Veeco Projects Growth and Announces Status of Corrective Actions Scott McMahanMarch 17, 2005...In a quarterly conference call Edward H. Braun, chairman and CEO of Veeco said that they should have about a two percent increase in revenue per quarter over the next three quarters despite the likely decline in the LED and wireless equipment sales resulting from market saturation in 2005. Mr. Braun reported, “Revenues increased in all our core markets, with particular strength in LED, wireless, data storage and semiconductor.” Mr Braun added, “Our 2005 focus is to improve our profitability across our Process Equipment and Metrology product lines and to position Veeco for what we currently believe are strong growth opportunities in 2006 and beyond.”
Veeco announced their completion of the internal investigation of improper accounting at their TurboDisc business unit. Jeferson Wells, a firm retained by Veeco’s audit committee, reported the findings. According to Veeco, “Conclusions reached during the investigation included that the improper entries were made by a single individual at TurboDisc whose employment had been terminated prior to the commencement of the investigation.” The company said that the investigation, that began after an internal audit found improper accounting, focused on, “the value of inventory, accounts payable and certain liabilities, as well as certain revenue transactions of TurboDisc.” Mr Braun added, “Actions have been taken to resolve these accounting issues, including the completion of an independent review, appropriate staffing changes, and transitioning TurboDisc to Veeco's SAP accounting system."
He said, that they expanded the investigation into, “other parts of the company in certain areas just as a precaution and found nothing to warrant any further examination or expansion of the search.” Mr. Braun explained, “Its only limited to one individual, and one site, and he is very much contained…No motive was found; there was no provable embezzlement. No assets left the building. Nobody seems to have individually prospered because of this. No one was coerced by management or the company to follow this incorrect accounting. We have found the problem, we have fixed the problem.”
In related news, Veeco appointed Richard Wissenbach as Senior Vice President, General Manager for its Compound Semiconductor/Epitaxial Process Equipment Group, which includes the TurboDisc MOCVD operation in Somerset, New Jersey USA and its MBE operations in St. Paul, Minnesota.
Company News Release
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March 17, 2005...The AXT Board of Directors has appointed Philip C. S. Yin PhD. as their chief executive officer effective March 28th. The company, of Freemont, California USA, a producer of compound semiconductor substrates for the fiber optics and communications industries, says that it will grow in 2005. Don Tatzin will step down as interim CEO to serve on the the Board of Directors. The company chairman, Jesse Chen said, “We believe that AXT is poised for growth during 2005 and Phil's track record of increasing sales and customer satisfaction in his previous positions will accelerate our improvement." Dr. Yin has a distinguished career as an executive in the compound semiconductor and semiconductor industries and most recently served as general manager for North America of AIXTRON Inc., a leading manufacturer of MOCVD equipment used in the compound semiconductor industry. In other company news, as part of the company's ongoing effort to reduce its cost structure and bring capacity in line with current market demand, AXT on March 11th reduced their manufacturing workforce at their Beijing, China facility by 100 workers or about 15%. More on Northrop Grumman's Role in the DARPA Wide Bandgap Initiative CompoundSemi News StaffMarch 16, 2005...As follow-on to our initial coverage,
Northrop Grumman's award from DARPA for work on the new Wide
Bandgap Semiconductor Initiative is in Phase II. This was clarified for us by
Dwight Streit, VP of Foundation Technologies, at the company's Space Technology
sector in Redondo Beach, California USA. Setting the record straight, Dwight pointed
out that the company is indeed still in the same merchant foundry business
as TRW was during DARPA's original GaAs MIMIC Program. (Ref:
March 14 editorial, The Long Awaited DARPA GaN Awards). Dwight served
as TRW's principal in that earlier program. Currently, NG continues to providing
merchant GaAs foundry services as well as InP services through its Velocium
arm (which still exists as constructed by TRW, which was scaled down when
NG purchased TRW). According to Dwight, NG will additionally offer GaN foundry
services when the new GaN on SiC lines reach X-band production capability. Dwight
indeed agreed that this was the long-awaited GaN awards, and reminded us that
the program actually began with Phase 1 and that this current award round to
three teams, TriQuint, Northrop Grumman and Raytheon (and Raytheon may not actually
be the prime in that program) is actually Phase II.
The old MIMIC Program actually
started with a Phase 0 that included TriQuint and virtually everyone else in
the compound semi field at the time, and the field was whittled down to Raytheon+TI and TRW+Westinghouse.
Dwight pointed out that the historic tie-ins are especially interesting. The
Redondo Beach Space Technology campus, (which is huge) is where the original
Space Technology Laboratories was located; It was launched the day after
Sputnik was launched in 1957. Starting at Ramo and Wooldridge, Thompson became
involved when the first ICBM contracts were let and the company became Thompson,
Ramo and Wooldridge (TRW). Another tie in is that TRW was teamed with Westinghouse
Baltimore for MIMIC, and Westinghouse Baltimore was acquired by Northrop Grumman,
so the internal NG team for the WGB program is really a reuniting of the old
MIMIC TRW+Westinghouse team, with some of the same people involved. NG is also
purposely not yet revealing the names of all their suppliers and partners.
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Deep UV LEDs Reach Major Milestone in Water Purification Jo Ann McDonaldMarch 15, 2005...A team of incredible USA scientists and engineers have succeeded in demonstrating an LED-based flow-through UV water purification module.
The technology has made major strides, but it still has not reached the realms of commercial feasibility for an ultraviolet LED-based
solution for water purification and a replacement of mercury vapor lamp purification technology. The team consists of especially
talented people from Sensor Electronic
Technology, Inc. (SET) in Columbia, South Carolina, the Photonics
and Microelectronics Lab at the University of South Carolina (USC) in Colombia,
South Carolina, and Hydro-Photon Inc. (HPI) of Blue Hill, Maine. SET is headed
by Remis Gaska and Michael Shur,
USC is headed by Asif
Khan, and HPI is headed by Miles Maiden. HPI is the creator and seller of
a popular product called the "Steripen"
that purifies water using mercury vapor lamp technology that currently sells
for $149 and is used primarily by outdoor adventurers and travelers to places
where the drinking water is questionable. HPI's next generation product will
use an array of UV-LEDs, be significantly smaller and more compact, last longer,
and sell for under $50.
The commercial application has been helping drive DARPA's SUVOS
program, which is under the direction of Col. John Carrano, seen pictured
third down on the right at our Blue
2003 conference where he presented the first results of the SUVOS. SET is the
leading commercial supplier of deep UV LEDs with wavelength ranging from 255
to 340 nm and is the only commercial supplier of 265 nm to 320 nm LEDs
which are the wavelengths required for efficient water purification. Working under
a contract with the Office of Naval Research (ONR) and the support of the SUVOS
program, HPI has developed a bench-level prototype flow-through treatment
chamber that incorporates 10 of the SET/USC 280 nanometer devices. The aluminum
treatment chamber (a half cylinder with a volume of approximately 4 cubic centimeters)
was fabricated to maximize UV reflectance and heat sink capacity. Commentary on the
progress and potential of UV LEDs is included in our March
15 McDonald Report LIGHTimes editorial.
Content continues for LIGHTimes SecondPage members... MII Wins EE Times' ACE Award CompoundSemi News StaffMarch 16, 2005...Molecular Imprints Inc. (MII) of Austin, Texas USA, a global manufacturer of nanolithography equipment, won EE Times’ Annual Creativity in Electronics (ACE) award for “Most Promising New Technology.” The company beat out IBM, Intel, and two others with their technology called Step and Flash Imprint Lithography (S-FIL) for creating the most compelling electronic component that is outstanding in technical design, has the greatest potential market impact, and demonstrates the company’s leadership in the field. Selected by a panel of leading technologists, educators, and executives from five finalists in each of 14 categories from an original pool of 340 entries, the ACE awards are for companies and products that make a significant contribution and demonstrate true innovation in their field. “We are proud to have been selected for this award. It is a compliment to our hard working staff that we have taken a laboratory technology and delivered it to the market in such a short time,” Norm Shumaker, MII’s president and CEO said. So congratulations to MII, a local company whose innovation we covered while completing a recent story on their latest microlithography system. Company News Release Mimix Broadband Agrees to Buy GaAs Assets From CeleritekMarch 15, 2005...Mimix Broadband has agreed to purchase the GaAs assets from Celeritek for a reported $2.8 million, and Mimix will assume $6 million in liability.
Just six days after acquiring majority stake in Hocum Communications of Hsinchu, Taiwan, Mimix Broadband Inc., a privately held company with headquarters in Houston, Texas USA, has agreed to purchase the assets of Celeritek, Inc. of Santa Clara, California related to its GaAs business. Mimix Broadband, which produces millimeter-wave MMICs, will pay $2.8 million for the assets and assume $6 million in liabilities for Celeritek's GaAs business assets. Celeritek designs and manufactures radio frequency integrated circuits (RFICs), gain blocks, low noise amplifier modules, and power amplifier modules, using GaAs based device technology used in a variety of commercial and defense applications.
"Celeritek's 19 years of expertise in designing and manufacturing GaAs components will give Mimix an immediate platform to expand its product portfolio and serve new, complementary markets," said Rick Montgomery, CEO of Mimix Broadband, Inc. Mr. Montgomery added, “As a result of this transaction, Mimix will be able to offer a more diversified product portfolio to serve the top tier telecom, satellite and defense companies and will have the assets and capabilities to be a leading player in both the microwave and millimeter-wave semiconductor marketplaces." According to the company news release, the closing of the asset sale is subject to approval by Celeritek's shareholders and other closing conditions. After the sale is consummated, Celeritek will close business, and begin liquidation and dissolution.
TriQuint Scores $30+ Million Multi-Year DARPA GaN on SiC Electronic Contract CompoundSemi News StaffMarch 14, 2005...TriQuint Semiconductor of Hillsboro, Oregon USA is moving rapidly onto everyone's
radar screens as an open foundry catalyst for GaN materials and devices for
a variety of electronic applications. The company, which bases its operations
in both Oregon and Texas, has been working on GaN electronics since 199 and
is the second to announce
what appears to be shaping up as a trio of impressive GaN on SiC for Wide Bandgap
(WBG) semiconductor contracts from the USA's Defense Advanced Research Projects
Agency (DARPA), the other two prime contractor teams being led by giants Northrop
Grumman and Raytheon (ref:
our coverage). TriQuint's contract is specifically to develop high power
wide band HEMT GaN on SiC amplifiers. Program goals are to develop 100W power,
30% PAE @ 2-20GHz HEMTs targeted at achieving the higher power density and efficiency
required for high power phased array radar, electronic warfare, missile seeker
and communications systems. The Army Research Laboratory in Adelphi, Maryland
will monitor TriQuint's contract, which has already begun in Richardson, Texas
under internal funding by the company.
Phase 1 of TriQuint's contract will last three years and is valued at $15.8
million and the second, optional phase that moves the GaN on SiC amplifiers
into insertion in DoD systems covers years four and five and is valued at $15.9
million. TriQuint's team members are an impressive litany of individuals and
companies, and includes his phase will develop gallium nitride high power, wide
band amplifiers and package technology for insertion into DoD systems. TriQuint
is the prime and they've teamed with none other than BAE Systems and Lockheed
Martin as their systems integrator partners, Emcore Corporation for the GaN
on SiC epiwafers, II-VI Incorporated as their suppliers of starting SiC, and
Nitronex (the rising stars of GaN on Silicon in North Carolina) as TriQuint's
pros at reliability. Strong reliability data is key to TriQuint's approach.
University partners are Dr. Michael Shur of Rensselaer Polytechnic Institute
and Dr. Jesus del Alamo of the Massachusetts Institute of Technology. The program
tasks include material optimization, device development, MMIC development and
module demonstration. The contract emphasizes reliability, yield, uniformity
and reproducibility. The program also includes a MMIC validation process. At
the end of the five-year program, TriQuint Semiconductor will have a reliable,
reproducible and stable gallium nitride process suitable for DoD and commercial
applications... and the open market.
"TriQuint is very excited to be leading a highly qualified team in
the development of this new technology. Gallium nitride offers a five-fold improvement
in power density compared to gallium arsenide devices, and makes it ideal for
high power radar and communications applications," said Mr. Anthony
Balistreri, TriQuint's program manager for research and development. "TriQuint
looks forward to providing high volume, cost effective foundry services and
standard products based on gallium nitride," Tony added. "We
have assembled an excellent team, with strengths in the key areas called out
in the program requirements," said Dr. Paul Saunier, TriQuint's principal
investigator. "The team will combine talent and experience to minimize
risk and reduce development time, leading to a successful development effort."
For more details on this DARPA GaN on SiC WBG initiative, reference our March
14th Editorial.
Toyoda Gosei and TridonicAtco to Establish Joint Venture for Development and Production of White LEDs CompoundSemi News StaffMarch 14, 2005...Toyoda Gosei of Aichi, Japan and TridonicAtco of Zumtobel Group with headquarters
in Dornbirn, Austria, are going to establish a joint venture based in Jennersdorf,
Austria in April to advance the development of high-power white LEDs. The new
joint venture will produce high-power LED packages and components for the general lighting market. Content continues for LIGHTimes SecondPage members... Our news features are reported
by the CompoundSemi News staff writers.
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