Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q2 2023 Earnings Presentation
25 slides from Veeco Instruments's earnings presentation, Aug 7, 2023
Slide 1: Q2 2023 Financial Results Conference Call
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 1 Veeco Instruments Q2 2023 Financial Results Conference Call - August 7th, 2023
Slide 2: Safe Harbor
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 2 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, tha
Slide 3: CEO Overview and Business Update
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 3 Bill Miller, Ph.D. CEO Overview and Business Update
Slide 4: Q2 Financial & Business Highlights
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 4 Q2 Financial & Business Highlights $162M $24M 0.36¢ Revenue Non-GAAP Operating Income Diluted Non-GAAP EPS • Revenue near high-end of guidance • Non-GAAP EPS exceeds high-end of guidance • Record
Slide 5: Market Update
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 5 Market Update Core Technologies Laser Annealing Ion Beam Lithography Wet Epitaxy Processing Ion Beam Data Storage Market growth expected in 2023 despite ongoing industry challenges Compound Semic
Slide 6: Veeco Technologies for Artificial Intelligence
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 6 Veeco Technologies for Artificial Intelligence Advanced Packaging Current PTOR • Wet Processing for micro-bump flux clean • Lithography for Cu bumps Future Opportunities • Wet Processing for temp
Slide 7: Laser Annealing Opportunity
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 7 Laser Annealing Opportunity Growth driven by new logic and memory applications with LSA and NSA • Continued execution of LSA growth strategy • LSA platform production tool of record for Tier 1 ID
Slide 8: Ion Beam Deposition – Advanced Node Semi Opportunity
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 8 Ion Beam Deposition– Advanced Node Semi Opportunity Adapting IBD technology for additional advanced node semiconductor applications • Engaged with Tier 1 advanced memory and logic customers • Lev
Slide 9: CFO Financial Review
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 9 John Kiernan CFO Financial Review
Slide 10: Q2 2023 Revenue by Market & Region
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 10 Q2 2023 Revenue by Market & Region 65% 9% 11% 15% Revenue by Market Revenue by Region Scientific & Other Semiconductor Compound Semiconductor Data Storage 31% 11% 22% 36% EMEA China United State
Slide 11: Q2 2023 Operating Results
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 11 Q2 2023 Operating Results In millions (except per share amounts) GAAP Non-GAAP Q1 23 Q2 23 Q1 23 Q2 23 Revenue $153.5 $161.6 $153.5 $161.6 Gross Profit 62.0 67.5 63.7 69.1 Gross Margin 40.4% 41.
Slide 12: Balance Sheet and Cash Flow Highlights
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 12 Balance Sheet and Cash Flow Highlights $ millions Q1 23 Q2 23 Cash & Short-Term Investments 253 287 Accounts Receivable 120 130 Inventories 226 244 Accounts Payable 62 63 Long-Term Debt Includin
Slide 13: 2023 Guidance
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 13 2023 Guidance GAAP Non-GAAP Revenue $155M - $175M $155M - $175M Gross Margin 41%-42% 42%-43% Operating Expenses $53M - $55M $45M - $47M Net Income / (Loss) $9M - $15M $17M - $23M Diluted Earning
Slide 14: CEO Closing Remarks
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 14 CEO Closing Remarks
Slide 15: Compelling Investment Opportunity
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 15 Compelling Investment Opportunity Differentiated technologies in growth markets Laser Annealing share growing and roadmap advancing Leveraging IBD leadership for semiconductor applications Long-
Slide 16: Thank You Q&A
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 16 Thank You Q&A
Slide 17: Backup and Financial Tables
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 17 Backup and Financial Tables
Slide 18: Historical Revenue by End-Market
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 18 Historical Revenue by End-Market $M 2020 2021 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Semiconductor 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
Slide 19: Convertible Notes Refinancing - Extinguishment Loss
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 19 Amounts may not calculate precisely due to rounding. Convertible Notes Refinancing - Extinguishment Loss $ millions 2025 Notes 2027 Notes Total Principal Amount of Notes Repurchased $106.0 $100.
Slide 20: Convertible Notes – Outstanding
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 20 Convertible Notes – Outstanding * Conversion price for 2027 Convertible Notes includes the effect of the Capped Call transaction **Weighted average Convertible Notes Principal Amount Carrying Va
Slide 21: Effect of Convertible Notes on Diluted EPS
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 21 Effect of Convertible Notes on Diluted EPS (Effective Q3 2023) Based upon current 2025 and 2027 Convertible Notes outstanding. The above calculations are intended to be estimates only, and refle
Slide 22: Note on Reconciliation Tables
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 22 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. gene
Slide 23: Supplemental Information—GAAP to Non-GAAP Reconciliation
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 23 Supplemental Information—GAAP to Non-GAAP Reconciliation Amounts may not calculate precisely due to rounding. $ millions Q1 23 Q2 23 Net sales $153.5 $161.6 GAAP gross profit 62.0 67.5 GAAP gros
Slide 24: Q2 2023 Actual: GAAP to Non-GAAP Reconciliation
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 24 $ millions Non-GAAP Adjustments GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $161.6 $161.6 Gross Profit 67.5 1.6 — — 69.1 Gross Margin 41.8% 42.7% Operating Expenses $53.8
Slide 25: Reconciliation of GAAP to non-GAAP Financial Data
Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 25 Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $155–$175 $155–$175 Gross Profit 63–73 2 — — 65–75 Gros