Slide 1: Q2 2017 Conference Call
Q2 2017 Conference Call Veeco Instruments Inc. August 3, 2017 1 | Investor Presentation
Slide 2: 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 3: CEO Introduction
CEO Introduction John Peeler 3 | Investor Presentation
Slide 4: Q2 2017 Highlights
Q2 2017 Highlights Q2 $123M $115M 15¢ $12.8M Results Bookings Revenue Non-GAAP Adjusted EPS EBITDA > Bookings up sequentially; backlog building > Revenue and Adjusted EBITDA* in line with guidance > MOCVD & PSP System demand drove results in Lighting, Display & Power > Completed strategic acquisitio
Slide 5: Ultratech At a Glance
Ultratech At a Glance Track Record of Technology Leadership Blue-chip customer base Lithography for Advanced Packaging Comprehensive portfolio, addressing critical A/P process steps LSA and 3D Inspection for Semiconductor Manufacturing Laser Annealing/Millisecond Anneal - Required for Logic at 2
Slide 6: CFO Financial Review
CFO Financial Review Sam Maheshwari 6 | Investor Presentation
Slide 7: Q2 2017 Revenue Breakdown by End Market and Geography
Q2 2017 Revenue Breakdown by End Market and Geography Q2 2017 Revenue by End Market Q2 2017 Revenue by Geography 9% Front-End Semi 18% United States 23% China 23% 49% Scientific & Industrial $115M Lighting, Display & Power Electronics 16% EMEA 19% 43% Advanced Packaging, Rest of World MEMS & RF > Li
Slide 8: P&L Highlights
P&L Highlights GAAP Non-GAAP ($M) Q1 17 Q2 17 Q1 17 Q2 17 Revenue $94.4 $115.1 $94.4 $115.1 Gross Profit 34.2 38.7 34.9 46.7 % 36.2% 33.6% 37.0% 40.6% R&D 15.0 18.6 14.6 17.9 SG&A & Other 20.4 22.7 15.9 19.2 Operating Income (5.8) (27.0) 4.4 9.6 Net Income 1.1 (18.4) 3.6 6.4 EPS $0.03 ($0.43) $0.09
Slide 9: Financial Highlights
Financial Highlights ($M) Q4 16 Q1 17 Q2 17 Cash & Short-term 344 682 303 Investments Accounts Receivable 58 51 108 Inventories 77 65 120 Accounts Payable 23 31 46 Long-term Debt 0.8 268 270 Cash Flow from 0.4 6.3 (15.9) Operations DSO 56 49 85 DOI 134 107 109 DPO 36 47 54 > Cash balance primarily r
Slide 10: Q3 2017 Guidance
Q3 2017 Guidance GAAP Non-GAAP Revenue $125M–$145M $125M–$145M Gross Margins 37%–39% 39%–41% Net Income (Loss) ($25M)–($16M) ($4M)–$5M Earnings Per ($0.53)–($0.34) ($0.09)–$0.09 Share Non-GAAP $0M–$9M Operating Income Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the
Slide 11: Business Update & Outlook
Business Update & Outlook 11 | Investor Presentation
Slide 12: Veeco MOCVD – Sustaining Our Leading Market Position
Veeco MOCVD – Sustaining Our Leading Market Position Demand driven by: Continued migration to larger sized TVs; - requiring more LEDs to backlight Growing adoption of Fine-pitch Display; - stadiums, lobbies, retail Stadium fine-pitch LED display Market strength drawing competition from China C
Slide 13: Veeco Advanced Packaging, MEMS and RF
Veeco Advanced Packaging, MEMS and RF Booked multiple orders for Wafer Level Packaging (WLP), Cu Pillar, optical sensor and LED applications Achieved significant milestone with major memory manufacturer Advanced Packaging Lithography capacity expansion being moderated due to slower production
Slide 14: Ultratech Update – Integration on Track
Ultratech Update – Integration on Track Acquisition Closed May 26, 2017 Integration proceeding well Key milestones achievable over next 18-24 months ERP conversion Field integration Material cost reductions Focused R&D projects Synergies greater than originally anticipated Platform to
Slide 15: Summary
Summary 2017 will be a transformative year for Veeco Backlog building – expect stronger 2H Ultratech integration on track Veeco executing on strategy to increase scale, diversify revenue and improve profitability 15 | Investor Presentation
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 exclude items such as: s
Slide 19: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q1 17 Q2 17 US$ millions Q1 17 Q2 17 US$ millions, except per share data Q1 17 Q2 17 Net Sales $94.4 $115.1 GAAP Net Income (Loss) $1.1 $(18.4) GAAP Basic EPS 0.03 (0.43) GAAP Gross Profit 34.2 38.7 Add: Share-Based Comp 4.2 9.6 G
Slide 20: Q2 2017 GAAP to Non-GAAP Reconciliation
Q2 2017 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share data GAAP Compensation Amortization Other Non-GAAP Net Sales $115.1 $115.1 Gross Profit 38.7 0.5 7.5 46.7 Gross Margin 33.6% 40.6% Research and Development 18.6 (0.7) 17.9 Selling, General, and Adm
Slide 21: Q3 2017 Guidance GAAP to Non-GAAP Reconciliation
Q3 2017 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Non-GAAP Adjustments Adjustments Share-Based In millions, except per share data GAAP Compensation Amortization Other Non-GAAP Net Sales $125–$145 $125–$145 Gross Profit 46–56 1 — 3 50–60 Gross Margin 37%–39% 39%–41% Net Income (Loss) ($25)–($
Slide 22: Historical Revenue by Market (New Category vs. Old Category)
Historical Revenue by Market (New Category vs. Old Category) $M New Market Category Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 Q2 17 Lighting, Display & Power 22.9 24.8 49.4 39.1 136.2 54.2 56.2 Electronics Advanced Packaging, MEMS 23.3 17.0 12.1 15.9 68.3 11.6 21.4 & RF Scientific & Industrial 30.8 31.8 2