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: Q3 2015 Financial Performance
Revenue $141M Non-GAAP gross margin* 39% Adjusted EBITDA* $22M Non-GAAP Diluted EPS* $0.33 Operating cash flow $10M Cash & short term investments $403M Share repurchase program $100M Bookings $52M * A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back Up & Reconciliation
Slide 4: Current Business Conditions
Current Business Conditions LED Manufacturers delaying MOCVD investments driven by: Economic slowdown in China Weak TV demand impacting LED display backlighting Duration of MOVCD investment pause is unclear Customers delaying shipments and new investments Limited visibility to customer order timing
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 6: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) ($M) Q3 14 Q4 14* Q1 15 Q2 15 Q3 15 Revenue $93.3 $113.6 $98.3 $131.4 $140.7 Gross Profit 33.2 43.7 37.0 49.8 55.0 % 35.5% 38.5% 37.7% 37.9% 39.1% SG&A** 18.9 18.9 19.1 21.0 18.2 R&D 18.9 19.2 18.0 19.0 18.2 OPEX 37.8 38.1 37.1 40.0 36.4 % 40.5% 33.6% 37.7% 30.5% 25.9% Adju
Slide 7: Q3 2015 Market and Geography Data
Q3 2015 Market and Geography Data Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial 27% 20% 30% 23% Lighting, Display & Power Electronics $52M Bookings by Market Lighting, Display & Power Electronics Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial 67% 10% 13% 10%
Slide 8: Financial Highlights
($M) Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Cash & Short-term Investments 487 392 393 396 403 Accounts Receivable 62 60 64 83 47 Inventory 47 61 57 64 70 Accounts Payable 26 18 41 46 25 Cash Flow from Operations 10 49 4 8 10 Financial Highlights PSP Purchase Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 DSO 59 48 59 57 30 D
Slide 9: Q4 2015 Guidance
Q4 2015 Guidance GAAP Non-GAAP Net Sales $90M - $110M $90M - $110M Gross Margins 31% - 34% 32% - 35% Adjusted EBITDA N/A ($3M) - $5M Net income (loss) ($15M) – ($7M) ($5M) - $3M EPS ($0.38) – ($0.19) ($0.12) - $0.07
Slide 10: Q4 2015 Guidance
Q4 2015 Guidance GAAP Non-GAAP Net Sales ‘$90M - $110M ‘$90M - $110M Gross Margins 31% - 34% 32% - 35% Adjusted EBITDA NA (63M) - $5M Net income (loss) (815M) - (7M) ($5M) - $3M EPS ($0.38) - ($0.19) ($0.12) - $0.07 10. | vestor Presentation Veeco
Slide 11: Long Term Industry Fundamentals Intact
LED Lighting Unit Demand is Healthy Existing MOCVD capacity will be insufficient to meet demand once industry conditions improve Advanced Packaging Addresses Industry Needs Offer smaller form factors, improved performance, lower manufacturing costs Advanced Power Electronics Applications Growing GaN
Slide 12: Track Record of Technology Leadership
Track Record of Technology Leadership Data Storage NEXUS IBE, DLC Systems Scientific & Industrial Scientific & Industrial LED MEMS & RF WaferStorm* Wet Etch Systems TurboDisc MOCVD Systems GEN MBE Systems SPECTOR IBD Systems Successful expansion into new markets #1 #1 #1 #1 #1 while maintaining mark
Slide 13: Veeco's Strategy to Drive Growth
Expanding our core Leverage technologies and end markets Exploring new markets Work with industry leaders to apply core technologies to new markets Diversifying revenue Drive growth through cycles Veeco’s Strategy to Drive Growth Leverage core technologies to enter new markets with Partners New Mark
Slide 14: Effective Execution for Long Term Growth
Effective Execution for Long Term Growth Focused on operational execution Prudently managing expenses Optimizing working capital Responsibly deploying capital to fund growth and enhance shareholder value Focused on Profitable Growth Strengthening our technology leadership Exploring partnerships and
Slide 15: Effective Execution for Long Term Growth
Effective Execution for Long Term Growth ae’ Focused on operational execution ¥ Long term industry + Prudently managing expenses fundamentals remain intact + Optimizing working capital + Responsibly deploying capital to fund growth and enhance shareholder value Managing Through LED Industry pause Du
Slide 16: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 17: 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 18: Supplemental Information – GAAP to Non-GAAP Reconciliation
Supplemental Information – GAAP to Non-GAAP Reconciliation Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Net Sales $93.3 $113.6 $98.3 $131.4 $140.7 GAAP Gross Profit 32.6 37.9 35.1 49.1 54.3 GAAP Gross Margin 34.9% 33.3% 35.7% 37.3% 38.5% Add: Equity Comp 0.6 0.6 0.6 0.7 0.8 Add: Acquisition Related - 5.2 1.3 - - N
Slide 19: Q3 2015 GAAP to Non-GAAP Reconciliation
Q3 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 $140.7 - - - $140.7 Gross profit 54.3 0.8 - - 55.0 Gross margin 38.5% 39.1% SG&A 21.9 (3.3) (0.2) - 18.4 R&D 19.2 (1.0) - - 18.2
Slide 20: Q4 2015 Guidance GAAP to Non-GAAP Reconciliation
Q4 2015 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 $90 - $110 $90 - $110 Gross Profit 28 - 38 1 - - 29 – 39 Gross Margin 31% - 34% 32% - 35% Adjusted EBITDA ($3) - $5 Net
Slide 21: Q4 2015 Guidance GAAP to Non-GAAP Reconciliation
Q4 2015 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, excé per share data GAAP Other Ne JAAP Net Sales $90-$110 $90- $110 Gross Profit 28 - 38 1 - - 29-39 Gross Margin 31% - 34% 32% - 35% Adjusted EBITDA ($3)-$5 Net income (loss) (815) - ($7) 6 6 2) ($5)-$3 fom (loss) pe