Veeco repurchases $20 million of 4 1/8% convertibles

By Angela McDaniels

Seattle, Feb. 21 -Veeco Instruments Inc. has repurchased $20 million of its 4 1/8% convertible subordinated notes due 2008, according to a company news release.

Veeco paid $19.5 million in cash for the repurchase, of which $19.4 million went toward principal and $0.1 million paid for accrued interest.

"Veeco's strong cash generation from operations in 2005 gave us the flexibility to be able to retire some of our convertible debt while maintaining a healthy cash balance," executive vice president and chief financial officer John F. Rein Jr. said in the release.

As a result of this repurchase, the amount of Veeco's convertible subordinated notes outstanding has been reduced to $200 million and Veeco will recognize a gain of $600,000 as ordinary income during the current quarter, the company said.

Vecco Instruments is based in Woodbury, N.Y., and provides products and services for nanoscale applications in the semiconductor, data storage, HB-LED/wireless and scientific research markets.

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