- --------------------------------------------------------------------------------
                       SECURITIES AND EXCHANGE COMMISSION
 
                             WASHINGTON, D.C. 20549

                               ---------------------------------
 
                                   FORM 10-Q
 
              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF 
                     THE SECURITIES EXCHANGE ACT OF 1934
 
                     FOR THE QUARTER ENDED SEPTEMBER 30, 1996MARCH 31,1997
 
                      Commission file number 0-16244

                                -----------------
 
                           VEECO INSTRUMENTS INC. 
           (Exact name of registrant as specified in its charter)
 
    Delaware                                        11-2989601 
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                      Identification Number)

 
    Terminal Drive 
    Plainview, New York                             11803
(Address of principal executive offices)            (Zip Code)
 
 
        Registrant's telephone number, including area code: (516) 349-8300

                              -----------------------------------
 
Indicate by check mark whether the Registrant: (1) has filed all reports 
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days:
 
                                      YesYES X No     
                                    ---     ---

5,826,534NO
                                          -    -
     5,871,959 shares of Common Stock $.01 par value, were outstanding as of 
October 25, 1996.

- --------------------------------------------------------------------------------April 28, 1997.



                                VEECO INSTRUMENTS INC.
 
                                         INDEX
              
PAGE
                                                                            ----

PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements (Unaudited):

          Condensed Consolidated Statements of Income - 
           Three Months Ended September 30, 1996 and 1995                      3

          Condensed Consolidated Statements of Income -
           Nine Months Ended September 30, 1996 and 1995                       4

          Condensed Consolidated Balance Sheets -
           September 30, 1996 and December 31, 1995                            5

          Condensed Consolidated Statements of Cash Flows -
           Nine Months Ended September 30, 1996 and 1995                       6

          Notes to Condensed Consolidated Financial Statements                 7

Item 2.   Management's Discussion and Analysis of Financial                     
           Condition and Results of Operations                                 9


PART II.  OTHER INFORMATION


Item 6.   Exhibits and Reports on Form 8-K                                    12


SIGNATURES                                                                    13


                                       -2-
PAGE ----- PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited): Condensed Consolidated Statements of Income -Three Months Ended March 31, 1997 and 1996....................................................... 3 Condensed Consolidated Balance Sheets -March 31, 1997 and December 31, 1996......................................................... 4 Condensed Consolidated Statements of Cash Flows -Three Months Ended March 31, 1997 and 1996....................................................... 5 Notes to Condensed Consolidated Financial Statements.......................... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations......................................................... 8 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K............................................... 10 SIGNATURES............................................................................. 11
PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Income (Dollars in(In thousands, except per share data) (Unaudited) Three Months Ended September 30, --------------------------------- 1996 1995 -------- -------- Net sales $ 24,071 $ 18,430 Cost of sales 13,602 10,061 ---------- ---------- Gross profit 10,469 8,369 Costs and expenses: Research and development expense 2,601 1,589 Selling, general and administrative expense 4,745 4,200 Amortization expense 63 51 Other - net 46 108 -------- -------- Operating income 3,014 2,421 Interest income, net 148 152 -------- -------- Income before income taxes 3,162 2,573 Income taxes 1,168 695 -------- -------- Net income $ 1,994 $ 1,878 -------- -------- -------- -------- Net income per common share $ 0.34 $ 0.33 -------- -------- -------- -------- Shares used in computation 5,860,000 5,750,000 -------- -------- -------- -------- SEE ACCOMPANYING NOTES. -3- Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Income (Dollars in thousands, except per share data) (Unaudited) Nine Months Ended September 30, ----------------------------------- 1996 1995 ---------- ---------- Net sales $ 69,810 $ 50,061 Cost of sales 39,011 27,430 ---------- ---------- Gross profit 30,799 22,631 Costs and expenses: Research and development expense 7,184 4,950 Selling, general and administrative expense 14,334 11,628 Amortization expense 168 151 Other - net 163 84 ---------- ---------- Operating income 8,950 5,818 Interest income, net 510 167 ---------- ---------- Income before income taxes 9,460 5,985 Income taxes 3,550 1,529 ---------- ---------- Net income $ 5,910 $ 4,456
THREE MONTHS ENDED MARCH 31, ---------------------- 1997 1996 ---------- ---------- Net sales........................................................... $ 29,551 $ 20,644 Cost of sales....................................................... 16,642 11,437 ---------- ---------- Gross profit........................................................ 12,909 9,207 Costs and expenses: Research and development expense.................................... 2,952 2,004 Selling, general and administrative expense......................... 5,765 4,373 Amortization expense................................................ 69 53 Other--net.......................................................... (18) 92 ---------- ---------- Operating income.................................................... 4,141 2,685 Interest income, net................................................ 105 200 ---------- ---------- Income before income taxes.......................................... 4,246 2,885 Income taxes........................................................ 1,609 1,075 ---------- ---------- Net income.......................................................... $ 2,637 $ 1,810 ---------- ---------- ---------- ---------- Net income per common share......................................... $ 0.43 $ 0.31 ---------- ---------- ---------- ---------- Shares used in computation.......................................... 6,150,000 5,893,000 ---------- ---------- ---------- ---------- Net income per common share $ 1.00 $ 0.84 ---------- ---------- ---------- ---------- Shares used in computation 5,889,000 5,317,000 ---------- ---------- ---------- ---------- SEE ACCOMPANYING NOTES. -4-
See accompanying notes. 3 Veeco Instruments Inc. and Subsidiaries Consolidated Balance Sheet (Dollars in thousands) September 30, December 31, 1996 1995 ----------------------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 18,109 $ 17,568 Accounts and trade notes receivable 17,878 18,983 Inventories 21,569 15,795 Prepaid expenses and other current assets 925 923 Deferred income taxes 1,261 1,221 ---------- ---------- Total current assets 59,742 54,490 Property, plant and equipment at cost, net 8,932 7,381 Excess of cost over net assets acquired 4,481 4,579 Other assets - net 1,053 930 ---------- ---------- Total assets $ 74,208 $ 67,380 ---------- ---------- ---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,880 $ 8,729 Accrued expenses 6,661 7,523 Income taxes payable 336 777 ---------- ---------- Total current liabilities 17,877 17,029 Deferred income taxes 118 118 Other liabilities 463 482 Shareholders' equity: Common stock 58 58 Additional paid-in capital 47,610 47,353 Retained earnings 7,481 1,571 Cumulative translation adjustment 601 769 ---------- ---------- Total shareholders' equity 55,750 49,751 ---------- ---------- Total liabilities and shareholders' equity $ 74,208 $ 67,380 ---------- ---------- ---------- ---------- SEE ACCOMPANYING NOTES. -5-
MARCH 31, DECEMBER 31, 1997 1996 ----------- ------------ (UNAUDITED) Assets Current assets: Cash and cash equivalents........................................... $ 24,819 $ 21,209 Accounts and trade notes receivable................................. 20,276 19,826 Inventories......................................................... 23,619 21,263 Prepaid expenses and other current assets........................... 808 858 Deferred income taxes............................................... 1,987 1,937 ----------- ------------ Total current assets................................................ 71,509 65,093 Property, plant and equipment at cost, net.......................... 10,792 9,761 Excess of cost over net assets acquired............................. 4,433 4,448 Other assets--net................................................... 1,319 1,025 ----------- ------------ Total assets........................................................ $ 88,053 $ 80,327 ----------- ------------ ----------- ------------ Liabilities and shareholders' equity Current liabilities: Accounts payable.................................................... $ 13,901 $ 11,196 Accrued expenses.................................................... 11,015 9,964 Income taxes payable................................................ 2,002 479 ----------- ------------ Total current liabilities........................................... 26,918 21,639 Deferred income taxes............................................... 257 257 Other liabilities................................................... 422 461 Shareholders' equity: Common stock........................................................ 59 58 Additional paid-in capital.......................................... 47,993 47,638 Retained earnings................................................... 12,246 9,609 Cumulative translation adjustment................................... 158 665 ----------- ------------ Total shareholders' equity.......................................... 60,456 57,970 ----------- ------------ Total liabilities and shareholders' equity.......................... $ 88,053 $ 80,327 ----------- ------------ ----------- ------------
See accompanying notes. 4 Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited) Nine Months Ended September 30, --------------------------------- 1996 1995 ---------- ---------- OPERATING ACTIVITIES Net income $ 5,910 $ 4,456 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,012 965 Deferred income taxes (40) 495 Changes in operating assets and liabilities: Accounts and trade notes receivable 867 (1,627) Inventories (5,886) (3,159) Accounts payable 2,169 (171) Accrued expenses and other current liabilities (1,263) 1,415 Other - net (11) 266 ---------- ---------- Net cash provided by operating activities 2,758 2,640 INVESTING ACTIVITIES Capital expenditures (2,403) (703) ---------- ---------- Net cash used in investing activities (2,403) (703) FINANCING ACTIVITIES Proceeds from stock issuance 257 14,538 Deferred financing costs (193) (85) Other - (29) ---------- ---------- Net cash provided by financing activities 64 14,424 Effect of exchange rates on cash 122 (172) ---------- ---------- Net change in cash and cash equivalents 541 16,189 Cash and cash equivalents at beginning of period 17,568 2,279 ---------- ---------- Cash and cash equivalents at end of period $18,109 $18,468 ---------- ---------- ---------- ---------- SEE ACCOMPANYING NOTES. -6-
THREE MONTHS ENDED MARCH 31, -------------------- 1997 1996 --------- --------- Operating activities Net income.............................................................. $ 2,637 $ 1,810 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization........................................... 295 334 Deferred income taxes................................................... (50) (12) Changes in operating assets and liabilities: Accounts receivable..................................................... (697) 868 Inventories............................................................. (2,557) (3,649) Accounts payable........................................................ 2,727 1,902 Accrued expenses and other current liabilities.......................... 2,660 (1,076) Other--net.............................................................. (297) (44) --------- --------- Net cash provided by operating activities............................... 4,718 133 Investing activities Capital expenditures.................................................... (1,266) (439) --------- --------- Net cash used in investing activities................................... (1,266) (439) Financing activities Proceeds from stock issuance............................................ 356 206 Other................................................................... (14) -- --------- --------- Net cash provided by financing activities............................... 342 206 Effect of exchange rates on cash........................................ (184) 51 --------- --------- Net change in cash and cash equivalents................................. 3,610 (49) Cash and cash equivalents at beginning of period........................ 21,209 17,568 --------- --------- Cash and cash equivalents at end of period.............................. $ 24,819 $ 17,519 --------- --------- --------- ---------
See accompanying notes. 5 VEECO INSTRUMENTS INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Basis of PresentationNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1--BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (consisting of normal recurring accruals) have been included. Operating results for the ninethree months ended September 30, 1996,March 31, 1997, are not necessarily indicative of the results that may be expected for the year ending December 31, 1996.1997. For further information, refer to the financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1995.1996. Earnings per share is computed using the weighted average number of common and common equivalent shares outstanding during the period. Note 2 - InventoriesNOTE 2--INVENTORIES Interim inventories have been determined by lower of cost (principally first-in, first-out) or market. Inventories consist of: September 30, December 31, 1996 1995 ---- ---- (Dollars in thousands) Raw materials $ 8,052 $ 4,349 Work-in process 6,142 4,222 Finished goods 7,375 7,224 -------- ------- $ 21,569 $15,795 -------- ------- -7-
MARCH 31, DECEMBER 31, 1997 1996 ----------- ------------ (DOLLARS IN THOUSANDS) Raw materials....................................................... $ 11,108 $ 9,546 Work-in process..................................................... 6,134 4,909 Finished goods...................................................... 6,377 6,808 ----------- ------------ $ 23,619 $ 21,263 ----------- ------------ ----------- ------------
6 Note 3 - Balance Sheet Information Selected balance sheet account disclosures follow: September 30, December 31, 1996 1995 ---- ---- (Dollars in thousands) Allowance for doubtful accounts $ 654 $ 517 Accumulated depreciation and amortization of property, plant and equipment $ 6,138 $ 5,318 Accumulated amortization of excess of cost over net assets acquired $ 877 $ 779 Note 4 - Credit Facility In place of its existing financing arrangements, in July 1996, the Company entered into a new credit facility (the "New Credit Facility") with Fleet Bank, N.A. and The Chase Manhattan Bank. The New Credit Facility, which is to be used for working capital, acquisitions and general corporate purposes, provides the Company with up to $30 million of availability. The New Credit Facility bears interest at the prime rate of the lending banks, but is adjustable to a maximum rate of 3/4% above the prime rate in the event the Company's debt to cash flow exceeds a defined ratio. A LIBOR based interest rate option is also provided. The New Credit Facility expires July 31, 1999, but under certain conditions is convertible into a term loan, which would amortize quarterly through July 31, 2002. The New Credit Facility is secured by substantially all of the Company's personal property, as well as the stock of its Sloan subsidiary. Note 5 - Other Information The principal reason for the variation in the relationship between the statutory income tax rate and the effective tax rate for the three and nine months ended September 30, 1995 is due to the recognition of previously unrecognized deferred tax assets.NOTE 3--BALANCE SHEET INFORMATION SELECTED BALANCE SHEET ACCOUNT DISCLOSURES FOLLOW:
MARCH 31, DECEMBER 31, 1997 1996 ----------- ------------- (DOLLARS IN THOUSANDS) Allowance for doubtful accounts..................................... $ 491 $ 482 Accumulated depreciation and amortization of property, plant and equipment......................................................... $ 6,991 $ 6,503 Accumulated amortization of excess of cost over net assets acquired.......................................................... $ 925 $ 910
NOTE 4--OTHER INFORMATION Total interest paid for the ninethree months ended September 30, 1995March 31, 1997 and 1996 was $106,000.$15,000 and $83,000, respectively. The Company made income tax payments of $3,967,000$103,000 and $647,000$308,000 for the ninethree months ended September 30,March 31, 1997 and 1996, respectively. NOTE 5--SUBSEQUENT EVENTS On April 28, 1997, the Company signed a definitive merger agreement with Wyko Corporation ("Wyko") of Tucson, Arizona, a leading supplier of optical interferometric measurement systems for the data storage and 1995, respectively. -8-semiconductor industries providing for the merger of Veeco Acquisition Corporation, a wholly owned subsidiary of the Company, into Wyko. Under the merger agreement, Wyko shareholders would receive 2,863,810 shares of Veeco common stock and holders of options to acquire Wyko common stock would receive options to acquire an aggregate of 136,190 shares of Veeco common stock. The merger is intended to be accounted for as a pooling of interests transaction. The consummation of the merger is subject to a number of conditions, including approval by the shareholders of Veeco, receipt of a fairness opinion from Veeco's financial advisor and confirmation from Veeco's independent accountants regarding its concurrence that the merger may be accounted for as a pooling of interests. On April 10, 1997, the Company acquired certain assets and personnel of the Media and Magnetics Applications Division of Materials Research Corporation, for a purchase price including cash plus assumption of certain liabilities. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30,Results of Operations Three Months Ended March 31, 1997 Compared to the Three Months Ended March 31, 1996 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 1995 Net sales for three months ended September 30, 1996March 31, 1997 increased by approximately $5.6$8.9 million or 30.6%43% over the comparable 19951996 period. The increase principally reflects continuing growth in Ion Beam System sales. . Sales of Ion Beam Systems for the thirdfirst quarter of 19961997 of approximately $17.9 million increased toby approximately $13.2$8.3 million or 62.8%86% over the comparable period in 1995,1996, driven primarilyprincipally by increased demand from the mass memorydata storage market.industry for high density hard drives. Sales of Surface Metrology products for the thirdfirst quarter of 19961997 of approximately $6.1$6.6 million remained flat compared toincreased by approximately $.9 million or 16% over the third quarter of 1995,comparable 1996 period, reflecting increased SXM product sales as a result of a general slow downthe semiconductor industry's investment in semiconductor applications.next generation sub-0.35 micron and smaller-featured device production. Sales of Industrial Measurement products for the thirdfirst quarter of 1996 increased to1997 of approximately $4.8$5.0 million decreased by approximately $.3 million or 13.4% over6% compared to the comparable period in 1995,1996, as the result of increased sales of newa decrease in leak detection products.equipment sales. The Company booked $18.3approximately $31.4 million of orders in the quarter compared to $21.2approximately $25.4 million of orders in the thirdfirst quarter of 1995, as1996, reflecting both the general over capacity inincreased demand for high density hard drives and the semiconductor devicecontinued industry has impacted customers short term purchasing patterns.transition to the next generation MR thin film magnetic heads and increasing orders for SXM products. Gross profit for the thirdfirst quarter of 19961997 of approximately $10.5$12.9 million represents an increase of approximately $2.1$3.7 million or 40% over the comparable 19951996 period. Gross profit as a percentage of net sales decreased to 43.7% in 1997 from 45.4% in 1995 to 43.5%44.6% in 1996. This decline was principally due to product and geographic mix changes in Surface Metrology products in the 1996 third quarter.product mix. Research and development expense in the thirdfirst quarter of 1997 increased by approximately $.9 million or by 47% compared to the first quarter of 1996, increasedprincipally driven by approximately $1.0 million or 63.7% compared to the third quarter of 1995 as the Company increased its R&D investment in each product line with particular emphasis on ion beam deposition products.Ion Beam Systems. Selling, general and administrative expenses increased by approximately $545,000$1.4 million or by 32% compared to the thirdfirst quarter of 1995.1996. The increase was primarily due to approximately $401,000 of additional selling expense comprised of sales commissions related to the higher sales volume, as well as increased compensation and travel expense. Operating income increased to approximately $3.0 million or 12.5% of net sales for the third quarter of 1996 compared to approximately $2.4 million or 13.1% of net sales for the third quarter of 1995, due to the above noted factors. Income taxes for the third quarter of 1996 amounted to approximately $1.2 million or 36.9% of income before income taxes in 1996 as compared to $695,000 or 27.0% of income before taxes for the same period in 1995. The lower effective tax rate in 1995 as compared to the statutory tax rate is a result of the Company recognizing in 1995 previously unrecognized deferred tax assets. -9- NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1995 Net sales for nine months ended September 30, 1996 increased by approximately $19.7 million or 39.5% over the comparable 1995 period. The increase reflects growth in all three product lines: Ion Beam Systems, Surface Metrology and Industrial Measurement. Sales of Ion Beam Systems for the nine months ended September 30, 1996 increased to approximately $37.2 million or 67.8% over the comparable 1995 period, driven by increased demand from the mass memory storage market. Sales of Surface Metrology products for the nine months ended September 30, 1996 increased to approximately $17.3 million or 19.4% over the comparable 1995 period, primarily as a result of increased activity in SXM Atomic Force Microscopy for semiconductor applications. Sales of Industrial Measurement products for the nine months ended September 30, 1996 increased to approximately $15.3 million or 14.4% over the comparable 1995 period, as a result of new leak detection products. Gross profit for the first nine months of 1996 of approximately $30.8 million represents an increase of 36.1% or approximately $8.2 million over the comparable 1995 period. Gross profit as a percentage of net sales decreased from 45.2% in 1995 for the first nine months to 44.1% in 1996 for the same period. This decline was principally due to product mix changes in Surface Metrology and Industrial Measurement. Research and development expense increased by approximately $2.2 million or 45.1% in the first nine months of 1996 compared to the comparable period of 1995 as the Company increased its R&D investment in all product lines, with $1.5 million of the increase directed at Ion Beam Systems. Selling, general and administrative expenses for the first nine months of 1996 increased by approximately $2.7 million compared to the first nine months of 1995. The increase was primarily due to approximately $2.1$1.1 million of additional selling expense comprised of sales commissions related to the higher sales volume, as well as increased sales and sales support compensation and travel expense as a result of the hiring of additional sales and service personnel to support the Company's continuing growth. The Company booked $68.8 million of orders in the first nine months of 1996 compared to $60.5 million of orders in the first nine months of 1995.expense. Operating income increased to approximately $9.0$4.1 million or 12.8%14% of net sales for the nine months ended September 30, 1996first quarter of 1997 compared to approximately $5.8$2.7 million or 11.6%13% of net sales for the nine months ended September 30, 1995,first quarter of 1996, due to the above noted factors. Income taxes for the nine months ended September 30, 1996first quarter of 1997 amounted to $3.6approximately $1.6 million or 37.5%38% of income before income taxes in 1997 as compared to approximately $1.5$1.1 million or 25.5%37% of income before income taxes for the same period in 1995. The lower effective tax rate in 1995 as compared to the statutory tax rate is a result of the Company recognizing in 1995 previously unrecognized deferred tax assets. -10-1996. 8 LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operations totaled $2.8approximately $4.7 million for the first ninethree months of 19961997 compared to $2.6approximately $.1 million for the comparable 19951997 period. Inventories increased $5.9This increase is reflective of an increase in net income in 1997 of approximately $.8 million as a result of purchases required forover the increased sales level.comparable 1996 period coupled with favorable changes in operating assets and liabilities. The Company hadmade capital expenditures of $2.4approximately $1.3 million for the ninethree months ended September 30,March 31, 1997, as compared to approximately $.4 million in the comparable 1996 period. Capital expenditures in 1997 principally forreflect investments in building improvements, laboratory tools and test equipment. In addition,business information systems. Relative to the acquisition in April 1997 of the Media and Magnetics Applications business of Materials Research Corporation, the Company began an upgradebelieves that it will expend approximately $10 million of its computer systems incash during the 1996 third quarterlast nine months of 1997 for the purchase of this business, as well as for future capital expenditures and anticipates spending $1.5 million on this program in the next six to nine months. In July, 1996 the Company entered into a new credit facility with two banks that provides borrowing capability of $30 million. (See note 4 to the financial statements). The new credit facility will be used for working capital acquisitions and other general corporate purposes.requirements. The Company believes that existing cash balances together with cash generated from operations and amounts available under the Company's bank credit facility will be sufficient to meet the Company's projected working capital and other cash flow requirements for the foreseeable future. -11-9 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: 10.25 Credit2 Agreement and Plan of Merger Among Veeco Instruments Inc., Veeco Acquisition Corp. and Wyko Corporation and its Security Holders dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.26 Security Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.27 Guarantee Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.28 Guarantor's Security Agreement dated July 31, 1996 among Sloan Technology Corporation, Fleet Bank N.A. and The Chase Manhattan Bank.(1) 10.29 The Pledge Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.30 The Patent and Trademark Security Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank.(1) 27.April 28, 1997. 27 Financial Data Schedule of Veeco Instruments Inc. for the quarterly periodquarter ended September 30, 1996.March 31, 1997. b) Reports on Form 8-K: The Registrant filed a Form 8-K dated July 26, 1996March 13, 1997 reporting that : (I) the Registrant entered into a letter of intent with Wyko Corporation pursuant to which it is contemplated that the Registrant will acquire all the issued and outstanding shares of Wyko in exchange for the issuance of 3,000,000 shares of common stock par value $.01 per share, of the Registrant may no longer be offered for resale or resoldand on March 10, 1997, the Registrant issued a press release announcing the execution of such letter of intent and, (ii) the Registrant issued a press release on March 10, 1997 announcing it had entered into a Memorandum of Understanding with MRC Corporation pursuant to any ofwhich it is contemplated that the following prospectuses: (i) the Company's Prospectus dated December 15, 1994 filed as part of the Company's Registration Statement on Form S-8, file no. 33-87394; (ii) the Company's Prospectus dated August 3, 1995 filed as part of the Company's Registration Statement on Form S-8, file no. 33-95424;Registrant will acquire certain assets and (iii) the Company's Prospectus dated August 3, 1995 filed as part of the Company's Registration Statement on Form S-8, file no. 33-95422. (1) Incorporated by reference from the Registrant's Quarterly Report on Form 10-Qassume certain liabilities relating to MRC's Media and Magnetics Applications division in exchange for the quarterly period ended June 30, 1996 filed with the Securities and Exchange Commission on August 8, 1996. -12-cash. 10 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 29, 1996May 7, 1997 Veeco Instruments Inc. By: /s/ Edward H. Braun ------------------- Edward H. Braun Chairman, CEO and President By: /s/ John F. Rein, Jr. ---------------------- John F. Rein, Jr. Vice President, Finance and Chief Financial Officer -13- EXHIBIT INDEX Exhibits: 10.25 Credit Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.26 Security Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.27 Guarantee Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.28 Guarantor's Security Agreement dated July 31, 1996 among Sloan Technology Corporation, Fleet Bank N.A. and The Chase Manhattan Bank.(1) 10.29 The Pledge Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 10.30 The Patent and Trademark Security Agreement dated July 31, 1996 among the Registrant, Fleet Bank N.A. and The Chase Manhattan Bank. (1) 27. Financial Data Schedule of Veeco Instruments Inc. for the quarterly period ended September 30, 1996. (1) Incorporated by reference from the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1996 filed with the Securities and Exchange Commission on August 8, 1996.11