Slide 1: Q3 2017 Conference Call
Q3 2017 Conference Call > Veeco Instruments Inc. > November 2, 2017 1 | Q3 2017 Conference Call 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 | Q3 2017 Conference Call Presentation
Slide 4: Q3 2017 Highlights
Q3 2017 Highlights Q3 $162M $132M $6.8M 9¢ Results Bookings Revenue Non-GAAP Non-GAAP Op Income EPS > Bookings up sequentially; backlog building > Backlog growth driven by multiple system orders from LED customers in Asia and Europe > Stronger revenue driven by MOCVD and PSP System sales Note: A rec
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari 5 | Q3 2017 Conference Call Presentation
Slide 6: Q3 2017 Revenue Breakdown by End Market and Geography
Q3 2017 Revenue Breakdown by End Market and Geography Q3 2017 Revenue by End Market Q3 2017 Revenue by Geography 13% 12% Front-End Semi 26% China United States 25% 45% Scientific & Industrial $132M LED Lighting, Display & Compound Semi 13% 49% EMEA Rest of World 17% Advanced Packaging, MEMS & RF > L
Slide 7: P&L Highlights
P&L Highlights GAAP Non-GAAP ($M) Q2 17 Q3 17 Q2 17 Q3 17 Revenue $115.1 $131.9 $115.1 $131.9 Gross Profit 38.7 53.1 46.7 55.8 % 33.6% 40.2% 40.6% 42.3% R&D 18.6 24.1 17.9 23.2 SG&A & Other 22.7 29.6 19.2 25.7 Operating Income/(Loss) (27.0) (18.9) 9.6 6.8 Net Income/(Loss) (18.4) (21.9) 6.4 4.3 Earn
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights ($M) Q1 17 Q2 17 Q3 17 Cash & Short-term 682 303 321 Investments Accounts Receivable 51 108 114 Inventories 65 120 114 Accounts Payable 31 46 54 Long-term Debt 268 270 273 Cash Flow from 6.3 (15.9) 24.9 Operations DSO 49 85 78 DOI 107 109 133 DPO 47 54 61 Note: Amounts may n
Slide 9: Q4 2017 Guidance
Q4 2017 Guidance GAAP Non-GAAP Revenue $135M–$155M $135M–$155M Gross Margins 39%–41% 39%–41% Net Income (Loss) ($15M)–($8M) $0M–$7M Earnings Per ($0.33)–($0.17) $0.00–$0.16 Share Non-GAAP $5M–$12M Operating Income Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back
Slide 10: Business Update & Outlook
Business Update & Outlook 10 | Q3 2017 Conference Call Presentation
Slide 11: LED Lighting, Display & Compound Semi
LED Lighting, Display & Compound Semi Demand being driven by: Growth of LED in General Lighting Continued migration to larger sized TVs; - requiring more LEDs to backlight Fine-pitch LED displays Growing adoption of Fine-pitch Display; - stadiums, lobbies, retail We continue to win busines
Slide 12: Advanced Packaging, MEMS and RF
Advanced Packaging, MEMS and RF Positioned for growth when market strengthens Veeco sustained our leadership position and maintained strong market share of 73% AP impacted by weaker smartphone shipments worldwide Advanced FOWLP applications expanding to applications such as: Baseband proce
Slide 13: Front-End Semi Update: Veeco Remains Well-Positioned
Front-End Semi Update: Veeco Remains Well-Positioned China buildout of 28nm fabs continues Select customers expected to begin focus on 14nm next year Veeco actively supporting 10nm ramp and 7nm process development in Korea Melt tool progressing well; customers actively working on 7nm and 5nm
Slide 14: Ultratech Update – Integration on Track
Ultratech Update – Integration on Track Integration Proceeding Well • Key milestones achievable over next 18-24 months Sales organization integration COMPLETED Field service integration COMPLETED ERP conversion IN PROGRESS Focused R&D projects IN PROGRESS Material cost reductions IN PROG
Slide 15: Summary: 2017, a transformative year for Veeco
Summary 2017: a transformative year for Veeco Backlog continuing to grow Ultratech integration on track Veeco executing on strategy to increase scale, diversify revenue and improve profitability 15 | Q3 2017 Conference Call Presentation
Slide 16: Q&A
Q&A 16 | Q3 2017 Conference Call Presentation
Slide 17: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables 17 | Q3 2017 Conference Call 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 Q2 17 Q3 17 US$ millions Q2 17 Q3 17 US$ millions, except per share data Q2 17 Q3 17 Net Sales $115.1 $131.9 GAAP Net Income (Loss) $(18.4) $(21.9) GAAP Basic EPS (0.43) (0.47) GAAP Gross Profit 38.7 53.1 Add: Share-Based Comp 9.6
Slide 20: Q3 2017 GAAP to Non-GAAP Reconciliation
Q3 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 $131.9 $131.9 Gross Profit 53.1 0.7 2.0 55.8 Gross Margin 40.2% 42.3% Research and Development 24.1 (0.9) 23.2 Selling, General, and Adm
Slide 21: Q4 2017 Guidance GAAP to Non-GAAP Reconciliation
Q4 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 $135–$155 $135–$155 Gross Profit 52–63 1 — — 53–64 Gross Margin 39%–41% 39%–41% Net Income (Loss) ($15)–($