Veeco Instruments Inc. (NASDAQ:VECO) Q4 2015 Earnings Conference Call - Final Transcript
Feb 22, 2016 • 05:00 pm ET
Thank you. [Operator Instructions] We'll go first to Colin Rusch with Opco.
Thanks so much for taking the questions. Can you talk a little bit about how you're seeing the cycle times in terms of bookings rolling through the P&L, are you seeing any real changes to that over the recent months?
This is Sam. At this time, for MOCVD, cycle time from bookings to shipment is still around four to six months. So it is still the same, although slightly less than what it was say nine months ago. The customers give us the purchase orders and give us enough time to build it and ship the product. So it has slightly contracted but not a whole lot.
Okay, perfect. And then the auto opportunity, how do you guys think about the potential size of that opportunity with offerings that you have, and are there other areas where you could potentially play in that space?
John R. Peeler
So the PSP product line has been very successful in MEMS as well as some of our Ion Beam Etch products. So we don't really have a size, but I would say the overall PSP TAM is in the $200 million range, probably growing 10% a year, and I don't have a breakout between automotive and the other segments but the automotive driving MEMS and sensors certainly helps that. We've got great growth last year and I think we're set up for some good growth this year.
Okay. Thanks guys. I'll hop back in the queue.
John R. Peeler
We'll take our next question from Brian Lee with Goldman Sachs.
Hey guys. Thanks for taking the questions. Maybe first off just, John, on your comments around the MOCVD investment backdrop expected to remain soft through the first half, is that off of level what you're seeing in Q4 bookings wise or does that even revert back to the lows that you saw in 3Q, just maybe if you can help triangulate that to any degree, that'd be helpful?
John R. Peeler
Well, look, we don't give bookings guidance and hopefully we won't be going back to the levels we saw in Q3. But it's pretty hard to read right now as far as where bookings might end up. I think we do think that Q2 revenue will probably pick up versus Q1, and even with the somewhat depressed MOCVD bookings, I think one thing to point out is that overall the bookings in each of our other markets have remained pretty healthy.
And then secondly, solid-state lighting continues to grow, and I think given a few more quarters that will absorb the excess capacity and will get back to some more normal levels. I think what's hard for us to read is exactly how quickly that happens. We've had a couple of weak quarters and how many more it will be is uncertain.
Okay, that's helpful. Just second question and sort of related to your comments around the bookings in other segments, John. Advanced packaging, you obviously had sort