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Veeco instruments Inc (VECO) this autumn 2018 earnings conference call Transcript

Veeco instruments Inc  (NASDAQ:VECO)this autumn 2018 earnings convention CallFeb. eleven, 2019, 5:00 p.m. ET

Logo of jester cap with thought bubble.photo source: The Motley idiot.

Contents:
  • prepared Remarks
  • Questions and solutions
  • name contributors
  • organized Remarks:

    Operator

    good day everyone and welcome to the Veeco devices q4 and monetary yr 2018 income convention name. As a reminder, today's call is being recorded.

    And at this time, i might want to flip the floor over to Anthony Bencivenga, Investor family members. Please go forward.

    Anthony Bencivenga -- Investor family members

    thanks and first rate afternoon, each person. becoming a member of me on the call nowadays are invoice Miller, Veeco's Chief govt Officer; and Sam Maheshwari, their Chief working Officer and Chief financial Officer. cutting-edge revenue free up is available on the Veeco web page. Please word that they have organized a slide presentation to accompany present day webcast. They inspire you to follow along with the slides on veeco.com.

    This name is being recorded via Veeco contraptions and is copyrighted material. It can't be recorded or rebroadcast devoid of Veeco's expressed permission. Your participation implies consent to their recording to the extent that this call discusses expectations about market circumstances, market acceptance and future earnings of the company's products, future disclosures, future revenue expectations, or in any other case make statements about the future, such statements are forward-looking and are field to a few hazards and uncertainties that might trigger exact consequences to differ materially from the statements made.

    These elements are mentioned in the company description and administration's dialogue and evaluation sections of the enterprise's report on kind 10-ok and annual report to shareholders and in their subsequent quarterly stories on form 10-Q, present studies on form 8-ok and press releases. Veeco doesn't undertake any responsibility to update any forward-looking statements, including these made on this call to replicate future movements or situations after the date of such statements.

    throughout this name, administration may also tackle non-GAAP economic measures, tips related to such non-GAAP fiscal measures including reconciliation to GAAP measures of efficiency is attainable on their site.

    With that, i will turn the name over to invoice, for his opening remarks.

    William J. Miller -- Chief government Officer

    thank you, Anthony. good afternoon, all and sundry and thank you for joining the name. Veeco finished in accordance with plan in q4 and non-GAAP effects were inline with counsel offered. this autumn bookings have been $112 million in the quarter led with the aid of front-conclusion semiconductor market and their backlog has grown to $288 million.

    salary for the quarter became $99 million. we've got been speaking for some time that the commodity element of the LED enterprise, which contains the sale of their MOCVD programs to the China LED market has been below pricing force and is fitting a smaller element of their business. This trend endured in this fall. Non-GAAP gross margin become 36% and their non-GAAP operating earnings and non-GAAP EPS came in at a lack of $6.9 million and a lack of $0.sixteen respectively.

    We ended the quarter with $261 million in cash and brief-time period investments. On their ultimate income call, Sam indicated the probability of a goodwill impairment cost in q4. After performing the analysis, it became clear that charge changed into required. They recorded $123 million non-cash cost, which Sam will describe in additional element.

    i want to provide an update on the assault on their computing device systems they introduced on their remaining profits name. Their inside investigation is basically comprehensive. however, we're still cooperating with an ongoing legislations enforcement investigation. They learned that their methods had been compromised quite a lot of instances over a duration of years. alas, it's impossible to determine the extent and impact of the compromise.

    but I guarantee you, they take the security of their information concerning their personnel, valued clientele, and highbrow property critically and they now have taken steps and proceed to work towards fighting an analogous incident from happening sooner or later. lastly, despite the fact they meet their counsel as they have now indicated in the past, we're cutting back expenses and dealing towards starting to be their business through focusing on markets similar to front-conclusion semiconductor, compound semiconductor, and advanced packaging. i may provide an update on their increase opportunities and Sam will deliver extra details on the financials. the first enviornment, they see boom is EUV mask blanks the usage of ion beam deposition. EUV Lithography is enabling advanced semiconductor nodes at 7-nanometer, 5-nanometer and past. every EUV Lithography step requires a photomask and every photomask starts as a mask blank.

    Our ion beam deposition technology which permits the construction of lowest defect density EUV masks blanks is a vital aspect of the EUV infrastructure. artificial intelligence and excessive performance computing are drivers of EUV adoption. As EUV is adopted for critical layers, the number of mask blanks required will boost. during this autumn, they booked an extra EUV masks blank equipment and they are expecting a further order in Q1. These are complicated systems with very nearly 12-month lead time and they will start shipping their existing backlog beginning Q2 this year.

    The market chance is between $20 million and $50 million per 12 months and Veeco is the main provider of the really expert ion beam deposition know-how. Laser annealing within the front-conclusion semiconductor market is one more area of boom. Their laser annealing know-how serves a essential function in entrance-conclusion semiconductor manufacturing and has been a procedure device of listing for manufacturing advanced common sense instruments from 40-nanometer right down to 14-nanometer.

    Concurrent with EUV adoption for innovative nodes, we're experiencing mighty demand from leading foundries for their annealing solutions.Our LSA backlog is the biggest in view that the Ultratech acquisition. This may well be an early sign for a possible inflection element in manufacturing the most superior contraptions as producers push machine performance whereas dealing with geometry and physics obstacles. Laser annealing is becoming a important technology for the one-digit nodes pushed with the aid of the demand from synthetic intelligence, and high efficiency computing.

    we have been working with foundries and IDMs for insertion of their innovative nodes. you are going to don't forget throughout Q3, after an comparison duration, they acquired an order for a laser annealing equipment from a market chief for his or her upcoming node.

    i am happy to announce that they received a follow on order for varied programs. They believe this validates their laser annealing expertise as well as its importance in enabling cutting edge semiconductor manufacturing. This market is set $a hundred million yearly.

    The utility of their MOCVD know-how to the 3D Sensing VCSEL market is an extra pleasing increase probability. A VCSEL or vertical-cavity floor-emitting laser is a complex semiconductor gadget utilized in optical and telecommunication.

    these days VCSELs enabled the facial consciousness utility to liberate your smartphone.

    We expect VCSELs to proliferate into further 3D Sensing purposes, reminiscent of world-dealing with sensors and automotive LIDAR. VCSELs are compound semiconductors manufactured the use of MOCVD. Veeco has been a leader in MOCVD for decades.

    today, they now have little or no share of the -- this market, but we're improving their TurboDisc platform to supply high efficiency epitaxial VCSEL stacks. remarkable film efficiency coupled with Veeco's historic MOCVD TurboDisc advantages of productivity and cost of ownership will supply a compelling trade solution. Their sophisticated efficiency and productiveness is being validated through their valued clientele and we're working closely with them to location beta equipment. They trust here's a market opportunity of $one hundred million to $a hundred and fifty million per year. Their advanced packaging lithography is an additional source of growth. in addition to featuring individual gadget efficiency, producers seek to increase device efficiency by using combining varied chips in a single kit. With megatrends reminiscent of synthetic intelligence, cell instruments and autonomous cars, producers are turning to innovations, such as fan-out wafer-level packaging and copper pillar applications to drive product performance. we've been a leader in advanced packaging lithography for a few years and their techniques are optimized for competitively priced performance and automation. Early adopters of advanced packaging have been cellular phone producers.

    whereas this portion of the market has paused. we're seeing early adoption in DRAM functions, the place they obtained a follow on order from a correct tier DRAM company for their copper pillar utility.

    We agree with, they have the expertise and client relationships to see boom in advanced packaging over the future. They trust, this market is someplace between $seventy five million and $100 million yearly.

    In abstract, we're focused on three issues in 2019. the first is innovation. they have a protracted background of assisting their clients resolve their toughest materials engineering challenges. They plan to proceed this path through executing on their product road maps and releasing exciting new products and enhancements.

    The 2nd is to penetrate new markets and to speed up their increase in EUV masks blanks the use of ion beam deposition, advanced front-end semiconductor with laser anneal, 3D Sensing VCSEL the usage of MOCVD and superior packaging lithography.

    And lastly, they don't seem to be ready completely for the increase to come to profitability.

    As we've communicated, they initiated and are executing programs to reduce their working costs and enhance their gross margins.

    With that, i could turn it over to Sam for further particulars on the financials.

    Shubham Maheshwari -- govt vice chairman, Chief fiscal Officer and Chief operating Officer

    Thanks, invoice and good afternoon, every person. today, I may be discussing their non-GAAP monetary efficiency. you could find a detailed reconciliation between GAAP and non-GAAP effects in the press release and on their website.

    this fall bookings were $112 million, bookings in LED lighting, monitor and compound semi market had been 12% as a result of decreased stages of China LED enterprise. superior packaging, MEMS and RF filters market made up 19% of overall booking. Scientific and industrial market persisted to be amazing and turned into 33% of their normal reserving. entrance-conclusion semi market become solid at 36% of their bookings as a result of potent momentum in EUV and LSA items.

    Now turning to q4 revenue. this fall revenue profile demonstrates reduced awareness in LED lighting, reveal and compound semi market driven with the aid of the anticipated reduction in commodity LED income. Scientific and industrial revenue grew sharply and had been 50% of overall salary because of expansion via their facts storage purchasers to boost aerial density and respond to the boom in cloud storage.

    we have endured to make improvements to their front-conclusion semi business and it contributed 22% of their this autumn salary driven by LSA for foundry purchasers. advanced packaging, MEMS and RF filter market was low at 14% of their salary due to a persevered gradual smartphone company environment.

    US changed into 41% of total this fall revenue, EMEA become 17%, leisure of the world was 33% driven through entrance-conclusion semi shipments to Taiwan and Korea.

    Please notice, China at 9% become low compared to old quarters but indicative of their profits profile going ahead. Their backlog on the end of this autumn became $288 million.

    Now turning to the P&L. They recorded a goodwill impairment can charge in the forth quarter because of stock rate decline throughout the forth quarter, their adjusted market cap become under booklet value of the fairness, resulting in a goodwill impairment cost of $123 million.

    i would remind you that here's a non-cash cost and does not have an effect on their liquidity or operations in any approach. considering this impairment is essentially pushed through the percentage fee, they may well be required to take additional impairment prices in the future if the inventory trades beneath the December ending fee on a sustained foundation.

    besides the fact that children, if the inventory price goes up, goodwill isn't written up and the impairment fees don't seem to be reversed. For the quarter, they met assistance for all the non-GAAP monetary metrics, earnings for this fall changed into $99 million and non-GAAP gross margin became 36%.

    Gross margin become down sequentially from Q3 as extent impacted it negatively offset with the aid of product combine benefit.

    Non-GAAP OpEx for this autumn turned into $42.6 million which protected $0.7 million involving the cyber safety intrusion. For sequential comparison, I are looking to remind you that Q3 had benefited via a one-time credit from reversing $2.2 million, collected compensation charge.

    Non-GAAP taxes for the quarter become a advantage of $0.8 million, non-GAAP EPS changed into a loss of $0.16 on a diluted share count of forty seven million shares.

    Let me now take a second to cover any other full-yr financial numbers. For fiscal 2018 and depreciation became $17.6 million, amortization become $32.4 million and fairness comp expense turned into $sixteen.1 million. Dilution fee from worker equity changed into below 1% of striking shares. money pastime expense on their debt was $9.7 million and money taxes were $4.eight million. At yr-conclusion, they had federal NOLs of $281 million. all through 2018, the entire backlog cancellations had been $6 million regarding orders that no longer met their bookings criteria. This changed into approximately 1% of complete reserving.complete capital expenditure for the year became $12.7 million.

    Now relocating to the stability sheet. money circulation from operations in q4 turned into $2 million and they ended the quarter with $261 million in money and brief-time period funding. Out of this, $67 million of their money turned into held offshore. accounts receivable more desirable to $sixty seven million and money owed payable decreased to $forty million because of reduce purchases. stock remained increased as they ramp EUV masks blank programs construction, continue to invest in new products for MOCVD and proceed to interact key customers with evaluation equipment. long-time period debt on the balance sheet was recorded at $287 million representing the carrying value of $345 million in convertible notes. there have been no share repurchase in q4. For the whole yr, they repurchased 950,000 shares or roughly 2% of market cap at an ordinary price of $11.88 per share. i need to take this probability to provide an adhoc view of their annual income to give you additional visibility of their underlying businesses. 2018 profits changed into made up of a few earnings streams that they consider foundational. besides this foundational element of their enterprise, we're working on definite key growth initiatives that bill already described. As they examine 2019, they predict the combination of foundational and increase groups to grow whereas the commodity MOCVD business declined.

    All in, they presently predict 2019 profits to be better than the latest quarterly income run rate would imply. The foundational business is produced from their world functions, wet etch and clear, facts storage and optical coating companies together with equipment income to universities and analysis labs for a number of utility. Their provider business helps their installed base of thousands of methods with elements enhancements and service contract. This company grows as they ship extra tools to the market. Their wet etch and clean techniques are bought to plenty of conclusion markets and because of this purpose continues to be much less cyclical. Their information storage enterprise comprises ion beam deposition and etch methods to fabricate skinny-film and magnetic heads for the challenging disk power business. With the present end market dynamics, they are expecting data storage to remain a healthy business for us. They also sell a lot of items like MBE and optical coating techniques to analysis labs, universities and industrial applications worldwide, which are not tied to general semiconductor cycles. in my view, these foundational agencies can also fluctuate, but in combination, they're surprisingly reliable year-to-yr. These are ecocnomic companies and aid their increase initiatives as they head into 2019.

    Now turning to Q1 counsel. Q1 profits is expected between $eighty five million and $one hundred and five million, non-GAAP gross margin is expected between 34% and 36%. Non-GAAP OpEx is expected to be about $41 million, non-GAAP operating loss is expected between $12 million and $3 million. GAAP EPS loss is anticipated between $0.fifty nine and $0.39 per diluted share. Non-GAAP EPS loss is expected between $0.30 and $0.10 per diluted share. And now for some further colour past Q1. at present, in accordance with their backlog and latest visibility, they see Q2 sales monitoring slightly above Q1. we're on target to satisfy their goal of $40 million of OpEx for Q2 2019. And with that, bill and that i may be satisfied to take your query.

    Operator, please open the line.

    Questions and answers:

    Operator

    (Operator directions) And we'll take their first question from Patrick Ho with Stifel.

    Patrick Ho -- Stifel -- Analyst

    thank you very lots, invoice. First off, which -- the ancient tune record for Veeco on the MOCVD space has been reasonably successful, mainly on the blue LED aspect, the place you got here from a lower share place to become the main participant over time. can you provide little little bit of colour in terms of your technology differentiation, what you present to consumers on the vigour semiconductor in the VCSEL side of things that could potentially give the same music checklist for this product in keeping with a going forward foundation?

    William J. Miller -- Chief govt Officer

    certain, Patrick. Thanks for the call. So if you seem to be returned where they had been successful gaining share in the LED market towards their competitor. They were in a position to benefit share and win many construction shoppers as volumes ramped because their fundamental expertise, the TurboDisc know-how can run campaigns in a whole lot of runs, so it might probably run without interruption for a month or so, whereas the competition needs to cease and retain their machine at a a good deal bigger frequency. also their run-to-run variability is plenty more desirable. And so in excessive quantity mass production functions, their adventure is that their shoppers pick their architecture over the competitors. one of the crucial challenges that we've faced, why they have a low share of today is the uniformity of their films and composition of their movies. And so, they began establishing a product, a couple of 12 months and a half ago to handle those shortcomings. And final quarter, i discussed that they have been delayed about as a minimum three months and that i'm satisfied to report that basically they made some very decent development in their lab all over this final quarter and we're sharing that information with all the customers. They definitely seem very excited and need to pursue extra discussions. So I think, once they have these technical issues at the back of us. I think the basic abilities of their product will come via over the fullness of time.

    Patrick Ho -- Stifel -- Analyst

    first rate, it truly is valuable. and maybe as my observe-up question for Sam, certainly gross margins are impacted nonetheless nowadays as a result of the reduce income tiers. As you appear at the progression via 2019, i am now not requesting an accurate forecast. what is going on to be the largest affect for gross margins? Is it simply going to be the revenues ramping up once more or is it the combine, as you appear at the -- in phrases (ph) of product combine and the way the yr progresses. Will that be a bigger influence?

    Shubham Maheshwari -- executive vice president, Chief fiscal Officer and Chief operating Officer

    sure, in reality -- definitely, Patrick, all of these components would play in. As such their structural efforts to increase gross margins are progressing very neatly. i will cowl all of the facets and try to then provide little bit greater color, which may be more pronounced -- which offset could be extra stated. So first, they announced cost reduction initiatives ultimate quarter and people initiatives are progressing neatly and the charge reduction initiative could be completed in Q1. so that you would begin to see that benefit from Q2 onwards wholly. and then secondly on the product combine aspect, we're already seeing the advantage from reduction in the commodity component of their revenues. besides the fact that children, they are expecting mix pushed improvement to accelerate additional from Q2 onwards as they begin to ship EUV equipment and certain other new items that they have been talking to you about.

    and then the final element of gross margin as you comprehend is the volume and naturally as you correctly pointed out, at the moment, due to these low salary ranges, their gross margins have become impacted, however they are expecting to develop sequentially during the quarters right here and anticipating '19 to be larger than the existing run cost of the latest quarter. so that may still also help usual from gross -- whatever gross margin as they go ahead from here. I feel in terms of all the three features. i would say product mix is the largest element. we're seeing some advantage as a result of discount of commodity revenues, as I stated, but the nice combine improvement often is the strongest and it would play out lots greater strongly in the second half of this year. and then, I want to remind all and sundry outdoor of those structural changes to their gross margin. They do have client awareness or product awareness and thanks to that intent, gross margin can all the time fluctuate from one quarter to another. but we're working from one quarter to an extra, however they are working on the entire three structural elements of their gross margin due -- to increase it as they move through 2019 right here.

    Patrick Ho -- Stifel -- Analyst

    super and maybe as a last question for you, Sam. And as a follow-as much as the gross margin question, I believe you guys have performed a really respectable job on the OpEx stage and it continues to come back down. although, given one of the enterprise segments, certainly in the semiconductor facet, even if it's superior packaging and even on the front-conclusion like LSA, they could have volatile tendencies. How directly can you turn OpEx up when business developments turn favorable for these enterprise segments?

    Shubham Maheshwari -- government vice chairman, Chief economic Officer and Chief working Officer

    I feel, Patrick on -- as bill mentioned, we're absolutely funding the entire entrance-conclusion semi product lines, and all of the R&D efforts. in terms of their SG&A enviornment to aid front-end semi, I think we're additionally completely funding there. So common, as these corporations pick up, at the least at the moment, I haven't seen a demand from the enterprise gadgets to increase spending there. at the equal time, i would say this to you that there are business headwinds on entrance-end semi and their exposure to reminiscence is very, very low. however their publicity is much greater nuanced towards common sense and foundry. And in case the trade headwinds go better, then I believe, they must go again and consider their OpEx once again and they could need to reduce it if we're seeing greater headwinds, however thus far as a result of the common sense and foundry nature and thanks to the growth that they predict, pushed by means of the powerful backlog that they are carrying, so they appear to be set very smartly at the moment.

    i'm now not basically expanding it a great deal, a little bit could be mandatory as I said, as they -- as they ship these tools and meet the needs of their shoppers, however I do are looking to remind you that in case business headwinds go enhanced. Then we'll come back and view their OpEx once more and they could need to tweak it additional, however that is not the scenario we're planning at the moment.

    William J. Miller -- Chief govt Officer

    So just to add one remark to Sam's element is this ultimate round of OpEx discount, they truly labored on SG& difficult and basically left their R&D funding in location. And so I think -- I feel we're trying to fund ourselves for fulfillment and, but if they do see these headwinds, they are able to take motion.

    Patrick Ho -- Stifel -- Analyst

    remarkable, thanks a great deal guys.

    William J. Miller -- Chief government Officer

    Thanks, Patrick.

    Operator

    relocating on from Goldman Sachs. we've Brian Lee.

    Brian Lee -- Goldman Sachs -- Analyst

    whats up guys, thanks for taking the questions. Sam, simply desired to be sure I interpreted this accurately. i know you observed, as you stream through 2019, the existing revenue run rates you might be seeing don't seem to be indicative of the way you suppose the entire year is going to pan out, i.e., income goes to grow to be being greater than what your quarterly run costs are inferring. With relation to Patrick's question around gross margins have been you inferring that 2019 gross margins will even be enhanced than the margin -- gross margin ranges you're presently monitoring at became that the inference you're making?

    Shubham Maheshwari -- executive vice president, Chief fiscal Officer and Chief operating Officer

    sure, I suppose that would be a natural outcome because we'd be getting product combine advantage and they should still -- they may still additionally get further volume benefit and then can charge reduction should be completed. So yes, 2019 gross margins for full 12 months may still be better than the gross margins that latest quarter we're guiding or suggesting.

    William J. Miller -- Chief government Officer

    Yeah.

    Brian Lee -- Goldman Sachs -- Analyst

    k, so that you're comping that towards the 34% to 36% not the -- the 36% you just, you posted in this fall, I just are looking to be clear about that.

    Shubham Maheshwari -- govt vice president, Chief financial Officer and Chief working Officer

    relevant.

    Brian Lee -- Goldman Sachs -- Analyst

    okay. and then maybe simply as a follow-up to that query. I might have ignored it in the prepared remarks, but you're practically guiding to the same salary outlook that you simply had for this fall into Q1. however, gross margin counsel is down a couple of hundred groundwork aspects. could you stroll us via what -- what's driving that?

    Shubham Maheshwari -- executive vp, Chief fiscal Officer and Chief working Officer

    yes, so on the gross margin, the revenue tiers are the equal almost what they guided in this autumn versus what they are guiding for Q1 and gross margin is set 100 percent -- one hundred basis features reduce. You know what take place is nothing structural, everything is a similar, except that they do have product concentration and customer awareness and thanks to this motive, gross margins can fluctuate from quarter to quarter and that these low salary tiers, what occurs is anyone product or any one client awareness can impact the ordinary gross margin at the company stage, as you be aware of, a few of their tools are -- pricing is between high single-digit $7 million, $8 million, $9 million tools.

    in an effort to move the gross margin for the entire company for a given quarter. so that fluctuation is what is being reflected here in q4, Q1 cadence, so to say however my feedback when it comes to gross margin improvement structurally nonetheless dwell in vicinity and they continue to are expecting to have gross margin enhance -- improvement during the 12 months. Did I reply your query, Brian? i am hoping I did.

    Brian Lee -- Goldman Sachs -- Analyst

    Yeah no -- that become crystal clear. thanks. might be closing one from me and i'll pass it on is the -- you did $99 million in revenues this quarter, cash circulate become really breakeven roughly, is that a way to consider about breakeven going forward? The form of $a hundred million profits degree is where your money movement breakeven or do you have got room or plan to flow even reduce than that?

    Shubham Maheshwari -- executive vice president, Chief financial Officer and Chief working Officer

    certain, i'll try to answer your question however are trying to answer your query a little bit differently. the manner I seem at the business right now, we're breakeven on a non-GAAP EPS basis at $a hundred and ten million per quarter. Their money is a bit lumpy since it gets impacted through working capital, so because of AR collection or AP payments, et cetera, it will also be a little unstable from quarter-to-quarter. So i might say, their breakeven is $one hundred ten million for non-GAAP EPS. they are guiding Q1 to have an operating salary loss. So i'm anticipating -- expecting cash consumption right through Q1, obviously with extent development and bottom line development. it is going to exchange throughout the year, however that's how i am taking a look at it at this time.

    Brian Lee -- Goldman Sachs -- Analyst

    okay, all correct, thanks guys.

    William J. Miller -- Chief executive Officer

    Thanks, Brian.

    Shubham Maheshwari -- government vice president, Chief economic Officer and Chief operating Officer

    Thanks.

    Operator

    (Operator guidelines)

    And relocating on, they have Mark Miller from the Benchmark enterprise.

    Mark Miller -- Benchmark company -- Analyst

    thank you for the questions. simply become wondering, what offers you motive to be a little optimistic about data storage with Seagate and Western Digital actually below some pressure of their market. Is these new manner adjustments or they just restricted in capability?

    William J. Miller -- Chief executive Officer

    certain, sure, Mark. outstanding -- super question. What we're seeing actually is most likely some softness universal from their clients there. however really if you seem notwithstanding drives are down really heads per power and heads universal are increasing. So it's a piece -- pressure -- that's the piece that drives their business, or not it's truly heads no longer drives. And the second aspect is they are very engaged with those purchasers on enhancing aerial density. And so we're working very carefully with them to definitely get extra density out of each and every heads which requires diverse steps and flows and really, it be a combination of expertise changes in their aspect as well as an increase within the numbers of passes via their equipment and so.

    So the combination of both is actually the answer to my -- to your question.

    Shubham Maheshwari -- govt vice chairman, Chief financial Officer and Chief working Officer

    Mark, i'd add there on a tactical groundwork, they do have a big volume of backlog from that aspect of the company. So these items are bought with six months, to 9 months to 10 months category of a lead-time, and they do have an outstanding amount of backlog. in order that additionally offers us confidence in terms of the growth competencies.

    Mark Miller -- Benchmark business -- Analyst

    well, it feels like in for an extended wait that hammer an EMER (ph) technologies starting to seem on the horizon. Are there any alterations that could be opportunities for you as they go to these new head category designs?

    William J. Miller -- Chief govt Officer

    sure, sure, there are. And so, a few of -- a few of what I -- my outdated reply did core on those functions as well because the -- ultra-modern drives.

    Mark Miller -- Benchmark enterprise -- Analyst

    Sam, I just need to make sure, I understood whatever. you're projecting it -- it seems like for this quarter, an uptick in revenues per quarter. Are you driving the non-GAAP OpEx however revenues are expanding (ph) right down to $40 million as the yr progresses or did I get that perplexed?

    Shubham Maheshwari -- executive vice president, Chief monetary Officer and Chief working Officer

    No, that's -- it really is suitable. they are driving non-GAAP OpEx to be $forty million by means of Q2 and that's what we're driving toward.

    Mark Miller -- Benchmark company -- Analyst

    Oh, with the aid of Q2, ok? And even with larger revenues. All correct. neatly, thank thank you for the questions.

    Shubham Maheshwari -- govt vp, Chief monetary Officer and Chief working Officer

    Thanks, Mark.

    William J. Miller -- Chief govt Officer

    Thanks, Mark.

    Operator

    relocating on from Northland, they Gus Richard.

    Gus Richard -- Northland -- Analyst

    Thanks for taking my query. On the MOCVD company, is it fair to claim that all of that enterprise now's RF and power?

    William J. Miller -- Chief government Officer

    hi Gus, how are you? good query. They do -- yes, it's largely carrier RF, vigour, these classification functions. They do have some amounts of commodity enterprise, nonetheless it's pretty de- minimis.

    Gus Richard -- Northland -- Analyst

    k, obtained it. after which...

    William J. Miller -- Chief government Officer

    We also by the way have purple, orange, yellow applications as smartly. So simply to be clear.

    Gus Richard -- Northland -- Analyst

    And when do you suppose, you may ship a beta device for VCSEL?

    William J. Miller -- Chief executive Officer

    it really is the million greenback question. So we're working very carefully with all the key avid gamers. We're going through demos, we're building equipment in inventory, in anticipation of selling them and they are working as a excessive precedence to land those beta purchasers. So apart from providing you with a particular date, they won't have a beta agreement yet. And so I -- what i would feel goes to be developing. it's certainly one of the vital subsequent steps after having an agreement can be delivery a device.

    Gus Richard -- Northland -- Analyst

    bought it. after which on the advanced packaging in memory, is that excessive-end bandwidth memory?

    William J. Miller -- Chief govt Officer

    yes it is. The -- or not it's a new utility they lately -- lately won and then had some comply with-on repeat orders as smartly.

    Gus Richard -- Northland -- Analyst

    And on the LSA, what number of layers is that product used for within the superior processes?

    William J. Miller -- Chief government Officer

    in the mean time, we're qualified for one. at the node, they are in with one consumer, and we're working, we've been invited to the next node and clearly, their goal is to profit greater applications, the next node, as well as we're working with different purchasers, performing some demo work to enter there, but they now have one client, one application in the meanwhile.

    Gus Richard -- Northland -- Analyst

    bought it. and i wager the remaining one for me on the superior packaging on cellular telephone apps, processors on fan-out, is there nonetheless only one customer drinking that potential or have other businesses doing APs, begun to adopt that system?

    William J. Miller -- Chief govt Officer

    yes, so there is, if you are talking about, what I feel you might be speakme about, sure, I suppose they have only 1 utility. however certainly, we're seeing opportunities for superior packaging in the OSATs. So we're promoting to the largest OSAT. I think, they press unencumber that as smartly. So I suppose, we're seeing each the foundries, and foundry is sitting sort of quiet, however the OSATs are doing a little purchasing in the intervening time.

    Gus Richard -- Northland -- Analyst

    acquired it. Thanks you so a whole lot.

    William J. Miller -- Chief govt Officer

    Thanks, Gus. I recognize your query.

    Operator

    and girls and gents, appears like that does conclude their query-and-reply session for today. i would want to flip the flooring back to bill Miller, for any extra or closing remarks.

    William J. Miller -- Chief government Officer

    thank you, operator. So thank you for becoming a member of their name today. I do seem ahead to updating you subsequent quarter on their continued progress. thanks for your time.

    Operator

    ladies and gentlemen, that does conclude their demand this afternoon. once again, they thank you for joining us. You might also now disconnect.

    duration: 39 minutes

    name members:

    Anthony Bencivenga -- Investor relations

    William J. Miller -- Chief executive Officer

    Shubham Maheshwari -- govt vice chairman, Chief financial Officer and Chief operating Officer

    Patrick Ho -- Stifel -- Analyst

    Brian Lee -- Goldman Sachs -- Analyst

    Mark Miller -- Benchmark business -- Analyst

    Gus Richard -- Northland -- Analyst

    more VECO analysis

    Transcript powered via AlphaStreet

    this text is a transcript of this conference call produced for The Motley fool. whereas they attempt for their foolish top of the line, there may be blunders, omissions, or inaccuracies in this transcript. as with all their articles, The Motley idiot doesn't anticipate any responsibility in your use of this content, and they strongly motivate you to do your own research, together with listening to the call your self and reading the business's SEC filings. Please see their terms and stipulations for additional particulars, together with their obligatory Capitalized Disclaimers of liability.

    Motley fool Transcribers has no position in any of the shares outlined. The Motley idiot has no place in any of the shares outlined. The Motley fool has a disclosure policy.


    Connecticut labor leaders call for tax hikes for the wealthy and other ‘alternatives to austerity’

    Labor leaders are calling on Gov. Ned Lamont to maintain tax hikes for the prosperous on the desk as the legislature looks to remedy Connecticut’s finances crisis.

    declaring that Connecticut’s wealthiest residents can have enough money to pay greater, a bunch of union and religious leaders and front-line employees requested lawmakers Monday to accept as true with “alternate options to austerity,” and to invest in legal guidelines and features so that it will grow the state’s financial system and support its group of workers.

    They recommended for measures comparable to casting off enterprise tax credit, modernizing the tax code for the digital economy, enhancing paid family and medical depart, and enacting a low-wage service provider charge or $15 minimum wage. however their main ask for lawmakers is transferring burdens from the core to higher classification, no matter if via giant-scale restructuring of the salary tax or strategic increases, such as upping the tax on diesel fuel for boats.

    “everything may still be checked out for a brave finances,” Sal Luciano, president of the Connecticut AFL-CIO, noted during a morning information conference. “I think values remember and i consider if [Lamont] desires to do the appropriate component with the aid of the state of Connecticut, he has to find a means to take the high road on the financial system.”

    Luciano regarded with several laborers — a trainer from Norwalk, a courtroom reporter, and a supervising nurse in the branch of Correction — as well as Miles Rapaport, a senior fellow at Harvard and former Connecticut state secretary and representative, and the Rev. Rodney Wade of Waterbury.

    They talked about Lamont can opt for a direction of cuts or a direction of increase, and entreated him to no longer to prioritize low-wage agencies over worker's.

    “If they basically trust and definitely need a funds that speaks to their values, then their finances needs to reflect the people who serve and the people who work in the state of Connecticut,” Wade mentioned. “we say they need the optimal for people however, finally, it’s always the americans who are being asked to make sacrifices for this outstanding state.”

    Mary Yordon, a French trainer and president of the Norwalk Federation of academics, spoke of licensed lecturers are being held in limbo in transient, one-yr positions, undermining the teacher tenure device and individuals’s commitments to their districts.

    Sotonye Otunba-Payne, a courtroom reporter with Connecticut Judicial employees native 749, stated the judicial department is making an attempt to outsource court docket transcription work, endangering a supply of profits for the predominately feminine body of workers. She spoke right through a information convention Monday in Hartford. (Rebecca Lurye / Hartford Courant) (Rebecca Lurye / Hartford Courant)

    Sotonye Otunba-Payne, a court docket reporter with Connecticut Judicial employees native 749, stated the judicial department is trying to outsource court transcription work, endangering a supply of profits for the predominately feminine team of workers.

    And Kara Phillips, the DOC nurse, referred to inmates are struggling as a result of there are one hundred twenty vacant health care positions statewide, including 9 unfilled positions at her facility, Corrigan-Radgowski Correctional center.

    “Inmates need to wait months to see a physician, leading to sicker and sicker people with greater clinical concerns,” she pointed out. Filling critical positions “could keep away from illnesses and illnesses from becoming even more emergent and costing the state even more funds,” in the end “producing more healthy communities as inmates are launched with fewer actual and intellectual illnesses.”

    whereas Lamont in November observed he “would no longer elevate taxes, duration,” he has up to now acknowledged the chance of increasing certain taxes to lower the state’s projected budget deficit, a good way to reach $2 billion next year and is expected to grow greater in the future.

    "My hunch is it can be a part of the answer.” he stated January 2018, when he officially announced his candidacy. "I’ve talked to folks throughout the board. They’re inclined to do a bit more as long because it’s part of something true and sustainable.”

    although, he additionally promised to searching for concessions from state worker unions on concerns like capping pensions and so-known as double dipping — allowing retirees to compile pensions and be hired returned through a state company to hold working.

    On Monday, labor leaders referred to they don’t are expecting Lamont to single out union concessions for discount rates with the aid of reopening the State employees Bargaining Agent Coalition, typical because the SEBAC deal. The deal turned into remaining up-to-date in 2018 to help close about one-third of the projected budget deficit over two years, even though Republicans spoke of it become nonetheless too lucrative, with a 4-yr, no-layoff provision.

    “We reject the style of slicing their solution to prosperity," Luciano talked about. “That has in no way worked."

    Rebecca Lurye can also be reached at rlurye@courant.com.


    Cactus publicizes Timing of Fourth Quarter and whole year 2018 salary release and convention call

    Cactus, Inc. WHD, +3.87% (“Cactus” or the “enterprise”) today introduced that it will subject its fourth quarter and entire 12 months 2018 revenue liberate after market close on Wednesday, March 6, 2019. The company will host a convention call to talk about financial and operational effects on Thursday, March 7, 2019 at 9:00 a.m. relevant Time (10:00 a.m. eastern Time).

    The name could be webcast on Cactus’ web site at www.CactusWHD.com. Institutional investors and analysts might also take part through dialing (866) 670-2203. overseas events can also dial (630) 489-9861. The access code is 6693617. Please access the webcast or dial in for the name at the least 10 minutes forward of beginning time to make sure a proper connection.

    An archived webcast of the convention call could be obtainable on the business’s web page almost immediately after the conclusion of the name.

    About Cactus, Inc.

    Cactus designs, manufactures, sells and rents various totally engineered wellhead and force control equipment. Its products are offered and rented principally for onshore unconventional oil and gasoline wells and are utilized all the way through the drilling, completion (together with fracturing) and production phases of its valued clientele' wells. moreover, it offers container capabilities for all its products and condo objects to aid with the installation, upkeep and dealing with of the wellhead and power handle machine. Cactus operates 15 service centers in the united states, which can be strategically determined in the key oil and fuel producing regions, together with the Permian, SCOOP/STACK, Marcellus, Utica, Eagle Ford and Bakken, among different areas, and one carrier middle in japanese Australia.

    View supply edition on businesswire.com: https://killexams.com/questions-and-answers

    supply: Cactus, Inc.

    Cactus, Inc.John Fitzgerald, 713-904-4655Director of corporate development and Investor RelationsIR@CactusWHD.com

    Copyright company Wire 2019


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