Slide 1: Q3 2018 Conference Call
Q3 2018 Conference Call Veeco Instruments Inc. November 1, 2018
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 William J. Miller, Ph.D.
Slide 4: Q3 2018 Highlights
Q3 2018 Highlights Q3 $100M $127M $8.0M 11¢ Results Bookings Revenue Non-GAAP Non-GAAP EPS Operating Income • Bookings growth in Front-End Semiconductor • Profitability above the mid-point of guidance • Ending backlog of $276M • Generated positive cash flow • Repurchased 1.8% of outstanding shares T
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 6: Expense Reduction Update
Expense Reduction Update OpEx Reductions Initiative Status $49M $40M Ultratech synergies • Complete by Q1 2019 ($15M annually) SG&A New initiative to align cost • In process R&D structure with business conditions • Targeted completion ($20M annually) by end of Q2 2019 Q3 2017 Target Q2 2019 Carefull
Slide 7: Q3 2018 Bookings by End Market and Geography
Q3 2018 Bookings by End Market and Geography Mix by End Market Mix by Geography 13% 5% LED Lighting, Display & China Compound Semi 39% 33% Scientific & Industrial United States 11% $100M Advanced Packaging, MEMS & RF Filters 48% Rest of World 37% 14% Front-End Semi EMEA • Front-End Semi growth drive
Slide 8: Q3 2018 Revenue by End Market and Geography
Q3 2018 Revenue by End Market and Geography Mix by End Market Mix by Geography 24% 23% Scientific & Industrial United States 31% China 46% LED Lighting, Display & 11% $127M Compound Semi Front-End Semi 24% EMEA 19% 22% Advanced Packaging, Rest of World MEMS & RF Filters • China Blue LED was 21% of V
Slide 9: P&L Highlights
P&L Highlights GAAP Non-GAAP $ millions (except per share amounts) Q2 18 Q3 18 Q2 18 Q3 18 Revenue $157.8 $126.8 $157.8 $126.8 Gross Profit 55.4 46.4 56.5 48.4 Gross Margin 35.1% 36.6% 35.8% 38.2% R&D 24.9 23.5 23.9 22.8 SG&A & Other 24.7 20.2 21.9 17.6 Operating Income/(Loss) (261.2) (3.9) 10.8 8.0
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights $ millions Q2 18 Q3 18 Cash & Short-Term Investments 261 266 Accounts Receivable 134 91 Inventories 146 150 Accounts Payable 65 65 Long-Term Debt 281 284 Cash Flow from Operations (46) 18 DSO (days) 76 64 DOI 130 173 DPO 58 74 Generated Cash While Repurchasing $10M in Shares
Slide 11: Q4 2018 Guidance
Q4 2018 Guidance GAAP Non-GAAP Revenue $85M - $105M $85M - $105M Gross Margin 35% - 37% 36% - 38% Net Income (Loss) ($26M)-($19M) ($11M)-($4M) Earnings Per Share ($0.56)-($0.40) ($0.25)-($0.09) Non-GAAP Operating ($10M)-($3M) Income (Loss) . A reconciliation of GAAP to Non-GAAP financial measures ca
Slide 12: Business Update & Outlook
Business Update =. & Outlook
Slide 13: Summary
Summary Expect FY 2018 to Slightly Decline from FY 2017 2018 revenue slightly lower than 2017 $546M Pro-Forma. Improved expense structure Cost Reduction Initiated additional actions to reduce costs. Committed to sizing for current run rates Preserving Innovation Continue to develop products in Laser
Slide 14: Q&A
Q&A
Slide 15: Backup & Reconciliation Tables
Backup & Reconciliation Tables
Slide 16: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 17: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q2 18 Q3 18 US$ millions Q2 18 Q3 18 US$ millions, except per share amounts Q2 18 Q3 18 Net Sales $157.8 $126.8 GAAP Net Income (Loss) $(237.6) $(9.0) GAAP Basic EPS (5.02) (0.19) GAAP Gross Profit 55.4 46.4 Add: Share-Based Comp
Slide 18: Q3 2018 GAAP to Non-GAAP Reconciliation
Q3 2018 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP 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 and Development 23.5 (0.7) 22.8 Selling, General, and
Slide 19: Q4 2018 Guidance GAAP to Non-GAAP Reconciliation
Q4 2018 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $85–$105 $85–$105 Gross Profit 30–39 1 — — 31–40 Gross Margin 35%–37% 36%–38% Net Income (Loss) $(26)–$(19) 4 4 7 $(11)–$(4)
Slide 20: Thank You
Thank You Veeco Instruments Inc. www.veeco.com Follow Us