Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Investor Presentation (January 2019)
28 slides from Veeco Instruments's investor presentation, Jan 14, 2019
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: Veeco Overview
3 Veeco Overview Investor Presentation © 2019 Veeco Instruments Inc.
Slide 3: Veeco Applies Technology to Tough Materials Problems
Laser / Lithography MOCVD Ion Beam Veeco Applies Technology to Tough Materials Problems 4 Investor Presentation © 2019 Veeco Instruments Inc. Data Storage Compound Semiconductor Semiconductor / Advanced Packaging Veeco is a Proven High Technology Capital Equipment Leader Solving Tough Materials Prob
Slide 4: Veeco at a Glance
Veeco at a Glance Product & Technology Leadership Over 800 Patents ~1,050 Employees 5 Sales and Service in 10 Countries $443M 2018 YTD Revenue (Q1 - Q3 18) $266M in Cash (Q3 18), $345M in Convertible Debt Global Semiconductor Capital Equipment Provider with Specialized Technology Investor Presentati
Slide 5: Our Technology Enables Megatrends
Our Technology Enables Megatrends 6 Investor Presentation © 2019 Veeco Instruments Inc. 5G MOCVD 3D Sensing / VCSEL MOCVD Autonomous Driving / LiDAR MOCVD Lithography High-Performance Computing / AI Laser Annealing Ion Beam Lithography 5G – Fifth generation wireless technology VCSEL – Vertical Cavit
Slide 6: Veeco Customers Drive Megatrends
Veeco Customers Drive Megatrends 7 Scientific & Industrial Investor Presentation © 2019 Veeco Instruments Inc. Compound Semi OSATs, MEMS & RF Filters IDMs & Foundries
Slide 7: Investment Highlights
Investment Highlights #1 or #2 in key markets Leveraging core technologies in profitable markets as LED market becomes commoditized Growth initiatives aligned to megatrends EUV mask blanks using ion beam deposition Enabling front end semiconductor with laser annealing Advanced packaging using lithog
Slide 8: Business Transition
9 Business Transition Investor Presentation © 2019 Veeco Instruments Inc.
Slide 9: 2019 – Focus on Foundational & Growth Markets
2019 – Focus on Foundational & Growth Markets 10 * Based on midpoint of guidance for Q4 18 Investor Presentation © 2019 Veeco Instruments Inc. Commodity blue LED business reducing significantly in 2019 Limited China exposure going forward Growth initiatives aligned with multiple megatrends Foundatio
Slide 10: 2019 – Growth on a Solid Foundation
2019 – Growth on a Solid Foundation 11 * Based on midpoint of guidance for Q4 18 Investor Presentation © 2019 Veeco Instruments Inc. Key Foundational Businesses Service Business Data Storage Government Labs & Universities Optical Coatings for Industrial, Medical & Military Key Growth Initiatives EUV
Slide 11: 2019 – Improving Profitability
2019 – Improving Profitability 12 * Based on midpoint of guidance for Q4 18 Investor Presentation © 2019 Veeco Instruments Inc. Improving Operating Expenses and Gross Margin Aggressive SG&A reduction Preserving R&D investments for growth Target >40% gross margin for 2019 Gross margin benefits from i
Slide 12: Growth Initiatives
13 Growth Initiatives Investor Presentation © 2019 Veeco Instruments Inc.
Slide 13: EUV Mask Blanks for Front-End Semiconductor Manufacturing
28nm 14nm 10nm 7nm 5nm Multi Patterning Single Patterning EUV Lithography EUV Mask Blanks for Front-End Semiconductor Manufacturing 14 Veeco Advantage 20 years of EUV Mask Blank experience Best-in-class IBD technology Lowest defect density Market Opportunity $20M to $50M Annually Investor Presentati
Slide 14: Laser Annealing for Front-End Semiconductor Manufacturing
Laser Annealing for Front-End Semiconductor Manufacturing 15 Veeco Advantage Market Drivers Device scaling enabling: Artificial Intelligence High Performance Computing Graphics Processing Units Market Opportunity ~$100M Annually Investor Presentation © 2019 Veeco Instruments Inc. Enabling Advanced N
Slide 15: Lithography for Advanced Packaging
Lithography for Advanced Packaging 16 Veeco Advantage Market Drivers Artificial intelligence Automotive Mobility Gaming Market Opportunity $75M to $100M Annually Investor Presentation © 2019 Veeco Instruments Inc. Enable Better System Performance Highly automated Superior performance Cost effective
Slide 16: VCSEL Production Utilizing Proven Technology Platform
VCSEL Production Utilizing Proven Technology Platform 17 *Source: marketsandmarkets, Daiwa, JP Morgan, Yole and Veeco’s estimates Veeco Advantage: TurboDisc Platform Market Drivers 3D Sensing / World Facing Autonomous Vehicle Sensing (LiDAR) Data / Telecom Market Opportunity $100M to $150M Annually
Slide 17: Our Technology Supports Longer Term Growth Megatrends
Ion Beam MOCVD MOCVD Longer Term Growth Megatrends 18 Our Technology Supports Longer Term Growth Megatrends Investor Presentation © 2019 Veeco Instruments Inc. STT-MRAM Spin-Transfer Torque Magnetic Ram is a non-volatile, low power, robust, memory solution initially targeting internet-of-things appl
Slide 18: Q3 2018 Financial Update
19 Q3 2018 Financial Update Investor Presentation © 2019 Veeco Instruments Inc.
Slide 19: Q3 2018 Highlights
Q3 2018 Highlights 20 Bookings growth in Front-End Semiconductor Ending backlog of $276M Profitability above the mid-point of guidance Q3 Results $100M Bookings $127M Revenue $8.0M Non-GAAP Operating Income 11¢ Non-GAAP EPS A reconciliation of GAAP to Non-GAAP financial measures can be found in the
Slide 20: 2019 Focus
2019 Focus 21 Investor Presentation © 2019 Veeco Instruments Inc. Innovate technology leadership Solve tough materials engineering challenges Execute product roadmaps Penetrate market growth Ramp EUV mask blank systems Advanced node insertion for Laser Anneal Launch VCSEL (3D Sensing) tool Improve p
Slide 21: Thank You
Thank You Veeco Instruments www.veeco.com
Slide 22: Backup & Reconciliation Tables
23 Backup & Reconciliation Tables Investor Presentation © 2019 Veeco Instruments Inc.
Slide 23: P&L Highlights
P&L Highlights 24 Sequentially Improved Gross Margin as Expected Amounts may not calculate precisely due to rounding. A reconciliation of GAAP to Non-GAAP financial measures can be found in the backup section of this presentation. GAAP Non-GAAP $ millions (except per share amounts) Q2 18 Q3 18 Q2 18
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 25 Amounts may not calculate precisely due to rounding. A reconciliation of GAAP to Non-GAAP financial measures can be found in the backup section of this presentation. Generated Cash While Repurchasing $10M in Shares $ millions Q2 18 Q3 18 Cash & Short-Term Investments 261
Slide 25: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation 27 Amounts may not calculate precisely due to rounding. Prior period results have been recast to reflect the retrospective adoption of ASC 606. US$ millions Q2 18 Q3 18 Net Sales $157.8 $126.8 GAAP Gross Profit 55.4 46.4 GAAP Gross Margin 35.1
Slide 26: Q3 2018 GAAP to Non-GAAP Reconciliation
Q3 2018 GAAP to Non-GAAP Reconciliation 28 Amounts may not calculate precisely due to rounding Non-GAAP Adjustments In millions, except per share amounts GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $126.8 $126.8 Gross Profit 46.4 0.5 1.5 48.4 Gross Margin 36.6% 38.2% Research
Slide 27: Q4 2018 Guidance GAAP to Non-GAAP Reconciliation
Q4 2018 Guidance GAAP to Non-GAAP Reconciliation 29 Amounts may not calculate precisely due to rounding Non-GAAP Adjustments In millions, except per share amounts GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $85–$105 $85–$105 Gross Profit 30–39 1 — — 31–40 Gross Margin 35%–37%
Slide 28: Q4 2018 Guidance GAAP to Non-GAAP Reconciliation
Q4 2018 Guidance GAAP to Non-GAAP Reconciliation In milions, xcept per share amounts ome Compensation Amortization other Non-GAAP t [ A ie |)
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