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: CEO Introduction
CEO Introduction John Peeler
Slide 3: Q3 2017 Highlights
9¢ Non-GAAP EPS $132M Revenue Q3 2017 Highlights 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 $162M Bookings Q3 Results Note: A reconciliation of GAAP to Non-GAAP
Slide 4: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 5: Q3 2017 Revenue Breakdown by End Market and Geography
Q3 2017 Revenue Breakdown by End Market and Geography LED Lighting, Display & Compound Semi driven by continued roll-out of MOCVD and PSP systems into Europe, China and South East Asia Q3 2017 Revenue by End Market Q3 2017 Revenue by Geography Note: Amounts may not calculate precisely due to roundin
Slide 6: P&L Highlights
P&L Highlights ($M) Q2 17 Q3 17 Q2 17 Q3 17 Revenue $115.1 $131.9 $115.1 $131.9 Gross Profit 38.7 53.1 46.7 55.8 % 33.6% 40.2% 40.6% 42.3% R&D 18.6 24.1 17.9 23.2 SG&A & Other 22.7 29.6 19.2 25.7 Operating Income/(Loss) (27.0) (18.9) 9.6 6.8 Net Income/(Loss) (18.4) (21.9) 6.4 4.3 Earnings/(Loss) Pe
Slide 7: Balance Sheet Highlights
($M) Q1 17 Q2 17 Q3 17 Cash & Short-term Investments 682 303 321 Accounts Receivable 51 108 114 Inventories 65 120 114 Accounts Payable 31 46 54 Long-term Debt 268 270 273 Cash Flow from Operations 6.3 (15.9) 24.9 Balance Sheet Highlights DSO 49 85 78 DOI 107 109 133 DPO 47 54 61 Note: Amounts may n
Slide 8: Q4 2017 Guidance
Q4 2017 Guidance Revenue $135M–$155M $135M–$155M Gross Margins 39%–41% 39%–41% Net Income (Loss) ($15M)–($8M) $0M–$7M Earnings Per Share ($0.33)–($0.17) $0.00–$0.16 Non-GAAP Operating Income $5M–$12M Non-GAAP GAAP Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back
Slide 9: Q4 2017 Guidance
Q4 2017 Guidance Revenue Gross Margins Net Income (Loss) Earnings Per Share Non-GAAP Operating Income GAAP $135M-$155M_ 39%-41% ($15M)-($8M) ($0.33)-($0.17) $135M-$155M 39% 41% $0M-$7M $0.00-$0.16 $5M-$12M ‘Nee: A recanciaton of GAAP to Non-GAAP financial measures is canained in the Back Up & Reconi
Slide 10: 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 Growing adoption of Fine-pitch Display; - stadiums, lobbies, retail We continue to win business in China New EPIK 868 – the indu
Slide 11: 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 processors RF t
Slide 12: 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 process
Slide 13: Ultratech Update – Integration on Track
Ultratech Update – Integration on Track 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 PROGRESS Integration Proceeding Well Poised to
Slide 14: Summary
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
Slide 15: Summary: 2017 a transformative year for Veeco
15 | 032017 Conference Call Presentation 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
Slide 16: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 17: 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 18: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation Note: Amounts may not calculate precisely due to rounding US$ millions Q2 17 Q3 17 Net Sales $115.1 $131.9 GAAP Gross Profit 38.7 53.1 GAAP Gross Margin 33.6% 40.2% Add: Release of inventory fair value step-up for purchase accounting 7.4 1.9 A
Slide 19: Q3 2017 GAAP to Non-GAAP Reconciliation
Q3 2017 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based 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 20: Q4 2017 Guidance GAAP to Non-GAAP Reconciliation
Q4 2017 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based 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)–($8) 5 12 (2) $0–$7 Inc
Slide 21: Q4 2017 Guidance GAAP to Non-GAAP Reconciliation
Weta: Armoaris may nat calculate precisely due to reunding a la mllions excep per share data GAAP__Componsaton 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)1$8) 5 12 @ so-s7 Income (Loss) per Diluted