Slide 1: Q1 2019 Conference Call
Q1 2019 Conference Call Veeco Instruments Inc. May 6, 2019
Slide 2: Safe Harbor
Safe Harbor To the extent that this presentation discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These item
Slide 3: CEO Overview
CEO Overview William Miller 3 Q1 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 4: Q1 2019 Highlights
Q1 2019 Highlights Q1 $107.2M $99.4M $(4.8M) (14¢) Results Bookings Revenue Non-GAAP Non-GAAP EPS Operating Loss ▪ Strength in Data Storage and EUV products ▪ Backlog grew to $295M ▪ Stabilized revenue with de minimis commodity ▪ Ending cash and short-term LED contribution investments of $237M Focus
Slide 5: Executing 2019 Growth Opportunities
Executing 2019 Growth Opportunities Front-End Compound Advanced Semiconductor Semiconductor Packaging EUV Mask Blanks 3D Sensing / VCSEL Wafer Level Packaging Ion Beam Deposition MOCVD Lithography Front-End Wafer Processing Laser Annealing EUV – Extreme Ultraviolet 5 Q1 2019 Conference Call | © 2019
Slide 6: 2019 Focus
2019 Focus Innovate Penetrate Improve technology leadership market growth profitability ▪ Solve tough materials ▪ EUV Mask Blanks – Ion Beam ▪ Improve gross margin problems Deposition ▪ Reduce operating expenses ▪ Execute product roadmaps ▪ Leading-Edge Front-End Semiconductor – Laser Anneal ▪ 3D Se
Slide 7: CFO Financial Review
CFO Financial Review Sam Maheshwari 7 Q1 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 8: Q1 2019 Revenue by Market & Region
Q1 2019 Revenue by Market & Region Revenue by Market Revenue by Region Front-End Semiconductor United States 23% LED Lighting, Display 33% & Compound Semi 14% ROW 39% $99.4M Advanced Scientific & Packaging, MEMS Industrial & RF Filters EMEA 40% 23% 18% China 10% 8 Q1 2019 Conference Call | © 2019 Ve
Slide 9: Operating Results
Operating Results GAAP Non-GAAP $ millions (except per share amounts) Q4 18 Q1 19 Q4 18 Q1 19 Revenue $99.0 $99.4 $99.0 $99.4 Gross Profit 35.3 34.7 35.7 35.2 Gross Margin 35.6% 34.9% 36.0% 35.5% Operating Expenses 174.2 48.9 42.6 40.0 Operating Income/(Loss) (139.0) (14.1) (6.9) (4.8) Net Income/(L
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 18 Q1 19 Cash & Short-Term Investments 261 237 Accounts Receivable 67 75 Inventories 156 148 Accounts Payable 40 36 Long-Term Debt 287 290 Cash Flow from Operations 2 (22) DSO (days) 61 68 DOI 219 212 DPO 56 52 Reduction in Cash Driven by Working
Slide 11: Q2 2019 Guidance
Q2 2019 Guidance GAAP Non-GAAP Revenue $90M - $110M $90M - $110M Gross Margin 36% - 38% 37% - 39% Operating Expenses ~$50M ~$40M Operating Income (Loss) $(18) - $(8) $(7M) - $3M Net Income (Loss) $(22M) - $(12M) $(9M) - $1M Earnings (Loss) Per Share $(0.47) - $(0.27) $(0.18) - $0.02 . A reconciliati
Slide 12: Q&A
Q&A 12 Q1 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 13: Reconciliation Tables
Reconciliation Tables 13 Q1 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 14: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 15: Supplemental Information— Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q4 18 Q1 19 US$ millions Q4 18 Q1 19 US$ millions, except per share Q4 18 Q1 19 amounts Net Sales $99.0 $99.4 GAAP Net Income (Loss) $(144.7) $(18.5) GAAP Basic EPS (3.11) (0.40) GAAP Gross Profit 35.3 34.7 Add: Share-Based Comp 3
Slide 16: Q1 2019 Actual: Reconciliation
Q1 2019 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $99.4 $99.4 Gross Profit 34.7 0.5 35.2 Gross Margin 34.9% 35.5% Operating Expenses 48.9 (2.7) (4.2) (2.0) 40.0 Operating Inco
Slide 17: Q2 2019 Guidance: Reconciliation
Q2 2019 Guidance: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $90–$110 $90–$110 Gross Profit 32–42 1 — — 33–43 Gross Margin 36%–38% 37%–39% Operating Expenses ~$50 3 4 3 ~$40 Operating
Slide 18: Thank You
Thank You Veeco Instruments www.veeco.com Ver:11072018