Veeco provided on October 28, 2002. Veeco reports its results on a GAAP basis, and also provides results excluding certain charges. Investors should refer to the attached table for further details of the reconciliation of GAAP (loss) earnings to (loss) earnings excluding certain charges.

Fourth Quarter 2002 Results

Veeco`s sales for the fourth quarter of 2002 were $68.6 million, a 30% decrease from the $97.5 million reported for the fourth quarter of 2001 and a 6% sequential decline from the third quarter of 2002. Metrology sales were $34.2 million in the fourth quarter of 2002 compared to $39.7 million in the fourth quarter of 2001. Veeco`s Process Equipment sales were $34.4 million in the fourth quarter of 2002 compared with $57.8 million in the fourth quarter of 2001. Veeco`s sales by market in the fourth quarter of 2002 were 31% data storage, 15% semiconductor, 10% telecommunications/wireless and 44% scientific research.

Veeco`s bookings for the fourth quarter of 2002 were $71.3 million, up 6% from the $67.0 million reported in the fourth quarter of 2001, and a 3% sequential increase from the third quarter of 2002. Fourth quarter 2002 Metrology bookings were $42.0 million, a 15% increase from the $36.5 million reported in the fourth quarter of 2001. Fourth quarter 2002 Process Equipment bookings were $29.3 million, a decrease of 4% from the $30.5 million reported in the fourth quarter of 2001. The Company`s fourth quarter book-to-bill ratio was 1.04. Veeco`s bookings by market in the fourth quarter were 25% data storage, 21% semiconductor, 12% telecommunications/wireless and 42% scientific research.

In October 2002, Veeco announced a plan designed to reduce its operating costs by approximately $24 million in 2003. The plan included layoffs of approximately 20% of the Company`s employees, primarily in the Process Equipment group, and the closure or reduction of certain facilities. As a result of these actions and due to the continued weakness in the Company`s served markets and the uncertainty of their recovery, the Company has taken a fourth quarter charge totaling $124.0 million, of which $119.5 million does not require future cash outlays. This charge consists of a $15.0 million inventory write-down in the Process Equipment group, due to the rationalization and discontinuance of certain product lines; $2.6 million of severance and business relocation costs as a result of the workforce reduction and the consolidation or elimination of certain facilities; $6.4 million of FEI merger-related expenses (including investment banking, legal, accounting and other expenses related to the merger agreement which was terminated on January 8, 2003); $0.3 million for a prepayment penalty on early extinguishment of debt; and $99.7 million in asset impairment charges, primarily in the Process Equipment group, including $94.4 million of impairment to goodwill, in accordance with Statement of Financial Accounting Standard ("SFAS") No. 142. The Company concluded that the goodwill arising from the Applied Epi acquisition, which took place in September 2001, was significantly impaired due to the severe and continued weakness in the telecommunications/wireless industry and the uncertainty of recovery. In addition to the goodwill impairment, asset impairment charges also include $3.5 million for the impairment of two buildings, and $1.8 million for the impairment of other fixed assets.

On a GAAP basis including the above described charges Veeco incurred an operating loss of $130.6 million for the fourth quarter of 2002, compared to an operating loss of $19.5 million in the fourth quarter of 2001. Excluding the above-mentioned fourth quarter charges of $124.0 million, Veeco`s fourth quarter 2002 earnings before interest, taxes and amortization (EBITA) was a loss of $3.4 million compared to EBITA of $5.7 million for the fourth quarter of 2001, which also excludes restructuring charges.

Veeco`s fourth quarter 2002 net loss was $116.5 million (($4.00) per share) compared to net loss of $14.4 million (($0.50) per share) in the fourth quarter of 2001. (Loss) earnings excluding certain charges per share for the fourth quarter of 2002 was ($0.11) compared to $0.11 per diluted share in the fourth quarter of 2001. Veeco`s guidance was for the loss excluding certain charges to be between ($0.10-0.15) per share.

Veeco had positive cash flow of approximately $6.6 million in the fourth quarter of 2002.

Year-End 2002 Results

Veeco`s sales for 2002 were $298.9 million, a decrease of 33% from the $449.3 million reported for 2001. Metrology sales were $152.2 million in 2002 compared to $172.0 million in 2001. Veeco`s Process Equipment sales were $146.7 million in 2002 compared with $277.3 million in 2001. Veeco`s sales by market in 2002 consisted of 32% data storage, 13% semiconductor, 15% telecommunications/wireless, and 40% scientific research.

Veeco`s 2002 bookings were $289.1 million compared to $318.9 million reported in 2001. Metrology bookings in 2002 were $154.1 million compared to $145.0 million in 2001. Process Equipment bookings in 2002 were $135.0 million compared with $173.9 million in 2001. The Company`s book-to-bill ratio for 2002 was 0.97. Veeco`s bookings by market in 2002 consisted of 30% data storage, 16% semiconductor, 14% telecommunications/wireless and 40% scientific research.

Veeco reported an operating loss of $137.9 million in 2002, compared to operating income of $20.3 million in 2001. Excluding the above-mentioned fourth quarter charges of $124.0 million, as well as restructuring expenses of $2.0 million incurred during the first nine months of 2002, Veeco`s EBITA for 2002 was $1.3 million compared to $58.0 million in 2001. Veeco`s net loss for 2002 was $123.7 million (($4.25) per share) compared to net income of $10.3 million ($0.39 per diluted share) in 2001. (Loss) earnings excluding certain charges per share for 2002 was ($0.10) per share compared with $1.44 per diluted share in 2001.

Management Review of Results

Edward H. Braun, Veeco`s Chairman, President and Chief Executive Officer commented, "The fourth quarter remained challenging as weak industry conditions persisted; and we implemented previously described significant cost reduction programs. Despite difficult market conditions, we met our fourth quarter guidance, and positioned ourselves to be profitable on an EBITA basis in the first quarter. We are encouraged that our fourth quarter orders exceeded our guidance, and were up 3% on a sequential basis from prior quarter and up 6% from the fourth quarter of 2001; reflecting market stabilization across our key served markets. Fourth quarter orders reflected sequential growth in semiconductor (up 44%) and telecommunications/wireless (up 10%) sectors. We are hopeful that the worst is behind us, but continue to see uncertainty in the timing of an end market recovery. Veeco`s customers are placing emphasis on purchases of `must have next-generation technology` and our priority is to ensure that our new product development roadmaps are aligned with customer requirements."

Mr. Braun continued, "We are pleased with the performance of our Metrology group in 2002, which remained profitable despite an 11% decline in revenue. Metrology orders increased 6% in 2002 driven largely by increased use of our atomic force microscope (AFM) products in both the scientific research sector and as a critical semiconductor metrology tool. Low semiconductor yields in 300mm and 0.13um feature size applications continue to drive AFM technology buys for etch, CMP and lithography applications despite a weak capital funding environment. In addition, our Metrology group has an aggressive new AFM/SPM product launch campaign for scientific research and nanotechnology applications scheduled for 2003 to allow further Veeco growth in this sector."

"Our Process Equipment group had a very difficult 2002 due to the severe downturn in data storage and telecommunications/wireless capital spending," added Mr. Braun. "Process Equipment, responsible for the majority of the cost reduction actions, is now poised for an improvement in earnings in 2003 based upon a leaner operating structure and new ion beam deposition, ion beam etch and physical vapor deposition product launches aligned to 80 and 120Gb technology advances in data storage."

Mr. Braun concluded, "Our Process Equipment Group recently announced a joint development agreement with International Sematech for Next Generation EUV Photomask Technology, which includes the purchase of a Veeco IBD tool for approximately $4 million to be the first system delivered to Sematech North (University of Albany`s new Nanotechnology Center).

Veeco`s Outlook

Mr. Braun commented, "Considering the continued economic uncertainty and weak capex environment, we remain focused on overall cost reductions and delivering improved earnings in 2003. We will continue to invest in our core leadership products to meet our customers` next generation product roadmaps. We are optimistic about Veeco`s positioning for a recovery in our end markets."

Veeco currently forecasts that first quarter 2003 bookings will be approximately flat compared to the fourth quarter of 2002, in the range of $67-71 million. Veeco currently estimates that first quarter 2003 sales will be in the range of $60 - $65 million, and that it will lose between ($0.07) and ($0.09) per share on a GAAP basis and earn between $0.00 and $0.02 per share excluding amortization of $3.2 million and certain charges of approximately $1.0 million, using a 35% tax rate.

Investor Conference Call/ Webcast

Veeco will host an investor conference call this morning, Tuesday, February 11, at 10 am EST to review these fourth quarter results. You may listen to the call live at 1-800-818-5264 or through an audio webcast at http://www.veeco.com (Investor Information).

This call will be archived for future reference. A telephonic playback of the conference call will also be available starting this afternoon at 888-203-1112 or 719-457-0820 code 524029 or on the Veeco website.

About Veeco

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K Annual Report to Shareholders, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.

Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

Quarter Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
---------------------- --------------------

Net sales $68,644 $97,494 $298,885 $449,251
Cost of sales 56,086 70,600 183,042 260,148
---------------------- --------------------
Gross profit 12,558 26,894 115,843 189,103

Costs and expenses:
Selling, general and
administrative expense 18,494 19,717 75,899 82,426
Research and development
expense 12,717 14,956 53,889 59,722
Amortization expense 3,207 6,113 13,323 9,469
Other (income) expense,
net (228) 100 (284) 2,497
Asset impairment charge 99,663 3,418 99,663 3,418
Merger and restructuring
expense 9,278 2,046 11,248 3,046
Write-off of purchased
in-process technology - - - 8,200
---------------------- --------------------

Operating (loss) income (130,573) (19,456) (137,895) 20,325

Interest expense
(income), net 1,651 850 6,002 (577)
---------------------- --------------------

(Loss) income before
income taxes from
continuing operations (132,224) (20,306) (143,897) 20,902

Income tax (benefit)
provision (15,693) (9,300) (20,513) 6,020
---------------------- --------------------

Net (loss) income from
continuing operations (116,531) (11,006) (123,384) 14,882

Discontinued operations:
Loss from operations,
net of taxes - (1,283) - (2,450)
Loss on disposal,
net of taxes - (2,123) (346) (2,123)
---------------------- --------------------
Loss from discontinued
operations - (3,406) (346) (4,573)
---------------------- --------------------
Net (loss) income $ (116,531) $ (14,412) $(123,730) $10,309
====================== ===================


Net (loss) income per
common share from
continuing operations $ (4.00) $ (0.38) $ (4.24) $ 0.57
Loss from discontinued
operations - (0.12) (0.01) (0.17)
---------------------- --------------------
Net (loss) income per
common share $ (4.00) $ (0.50) $ (4.25) $ 0.40
====================== ===================


Diluted net (loss)
income per common share
from continuing
operations $ (4.00) $ (0.38) $ (4.24) $ 0.56
Loss from discontinued
operations - (0.12) (0.01) (0.17)
---------------------- --------------------
Diluted net (loss)
income per common share $ (4.00) $ (0.50) $ (4.25) $ 0.39
====================== ===================

Weighted average shares
outstanding 29,142 28,853 29,096 25,937
Diluted weighted average
shares outstanding 29,142 28,853 29,096 26,355




Veeco Instruments Inc.
Reconciliation of GAAP (loss) earnings to (loss) earnings excluding
certain charges
(In thousands, except per share data)

Quarter Year
Ended Ended
December 31, December 31,
2002 2001 2002 2001
------------ -------- ------------ --------

Operating (loss)
income (130,573) (19,456) (137,895) 20,325

Adjustments:

Amortization expense 3,207 6,113 13,323 9,469

Asset impairment
charge 99,663 (1) 3,418 (2) 99,663 (1) 3,418 (2)

Write-off of
inventory 15,000 (3) 13,547 (3) 15,000 (3) 13,547 (3)

Merger and
restructuring
expense 9,278 (4) 2,046 (5) 11,248 (6) 3,046 (7)

Write-off of
purchased in-process
technology - - - 8,200
--------- -------- --------- --------

(Loss) earnings
excluding certain
charges before
interest and income
taxes ("EBITA") (3,425) 5,668 1,339 58,005

Interest expense
(income), net 1,651 850 6,002 (577)

(Loss) earnings
excluding certain
charges
before income taxes (5,076) 4,818 (4,663) 58,582
--------- -------- --------- --------

Income tax (benefit)
provision at 35% (1,777) 1,686 (1,632) 20,504
--------- -------- --------- --------

(Loss) earnings
excluding certain
charges ($3,299) $3,132 ($3,031) $38,078
========= ======== ========= ========

(Loss) earnings
excluding certain
charges per share ($0.11) $0.11 ($0.10) $1.44

Diluted weighted
average shares
outstanding 29,142 29,272 29,096 26,355


(1) The $99.7 million asset impairment charge for 2002 is comprised of
a $94.4 million write-down of goodwill, a $3.5 million write-down
of buildings available for sale and a $1.8 million write-off of
other fixed assets.

(2) The $3.4 million asset impairment charge in 2001 is comprised of a
$2.5 million write-off of goodwill and a $0.9 million write-off of
other fixed assets.

(3) The write-off of inventory is included in cost of sales in the
Consolidated Statements of Operations.

(4) The $9.3 million merger and restructuring charge in the fourth
quarter of 2002 is comprised of a $6.4 million write-off of costs
associated with the terminated FEI merger agreement, $2.6 million
of severance and business relocation costs and $0.3 million of
prepayment penalty on the early extinguishment of debt.

(5) The $2.0 million merger and restructuring charge in the fourth
quarter of 2001 is comprised of severance and business relocation
costs.

(6) The $11.2 million merger and restructuring charge for the year
ended December 31, 2002 is comprised of a $6.4 million write-off
of costs associated with the terminated FEI merger agreement, $5.4
million of severance and business relocation costs and $0.3
million of prepayment penalty on the early extinguishment of debt,
partially off-set by a $0.9 million gain from the settlement of a
post- retirement benefit plan.

(7) The $3.0 million merger and restructuring charge in 2001 is
comprised of severance and business relocation costs.

NOTE - The above reconciliation is intended to present Veeco`s
operating results, excluding certain charges and related (benefit)
provision for income taxes. This reconciliation is not in
accordance with, or an alternative method for, generally accepted
accounting principles, and may be different from similar measures
presented by other companies. Management of the Company evaluates
performance of its business units based on EBITA and thus believes
that the presentation of this financial measure provides useful
information.


Veeco Instruments Inc.
Condensed Consolidated Balance Sheets
(In thousands)

December 31, December 31,
2002 2001
-------- --------

ASSETS
Current assets:
Cash and cash equivalents $214,295 $203,154
Accounts receivable, net 68,777 88,449
Inventories 86,250 102,103
Other current assets 49,941 68,784
-------- --------

Total current assets 419,263 462,490

Property, plant and equipment, net 55,872 78,547
Excess of cost over net assets acquired, net 30,658 125,585
Other assets, net 101,025 88,897
-------- --------

Total assets $606,818 $755,519
======== ========

LIABILITIES AND SHAREHOLDERS` EQUITY
Other current liabilities $62,191 $89,901
Deferred gross profit 5,966 14,566
-------- --------

Current liabilities 68,157 104,467

Long-term liabilities 231,088 227,081

Shareholders` equity 307,573 423,971
-------- --------

Total liabilities and shareholders` equity $606,818 $755,519
======== ========



--------------------------------------------------------------------------------
Contact:
Veeco Instruments
Financial Contact:
Debra Wasser, 516/677-0200 x1472
or
Trade Contact:
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Announces PVD Joint Technology Development Efforts With Two Japanese Customers for Next-Generation Thin Film Magnetic Heads
Tuesday February 11, 8:06 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 11, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) today announced that it has entered into joint technology development efforts with two Japanese manufacturers of thin film magnetic heads focused on advanced giant magneto-resistive (GMR) and tunneling magneto-resistive (TMR) sensor development.
The joint development efforts include the purchase of two NEXUS® Physical Vapor Deposition (PVD) systems.

"Veeco will work with these customers to develop their next-generation GMR/TMR thin film heads, and to extend areal densities beyond 120 Gb/in2," commented Edward H. Braun, Chairman, CEO and President of Veeco. "Veeco is uniquely positioned to provide our data storage customers with the industry`s broadest line of etch, deposition and metrology products, combined with worldwide service and support." Data storage market research firm Peripheral Research forecasts a 7% growth in 2003 in thin film magnetic head demand following a decline in 2002.

Veeco NY Process Equipment Group President Emmanuel N. Lakios said, "Veeco is collaborating with our customers to optimize sensor performance for their next generation of GMR/TMR heads. Veeco`s PVD offering is unique because it bridges the development of multiple generations of GMR sensors." Veeco has the largest installed base of GMR sensor tools.

About Veeco

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K Annual Report to Shareholders, subsequent Quarterly Reports on Form 10-Q and Form 8-K .



--------------------------------------------------------------------------------
Contact:
Veeco Instruments
Financial Contact:
Debra Wasser, 516/677-0200, x1472
or
Trade Contact:
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Leading Maskmakers Choose Veeco`s Dimension X3D Photomask Metrology Tool
Tuesday February 11, 8:06 am ET
Japan`s Selete Organization Among Early X3D Adopters for Photomask Metrology


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 11, 2003--Veeco Instruments Inc. (Nasdaq:VECO - News) has received three new orders for its Dimension X3D(TM) automated atomic force microscope (AFM) from two leading Japanese photomask manufacturers as well as Selete, the Japanese semiconductor consortium.
ADVERTISEMENT



The Dimension X3D is a non-destructive, high-resolution AFM that provides three-dimensional, critical dimension (CD) metrology and defect review imaging capability that mask makers require to produce new generations of photomasks.

"The complexity of manufacturing photomasks for high-volume manufacturing has increased dramatically as mask manufacturers incorporate more resolution enhancement techniques, such as alternating aperture phase-shifting, to support shrinking feature size. In addition, the need to produce `zero defect` photomasks as the critical defect size shrinks with the feature size becomes increasingly imperative," said Don Kania, Ph.D., President of Veeco Metrology. "This is where we expect Veeco`s three-dimensional AFM metrology to have the most impact. The Dimension X3D gives photomask manufacturers repeatable, high-resolution, three-dimensional, CD metrology with defect review results they simply can`t achieve with conventional optical or CD-SEM approaches."

Tool shipments will begin in the first quarter of 2003. Selete will use the Dimension X3D as part of its advanced photolithography program.

Veeco`s Dimension X3D brings the company`s metrology leadership in CMP, etch and lithography to bear on advanced photomask applications. Market researchers expect that the cost of a complete mask set for a single IC design will grow to exceed $1 million in the next few years as mask manufacturers increase their adoption of phase-shift masks and other resolution enhancement techniques. The X3D uses proprietary CD-AFM metrology to provide unique and critical information for mask manufacturing, including sidewall profiles, undercuts, CD and depth metrology, and linewidth variation. Offering the highest available repeatability and resolution, the system enables non-destructive measurement of submicron holes, lines and spaces, all with no sample preparation. The X3D`s high-resolution imaging also provides automated defect review capability by importing defect review files from optical tools for detailed surface analysis.

About Selete

Selete (www.selete.co.jp) is a consortium of 11 Japanese companies, with a mission of developing advanced semiconductor process technologies.

About Veeco

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

Veeco Metrology supports the semiconductor industry`s leading chipmakers, equipment suppliers and consortiums with its line of automated atomic force microscopes, stylus profilers and atomic force profilers. Veeco was the first company to fully automate an AFM system for in-fab semiconductor metrology, and continues to build on this heritage by developing advanced metrology techniques to help customers reduce costs, improve yields and enhance product quality. Semiconductor metrology applications laboratories and training facilities are located in Santa Barbara, California; Tokyo; Hsinchu, Taiwan; and Dresden, Germany.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K Annual Report to Shareholders, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Deb Wasser (financial), 516/677-0200
Fax: [phone]
E-mail: [e-mail]
or
Veeco Metrology
Joan Horwitz (trade), 805/967-2700, ext. 2476
Fax: [phone]
E-mail: [e-mail]
or
Loomis Group
Dylan McGrath, 415/882-9494
Fax: [phone]
E-mail: [e-mail]



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Announces Over $5M in Orders On New NEXUS Ion Beam Deposition System
Thursday February 13, 8:08 am ET
New System Significantly Increases Yield on Advanced Thin Film Heads


PLAINVIEW, N.Y.--(BUSINESS WIRE)--Feb. 13, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) today announced that it has introduced the new NEXUS® Ion Beam Deposition (IBD) System for advanced giant magneto-resistive (GMR) and tunneling magneto-resistive (TMR) thin film head manufacturing, specially designed to meet the demands of hard bias applications.
Veeco has received three orders for the new system from leading thin film head manufacturers totaling over $5 million. These systems are scheduled to ship to customers beginning this quarter. "As areal densities continue to increase, manufacturing processes have had to improve to keep up with tighter track width requirements. This next generation IBD tool has been created to improve manufacturing yields of thin film head designs for 80 Gb /in2 technology and beyond, " Veeco NY Process Equipment Group President Emmanuel N. Lakios said.

"The NEXUS design offers customers a cost of ownership advantage because its process modules are compatible with the installed base of Veeco deposition and etch cluster tools in the field," Lakios continued. "The NEXUS IBD tool is another member of the plug & play family of Veeco tools that can be interchanged with existing hardware. That flexibility allows our customers to minimize downtime and the learning curve associated with unfamiliar equipment, and maximize use of their existing capital assets."

The system can deposit as many as six different materials on multi-layer stacks. Its unique design provides improved symmetry and uniformity for GMR hard bias and exchange tab processes.

Veeco Instruments Inc. is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K Annual Report to Shareholders, subsequent Quarterly Reports on Form 10-Q and Form 8-K.

NOTE TO MEDIA: A photo is available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.021303/bb4



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Financial Contact:
Debra Wasser, 516/677-0200, ext. 1472
or
Trade Contact:
Fran Brennen, 516/677-0200, ext. 1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[carllito]

Veeco Receives Second Multi-Million Dollar Order in Two Months for GEN2000 MBE System for Wireless Applications
Thursday February 27, 6:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 27, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) announced today that it has received a U.S. order for a GEN2000(TM) molecular beam epitaxy (MBE) system.
This is the second multi-million dollar order Veeco has received for this system in the last two months.

"This second order in two months reflects the growing strength in the wireless telecom market," said Marlin Braun, General Manager, Veeco MBE group. "We`re pleased that customers are selecting Veeco`s high-volume MBE production systems for their capacity buys."

The 7x6" wafer GEN2000 will be used to manufacture compound semiconductors for power amplifiers and radio frequency integrated circuits (RFICs) used in wireless handsets and wireless local area networks (WLANs). Market research firm Forward Concepts estimates that the WLAN chip market will grow at a 50% compounded annual growth rate over the next five years. The GEN2000 incorporates cluster tool wafer handling architecture long proven in the silicon industry. This innovative design enables the GEN2000 system to deliver higher throughput, longer system uptime and lower costs per wafer, in a footprint 50% less, than comparable MBE systems.

Veeco Instruments Inc. (NASDAQ:VECO - News) is a worldwide leader in metrology tools and process equipment for the semiconductor, data storage, telecommunications/wireless, and scientific research markets. It is the world`s leading supplier of MBE equipment. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Financial:
Debra Wasser
516/677-0200, x1472
or
Veeco St. Paul
Trade:
Jim Trevis
651/494-5560



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Reuters
UPDATE - INTERVIEW-Veeco says to return to black in 2003
Wednesday March 12, 4:31 am ET
By Lee Chyen Yee


(Adds quotes, China expectations)
SHANGHAI, March 12 (Reuters) - U.S. chip equipment maker Veeco Instruments Inc (NasdaqNM:VECO - News) said on Wednesday it expects to bounce back to profitability in 2003 after seeing a full-year net loss of $123.73 million in 2002.

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China will remain Veeco`s fastest-growing region with its nascent -- but potentially huge -- chipmaking industry, said Veeco`s chairman and chief executive officer Edward Braun.

China might make up 20 percent of global revenues in five years time, from less than 10 percent now, he said.

"We expect to be profitable for the year of 2003," Braun said, referring to net profit.

"From a regional point of view, China is the fastest growing region in 2002 and I think that will be repeated again in 2003," he told Reuters in a telephone interview.

In February, Veeco provided guidance for its first quarter, saying it saw sales of $60 million to $65 million and a loss of seven cents to nine cents per share for the period. Excluding items, it expects to earn zero to two cents per share.

Braun reaffirmed that guidance on Wednesday, though he qualified it by saying he expected improvement in coming quarters on the back of a global cost-cutting drive.

"As the industry has consolidated in the last year or two, Veeco, in reaction to that, has reduced its overall worldwide spending, with a goal of being profitable in every quarter in 2003," he said.

New York-listed shares of Veeco, which makes tools and equipment for the semiconductor, data storage, telecommunication industries, closed 2.2 percent lower at $14.64 on Tuesday.

STRONG CHINA GROWTH

Veeco posted a wider net loss in the fourth quarter of 2002 due to sharply lower sales and a hefty restructuring charge associated with job cuts, inventory write-down and other items.

It posted a loss of $116.5 million, or $4.00 per share, including the $124 million charge, in the fourth quarter ended December 31, 2002.

"We think that all of the reductions and spendings and cuts are behind us," said Braun, who was in Shanghai to open a Veeco office to support orders from China.

For instance, Braun said Veeco had struck a deal recently to sell a small amount of equipment to Taiwan-backed foundry Semiconductor Manufacturing International Corp in Shanghai.

Like many industry executives, Braun regards China as a bright spot amid a gloomy global chip sector.

He expected Veeco`s business in China to grow strongly in coming years after posting 20 to 50 percent growth in sales over the past few years. Braun expected Veeco`s China revenues to hit $18 million in 2003.

"For this 20-50 percent annual growth rate to continue, the infrastructure within China and the consumer demand has to rise so that China is not purely a very successful exporter, but a consumer of these electronics as well," said Braun.

[carllito]

International SEMATECH Installs Veeco`s Dimension X3D Automated Atomic Force Microscope
Thursday April 3, 6:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--April 3, 2003--Veeco Instruments, Inc. (Nasdaq:VECO - News) today announced that International SEMATECH has installed its new Dimension X3D in-line, 3-D lithography Atomic Force Microscope (AFM) metrology tool for advanced process development and high-volume semiconductor manufacturing.
International SEMATECH`s Lithography and Metrology Divisions will use the Dimension X3D to characterize 90nm and smaller device features in photolithography and etch applications, including photomask metrology.

"The development programs conducted by International SEMATECH, enabled by the Dimension X3D`s 3D metrology capability, have important ramifications for the entire semiconductor industry," said Don Kania, Ph.D., President of Veeco Instruments. "The Dimension X3D will make possible the difficult task of etch control for gate, shallow trench isolation (STI) and other advanced structures where dimensional control is of increasing importance."

"One of the industry`s greatest challenges is to accelerate the development cycle for new processes and technologies supporting sub-wavelength and next-generation lithography," said Ron Remke, International SEMATECH`s associate director of manufacturing methods & productivity and metrology program manager. "To meet the challenge, it`s clear that the industry must have next-generation, state-of-the-art metrology systems."

With the Dimension X3D, users can take three-dimensional (x, y and z) in-line measurements of nanometer-scale critical dimensions (CD), such as shallow trench isolation structures on wafers and optical proximity correction features in photomasks. The gauge-capable tool produces highly repeatable results, enabling exceptional process control in advanced technology nodes. The system leverages Veeco`s expertise in AFM scanning probe technology, widely used throughout the chip industry for nondestructive measurement and control of device features and test structures.

The Dimension X3D is the newest system in Veeco`s line of nondestructive AFM metrology tools. The system complements Veeco`s industry-renowned expertise in CMP applications, and extends the company`s metrology leadership into the lithography, etch and photomask arenas.

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments, Inc., Woodbury
Debra Wasser (investors), 516/677-0200 x1472
or
Fran Brennen (marketing), 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments, Inc.

[proFEiT]

Konstruktionsfehler beim AFM/RKM?
Der australische Mathematiker Dr John Sader von der "University of Melbourne" berichtet, daß die V-förmige Blattfeder bei einem AFM/RKM nicht in der Lage sei, die erforderlichen und gewünschten Ergebnisse zu liefern. So sei offenbar ein Überdenken des Konstruktionsprinzips von Rasterkraft-Mikroskopen notwendig. Seine Arbeit wird in der Aprilausgabe von "Review of Scientific Instruments" veröffentlicht und berührt grundlegend 15 Jahre akzeptierter technischer Annahmen.
Quelle: "University of Melbourne, Department of Mathematics and Statistics, and Particulate Fluids". http://uninews.unimelb.edu.au/0006_1_1.php?article=414

[rechner]

was kann das bedeuten?

Hohe Kosten für neue Entwicklung und anschließend satte Umsätze?

rechner

[panik]

Veeco Reports First Quarter 2003 Results
Monday April 28, 7:02 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--April 28, 2003--Veeco Instruments Inc. (NASDAQ:VECO - News) today announced its financial results for the first quarter ended March 31, 2003.
ADVERTISEMENT


Results were above quarterly guidance provided by Veeco on February 11, 2003. Veeco reports its results on a GAAP basis, and also provides results excluding certain charges. Investors should refer to the attached table for further details of the reconciliation of GAAP (loss) earnings to earnings excluding certain charges.

First Quarter 2003 Results

Veeco`s sales for the first quarter of 2003 were $65.8 million, an 18% decrease from the $80.1 million reported for the first quarter of 2002 and a 4% sequential decline from the fourth quarter of 2002. Metrology sales were $36.2 million in the first quarter of 2003 compared to $35.3 million in the first quarter of 2002. Veeco`s Process Equipment sales were $29.6 million in the first quarter of 2003 compared with $44.8 million in the first quarter of 2002. Veeco`s sales by market in the first quarter of 2003 were 29% data storage, 17% semiconductor, 10% telecommunications/wireless and 44% scientific research.

Veeco`s bookings for the first quarter of 2003 were $72.7 million, up 4% from the $70.2 million reported in the first quarter of 2002, and a 2% sequential increase from the fourth quarter of 2002. First quarter 2003 Metrology bookings were $34.4 million, an 8% increase from the $31.8 million reported in the first quarter of 2002. First quarter 2003 Process Equipment bookings were $38.3 million, flat compared to the $38.4 million reported in the first quarter of 2002. Veeco`s bookings by market in the first quarter were 41% data storage, 16% semiconductor, 14% telecommunications/wireless and 29% scientific research. The Company`s first quarter book-to-bill ratio was 1.11.

Veeco incurred an operating loss of $0.8 million in the first quarter of 2003, compared to an operating loss of $3.3 million in the first quarter of 2002. Excluding $0.7 million in first-quarter restructuring charges, primarily severance, Veeco`s first quarter 2003 earnings before interest, taxes and amortization (EBITA) was $3.0 million compared to EBITA of $1.3 million for the first quarter of 2002, which also excludes restructuring charges.

Veeco`s first quarter 2003 net loss was $1.7 million (($0.06) per share) compared to a net loss of $3.5 million (($0.12) per share) in the first quarter of 2002. Excluding certain charges, first quarter 2003 earnings per diluted share was $0.03 compared to $0.00 per diluted share in the first quarter of 2002. Veeco`s guidance was for first quarter 2003 net income excluding certain charges to be between $0.00-0.02 per diluted share.

Management Review of Results

Edward H. Braun, Veeco`s Chairman and Chief Executive Officer commented, "Despite continued worldwide economic uncertainty, Veeco`s order trend (+2% quarter over quarter; +4% year over year) indicates both improved stability in our served markets and a continued demand for our enabling technology products. We are pleased to report that Veeco`s bookings, revenues and earnings were above our guidance. We have met our plan to be profitable in both Process Equipment and Metrology on an EBITA basis in the first quarter of 2003 as a result of our cost-reduction actions. We currently expect to achieve GAAP profitability by year-end."

Mr. Braun continued, "Veeco`s bookings of $72.7 million indicate continued stabilization of our overall business, a validation that our diversification strategy often counteracts individual market volatility and cyclicality. Data storage orders increased 67% sequentially, as customers proceed with their 80GB platter programs. Our telecom/wireless business reported improved bookings (up 25% sequentially) tied to development of wireless fidelity (WiFi) and next-generation cell phone applications. While semiconductor orders decreased sequentially (down 21%), our customers made select AFM technology buys for advanced etch, CMP and lithography applications for 0.13(mu) feature sizes. Scientific research bookings were down 31% sequentially related to seasonality in governmental budget cycles.

"Veeco`s cost reduction efforts greatly improved our profitability in the first quarter. EBITA increased $6.4 million sequentially, despite reduced revenue, as a result of significantly improved gross margins and reduced operating spending. Gross margins improved to 47.4% in the first quarter of 2003 from 40.1% (excluding Q4 inventory write-off) in the fourth quarter of 2002," Mr. Braun commented.

Mr. Braun concluded, "Customer interest in Veeco`s new Process Equipment and Metrology systems has been strong, in particular our data storage Ion Beam Deposition (IBD) systems and our Dimension X3D AFMs for semiconductor photomask applications."

Veeco`s Outlook

Mr. Braun commented, "Despite the continued worldwide uncertainty and weak capex environment, Veeco remains focused on delivering improved earnings in 2003. Our diversification of markets and new product strategy should continue to help Veeco in these challenging times. Our positive book-to-bill ratio for the last two quarters should translate into increased revenues as we go forward in 2003. We will continue to implement our cost reduction program while investing in Veeco`s core leadership products to meet our customers` next-generation product roadmaps."

Veeco currently forecasts that second quarter 2003 bookings will be in the range of $68-$73 million. Veeco currently estimates that second quarter 2003 sales will be in the range of $64-$67 million, and that it will lose between ($0.07 and $0.04) per share on a GAAP basis. Veeco currently estimates that it will earn between $0.01 and $0.04 per share excluding amortization of $3.1 million and charges of approximately $700,000 (principally severance related to the Company`s fourth quarter 2002 restructuring initiatives), using a 35% tax rate.

Investor Conference Call/ Webcast

Veeco will host an investor conference call this morning, April 28, at 10 am ET to review these first quarter results. You may listen to the call live at 1-800-289-0518 or through an audio webcast at http://www.veeco.com (Investor Information). This call will be archived for future reference. A telephonic playback of the conference call will also be available starting this afternoon at 888-203-1112 or 719-457-0820 code 524029 or on the Veeco website.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.

-0-

Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

Three months ended March 31
(Unaudited)
2003 2002
------------------------------
Net sales $65,779 $80,149
Cost of sales 34,573 46,414
------------------------------
Gross profit 31,206 33,735

Costs and expenses:
Selling, general and administrative expense 17,585 19,037
Research and development expense 11,488 13,329
Amortization expense 3,142 3,747
Other (income) expense, net (873) 49
Restructuring expense 668 837
------------------------------

Operating loss (804) (3,264)
Interest expense, net 1,767 1,486
------------------------------
Loss before income taxes from continuing
operations (2,571) (4,750)
Income tax benefit (874) (1,598)
------------------------------

Net loss from continuing operations (1,697) (3,152)
Loss from discontinued operations - (346)
------------------------------
Net loss ($1,697) ($3,498)
==============================
Net loss per common share from
continuing operations ($0.06) ($0.11)
Loss from discontinued operations - (0.01)
------------------------------
Net loss per common share ($0.06) ($0.12)
==============================
Diluted net loss per common share
from continuing operations ($0.06) ($0.11)
Loss from discontinued operations - (0.01)
------------------------------
Diluted net loss per common share ($0.06) ($0.12)
==============================

Weighted average shares outstanding 29,224 29,021
Diluted weighted average shares
outstanding 29,224 29,021

-0-

Veeco Instruments Inc.
Reconciliation of GAAP (loss) earnings to earnings
(loss) excluding certain charges
(In thousands, except per share data)

Three months ended March 31
Unaudited
2003 2002
-------------------------------
Operating loss ($804) ($3,264)
Adjustments:
Amortization expense 3,142 3,747
Restructuring expense 668 837
--------------- ---------------
Earnings excluding certain charges
before interest and income taxes ("EBITA") 3,006 1,320
Interest expense, net 1,767 1,486
--------------- ---------------
Earnings (loss) excluding certain
charges before income taxes 1,239 (166)
Income tax provision (benefit) at 35% 434 (58)
--------------- ---------------
Earnings (loss) excluding certain
charges $805 ($108)
=============== ===============
Earnings (loss) excluding certain
charges per diluted share $0.03 ($0.00)
Diluted weighted average shares
outstanding 29,384 29,021


NOTE - The above reconciliation is intended to present Veeco`s
operating results, excluding certain charges and related
provision (benefit) for income taxes. This reconciliation is not in
accordance with, or an alternative method for, generally
accepted accounting principles, and may be different from similar
measures presented by other companies. Management
of the Company evaluates performance of its business units based on
EBITA and thus believes that the presentation
of this financial measure provides
useful information.

-0-

Veeco Instruments Inc.
Condensed Consolidated Balance
Sheets
(In thousands)


March 31, 2003 December 31, 2002
(Unaudited)
---------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $208,561 $214,295
Accounts receivable, net 74,840 68,777
Inventories 88,636 86,250
Prepaid expenses and other
current assets 17,187 18,392
Deferred income taxes 35,370 31,549
---------------- -----------------
Total current assets 424,594 419,263

Property, plant and equipment, net 55,021 55,872
Goodwill 30,658 30,658
Long-term investments 17,620 17,483
Deferred income taxes 28,078 28,888
Other assets, net 51,709 54,654
---------------- -----------------
Total assets $607,680 $606,818
================ =================

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Accounts payable $17,867 $13,078
Accrued expenses 45,901 44,993
Deferred profit 2,082 5,966
Current portion of long-term debt 319 312
Income taxes payable 4,873 3,808
---------------- -----------------
Total current liabilities 71,042 68,157

Long-term debt 230,187 230,273
Other non-current liabilities 871 815
---------------- -----------------
Total non-current liabilities 231,058 231,088

Shareholders` equity 305,580 307,573
---------------- -----------------
Total liabilities and shareholders`
equity $607,680 $606,818
================ =================



--------------------------------------------------------------------------------
Contact:
IR & Corp. Comm.
Financial Contact:
Debra Wasser, 516/677-0200, x1472
Trade Contact:
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Purchases Atomic Force Microscope Probe Technology
Thursday June 5, 9:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--June 5, 2003--Veeco Instruments Inc. (Nasdaq: VECO - News) today announced that it has purchased the atomic force microscope (AFM) probe business of NanoDevices Incorporated, based in Santa Barbara, CA. Terms of the transaction were not disclosed.
Don Kania, Ph.D., President of Veeco, commented, "This strategic technology acquisition will help Veeco provide its customers with probes designed specifically to maximize the performance of Veeco`s AFMs, and will accelerate our development of new AFM products where innovative probe technology can be the critical element."

Stephen Minne, President of NanoDevices, added, "Veeco has been an important partner for NanoDevices since our founding in 1998, and this acquisition is a natural next step for both sides. By aligning our probe R&D with Veeco`s instrument development, we will bring new and novel systems to market quicker, benefiting our research customers."

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

About NanoDevices

NanoDevices, Inc. was established in 1998 to provide the tools for advanced research and development in nanotechnology. NanoDevices supplies the industry`s most advanced probes in Atomic Force Microscopy as well as a range of calibration artifacts for the nanometer scale. Additional information on NanoDevices can be found at http://www.nanodevices.com.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K .



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Financial Contact:
Debra Wasser, 516/677-0200, x1472
or
Trade Contact:
Fran Brennen, 516/677-0200 x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[panik]

Veeco Receives Order for New MEMS Metrology Tool
Friday July 11, 6:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--July 11, 2003--Veeco Instruments Inc. (Nasdaq:VECO - News) today announced the first sale of its Wyko® MEMS8500(TM) Automated Optical Profiler for high-volume, production measurement of micro-manufactured components on 200mm (8 inch) wafers. The approximately $1.0 million order follows the customer`s purchase of a similar system for 6-inch wafers. The MEMS8500 will be used for in-line 3D surface topography measurement of MEMS (Micro Electro Mechanical Systems).
"The MEMS8500 is the result of Veeco`s expanded investment into MEMS metrology and process equipment solutions," said Anthony Martinez, VP and GM of Veeco Optical and Industrial Metrology. "Veeco has partnered with MEMS manufacturers since the development of the first accelerometers and sensors. As more MEMS devices reach high-volume production, Veeco is continuing to develop reliable, high-speed systems that help manufacturers achieve their yield and cost goals."

Veeco`s MEMS8500 combines the speed, accuracy, range and repeatability of optical profiling with an innovative, automated wafer handling system. The instrument`s unique ability to self-calibrate during each measurement is critical to maintaining accuracy and up-time in this high volume application. Its edge-gripping, vacuum-less handling system supports slotted and unslotted wafers and protects the features patterned on both sides of the wafer.

The MEMS8500 is aligned to the MEMS industry`s road map for high volume, high yield MEMS production. From initial prototype verification, to in-line wafer process control, to dynamic testing of packaged devices, Veeco`s suite of metrology solutions now supports many phases of MEMS development and manufacturing.

Interested parties may learn more about the MEMS8500 at the SEMICON West tradeshow being held July 14-16, 2003 at San Francisco`s Moscone Center. Veeco can be located at booth number 402 in the South Hall.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc.
Financial Contact:
Debra Wasser, 516-677-0200, Ext. 1472
or
Trade Contact:
Fran Brennen, 516-677-0200, Ext. 1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

9:57AM Veeco Instruments upped to Buy at D.A. Davidson; tgt $30 (VECO) 22.42` +0.24: More to follow...

[panik]

Motley Fool
Nanotech News
Thursday November 20, 2:17 pm ET
By Motley Fool Staff


A bill to create and fund a National Nanotechnology Coordination Office is headed to the White House for President Bush`s expected signature. President Clinton began the federal investment in what will now gain a more secure life in the government.
Congress has appropriated $3.7 billion over four years. The first push will be research into the possibility of creating devices that either assemble or copy themselves molecule by molecule. (What`s nanotech? Start with our Foolish introduction.)

That may or may not mean money for the few public companies that can claim the nanotech mantle today. Risk-taking investors who like to live on the edge have swarmed around the few public firms who toil at the nano level. These include spintronics company NVE Corp. (Nasdaq: NVEC - News), optical networking and measurement company Veeco Instruments (Nasdaq: VECO - News), and biotech research toolmakers Caliper Technologies (Nasdaq: CALP - News) and Aclara Biosciences (Nasdaq: ACLA - News), among others.

It`s more likely that the cash will go to earlier-stage research, including pre-public companies funded by venture capital, such as those working in nanobiotechnology. The October issue of Nature Biotechnology recently analyzed the upsurge in venture capital investment in nanobiotech. Our own Senior Analyst Tom Jacobs joined a panel at Stanford this year and opined that while it was fine for the VCs to play with their clients` money, individual investors should steer clear of speculation in this new industry -- except perhaps those few experienced investors comfortable placing a small and strategic bet on a Rule Breaker.

But dreaming is free. Our nanotechnology discussion board friends invite you to learn more about this leading edge investing world -- including this ongoing summary of private and public nanotech company news.

[panik]

Veeco Receives Order for Two GEN2000 MBE Systems for Wireless Communications Applications
Monday January 12, 6:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Jan. 12, 2004--Veeco Instruments Inc. (Nasdaq:VECO - News) announced today that it has received a multi-million dollar order for two GEN2000(TM) Molecular Beam Epitaxy (MBE) systems from a leading supplier of radio frequency integrated circuits (RFICs).
The customer will use the multi-wafer 7x6-inch MBE systems to increase production of gallium arsenide-based compound semiconductors for wireless communications applications, most notably power amplifiers and integrated circuits used in wireless handsets and wireless local area networks (WLANs).

"The Semiconductor Industry Association predicts strong growth for RFICs over the next three years, fueled by mobile handsets and WLAN applications," said Marlin Braun, Vice President and General Manager, Veeco MBE Operations. "The addition of non-silicon materials for wireless communications within the 2003 International Technology Roadmap for Semiconductors (ITRS) further supports a positive outlook for compound semiconductor devices. We`re pleased the industry continues to select our GEN2000 tool to meet its capacity needs."

The GEN2000 system incorporates cluster tool wafer handling architecture from the silicon industry. This innovative design enables the GEN2000 system to deliver higher throughput, longer system uptime and lower costs per wafer, in a footprint up to 50% smaller than comparable MBE systems.

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, compound semiconductor, data storage, and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, California, Colorado, Arizona, Minnesota and New Jersey. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market conditions or about market acceptance and future sales of Veeco`s products, 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 include the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with the acceptance of new products by individual customers and by the marketplace, and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K and Annual Report to Shareholders.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Financial Contact:
Debra Wasser, 516-677-0200, x1472
or
Trade Contact:
Jim Trevis, 651-494-5560



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

7:14AM Nanotech Plays: VECO, FEIC, PCOP : CNBC interviews co-founder/managing director of Luz Capital, a fund that invests in private nanotech companies. Peter Abur, whose fund returned 260% last year, highlights the following names as attractively valued plays on the growth of the nanotechnology field that have failed to be discovered by many investors b/c they don`t have "nanotech" in their names: semiconductor equipment makers VECO and FEIC are highlighted as nanotechnology instrumentation plays, as the companies sell the equipment necessary to develop nanotechnolgy products; also PCOP is seen as an attractive play on the space due to its software modeling tools.

[tillex]

dafür, daß der weltmarktführer zum erfolg "verdammt" ist, ist hier wenig los

[panik]

Veeco Reports Fourth Quarter and Year-End 2003 Results
Friday February 6, 7:00 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 6, 2004--Veeco Instruments Inc. (Nasdaq:VECO - News) today announced its financial results for the fourth quarter and year ended December 31, 2003. Veeco reports its results on a GAAP basis, and also provides results excluding certain charges. Investors should refer to the attached table for further details of the reconciliation of GAAP (loss) to earnings excluding certain charges. Veeco completed two acquisitions during the fourth quarter of 2003: the acquisition of the TurboDisc® MOCVD ("TurboDisc") operations of Emcore Corporation and the purchase of Advanced Imaging, Inc., ("Aii") a leading manufacturer of precision lapping equipment for the data storage industry, referred to collectively as the "acquisitions" below.

Highlights

Veeco`s fourth quarter 2003 sales were $76.9 million, up 22% sequentially from the $63.1 million reported in the third quarter of 2003. Veeco reported a net loss of $4.8 million, or a loss of $0.16 per share. Earnings excluding certain charges were $0.03 per diluted share (in line with Veeco`s guidance). (See tables for explanation of purchase accounting and reconciliation to GAAP loss).

The Company`s fourth quarter guidance (provided on October 27, 2003 and updated for the acquisitions in November) was: revenues of $70-$76 million and earnings excluding certain charges between $0.00 and $0.03 per diluted share.

The Company`s fourth quarter 2003 bookings were $96.8 million, up 51% sequentially from the third quarter, including bookings from the acquired companies post-acquisition.

Veeco`s fourth quarter book-to-bill was 1.26 to 1. Veeco`s fourth quarter 2003 orders without acquisitions were $84.1 million, up 31% sequentially from $64.0 million reported in the third quarter of 2003. Veeco`s fourth quarter order guidance (without acquisitions) was $64-$70 million. Veeco`s year-ending backlog was $124.4 million.

Edward H. Braun, Veeco`s Chairman and Chief Executive Officer, commented, "Veeco`s fourth quarter orders, revenues and EBITA improved both sequentially and year-over-year. Order strength reflected a broad industry upturn across all of our markets and in all geographic regions. Capacity and technology drivers were evident in semiconductor, data storage, wireless, compound semiconductor and scientific research. Fourth quarter orders of $96.8 million (up 51% sequentially) were Veeco`s strongest overall orders in 10 quarters. Fourth quarter revenue of $76.9 million was up 22% sequentially."

"The November 2003 acquisitions of TurboDisc MOCVD and Advanced Imaging Inc.`s precision lapping technologies allow us to significantly broaden our product and technology offerings to Veeco`s core markets in 2004," commented Mr. Braun.

Mr. Braun commented on Veeco`s full year 2003, adding, "Overall 2003 was a challenging year for the equipment industry and for our customers. Veeco`s 2003 sales of $279.3 million were down 7% from 2002, while orders of $297.6 were up a modest 3%. Significant 2003 focus on cost reduction and profitability resulted in improved gross margins (up 2.2 points) to 46.0% (exclusive of purchase accounting adjustments), and 2003 EBITA (earnings excluding certain charges before interest, income taxes and amortization) was $13.0 million, up from $1.3 million in 2002 despite the decrease in revenue. Veeco also generated $21.8 million of cash from operations during 2003 and our balance sheet remains strong with $106.8 million in cash after the completion of acquisitions."

Fourth Quarter 2003 Results

Veeco`s bookings for the fourth quarter of 2003 were $96.8 million, a 36% increase from the $71.3 million reported in the fourth quarter of 2002, and a 51% increase compared with the $64.0 million reported in the third quarter of 2003. Fourth quarter 2003 Metrology bookings were $46.7 million, compared to $42.0 million reported in the fourth quarter of 2002.

Fourth quarter 2003 Process Equipment bookings were $50.1 million, compared to the $29.3 million reported in the fourth quarter of 2002. Veeco`s bookings by market in the fourth quarter were 23% data storage, 18% semiconductor, 27% telecommunications/wireless and 32% scientific research. Q4 orders by region were 33% North America, 23% Europe, 25% APAC and 19% Japan. The Company`s fourth quarter book-to-bill ratio was 1.26 to 1.

Veeco`s sales for the fourth quarter of 2003 were $76.9 million, a 12% increase from the $68.6 million reported for the fourth quarter of 2002. Metrology sales were $35.5 million in the fourth quarter of 2003, compared to $34.2 million reported in the fourth quarter of 2002. Veeco`s Process Equipment sales were $41.4 million in the fourth quarter of 2003, compared with $34.4 million in the fourth quarter of 2002. Veeco`s sales by market in the fourth quarter of 2003 were 36% data storage, 12% semiconductor, 17% telecommunications/wireless and 35% scientific research. Revenue by geographic region was 42% North America, 16% Europe, 26% APAC and 16% Japan, with strong growth in APAC (up 127% from the fourth quarter of 2002).

Veeco incurred an operating loss of $6.0 million in the fourth quarter of 2003, compared to an operating loss of $130.6 million in the fourth quarter of 2002. Included in the fourth quarter 2003 operating result was a $1.5 million charge for the write-off of in-process R&D, a $1.7 million reduction in gross profit from purchase accounting adjustments due to the required capitalization of profit in inventory and permanent elimination of certain deferred revenue, as well as $2.1 million of merger and restructuring costs. Exclusive of these charges, Veeco`s fourth quarter 2003 EBITA was $3.5 million compared to a loss of $3.4 million in the fourth quarter of 2002, which also excludes restructuring charges. Veeco`s fourth quarter 2003 net loss was $4.8 million (($0.16) per share) compared to a net loss of $116.5 million (($4.00) per share) in the fourth quarter of 2002. Excluding certain charges, fourth quarter 2003 earnings were $0.03 per share compared to a loss of ($0.11) per share in the fourth quarter of 2002.

Year-End 2003 Results

Veeco`s 2003 bookings were $297.6 million, an increase of 3% from the $289.1 million reported in 2002. Metrology 2003 bookings were $154.4 million compared to $154.1 million in 2002. Process Equipment 2003 bookings were $143.2 million, compared to $135.0 million reported in 2002. Veeco`s 2003 bookings by market were 31% data storage, 15% semiconductor, 18% telecommunications/wireless and 36% scientific research. Veeco`s bookings by region were 38% North America, 18% Europe, 24% APAC and 20% Japan. The Company`s 2003 book-to-bill ratio was 1.07 to 1.

Veeco`s 2003 sales were $279.3 million, a 7% decrease from the $298.9 million reported in 2002. Metrology 2003 sales were $149.1 million versus $152.2 million in 2002. Process Equipment 2003 sales were $130.2 million versus $146.7 million in 2002. Veeco`s sales by market in 2003 were 33% data storage, 14% semiconductor, 14% telecommunications/wireless and 39% scientific research. Veeco`s 2003 sales by region were 39% North America, 17% Europe, 24% APAC and 20% Japan.

Veeco incurred an operating loss of $9.3 million in 2003, compared to an operating loss of $137.9 million in 2002. Included in the 2003 operating loss was a $1.5 million charge for the write-off of in-process R&D, a $1.7 million reduction in gross profit from purchase accounting adjustments due to the required capitalization of profit in inventory and permanent elimination of certain deferred revenue, and $5.4 million of merger and restructuring costs. Exclusive of these charges, Veeco`s 2003 EBITA was $13.0 million compared to $1.3 million in 2002, which also excludes restructuring charges. Veeco`s net loss for 2003 was $9.7 million (($0.33) per share) compared to a net loss of $123.7 million (($4.25) per share) in 2002. Excluding certain charges, 2003 earnings were $0.11 per diluted share compared to a loss of ($0.10) per share in 2002.

Veeco`s Outlook

Mr. Braun commented, "Industry market conditions improved dramatically in the fourth quarter, and we appear to be at the start of a sustainable recovery cycle after two years of historically low capex investment by our customers. Veeco`s diversification strategy should serve us well as multiple Veeco markets are forecasted to experience 2004 growth.

"We intend to work closely with our key customers to be aligned with their technology roadmaps and capacity planning requirements including: the continued 80GB production ramp and 120GB disk drive development programs, 90nm and 300mm ramps in semiconductor, growth in high brightness light-emitting diodes (HB-LEDs) for backlighting of color displays, RF devices and other wireless/lighting applications, and continued use of our atomic force microscopes in nanoscience research." Mr. Braun concluded, "Veeco`s goal is to achieve higher levels of revenue and profitability in 2004 through a combination of improved business conditions, a continued focus on cost control, and a broadened product line of key enabling process equipment and metrology technologies."

Veeco currently forecasts that first quarter 2004 bookings and revenue will increase approximately 10% sequentially. First quarter 2004 orders are forecasted to be in the range of $105 to $109 million and sales in the range of $84 to $88 million. Veeco`s book-to-bill is forecasted to remain at approximately 1.2 to 1. The Company currently forecasts that it will incur a net loss between ($0.09 and $0.05) per share on a GAAP basis and will earn between $0.05 and $0.09 per share, excluding amortization of $5.0 million and purchase accounting adjustments related to the acquisitions of $1.9 million, using a 35% tax rate.

Investor Conference Call/Webcast

Veeco will host an investor conference call this morning, February 6th at 10 a.m. EST to review these fourth quarter and full year 2003 results. You may listen to the call live at 1-800-810-0924 or through an audio webcast at http://www.veeco.com (Investor Information). Veeco has prepared a slide presentation with financial highlights that is also available at this location on the Company`s Web site. The conference call will be archived for future reference. A telephonic playback of the conference call will also be available starting this afternoon through February 13, 2004 at 888-203-1112 or 719-457-0820 (code 500330) or on the Veeco Web site.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, Arizona, California, Colorado, Minnesota and New Jersey. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market condition, market acceptance and future sales of Veeco`s products, Veeco`s future financial performance, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with integrating acquired businesses and the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.

Veeco Instruments Inc.
Consolidated Statements of Operations
(In thousands, except per share data)

Three months ended Year Ended
December 31, December 31,

2003 2002 2003 2002
--------------------- ---------------------

Net sales $76,949 $68,644 $279,321 $298,885
Cost of sales 44,234 56,086 152,307 183,042
--------------------- ---------------------
Gross profit 32,715 12,558 127,014 115,843

Costs and expenses:
Selling, general and
administrative expense 17,969 18,494 67,986 75,899
Research and development
expense 13,361 12,717 48,868 53,889
Amortization expense 4,237 3,207 13,800 13,323
Other income, net (469) (228) (1,218) (284)
Asset impairment charge - 99,663 - 99,663
Merger and restructuring
expense 2,142 9,278 5,403 11,248
Write-off of purchased
in-process technology 1,500 - 1,500 -
--------------------- ---------------------

Operating loss (6,025) (130,573) (9,325) (137,895)

Interest expense, net 2,108 1,651 7,811 6,002
--------------------- ---------------------

Loss from continuing
operations, before income
taxes (8,133) (132,224) (17,136) (143,897)

Income tax benefit (3,333) (15,693) (7,389) (20,513)
--------------------- ---------------------

Net loss from continuing
operations (4,800) (116,531) (9,747) (123,384)

Loss from discontinued
operations, net of income
taxes - - - (346)

--------------------- ---------------------
Net loss ($4,800) ($116,531) ($9,747) ($123,730)
===================== =====================


Net loss per common share
from continuing
operations ($0.16) ($4.00) ($0.33) ($4.24)
Loss from discontinued
operations - - - (0.01)
--------------------- ---------------------
Net loss per common share ($0.16) ($4.00) ($0.33) ($4.25)
===================== =====================

Weighted average shares
outstanding 29,316 29,142 29,263 29,096

-0-

Veeco Instruments Inc.
Reconciliation of GAAP loss to earnings (loss)
excluding certain charges
(In thousands, except per share data)
(Unaudited)

Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002
----------------------- -----------------------

Operating loss ($6,025) ($130,573) ($9,325) ($137,895)

Adjustments:

Amortization
expense 4,237 3,207 13,800 13,323

Asset impairment
charge - 99,663 (1) - 99,663 (1)

Write-off of
inventory - 15,000 (2) - 15,000 (2)

Merger and
restructuring
expense 2,142 (3) 9,278 (4) 5,403 (5) 11,248 (6)

Purchase
accounting
adjustments 1,664 (7) - 1,664 (7) -

Write-off of
purchased
in-process
technology 1,500 (8) - 1,500 (8) -
---------- ---------- ---------- ----------

Earnings (loss)
excluding certain
charges before
interest, income
taxes and
amortization
("EBITA") 3,518 (3,425) 13,042 1,339

Interest expense,
net 2,108 1,651 7,811 6,002
---------- ---------- ---------- ----------

Earnings (loss)
excluding certain
charges before
income taxes 1,410 (5,076) 5,231 (4,663)

Income tax
provision
(benefit) at 35% 494 (1,777) 1,831 (1,632)

---------- ---------- ---------- ----------
Earnings (loss)
excluding certain
charges $916 ($3,299) $3,400 ($3,031)
========== ========== ========== ==========

Earnings (loss)
excluding certain
charges per
diluted share $0.03 ($0.11) $0.11 ($0.10)

Diluted weighted
average shares
outstanding 29,929 29,142 29,600 29,096


(1) The $99.7 million asset impairment charge for 2002 is comprised of
a $94.4 million write-down of goodwill, a $3.5 million write-down
of buildings available for sale and a $1.8 million write-off of
other fixed assets.

(2) The write-off of inventory is included in cost of sales in the
Consolidated Statement of Operations.

(3) The $2.1 million merger and restructuring charge in the fourth
quarter of 2003 is comprised of $1.5 million in severance and
business relocation costs and $0.6 million in merger related
expenses.

(4) The $9.3 million merger and restructuring charge in the fourth
quarter of 2002 is comprised of a $6.4 million write-off of costs
associated with the terminated FEI merger agreement, $2.6 million
of severance and business relocation costs and $0.3 million of
prepayment penalty on the early extinguishment of debt.

(5) The $5.4 million merger and restructuring charge for 2003 is
comprised of $4.8 million in severance and business relocation
costs and $0.6 million in merger related expenses.

(6) The $11.2 million merger and restructuring charge for the year
ended December 31, 2002 is comprised of a $6.4 million write-off
of costs associated with the terminated FEI merger agreement, $5.4
million of severance and business relocation costs and $0.3
million of prepayment penalty on the early extinguishment of debt,
partially offset by a $0.9 million gain from the settlement of a
post-retirement benefit plan.

(7) The $1.7 million in purchase accounting adjustments for the
quarter and year ended December 31, 2003 is for the required
adjustments to gross profit to reflect the required capitalization
of profit in inventory and permanent elimination of certain
deferred revenue from the TurboDisc and Aii acquisitions.

(8) The $1.5 million write-off of purchased in-process technology for
the quarter and year ended December 31, 2003 is comprised of a
$1.0 million write-off from the Aii acquisition and a $0.5 million
write-off from the Turbodisc acquisition.

NOTE - The above reconciliation is intended to present Veeco`s
operating results, excluding certain charges and providing income
taxes (benefits) at a 35% statutory rate. This reconciliation is
not in accordance with, or an alternative method for, generally
accepted accounting principles in the United States, and may be
different from similar measures presented by other companies.
Management of the Company evaluates performance of its business
units based on EBITA, which is the primary indicator used by
management to plan and forecast future periods. The presentation
of this financial measure facilitates meaningful comparison with
prior periods, as management of the Company believes EBITA reports
baseline performance and thus provides useful information.

-0-

Veeco Instruments Inc.
Condensed Consolidated Balance Sheets
(In thousands)

December 31, December 31,
2003 2002
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $106,830 $214,295
Accounts receivable, net 69,890 67,346
Inventories 97,622 86,250
Prepaid expenses and other current
assets 15,823 18,392
Deferred income taxes 24,693 31,549
------------ ------------
Total current assets 314,858 417,832

Property, plant and equipment, net 72,742 55,872
Goodwill 72,989 30,658
Long-term investments 12,376 17,483
Deferred income taxes 18,136 28,888
Other assets, net 105,363 54,654
------------ ------------
Total assets $596,464 $605,387
============ ============

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Accounts payable $19,603 $13,078
Accrued expenses 31,616 44,993
Deferred profit 2,140 4,535
Current portion of long-term debt 333 312
Income taxes payable 3,700 3,808
------------ ------------
Total current liabilities 57,392 66,726

Long-term debt 229,935 230,273
Other non-current liabilities 2,808 815
------------ ------------
Total non-current liabilities 232,743 231,088

Shareholders` equity 306,329 307,573
------------ ------------
Total liabilities and shareholders` equity $596,464 $605,387
============ ============



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Financial Contact:
Debra Wasser, 516-677-0200, x1472
or
Trade Contact:
Fran Brennen, 516-677-0200, x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

Veeco Receives Approximately $12 Million in Orders for Automated Atomic Force Microscopes
Friday February 6, 7:00 am ET


WOODBURY, N.Y.--(BUSINESS WIRE)--Feb. 6, 2004--Veeco Instruments Inc. (Nasdaq:VECO - News) announced today that it received $11.8 million in orders for its family of automated Atomic Force Microscopes (AFMs) during the fourth quarter of 2003. This is the highest bookings quarter for Veeco`s automated AFMs since these systems were introduced in 2001.
Included in these orders were the first from Taiwan for Veeco`s Dimension X product, introduced last year for advanced etch metrology applications. Veeco also received two orders for its Dimension X3D in-line three-dimensional AFM for 65 nm advanced process development and high volume photomask manufacturing applications. In addition, Veeco received a follow-on order from an Asian customer for its new Vx340 for chemical mechanical planarization (CMP) production and its first 300mm automated AFM system was sold in China to a new foundry.

According to Don Kania, Ph.D., President of Veeco, "These strong orders in the fourth quarter reflect the semiconductor industry`s need for increased levels of accuracy and productivity in critical metrology. As capacity demands increase at feature sizes smaller than 90 nm, Veeco continues to work closely with our customers to meet these technology challenges and to stay ahead of their roadmaps."

Veeco offers a broad range of non-destructive AFMs for many applications. These instruments are used by all of the top 10 integrated device manufacturers worldwide, with an installed base of over 120 automated systems.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide semiconductor, data storage, telecommunications/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, Arizona, California, Colorado, Minnesota and New Jersey. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market condition, market acceptance and future sales of Veeco`s products, Veeco`s future financial performance, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the telecommunications/wireless, data storage, semiconductor and research markets, risks associated with integrating acquired businesses and the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K.



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Debra Wasser, 516-677-0200, x1472
or
Trade Contact:
Fran Brennen, 516-677-0200, x1222



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[panik]

South Epitaxy Orders Five Veeco GaNzilla MOCVD Tools to Expand GaN LED Production
Thursday March 25, 6:00 pm ET


WOODBURY, N.Y.--(BUSINESS WIRE)--March 25, 2004--Veeco Instruments Inc. (Nasdaq:VECO - News) today announced that South Epitaxy Corporation (SEC) of Taiwan has ordered five E300 GaNzilla(TM) MOCVD (metallorganic chemical vapor deposition) tools to produce high-brightness blue and green light- emitting diodes (LEDs). The GaNzilla reactors will be installed in SEC`s new facility, built to significantly boost the company`s capacity to manufacture gallium nitride (GaN)-based LEDs.
According to Charles Cheng, CEO of South Epitaxy, "An order of this size required an extensive evaluation process. With several GaNzilla systems already operating at our facility, we are producing the brightest and best quality LED chips among all chip suppliers in the world, and we have experienced firsthand numerous production advantages. The high level of material uniformity and throughput provided by the Veeco TurboDisc® platform enables us to meet our customers` growing demands for quality LED material at low cost, and will be the basis of our production plan moving forward."

Marlin Braun, SVP and General Manager of Veeco`s Compound Semiconductor Operations, said, "This order demonstrates that the GaNzilla system provides unmatched cost of ownership advantages for high-volume production. With more than 35 GaNzilla tools installed worldwide, Veeco`s MOCVD technology continues to be the platform of choice in the rapidly expanding GaN-based lighting market."

Edward H. Braun, Veeco`s Chairman and CEO added, "Veeco has recently received several multiple tool orders from GaN customers, reflecting positive customer reaction to our November purchase of TurboDisc. In January, Strategies Unlimited updated their forecast for the HB-LED market, stating that they expect 47% compound annual growth through 2008, supporting our expectation that the LED market requires additional investment in capital equipment."

Veeco`s GaNzilla system offers the compound semiconductor industry`s highest throughput for the growth of advanced GaN devices, including green, blue, and UV LEDs, GaN FETs, and blue spectrum lasers. A fully configured GaN production tool, the system provides exceptional uniformity of thickness, doping, and composition within epitaxial layers by utilizing Veeco`s patented TurboDisc technology.

About South Epitaxy

SEC is a leading supplier of III-V materials for all LED lighting applications, such as electronics backlighting, traffic signals, outdoor displays, and automotive lighting. SEC is the global Chip source for superior LED manufacturers.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide, data storage, compound semiconductor/wireless, semiconductor and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco`s manufacturing and engineering facilities are located in New York, New Jersey, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release discusses expectations about market condition, market acceptance and future sales of Veeco`s products, Veeco`s future financial performance, 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 include the challenges of continuing weakness in end market conditions and the cyclical nature of the compound semiconductor/wireless, data storage, semiconductor and research markets, risks associated with integrating acquired businesses and the acceptance of new products by individual customers and by the marketplace and other factors discussed in the Business Description and Management`s Discussion and Analysis sections of Veeco`s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K .



--------------------------------------------------------------------------------
Contact:
Veeco Instruments Inc., Woodbury
Corporate Contact:
Debra Wasser, 516-677-0200 x1472
or
Trade Media Contact:
Compound Semiconductor
Jim Trevis, 651-494-5560



--------------------------------------------------------------------------------
Source: Veeco Instruments Inc.

[Bienenvater]

hallo panik, wird zeit, dass sich einmal jemand hier meldet und sich für Deine Arbeit bedankt. Bist ja der Alleinunterhalter hier im board. Dabei ist das gute Stück peu a peu im letzten Jahr ganz gut gestiegen.
Ich bin seit einiger Zeit investiert und habe es nicht bereut. Der Chart sagt ja alles. Infos auf Deutsch sind für alle aber besser lesbar, für mich mit meinem alten Schulenglish immer schwer.