Slide 1: 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 2: CEO Introduction
CEO Introduction John Peeler
Slide 3: Concluded 2015 Delivering Solid Q4 Results
Concluded 2015 Delivering Solid Q4 Results *A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back Up & Reconciliation Tables **Utilized $9M to repurchase ~469K shares of common stock in Q4 2015 +21% Y/Y +$0.64 Y/Y Revenue ($M) EBITDA ($M) Non-GAAP EPS ($) +1,500% Y/Y Booki
Slide 4: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 5: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) ($M) Q4 14* Q1 15 Q2 15 Q3 15 Q4 15 FY 2015 Revenue $113.6 $98.3 $131.4 $140.7 $106.5 $477.0 Gross Profit 43.7 37.0 49.8 55.0 39.2 181.0 % 38.5% 37.7% 37.9% 39.1% 36.8% 38.0% SG&A** 18.9 19.1 21.0 18.2 18.7 77.1 R&D 19.2 18.0 19.0 18.2 19.3 74.5 OPEX 38.1 37.1 40.0 36.4 38.
Slide 6: Bookings Breakdown by Market and Geography
Bookings Breakdown by Market and Geography Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial 17% 37% 16% 30% Q4 2015 Bookings by End Market Note: Amounts may not calculate precisely due to rounding Q4 2015 Highlights: Record bookings in Advanced Packaging, MEMS & RF Sequential impro
Slide 7: Revenue Breakdown by Market and Geography
Revenue Breakdown by Market and Geography Note: Amounts may not calculate precisely due to rounding Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial 10% 10% 13% 67% Lighting, Display & Power Electronics Q3 2015 Revenue by End Market Advanced Packaging, MEMS & RF Data Storage Scient
Slide 8: Financial Highlights: Cash, Receivables, Inventories
($M) Q4 14* Q1 15 Q2 15 Q3 15 Q4 15 Cash & Short-term Investments 392 393 396 403 385 Accounts Receivable 60 64 83 47 50 Inventories 61 57 64 70 77 Accounts Payable 18 41 46 25 30 Cash Flow from Operations 49 4 8 10 (6) Financial Highlights Q4 14* Q1 15 Q2 15 Q3 15 Q4 15 DSO 48 59 57 30 42 DOI 68 89
Slide 9: Q1 2016 Guidance
Q1 2016 Guidance GAAP Non-GAAP Net Sales $70M - $80M $70M - $80M Gross Margins 36% - 38% 37% - 39% Adjusted EBITDA N/A ($9M) – ($5M) Net income (loss) ($24M) – ($20M) ($14M) – ($10M) EPS ($0.62) – ($0.52) ($0.35) – ($0.25)
Slide 10: Q1 2016 Guidance
Q1 2016 Guidance GAAP Non-GAAP Net Sales $70M - $80M $70M - $80M Gross Margins 36% - 38% 37% - 39% Adjusted EBITDA NA (S9M) - ($5M) Net income (loss) ($24M) - ($20M) (814M) - ($10M) EPS ($0.62) - ($0.52) ($0.35) - ($0.25) 10. | vestor Presentation Veeco
Slide 11: 2015 Achievements: LED Lighting & Display, MEMS & RF, Scientific
2015 Achievements LED Lighting & Display Continued our track record of successful new product introductions with EPIKTM 700 MOCVD Strengthened our core MEMS & RF Broadened exposure to growing mobility markets with PSP products Scientific & Industrial Extended our lead in MBE* as a supplier of choice
Slide 12: 2015 Achievements: GaN Power Electronics, Advanced Packaging, Front-End Semi
2015 Achievements GaN Power Electronics Expanded our R&D engagements on PropelTM Power GaN MOCVD Fortified our foundation for organic growth Advanced Packaging Gained momentum in Advanced Packaging with PSP Front-End Semi Demonstrated differentiated process capabilities on FASTTM-ALD FO WLP* - Multi
Slide 13: Market Environment
Market Environment CHALLENGING LED Lighting & Display While LED lighting is growing, TV backlighting demand remains weak and LED oversupply persists MOCVD investments will likely remain soft through 1H 2016 EXPANDING MEMS & RF Increased RF and MEMS sensor content in mobile devices and automobiles is
Slide 14: Advanced Packaging Adoption
Advanced Packaging Adoption Fan Out Wafer Level Packaging (FO WLP) Through Silicon Via (TSV) 60% CAGR 60% CAGR FO WLP FORECAST TSV FORECAST Size matters Source: TechSearch Speed matters Innovative technology enables smaller form factors and thinner package profiles, ideally suited for smartphones Ve
Slide 15: PSP Addressing Advanced Packaging Evolving Needs
PSP Addressing Advanced Packaging Evolving Needs Application FO WLP TSV Flux Clean UBM* Dry film resist strip RDL** Photo resist strip Application FO WLP TSV UBM* Seed layer etch RDL** Seed layer etch Wafer thinning TSV Reveal WaferStorm Unique Soak & Spray technology Thick resist removal in dense a
Slide 16: Introducing the next generation As/P MOCVD system: K475i
Introducing the next generation As/P MOCVD system: K475i Launched K475i to Strengthen our MOCVD Portfolio Unrivaled Availability TurboDisc® technology ~100 runs between cleans Industry leading Cost of Ownership FlowFlange® technology Production proven Best-in-Class Uniformity & Repeatability
Slide 17: MOCVD: Increasing Our Competitive Edge
As/P MOCVD High performance tool for ROY* LEDs, solar cells and laser diodes MOCVD: Increasing Our Competitive Edge GaN MOCVD The production solution for Blue/Green LED production Single wafer design for higher process stability and superior device yields The most competitive portfolio of MOCVD prod
Slide 18: 2016 Focus
2016 Focus Strengthen our core Pipeline of new products and applications Invest for growth Organic M&A Expand via partnerships Future revenue opportunities in front-end semi Maintain operational focus Improving gross margin Balancing expenses with future growth needs
Slide 19: 2016 Focus
2016 Focus ¥ a Strengthen Invest Expand Maintain our core for growth via partnerships operational focus + Pipeline of new + Organic + Future revenue + Improving gross margin products and + M&A opportunities in + Balancing expenses with applications front-end semi future growth needs 19. | tvestor Pr
Slide 20: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 21: 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 22: Supplemental Information – GAAP to Non-GAAP Reconciliation
Supplemental Information – GAAP to Non-GAAP Reconciliation Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Net Sales $113.6 $98.3 $131.4 $140.7 $106.5 GAAP Gross Profit 37.9 35.1 49.1 54.3 38.8 GAAP Gross Margin 33.3% 35.7% 37.3% 38.5% 36.4% Add: Equity Comp 0.6 0.6 0.7 0.8 0.4 Add: Acquisition Related 5.2 1.3 - - -
Slide 23: Q4 2015 GAAP to Non-GAAP Reconciliation
Q4 2015 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-based Compensation Acquisition Related Other Non-GAAP Net sales $106.5 - - - $106.5 Gross profit 38.8 0.4 - - 39.2 Gross margin 36.4% 36.8% SG&A 21.2 (2.3) (0.2) - 18.7 R&D 20.6 (1.3) - - 19.3
Slide 24: Q1 2016 Guidance GAAP to Non-GAAP Reconciliation
Q1 2016 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-based compensation Acquisition Related Other Non-GAAP Net Sales $70 - $80 $70 - $80 Gross Profit 25 - 30 1 - - 26 – 31 Gross Margin 36% - 38% 37% - 39% Adjusted EBITDA ($9) – ($5) Net
Slide 25: Q1 2016 Guidance GAAP to Non-GAAP Reconciliation
Q1 2016 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-based Acq In millions, except per share data GAAP nsation Related Other Net Sales $70 - $80 Gross Profit 25 - 30 1 - - 26-31 Gross Margin 36% - 38% 37% - 39% Adjusted EBITDA ($9) - ($5) Net income (loss) ($24) - ($20) 5 5 -