Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Citi Tech Conference 2007
18 slides from Veeco Instruments's conference presentation, Sep 5, 2007
Slide 1: Citi Tech Conference
Citi Tech Conference John Peeler, Chief Executive Officer Wednesday, September 5, 2007
Slide 2: Enabling Technology in Process Equipment and Metrology for Multiple Growth Markets
HB-LED/Wireless Data Storage Scientific Research Semiconductor Embedded Storage for CE Microdrives; PMR Below 65nm HB-LED / Wireless, Automotive, Camera Cell Phones, Backlit LCD TV Nanotech, Material & Life Science Veeco Provides Enabling Technology in Process Equipment and Metrology for Multiple Gr
Slide 3: Veeco's Technology/Market Universe
Veeco’s Technology/Market Universe Process Equipment 67% 33% Metrology Data Storage TFMH 32% Semiconductor 9% LED/Wireless 34% Scientific Research/ Industrial 25% Solar (emerging) Process Equipment Metal Organic Chem. Vapor Dep (MOCVD) Molecular Beam Epitaxy (MBE) Ion Beam Etch (IBE) Ion Beam Dep (I
Slide 4: My Background And Philosophy
My Background And Philosophy Long history in high-tech, multi-product, multi-market businesses Ran JDSU’s largest and most profitable business – Manage for growth and profitability Understand “portfolio” businesses, multi-factories, global distribution, cyclicality My philosophy: Do a great job for
Slide 5: Initial Focus Strategy & Planning
Initial Focus Strategy & Planning Sept. – Nov. Adjust strategies, processes and plans Planning for 2008 Discuss strategy and initial plans with Veeco Board and Investors Initial Learning July – Aug. Develop Business Unit and Functional Understanding Visit key factories, global regions Preliminary as
Slide 6: Initial Assessment
Initial Assessment Impressive products and technology Leading market positions in key areas #2 MOCVD for HB-LED; gaining share #1 PE and Metrology for TFMHs #1 AFM and strong position in optical profilers/interferometers Strong key customer relationships Solid global sales and support network Attrac
Slide 7: Initial Assessment – Key Challenges
Initial Assessment – Key Challenges We Need: Increased and more consistent growth Increased profitability Better predictability
Slide 8: Focusing on the Fundamentals
Focusing on the Fundamentals Direct our resources to the best growth opportunities Ensure that each of our product businesses is executing well Effective conceptualization, development and commercialization of leadership products Acceptable expense levels Strengthen our global sales and services org
Slide 9: Current Market Assessment
Current Market Assessment HB-LED currently Veeco’s best growth opportunity New K-Series™ MOCVD resulting in market share gains Broad base of global customers investing in LEDs for backlighting, architectural, automotive Data storage industry has stabilized Q2 order rate increased from Q4/Q1 trough l
Slide 10: Current Market Assessment Cont'd
Current Market Assessment Cont’d Scientific Research Focus for Veeco to create new products that will enable growth New Innova™ – “mid” priced tabletop SPM - launched in June to positive reaction Semiconductor most challenging market for Veeco today New Auto AFM in beta tests currently at key custom
Slide 11: Financial Overview
Financial Overview Jack Rein, Chief Financial Officer
Slide 12: Highlights for First Six Months of 2007
Highlights for First Six Months of 2007 Six Month ’07 Revenue $197.9 million – reflects weak Semiconductor, sluggish DS recovery but continued growth in HB-LED/Wireless Six Month ’07 Orders $218.4mdown 19% vs prior year, but 2Q’07 orders up 6% sequentially Continued HB-LED strength HDD stabilization
Slide 13: Veeco Benefits from Product, Market and Geographic Diversity
Veeco Benefits from Product, Market and Geographic Diversity Orders by Product Orders by Market LED/Wireless +42% Scientific Research +17% Data Storage and Semi down Orders by Region 1H07 ORDERS $218.4M Equipment 67% Orders $146.4M Metrology 33% Orders $72.0 HB-LED /Wireless 34% Scientific Research
Slide 14: Q3 Outlook/Guidance
Q3 Outlook/Guidance Q3 Revenues $92-$97 million – Loss per share ($0.09) – ($0.05) on a non-GAAP basis (excluding amortization of $1.9m, $0.5 million restructuring charge and using 35% tax rate) Q3 Decline in profitability primarily due to: New Data Storage products at introductory pricing Low metro
Slide 15: Strong Veeco Balance Sheet
Strong Veeco Balance Sheet December 31, 2006 June 30, 2007 (in millions) $281.8 $282.4 Shareholder’s Equity 209.2 152.0 Long-Term Debt 589.6 527.3 Total Asset 73.5 72.1 Fixed Assets 248.1 199.5 Working Capital $147.0 $108.1 Cash and Investments Net positive impact of 1H07 repurchase and exchange: Re
Slide 16: Safe Harbor Statement
Safe Harbor Statement 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.
Slide 17: Q2 GAAP Reconciliation
Q2 GAAP Reconciliation 2007 2006 2007 2006 Operating (loss) income ($1,010) $5,607 $728 $7,246 Adjustments: Amortization expense 2,368 3,989 6,277 8,004 Restructuring expense 1,445 (1) - 1,445 (1) - Earnings before interest, income taxes and amortization excluding certain items ("EBITA") 2,803 9,596
Slide 18: Q307 Guidance Reconciliation Table
Q307 Guidance Reconciliation Table High End Low End 1,900 500 1,900 500 Amortization expense Restructuring Expense (1,400) (3,700) Earnings before interest, income taxes and amortization, excluding certain items (“EBITA”) 1,000 1,000 Interest expense, net (2,400) (4,700) Earnings excluding certain i