Slide 1: Q3 2009 Highlights
Q3 2009 Highlights October 26, 2009
Slide 2: Delivering What We Said We Would Do
Delivering What We Said We Would Do GOAL: To Emerge From Downturn in a Position Strength New product traction in all businesses Aligned to customers technology roadmaps Winning business – best order quarter in our history Excellent customer connectivity and relationships Generated cash through the d
Slide 3: Third Quarter 2009 Highlights: Exceeded Guidance in all Areas
Third Quarter 2009 Highlights: Exceeded Guidance in all Areas Revenue was $98.9 million, down 15% compared to $115.7 million in Q3’08. Revenue increased 37% sequentially Bookings were $225.6 million, a record level for the company; Sept 30 backlog $286.5M Net income was $1.3 million, or $0.04 per sh
Slide 4: Q3 2009 Financial Highlights
Q3 2009 Financial Highlights $0.19 ($0.15) $0.16 EPS (Loss) (Non-GAAP)** $10.4 ($6.4) $8.9 EBITA (Loss)** $0.1 ($12.6) $3.5 Operating Income (Loss) 40.6% 33.9% 41.4% Gross Margin* $115.7 $72.0 $98.9 Revenues $90.2 $98.7 $225.6 Orders Q3’08 Q2’09 Q3’09 ($M except EPS) *Excludes certain charges **See
Slide 5: Q3 2009 Segment Performance
Q3 2009 Segment Performance EBITA* Revenue Bookings $10.4 $8.9 -15% $115.7 $98.9 +150% $90.2 $225.6 Veeco Total 29.2 17.2 $179.2 Q3 ‘09 32.0 32.4 $25.8 Q3 ‘08 -8% -47% +595% (2.7) 0.4 1.6 $9.6 Q3 ‘09 (2.6) Unallocated Corporate 0.3 -23% 31.5 24.2 Metrology 7.0 -50% 43.3 21.7 Data Storage $5.7 30% $4
Slide 6: Record Q3'09 Bookings
Record Q3’09 Bookings Q3’09 bookings $225.6M, up 129% sequentially LED & Solar: Record orders $179.2M – included multi-unit MOCVD orders from key LED manufacturers in Korea, China, Taiwan and U.S. Manufacturers ramp production for TV, laptop backlighting and general illumination applications $15M or
Slide 7: LED & Solar Grows As Percentage of Veeco – Q3 Results
LED & Solar Grows As Percentage of Veeco – Q3 Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (54%) (24%) (80%) (7%) (13%) Q3 Revenues ($M) $99 Million Q3 Bookings ($M) ~$226 Million Metrology Metrology (22%) $29 $179
Slide 8: LED & Solar Grows As Percentage of Veeco – Month Results
LED & Solar Grows As Percentage of Veeco – 9 Month Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (46%) (30%) (70%) (12%) (18%) 9 Month Revenues ($M) $234 Million 9 Month Bookings ($M) $377 Million Metrology Metrology
Slide 9: Q4 2009 and Full Year Guidance
Q4 2009 and Full Year Guidance Revenues $120-130 million GAAP EPS $0.25 to $0.35 per share Non-GAAP EPS $0.29 to $0.35 (utilizing 35% tax rate) [Note: Share Count 33.5M Diluted] Order Outlook Currently forecast positive book-to-bill in Q409 Full Year ‘09 Outlook Revenue between $353 – $363 Million
Slide 10: Favorable Business Outlook Heading into 2010
Favorable Business Outlook Heading into 2010 Backlog at end of September $287M, $239M in LED & Solar Continue to experience positive business trends in MOCVD High level of demand for K465 MOCVD systems due to industry-leading productivity Executing our manufacturing ramp up to satisfy customer deman
Slide 11: Restructuring Activities & Top Line Recovery Drive Significant EBITA Improvement
Restructuring Activities & Top Line Recovery Drive Significant EBITA Improvement 13-15% $38-$40M** 43-44% $120-130M Q4’09 Forecast (9%) $33M 34% $72M Q2 ‘09A 9% (15%) 8% EBITA%* $35M $33M $38M Operating Spending 41% 35% 40% GM $99M $63M $110M Revenue Q3 ’09A Q1 ‘09A Q4 ‘08A *See reconciliation table
Slide 12: 2009 Restructuring and Top Line Recovery Impact All Key Metrics
2009 Restructuring and Top Line Recovery Impact All Key Metrics Total Sales ($M) - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09F Gross Margin % 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09F OP
Slide 13: Veeco Balance Sheet
$198.1 $100.5 $409.8 $59.3 $154.5 $109.4 09/30/2009 12/31/2008 06/30/2009 $225.8 $190.8 Shareholder’s Equity $98.5 $99.8 Long-Term Debt (including current portion) $429.5 $371.0 Total Assets $64.4 $60.5 Fixed Assets, Net $168.5 $143.0 Working Capital $103.8 $97.5 Cash Equivalents Veeco Balance Sheet
Slide 14: Back-up and Reconciliation Data
Back-up and Reconciliation Data
Slide 15: Income Statement
Income Statement (in Thousands, except for share data) (unaudited) 2009 2008 2009 2008 Net sales $98,913 $115,709 $233,782 $332,465 Cost of sales 58,005 69,626 148,108 196,026 Gross profit 40,908 46,083 85,674 136,439 Operating expenses: Selling, general and administrative expense 21,042 23,589 59,4
Slide 16: Balance Sheet
Balance Sheet (In thousands) September 30, December 31, 2009 2008 ASSETS (Unaudited) Current assets: Cash and cash equivalents 109,441 $ 103,799 $ Accounts receivable, net 64,260 59,659 Inventories, net 74,999 94,930 Prepaid expenses and other current assets 8,059 6,425 Deferred income taxes 2,226 2
Slide 17: Reconciliation
Reconciliation (In thousands, except share data) NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accept
Slide 18: Segment Bookings, Revenue & Reconciliation
Segment Bookings, Revenue & Reconciliation (in thousands) (Unaudited) **Refers to footnotes on “Reconciliation of operating income (loss) to earnings (loss) excluding certain items” for further details. $ 27,927 $ (7,185) $ 10,380 $ 8,857 EBITA (Loss) ** 285 304 - - Asset impairment charge - 1,526 -
Slide 19: Reconciliation of Operating Income to Income Excluding Certain Items
Reconciliation of Operating Income to Income Excluding Certain Items (in thousands, except per share data) (Unaudited) NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is