Slide 1: Q2 2009 Financial Results
Q2 2009 Financial Results July 27, 2009
Slide 2: Second Quarter 2009 Highlights
Second Quarter 2009 Highlights Revenue was $72.0 million, down 37% compared to $114.4 million in Q2’08, in line with guidance of $60-70 million. Revenue increased 15% sequentially. Bookings were $98.7 million, down 28% compared to $136.5 million in Q2’08, but up 86% sequentially. Net loss was ($14.7
Slide 3: Second Quarter 2009 Highlights (cont'd)
Second Quarter 2009 Highlights (cont’d) Balance sheet remained healthy with strong cash generation Cash balance $98M, up $5M over Q1’09 due to strong performance on accounts receivable, inventory management and other operating items Executing on cost reduction plans including: $18 million in spendin
Slide 4: Q2 2009 Financials
Q2 2009 Financials ($M except EPS) *Excludes certain charges **See reconciliation to GAAP at end of presentation Q1 ’09 $53.1 $62.8 34.9% ($18.9) ($9.7) ($0.22) Q2 ’08 $136.5 $114.4 41.7% $6.2 $10.7 $0.20 Q2 ’09 $98.7 $72.0 33.9% ($12.6) ($6.4) ($0.15) Orders Revenues Gross Margin* Operating (Loss)
Slide 5: Second Quarter 2009 Bookings Recap
Second Quarter 2009 Bookings Recap Q2’09 bookings $98.7M: business conditions improved in all segments, up 86% sequentially LED & Solar: Orders $57M, nearly double sequentially as LED manufacturers ramp production for TV and laptop backlighting applications. Several large MOCVD orders from Korea and
Slide 6: Second Quarter 2009 Segment Results
Second Quarter 2009 Segment Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (44%) (25%) (31%) (58%) (19%) (23%) Q2 ‘09 Revenues ($M) $72 Million Q2 ‘09 Bookings ($M) $99 Million Metrology Metrology $23 $57 $19 $18 $32
Slide 7: Q2 2009 Segment Performance
Q2 2009 Segment Performance $98.7 23.0 19.3 $56.4 Q2 ‘09 $136.5 32.7 51.7 $52.1 Q2 ‘08 -28% -30% -63% 8% (1.9) ($6.4) (3.0) (1.0) ($0.5) Q2 ‘09 (2.5) $10.7 -37% $114.4 $72.0 Unallocated Corporate Veeco Total (1.0) -31% 32.6 22.5 Metrology 5.4 -52% 36.8 17.6 Data Storage $8.8 -29% $45.1 $31.9 LED & S
Slide 8: Business Outlook
Business Outlook Remain cautious about overall economic conditions but are encouraged by sequential bookings improvement in all three businesses Veeco backlog at $160M as of June 30, 2009 Positive Q2 LED order trends continue into Q3 Already booked over $110 million MOCVD systems during month of Jul
Slide 9: Q3 2009 and Full Year Guidance
Q3 2009 and Full Year Guidance Revenues $80-88 million LPS GAAP ($0.25) – ($0.13) per share Non-GAAP EPS ($0.02) – $0.05 (utilizing 35% tax rate) Full Year ’09 Outlook Revenue between $310 – $325 Million
Slide 10: Restructuring Program Drives Lower Breakeven in 2009
Restructuring Program Drives Lower Breakeven in 2009 (9%) $33M 34% $72M Q2 ’09A 6-7% $35-36M 43-44% $90-100M “Modest Recovery” Quarter 15-17% 0-4% (15%) 7% EBITA%* $35-36M $33-34M $33M $38M Operating Spending 45-46% 38-40% 35% 40% GM $110-120M $80-88M $63M $110M Revenue Target Model Q3 ’09 Forecast
Slide 11: Veeco Balance Sheet
Veeco Balance Sheet (in millions) $225.8 $190.8 Shareholder’s Equity $98.5 $99.8 Long-Term Debt (including current portion) $429.5 $371.0 Total Assets $64.4 $60.5 Fixed Assets, Net $168.5 $143.0 Working Capital $103.8 $97.5 Cash Equivalents June 30, 2009 December 31, 2008
Slide 12: Safe Harbor Statement
Safe Harbor Statement To the extent that this presentation discusses expectations or otherwise make 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. T
Slide 13: Back-Up and Reconciliation Slides
Back-Up and Reconciliation Slides
Slide 14: Income Statements
Income Statements 31,435 31,506 31,590 31,497 Diluted weighted average shares outstanding 31,197 31,506 31,255 31,497 Weighted average shares outstanding $0.04 ($1.13) $0.11 ($0.47) Diluted net (loss) income attributable to Veeco $0.04 ($1.13) $0.11 ($0.47) Net (loss) income attributable to Veeco (L
Slide 15: Balance Sheets (Unaudited)
Balance Sheets (Unaudited) 2008 2009 December 31, June 30, 2009 ($ in thousands) $ 429,541 $ 370,858 Total liabilities and shareholders' equity 225,810 190,781 Total shareholders' equity 784 - Noncontrolling interest 225,026 190,781 Shareholders' equity attributable to Veeco 105,261 106,613 Total no
Slide 16: Reconciliation to GAAP Measure Table
Reconciliation to GAAP Measure Table 2008 2009 2008 2009 June 30, June 30, Six months ended Three months ended Unaudited ($ in thousands, except per share data) During the six months ended June 30, 2009, the Company recorded a restructuring charge of $6.4 million, of which $1.9 million was incurred
Slide 17: Segment Data
Segment Data $ 17,547 $ (16,042) $ 10,670 $ (6,369) (Loss) EBITA ** 285 304 - 304 Asset impairment charge - 1,526 - - Inventory write-off 2,875 6,375 - 1,944 Restructuring expense 3,623 3,553 2,014 2,155 Equity-based compensation expense 4,382 3,660 2,426 1,831 Amortization expense $ 6,382 $ (31,460
Slide 18: Q3 '09 Guidance
Q3 ’09 Guidance HIGH LOW months ended September 30, 2009 Guidance for the three (Unaudited) During the third quarter of 2009, the Company expects to record a restructuring charge of approximately $0.5 million to $0.7 million. Adjustment to exclude non-cash interest expense on convertible subordinate