The move away from bulk hardware sales is part of a broader effort to align revenue with customer buying cycles, which should benefit revenue predictability starting in 2026.
This transition has caused a temporary decline in hardware margins but is expected to improve overall margin profile as SaaS and recurring revenues grow.
The company booked over 24,000 new units in Q2, the highest in over a year, indicating early positive traction from the new sales approach.
Veeco reports strong customer engagement across multiple evaluation programs, with each potential application capable of generating significant follow-on revenue.
Customer interest remains high in AI, high-performance computing, and advanced packaging, with evaluations progressing well and additional systems planned for 2026.
Signs of increased capacity utilization and positive discussions about future requirements suggest a healthy demand outlook for Veeco's equipment in key markets.
Gen2X Technology as a Catalyst for Industry Transformation
Gen2X is a set of extensions to the industry radio protocol that enhances read range, speeds inventory, and improves tag management.
It is driving demand for Impinj's products and is expected to be a key component of the industry's future.
Gen2X is primarily focused on enabling enterprise solutions that were previously unfeasible, creating a virtuous cycle of demand for M800 endpoint ICs.
Strategic Focus on High-Value Technologies and Portfolio Rationalization
onsemi is actively exiting noncore businesses and repositioning its sensing portfolio towards higher value segments such as ADAS and machine vision.
The company is ending the end-of-life of certain legacy products, with an expected $50-100 million revenue impact in 2026 that won't repeat.
Investments are focused on next-generation technologies where the company has clear competitive advantages, including intelligent power, sensing, and analog mixed signal technologies.
Dafinchi