Veeco Instruments Inc. (NASDAQ:VECO) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 04:30 pm ET
Thank you. [Operator Instructions] We'll hear first from Gus Richard with Northland.
Yes, thanks for taking the question. Congratulations on the good quarter. Could you give a little more color on the second Lumina order? Is that for VCSEL application or Edge-Emitting Lasers?
Yeah. Thanks for the question, Gus. We have placed the beta in the field back in 2019. We're getting excellent results for not only VCSEL stacks, but also other photonics applications and getting very good feedback from that customer.
Also, we're sharing our VCSEL and micro LED data with several of the important end-customers and they've been impressed with their results as well. And to your question, yes, we did receive a straight up purchase order from a second customer. And our understanding is that it's for VCSEL application. So that's very positive. So although 2019 was -- yeah, go ahead.
I'm sorry. And then, on the EUV side, it looks like you're shipping roughly one a quarter. Is that the kind of run rate we should expect going forward or, given the proliferation of EUV, should that go a little bit faster?
The shipment profile is going to be a bit lumpy. We ended up shipping four tools in 2019. But in any given quarter, we could be shipping zero, one or two. I think our backlog going into 2020 here is we have three tools in backlog for the year.
Got it. And then, on the LSA, can you kind of split out for us how much is leading edge, let's say, five nanometers, seven nanometers and below, and how much is of 28 nanometer and more China customer related?
I don't have that exact number right at the tip of my fingers here. But I would say, just looking back through 2019, I would say, about 80% is at the leading-edge nodes and maybe 20% is at the 28 nanometer nodes, approximately 80/20.
Got it. And then, I guess, the last one for me, obviously, the coronavirus is a wildcard. Can you give us a little bit of a sense as to what this is in revenue? What are you selling to China, is it LSA systems, is it advanced packaging? And, how many of your customers are in the near-Wuhan or that province?
Yeah, we've been talking to our customers. Our understanding is that all of our customers' facilities actually are open today. If you look back over 2019, our China exposure was 10% to 20% of revenue. Specifically, here in the first quarter it's about 10% of revenue.
We are selling a mix of products. Some MOCVD equipment, as well as some wet clean and etch products here. That's our mix in the first quarter.
Got it. That's it for me. Thank you so much.
We'll hear next from David Duley with Steelhead Securities.
Yes, thanks for taking my questions. I had a couple. I guess, first on -- you mentioned that you had some slow-moving or over-inventory that you were