Veeco develops highly differentiated, "best-in-class" Process Equipment for critical performance steps. Our products feature leading technology, low cost-of-ownership and high throughput. Core competencies in advanced thin film technologies, over 200 patents, and decades of specialized process know-how helps us to stay at the forefront of these demanding industries.
Veeco's LED & Solar segment designs and manufactures metal organic chemical vapor deposition ("MOCVD") and molecular beam epitaxy ("MBE") systems and components sold to manufacturers of LEDs, wireless components, power semiconductors, and concentrator photovoltaics, as well as to R&D applications.
Veeco's Data Storage segment designs and manufactures systems used to create thin film magnetic heads ("TFMH"s) that read and write data on hard disk drives. These include ion beam etch, ion beam deposition, diamond-like carbon, physical vapor deposition, chemical vapor deposition, and slicing, dicing and lapping systems. While our systems are primarily sold to hard drive customers, they also have applications in optical coatings, MEMS and magnetic sensors, and extreme ultraviolet ("EUV") lithography.
Summary of Results for 2012
Selected financial highlights include:
º • º Revenue decreased 47.3% to
$516.0 millionin 2012 from $979.1 millionin 2011. LED & Solar revenues decreased 56.1% to $363.2 millionfrom $827.8 millionin 2011. Data Storage revenues increased 1.0% to $152.8 millionfrom $151.3 millionin 2011; º • º Orders were down 52.1%, to $391.9 millionin 2012, compared to $817.9 millionin 2011; º • º Our gross margin decreased, to 41.7%, in 2012 compared to 48.4% for 2011. Gross margins in LED & Solar decreased from 48.0% in 2011 to 40.9%. Data Storage gross margins also decreased from 50.7% to 43.7%. º • º Our selling, general and administrative expenses decreased to $73.1 million, from $95.1 millionin 2011. Selling, general and administrative expenses were 14.2% of net sales in 2012, compared with 9.7% in 2011;