Veeco Instruments announced that a leading semiconductor memory company has selected its Laser Spike Annealing (LSA) system for a one‑year evaluation in its advanced DRAM research and development group. The customer, which remains unnamed under confidentiality agreements, will use the LSA platform to test next‑generation DRAM and high‑bandwidth memory (HBM) nodes that demand precise dopant activation and tight thermal budgets.
The evaluation order is a strategic win for Veeco because it opens a potential high‑volume manufacturing pipeline that could materialize in 2027 and beyond. Veeco’s LSA technology is designed to deliver higher productivity and superior performance while staying within the reduced thermal budgets of leading‑edge nodes, a capability that is increasingly critical as memory densities climb and AI‑driven workloads push device limits.
Veeco’s Q3 2025 earnings showed revenue of $165.9 million, a 10.5% decline from the $184.8 million reported in Q3 2024. Despite the revenue dip, the company beat consensus earnings estimates by $0.24 per share, driven by strong demand in its core semiconductor equipment segments and disciplined cost management. The company’s gross margin for the quarter fell to 37% from 39% in the prior year, reflecting a shift toward advanced packaging systems and discounted evaluation tool acceptances.
Management highlighted the significance of the evaluation order in the earnings call. CEO Bill Miller said the company’s “strong financial results this quarter reflect continued momentum in the semiconductor market driven by AI and high‑performance computing.” SVP of Product Line Management Adrian Devasahayam added that the LSA platform “is engineered to meet the rigorous demands of advanced DRAM and HBM production, providing higher productivity and superior performance.” The company also reiterated its ongoing merger with Axcelis Technologies, which is expected to broaden Veeco’s technology portfolio and expand market opportunities.
Looking ahead, Veeco guided for Q4 2025 revenue of $155 million to $175 million and non‑GAAP diluted EPS of $0.16 to $0.32, both below consensus estimates. The guidance reflects management’s concern about near‑term macro conditions and a product‑mix shift toward lower‑margin advanced packaging. Analysts responded by downgrading the stock, citing the guidance shortfall. Nevertheless, the evaluation order and the projected $100 billion+ HBM market by 2030 position Veeco to capture a growing share of a high‑growth segment.
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