Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q1 2015 Earnings Presentation
22 slides from Veeco Instruments's earnings presentation, May 6, 2015
Slide 1: Q1 2015 Conference Call
Q1 2015 Conference Call > May 6, 2015 1 | Investor Presentation
Slide 2: CEO Introduction
CEO Introduction John Peeler 2 | Investor Presentation
Slide 3: 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 4: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights On Track for a Better 2015 Bookings $102M Revenue $98M Non-GAAP Gross Margin 38% EBITDA $2.7M Cash Stable at $393M Achieved or Beat Guidance On All Metrics 4 | Investor Presentation
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari 5 | Investor Presentation
Slide 6: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) ($M) Q1 14 Q2 14 Q3 14 Q4 14* Q1 15 Revenue $90.8 $95.1 $93.3 $113.6 $98.3 Gross Profit 34.3 31.3 33.2 43.7 37.0 % 37.8% 32.9% 35.5% 38.5% 37.7% SG&A** 18.4 18.4 18.9 18.9 19.1 R&D 18.7 19.9 18.9 19.2 18.0 OPEX 37.1 38.3 37.8 38.1 37.1 % 40.8% 40.2% 40.5% 33.6% 37.7% Adjust
Slide 7: Q1'15 Market and Geography Data
Q1’15 Market and Geography Data $102M Bookings by Market $98M Revenue by Market Data Storage Lighting, Display & Data Storage Lighting, Display & Power Electronics Power Electronics 14% Scientific & 7% 13% 13% Industrial Scientific & 7% 14% Industrial Advanced Packaging, 13% MEMS & RF 13% 14% 59% 13
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights ($M) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Cash & Short-term Investments 483 485 487 392 393 Accounts Receivable 51 58 62 60 64 Inventory 52 48 47 61 57 Accounts Payable 28 28 26 18 41 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 DSO 50 55 59 48 59 DOI 93 70 77 68 89 DPO 45 39 39 22 59 PSP Purchas
Slide 9: Q2 2015 Guidance
Q2 2015 Guidance GAAP Non-GAAP Net Sales $100M - $150M $100M - $150M Gross Margins 35% - 38% 36% - 39% Adjusted N/A $0 - $20M EBITDA Net income ($20M) - $2M ($3M) - $14M (loss) EPS ($0.49) - $0.04 ($0.06) - $0.33 EPIK 700™ deferred revenue to increase by $25-$65 million in Q2 2015 9 | Investor Prese
Slide 10: Business Update & Outlook
Business Update & Outlook 10 | Investor Presentation
Slide 11: LED Lighting Adoption Accelerating
LED Lighting Adoption Accelerating Incandescent Utilities broaden LED bulb prices phase-outs subsidies come down 35%-52% 18%-28% 5% 2014 2018 2022 Sources: 1) Blue – Source IHS Research (% of Lighting Units Shipped) 2) Green - Strategies Unlimited (% of Lighting Units Shipped) 11 | Investor Presenta
Slide 12: LED Demand Grows to >1 Trillion Units/Yr by 2019
LED Demand Grows to >1 Trillion Units/Yr by 2019 1200 2012 to 2019 • IHS: 40% CAGR Lighting • SU: ~45% CAGR Lighting LED Shipments (In B Units) New Segments 101% CAGR 2014 to 2019 LED Farming 21% CAGR Lighting 600 43% CAGR Automotive 13% CAGR Off-grid Lighting Backlight 5% CAGR Mobile 5% CAGR 0 Sign
Slide 13: LED Industry Trends Favor Veeco
LED Industry Trends Favor Veeco TREND IMPLICATION FOR VEECO Mid-power LEDs gain share in Veeco’s leading installed base and lighting market – Greater China customer position “sweet spot” Move to larger wafer sizes to reduce TurboDisc architecture enables easy back-end processing cost transition; low
Slide 14: Veeco PSP Off to a Solid Start
Veeco PSP Off to a Solid Start > Veeco sales team opening up new opportunities in Asia > Mobility (MEMS, RF & Advanced Packaging) driving growth in sales — particularly in Europe & US > Good momentum with 3D TSV demos > Expect to achieve performance better than our acquisition plan for 2015 14 | Inv
Slide 15: On Track for a Better 2015
On Track for a Better 2015 Existing and New Focus on Differentiated Lower Market Opportunities Products & Reliable Manufacturing & Drive Revenue Growth Performance Services Cost LED, Power Forecasting 2015 Targeting Gross Electronics Revenue Growth >35% Margins >40% & Mobility 15 | Investor Presenta
Slide 16: Q&A
Q&A 16 | Investor Presentation
Slide 17: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables 17 | Investor Presentation
Slide 18: 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 consider exclusion of: sh
Slide 19: Supplemental Information – GAAP to Non-GAAP Reconciliation
Supplemental Information – GAAP to Non-GAAP Reconciliation Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Net Sales $90.8 $95.1 $93.3 $113.6 $98.3 GAAP Net Income (loss) $19.2 $(15.2) $(14.0) $(56.9) $(19.1) GAAP Gross Profit 33.8 30.7 32.6 37.9 35.1 Add: Equity Comp 4.7 5.1 4.5 4.5 4.0
Slide 20: Q1 2015 GAAP to Non-GAAP Reconciliation
Q1 2015 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-based Acquisition In millions, except per share data GAAP Compensation Related Other Non-GAAP Net sales $98.3 $ - $ - $ - $98.3 Gross profit 35.1 0.6 1.3 - 37.0 Gross margin 35.7% 37.7% SG&A 22.9 (2.8) - 20.1 R&D 18.6 (0.6) - - 18.0
Slide 21: Q2 2015 Guidance GAAP to Non-GAAP Reconciliation
Q2 2015 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-based Acquisition In millions, except per share data GAAP compensation Related Other Non-GAAP Net Sales $100 - $150 $100 - $150 Gross Profit 35 - 58 1 - - 36 - 59 Gross Margin 35% - 38% 36% - 39% Net income (loss) ($20) - $2
Slide 22: Historical Revenue Trend by End-Market
Historical Revenue Trend by End-Market 120 Bookings 15.5 100 11.7 7.2 13.0 12.3 17.7 7.9 13.6 Data Storage 80 14.1 10.1 8.5 0.9 13.2 1.8 ($M) 0.8 Scientific & Industrial 60 Advanced Packaging, MEMS & RF 40 78.4 66.2 70.1 63.9 64.3 Lighting, Display & Power Electronics 20 - Q1 2014 Q2 2014 Q3 2014 Q4