Slide 1: Q1 2023 Financial Results Conference Call
Q1 2023 Financial Results Conference Call Veeco (Nasdaq: VECO) May 8, 2023 1 Q1 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,
Slide 3: CEO Overview and Market Update
CEO Overview and Market Update Bill Miller, Ph.D. 3 Q1 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights Revenue $154M • Top & bottom-line results exceed high-end of guidance • Solid execution of our strategy Non-GAAP Operating Income $20M • Semiconductor demand remains elevated • Further signs of supply chain improvement Diluted Non-GAAP EPS 30¢ Solid execution and Semiconductor dem
Slide 5: Differentiated Technologies Aligned with Megatrends
Differentiated Technologies Aligned with Megatrends Megatrends Growth Markets Core Technologies Laser AP Faster and more Annealing Ion Beam Lithography efficient computing to High Performance Computing/AI enable large scale data center applications and Semiconductor artificial intelligence Connectin
Slide 6: 2023 Priorities – Executing Our Growth Strategy
2023 Priorities – Executing Our Growth Strategy Strategy Execution Protect Execute Innovate & Growth & Invest Profitability ▪ Safety ▪ Supply chain ▪ Product Development ▪ Outperform WFE in ▪ Culture ▪ Customer ▪ Advance evaluation Semiconductor revenue satisfaction program ▪ Revenue growth in Data
Slide 7: CFO Financial Review
CFO Financial Review John Kiernan 7 Q1 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 8: Q1 2023 Revenue by Market & Region
Q1 2023 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & ROW is negligible Other EMEA Data Storage 12% 15% Rest of 25% APAC 14% $154M Semiconductor China 60% 14% 40% 20% Compound United States Semiconductor Revenue Trend ($M) Q1 22 Q4 22 Q1 23 Semiconductor 78 94 93 Compou
Slide 9: Q1 2023 Operating Results
Q1 2023 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q4 22 Q1 23 Q4 22 Q1 23 Revenue $153.8 $153.5 $153.8 $153.5 Gross Profit 62.9 62.0 65.1 63.7 Gross Margin 40.9% 40.4% 42.3% 41.5% Operating Expenses 49.5 52.2 41.3 43.3 Operating Income 13.4 9.8 23.8 20.4 Net Income 128.9
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 22 Q1 23 Cash & Short-Term Investments 303 253 Accounts Receivable 124 120 Inventories 207 226 Accounts Payable 52 62 Long-Term Debt Including Current Portion 275 255 Cash Flow from Operations 33 14 DSO (days) 73 70 DIO 196 213 DPO 52 62 Capital E
Slide 11: 2023 Guidance
2023 Guidance Q2 2023 GAAP Non-GAAP Revenue $145M - $165M $145M - $165M Gross Margin ~41% ~42% Operating Expenses $51M - $53M $44M - $46M Net Income / (Loss) $6M - $12M $14M - $20M Diluted Earnings / (Loss) Per Share $0.11 – $0.21 $0.26 - $0.34 Reiterating 2023 Full Year Outlook • 2023 Revenue: $630
Slide 12: Thank You Q&A
Thank You Q&A 12 Q1 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 13: Backup and Financial Tables
Backup and Financial Tables 13 Q1 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 14: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2019 2020 2021 2022 2023 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Semiconductor 175.6 37.4 37.5 33.6 57.4 165.9 51.6 53.7 76.3 65.4 247.1 77.6 97.5 100.4 93.8 369.4 93.1 Compound Semi 85.9 18.4 17.8 26.6 45.2 107.9 24.8 24.2 23.3 34.7 107.0 37.1 31.1 28.
Slide 15: Convertible Notes as of March 31, 2023
Convertible Notes as of March 31, 2023 Annual Cash Annual Non-Cash Initial Conversion Convertible Debt Principal Amount Carrying Value Coupon Interest Interest Price Convertible Notes Due Jan 2025 $133M $132M 3.5% $4.6M $0.5M $24.00 Convertible Notes Due June 2027 $125M $123M 3.75% $4.7M $0.4M $18.4
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 In millions, except per share amounts Q4 22 Q1 23 In millions Q4 22 Q1 23 GAAP Basic weighted average shares 49.9 50.6 GAAP Diluted weighted average shares 65.7 59.9 Net sales $153.8 $153.5 GAAP Basic EPS $2.58 $0.17 GAAP gross profit 62.9 62.
Slide 18: Q1 2023 Actual: GAAP to Non-GAAP Reconciliation
Q1 2023 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $153.5 $153.5 Gross Profit 62.0 1.5 — 0.2 63.7 Gross Margin 40.4% 41.5% Operating Expenses $52.2 (5.6) (2.1) (1.3) $43.3 Operating Income $9.8 7.0 2.1 1.5 $20.4 Ne
Slide 19: Q2 2023 Guidance
Q2 2023 Guidance (in millions, except per share amounts) Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $145–$165 $145–$165 Gross Profit 59–68 2 — — 61–70 Gross Margin 41%–41% 42%–42% Operating Expenses $51–$