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: Q2 2016 Performance Summary
Revenue of $75M Consistent with expectations for a soft LED industry environment in 1H 2016 Driving a return to profitability Executing restructuring plans, as committed Bookings increased slightly to $68M Supported by orders for Advanced Packaging Q2 2016 Performance Summary Gross margins exceeded
Slide 4: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 5: Focused on Return to Profitability
Focused on Return to Profitability Aligning operational structure to current business environment Lowering quarterly breakeven to $75M-$80M by Q4 2016 Foundation to deliver consistent adjusted EBITDA profitability Will continue to assess / align structure as needed Target lowering fixed costs by ~$2
Slide 6: Revenue Breakdown by Market and Geography
23% Advanced Packaging, MEMS & RF Revenue Breakdown by Market and Geography Note: Amounts may not calculate precisely due to rounding 33% Lighting, Display & Power Electronics 26% Scientific & Industrial 18% Data Storage Q2 2016 Revenue by End Market $75M 27% United States 33% China 20% EMEA 20% Res
Slide 7: P&L Highlights
P&L Highlights ($M) Q1 16 Q2 16 Q1 16 Q2 16 Revenue $78.0 $75.3 $78.0 $75.3 Gross Profit 32.0 31.4 32.5 31.9 % 41.0% 41.7% 41.7% 42.4% R&D 22.1 21.5 21.0 20.6 SG&A & Other 19.8 20.2 17.0 17.5 Net Income (15.5) (32.1) (5.7) (7.6) % -19.9% -42.6% -7.3% -10.1% EPS ($0.40) ($0.82) ($0.15) ($0.19) Adjust
Slide 8: Financial Highlights
($M) Q1 16 Q2 16 Cash & Short-term Investments 349 331 Accounts Receivable 56 42 Inventories 77 91 Accounts Payable 31 35 Cash Flow from Operations (19) (12) Financial Highlights DSO 65 50 DOI 157 189 DPO 61 72 Note: Amounts may not calculate precisely due to rounding
Slide 9: Q3 2016 Guidance
Q3 2016 Guidance Net Sales $70M–$85M $70M–$85M Gross Margins 38%–40% 39%–41% Net income (Loss) ($24M)–($18M) ($10M)–($4M) EPS ($0.62)–($0.46) ($0.26)–($0.10) Adjusted EBITDA ($6M)–$0M Non-GAAP GAAP Notes: A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back Up & Reconcili
Slide 10: Q3 2016 Guidance
Q3 2016 Guidance Net Sales Gross Margins Net income (Loss) EPS Adjusted EBITDA 10 | Investor Presentation [Non-GAAP | $70M-$85M $70M-$85M 38% 40% 39% ~41% ($24M)($18M) ($10M)-($4M) ($0.62)-($0.46) ($0.26)-($0.10) (s6M)-Som Notes: A reconciliation of GAAP to Non-GAAP financial measures Is contained i
Slide 11: LED Industry Conditions are Improving
LED Industry Conditions are Improving Environment for LED manufacturers is stabilizing LED demand drivers supporting unit growth LED SUPPLY LED DEMAND MOCVD MARKET TV unit shipments forecast to improve in 2017, following declines in 2015/2016 LED lighting adoption continues to progress at a measured
Slide 12: Veeco MOCVD – The Right Technology Platform for Growth
Veeco MOCVD – The Right Technology Platform for Growth Solid State Lighting, LED Display & Automotive Continue to win in GaN LED with market leading EPIK platform Maintaining competitive advantage through multi-generation roadmap, already developed ROY LED & Photonics Gaining traction in As/P applic
Slide 13: Veeco PSP – Versatility Generating Multiple Growth Levers
Veeco PSP – Versatility Generating Multiple Growth Levers Expand Served Markets Extend Global Reach Capture New Applications Market leader for single-wafer solvent clean with unique ImmJET™ technology Leveraging process advantages and existing infrastructure to expand into under-represented regions
Slide 14: Focusing on our Strategic Objectives
Expanding our footprint Investing in adjacent market opportunities to diversify revenues Advanced Power Electronics Advanced Packaging Focusing on our Strategic Objectives Maintaining operational focus Right sizing the business to improve profitability through the cycles Lowering fixed costs by ~$20
Slide 15: Focusing on our Strategic Objectives
Focusing on our Strategic Objectives af Expanding Strengthening Maintaining our footprint our core operational focus Investing in adjacent market Building on our foundational Right sizing the business to opportunities to diversify business to capture improve profitability through the revenues opport
Slide 16: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 17: Note On Reconciliation Tables
Note On Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 18: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q1 16 Q2 16 Net Sales $78.0 $75.3 GAAP Gross Profit 32.0 31.4 GAAP Gross Margin 41.0% 41.7% Add: Share Based Comp 0.5 0.5 Add: Acquisition Related — — Non-GAAP Gross Profit $32.5 $31.9 Non-GAAP Gross Margin 41.7% 42.4% US$ million
Slide 19: Q2 2016 GAAP to Non-GAAP Reconciliation
Q2 2016 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $75.3 $75.3 Gross Profit 31.4 0.5 31.9 Gross Margin 41.7% 42.4% Research and development 21.5 (0.9) 20.6 Selling, general, and administr
Slide 20: Q3 2016 Guidance GAAP to Non-GAAP Reconciliation
Q3 2016 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 $70–$85 $70–$85 Gross Profit 27–34 1 — — 28–35 Gross Margin 38%–40% 39%–41% Net Income (Loss) ($24)–($18) 5 6 3 ($10)–($4) Inco
Slide 21: Q3 2016 Guidance GAAP to Non-GAAP Reconciliation
a In millon, except par share data GAAP__Componsaton Amortization ther ___ Non-GAAP Net Sales $70-$85 $70-$85 Gross Profit 27-34 1 = - 28-35 Gross Margin 38% 40% 39% 41% Net income (Loss) (s24)-1818) 5 6 3 ($1084) Income (Loss) per Diluted Share ($0.62)-($0.48) ($0.26)-($0.10) GAAP Net Income (loss)