Slide 1: Q2 2024 Financial Results Conference Call
Veeco Instruments Q2 2024 Financial Results Conference Call August 6th, 2024 1 Q2 2024 Financial Results Conference Call Copyright © 2024 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
CEO Overview Bill Miller, Ph.D. 3 Q2 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights • Top and bottom-line results in line with guidance Revenue $176M • Semiconductor business remains strong ▪ Including Record Laser Annealing revenue Non-GAAP • In logic, received follow-on LSA orders for Operating Income $28M customers Gate-All-Around architecture • In DRAM,
Slide 5: Investment Strategy Enabling SAM Expansion
Investment Strategy Enabling SAM Expansion Future Technologies ➢ LSA systems qualified for all leading logic customers GAA architecture Driving Growth ➢ EUV Mask Blank Business expanding to new applications ➢ Strong year-over-year growth in Advanced Packaging wet processing business, driven by HBM T
Slide 6: Nanosecond Annealing Opportunity
Nanosecond Annealing Opportunity 2000 NSA Future (nanosecond) Traditional Temperature (°C) • Scaling challenges driving the need for new annealing capabilities LSA Lamp Based 1000 (sub millisecond) (sub second) • NSA broadening Laser Annealing adoption to new leading edge Logic and Memory applicatio
Slide 7: IBD300 – 300mm Front End Semi Opportunity
IBD300– 300mm Front End Semi Opportunity Illustration of grain size and distribution TODAY FUTURE Incumbent Technology IBD • Industry leader in Ion Beam Technology • Lower resistance metals essential for improved device performance & customer scaling • IBD achieving superior thin film properties vs
Slide 8: Veeco Technologies for Artificial Intelligence
Veeco Technologies for Artificial Intelligence GPU High-Bandwidth Memory (HBM) DRAM Advanced Packaging Current PTOR Current PTOR Current PTOR • Laser-Spike Annealing (LSA) • Laser-Spike Annealing (LSA) • Wet Processing for micro-bump flux • IBD for EUV mask blanks • IBD for EUV mask blanks clean Add
Slide 9: CFO Financial Review
CFO Financial Review John Kiernan 9 Q2 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 10: Q2 Revenue by Market & Region
Q2 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor 10% APAC China 25% 19% Data Storage 37% Semiconductor 63% $176M United 8% States Scientific & EMEA Other ROW is negligible 24% 14% Revenue Trend ($M) Q2 23 Q1 24 Q2 24 Semiconductor 106 120 110 Compound Semi 24
Slide 11: Q2 Operating Results
Q2 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q1 24 Q2 24 Q1 24 Q2 24 Revenue $174.5 $175.9 $174.5 $175.9 Gross Profit 75.4 75.4 77.1 76.8 Gross Margin 43.2% 42.9% 44.2% 43.7% Operating Expenses 53.4 58.7 47.8 48.6 Operating Income 22.0 16.7 29.4 28.3 Net Income $21.9 $14
Slide 12: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q1 24 Q2 24 Cash & Short-Term Investments 297 305 Accounts Receivable 107 92 Inventories 243 245 Accounts Payable 54 47 Cash Flow from Operations 9 8 Capital Expenditures 6 3 12 Q2 2024 Financial Results Conference Call Copyright © 2024 Veeco Instrum
Slide 13: 2024 Guidance
2024 Guidance Q3 2024 GAAP Non-GAAP Revenue $170M - $190M $170M - $190M Gross Margin 42% - 43% 43% - 44% Operating Expenses $57M - $59M $48M - $50M Net Income $13M - $19M $24M - $31M Diluted Earnings Per Share $0.21 - $0.31 $0.39 - $0.49 Updated FY 2024 Outlook • Revenue to $690 - $730 million from
Slide 14: Closing Remarks
Closing Remarks 14 Q2 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 15: Backup and Financial Tables
Backup and Financial Tables 15 Q2 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 16: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2021 2022 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Semiconductor 51.6 53.7 76.3 65.4 247.1 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 115.2 412.7 120.4 109.9 Compound 24.8 24.2 23.3 34.7 107.0 37.1 31.1 28.1 24.9 121.2 21.2 24.1 25.7 16.3 87.3
Slide 17: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of June 30, 2024 Annual Cash Annual Non-Cash Initial Conversion Convertible Notes Principal Amount Carrying Value Coupon Interest Interest Price Convertible Notes Due Jan 2025 $27M $26M 3.5% $0.9M $0.1M $24.00 Convertible Notes Due June 2027 25M 25M 3.75% 0.9M 0.1M
Slide 18: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q2 2024) 2029 Convertible Notes (GAAP and 2025 and 2027 Convertible Notes Non-GAAP)** Quarterly Incremental Dilutive Average Stock Price per Shares (in GAAP Non-GAAP* Common Share thousands) EPS threshold Reduction to Interest EPS threshold Reduc
Slide 19: 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 20: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions Q1 24 Q2 24 $ millions, except per share amounts Q1 24 Q2 24 GAAP Basic weighted average shares 56.0 56.3 Net sales $174.5 $175.9 GAAP Diluted weighted average shares 60.8 62.5 GAAP gross profit 75.4 75.4 GAAP Basic EPS $0.39 $0.27
Slide 21: Q2 2024 Actual: GAAP to Non-GAAP Reconciliation
Q2 2024 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $175.9 $175.9 Gross Profit 75.4 1.4 — — 76.8 Gross Margin 42.9% 43.7% Operating Expenses $58.7 (7.8) (1.8) (0.5) $48.6 Operating Income $16.7 9.2 1.8 0.
Slide 22: Q3 2024 Guidance
Q3 2024 Guidance ($ 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 $170–$190 $170–$190 Gross Profit 72–82 2 — — 74–84 Gross Margin 42%–43% 43%–44% Operating Expenses $57–$5