Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q1 2009 Earnings Presentation
21 slides from Veeco Instruments's earnings presentation, Apr 27, 2009
Slide 1: Q1 2009 Financial Results
Q1 2009 Financial Results April 27, 2009
Slide 2: First Quarter 2009 Highlights
©2009 Veeco Instruments Inc 042709 Investor Slides 2 First Quarter 2009 Highlights Revenue was $62.8 million, down 39% compared to $102.3 million in Q108, in line with guidance of $60-70 million. Bookings were $53.1 million, down 51% compared to $109.3 million Q108. Net loss was ($20.9) million, or
Slide 3: First Quarter 2009 Highlights (continued)
©2009 Veeco Instruments Inc 042709 Investor Slides 3 First Quarter 2009 Highlights (continued) Balance sheet remained healthy – Cash balance $93M after $9.6M earn-out for Solar acquisition Executing on cost reduction plans including: – Increased outsourcing – Manufacturing site consolidation – 8 to
Slide 4: Q1 2009 Financials ($M except EPS)
©2009 Veeco Instruments Inc 042709 Investor Slides 4 Q1 2009 Financials ($M except EPS) *Excludes charges *See reconciliation to GAAP at end of presentation Q4 ’08 $88.5 $110.3 39.5% ($77.1) $6.2 $0.11 Q1 ’08 $109.3 $102.3 41.7% $0.2 $6.9 $0.13 Q1 ’09 $53.1 $62.8 34.9% ($18.9) ($9.7) ($0.22) Orders
Slide 5: First Quarter 2009 Bookings Recap
First Quarter 2009 Bookings Recap Q109 bookings $53M: business conditions extremely weak in all segments Making traction in building solar business - one bright spot in Q1 bookings Daiyang Metals multi-unit system order Thermal sources continue “key account” penetration – orders from several leading
Slide 6: First Quarter 2009 Segment Results
©2009 Veeco Instruments Inc 042709 Investor Slides 6 $17 $28 $8 $17 $22 $24 First Quarter 2009 Segment Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (35%) (27%) (38%) (53%) (15%) (32%) Q1 ‘09 Revenues ($M) $63 Millio
Slide 7: Q1 2009 Segment Performance
Q1 2009 Segment Performance $53.1 16.8 7.8 $28.5 Q1 ‘09 $109.3 30.0 40.6 $38.7 Q1 ‘08 -51% -44% -81% -26% (1.7) ($9.7) (2.7) (1.6) ($3.7) Q1 ‘09 (2.4) $6.9 -39% $102.3 $62.8 Unallocated Corporate Veeco Total 1.9 -34% 36.1 23.7 Metrology (1.3) -30% 24.1 16.9 Data Storage $8.7 -47% $42.1 $22.2 LED & S
Slide 8: Q2 2009 Guidance
Q2 2009 Guidance Revenues $60-70 million LPS GAAP ($0.64) – ($0.48) per share Non-GAAP LPS $(0.24) – ($0.15) (utilizing 35% tax rate) Non-GAAP Calculation also excludes: Estimated Q2 restructuring charges of $2.7 to $3.2 million Amortization of $1.9 million Equity-based compensation of $2.3 million
Slide 9: Business Outlook
©2009 Veeco Instruments Inc 042709 Investor Slides 9 Business Outlook Remain extremely cautious... but... early signs of improvement – LED: improved utilization rates of equipment, increased quoting activity, no significant additional push-outs – Solar: actively quoting systems to large number of po
Slide 10: Business Outlook
Business Outlook Due to weak Q1 order rate, Veeco is implementing additional temporary cost cutting activities: Salary reductions, reductions in bonuses and profit sharing and plant shut-downs When combined with those actions already underway will reduce manufacturing overhead, service and operating
Slide 11: Restructuring Program Drives Lower Breakeven in 2009
Restructuring Program Drives Lower Breakeven in 2009 Note: See reconciliation tables 7% $38M 40% $110M Q4 ’08 (15%) $33M 35% $63M Q1 ’09 6-7% $35-36M 43-44% $90-100M “Modest Recovery Quarter” 15-17% 0-1% (18-9%) EBITA % $35-36M $34-35M $32-33M Operating Spending 45-46% 41-42% 33-35% GM $110-120M $80
Slide 12: Veeco Balance Sheet
Veeco Balance Sheet $225.8 $204.6 Shareholder’s Equity $98.5 $99.2 Long-Term Debt (including current portion) $429.5 $387.3 Total Assets $64.4 $63.3 Fixed Assets, Net $168.5 $151.0 Working Capital $103.8 $93.0* Cash Equivalents (in millions) * Earn-out paid to Mill Lane Engineering solar acquisition
Slide 13: Safe Harbor Statement
©2009 Veeco Instruments Inc 042709 Investor Slides 13 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 re
Slide 14: Back-Up and Reconciliation Slides
©2009 Veeco Instruments Inc 042709 Investor Slides 14 Back-Up and Reconciliation Slides
Slide 15: Income Statements
Income Statements 2008 2009 March 31, Three months ended (In thousands, except per share data) 31,161 31,515 Diluted weighted average shares outstanding 31,161 31,515 Weighted average shares outstanding ($0.07) ($0.66) Diluted net loss attributable to Veeco ($0.07) ($0.66) Net loss attributable to V
Slide 16: Balance Sheets (Unaudited)
Balance Sheets (Unaudited) 2008 2009 December 31, March 31, (In thousands) $ 429,541 $ 387,275 Total liabilities and shareholders' equity 225,810 204,597 Total shareholders' equity 784 742 Noncontrolling interest 225,026 203,855 Shareholders' equity attributable to Veeco 105,261 105,683 Total non-cu
Slide 17: Reconciliation to GAAP Measure Table
Reconciliation to GAAP Measure Table 2008 2009 March 31, Three months ended During the first quarter of 2009, the Company recorded a restructuring charge of $4.4 million, consisting primarily of personnel severance and related costs. During the first quarter of 2008, the Company recorded a restructu
Slide 18: Segment Data
Segment Data 2008 2009 March 31, March 31, Three months ended ($ in thousands) ** Refer to footnotes on "Reconciliation of operating (loss) income to (loss) earnings excluding certain items" for further details. $ 6,877 $ (9,673) (Loss) EBITA ** 285 - Asset impairment charge - 1,526 Inventory write-
Slide 19: Q2 '09 Guidance
©2009 Veeco Instruments Inc 042709 Investor Slides 19 Q2 ’09 Guidance LOW HIGH Guidance for the three months ended June 30, 2009 (1) During the second quarter of 2009, the Company expects to record a restructuring charge between $2.7 and $3.2 million. (2) Adjustment to exclude non-cash interest expe
Slide 20: Retroactive Application of FASB Staff Position APB 14-1 and SFAS 160
©2009 Veeco Instruments Inc 042709 Investor Slides 20 Retroactive Application of FASB Staff Position APB 14-1 and SFAS 160 December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2008 2008 2008 2008 2007 2007 2007 (1) We adopted FASB Staff Position No. APB 14-1, Accounting
Slide 21: Retroactive Application of FASB Staff Position APB 14-1 and SFAS 160
©2009 Veeco Instruments Inc 042709 Investor Slides 21 Retroactive Application of FASB Staff Position APB 14-1 and SFAS 160 Three months ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2008 2008 2008 2008 2007 2007 2007 (1) We adopted FASB Staff Position No. AP