Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q4 2009 Earnings Presentation
23 slides from Veeco Instruments's earnings presentation, Feb 8, 2010
Slide 1: Q4 2009 Highlights
Q4 2009 Highlights February 8, 2010
Slide 2: Q4 2009 Highlights
Q409 Highlights
Slide 3: Fourth Quarter 2009 Highlights: Exceeded Guidance in all Areas
Fourth Quarter 2009 Highlights: Exceeded Guidance in all Areas Revenue was $146.4 million, up 33% compared to $110.3 million in Q4’08. Revenue increased 48% sequentially Bookings were $262.2 million, surpassing our prior record level of $225.6 million; December 31 backlog was $402 million Net income
Slide 4: Fourth Quarter 2009 Highlights: Exceeded Guidance in all Areas (continued)
Fourth Quarter 2009 Highlights: Exceeded Guidance in all Areas (continued) Operating expenses $43.3 million Up $8.9M sequentially from bonus/profit sharing, selling expenses and LED & Solar R&D for next generation tools OPEX down sequentially as a percentage of sales from 34.8% to 29.6% Q4’09 gross
Slide 5: Q4 2009 Financial Highlights
Q4 2009 Financial Highlights $0.15 $0.16 $0.41 EPS (Non-GAAP) $8.0 $8.9 $25.1 EBITA ($77.1) $3.5 $20.5 Operating Income (Loss) 39.5% 41.4% 45.0% Gross Margin $110.3 $98.9 $146.4 Revenues $88.5 $225.6 $262.2 Orders Q4’08 Q3’09 Q4’09 ($M except EPS) See reconciliation to GAAP at end of presentation
Slide 6: LED & Solar Grows As Percentage of Veeco: Fourth Quarter Results
LED & Solar Grows As Percentage of Veeco: Fourth Quarter Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (67%) (19%) (68%) (20%) (12%) Q4 09 Revenues ($M) $146 Million Q4 09 Bookings ($M) $262 Million Metrology Metrolo
Slide 7: Q4 '09 Segment Performance (Sequential Change)
Q4 ‘09 Segment Performance (Sequential Change) 8.9 25.1 48% 98.9 146.4 16% 225.6 262.2 Veeco Total (2.7) (4.5) -- -- -- -- Unallocated Corporate 0.4 1.4 13% 24.2 27.3 11% 29.2 32.4 Metrology 1.6 1.2 -3% 21.7 21.0 209% 17.2 53.1 Data Storage EBITA Revenue Bookings 179.2 Q3’09 98.1 Q4’09 53.0 Q3’09 85
Slide 8: Record Q4'09 Bookings
Record Q4’09 Bookings Q4’09 bookings $262.2M, up 16% sequentially and nearly 200% higher than prior year LED & Solar: $177M in orders with 16 LED manufacturers placing orders for Veeco MOCVD Accelerating demand for TV and laptop backlighting General illumination in “early innings” Data Storage: Stro
Slide 9: Veeco Balance Sheet (in millions)
------- ------- $135.0 Short-term Investments $359.1 $101.2 $605.4 $59.4 $317.3 $148.6 12/31/2009 12/31/2008 9/30/2009 $225.8 $198.1 Shareholder’s Equity $98.5 $100.5 Long-Term Debt (including current portion) $429.5 $409.8 Total Assets $64.4 $59.3 Fixed Assets, Net $168.5 $154.5 Working Capital $10
Slide 10: 2009 Full Year Highlights
2009 Full Year Highlights
Slide 11: Veeco 2009 Accomplishments Summary
Veeco 2009 Accomplishments Summary Executed an Aggressive Restructuring Program Maintained positive operating cash flow throughout the sharpest downturn in the history of the industry Created a leaner structure with a higher percentage variable cost to substantially improve profitability Strengthene
Slide 12: 2009 – Orders, Sales and Profit Improve in Every Quarter
2009 – Orders, Sales and Profit Improve in Every Quarter 17.2% 25,136 29.6% 43,335 17,660 25,675 45.0% 65,888 146,367 262,185 Q4’09 4.7% 9.0% (8.8)% (15.4)% % 17,950 8,857 (6,371) (9,672) EBITA 37.8% 34.8% 45.7% 52.5% % 143,674 34,451 32,910 32,978 OPEX 57,430 13,721 13,163 12,886 R&D 86,244 20,730
Slide 13: 2009 Restructuring and Top Line Recovery Impact All Key Metrics
2009 Restructuring and Top Line Recovery Impact All Key Metrics See reconciliation to GAAP at end of presentation Total Sales ($M) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 EBITA % -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Q1'08 Q2'0
Slide 14: Q1 2010 Guidance and Outlook
Q1 2010 Guidance and Outlook
Slide 15: Q1 2010 Guidance
Q1 2010 Guidance Revenues $150 – 165 million GAAP EPS $0.50 – $0.62 per share Non-GAAP EPS $0.41 – $0.50 (utilizing 35% tax rate) [Note: Share Count 42M Diluted/38.5M non-Diluted] See reconciliation to GAAP at end of presentation
Slide 16: Restructuring Activities & Top Line Recovery Drive Significant EBITA Improvement
Restructuring Activities & Top Line Recovery Drive Significant EBITA Improvement 17% $43M 45% $146M Q4’09A 18-20% $39-$41M 43-44% $150-165M Q1’10 Forecast (9%) $33M 34% $72M Q2 ‘09A 9% (15%) 7% EBITA% $34M $33M $37M Operating Spending 41% 35% 40% GM $99M $63M $110M Revenue Q3 ’09A Q1 ‘09A Q4 ‘08A Se
Slide 17: Business Outlook: Improving 2010 Revenue and Profit in All Three Businesses
Business Outlook: Improving 2010 Revenue and Profit in All Three Businesses Veeco begins 2010 with unprecedented momentum: ended 2009 with record level of backlog of $402 million: $317M LED & Solar; $60M Data Storage; $25M Metrology LED & Solar business patterns remain strong in Q1: Similar to what
Slide 18: Back-up and Reconciliation Data
Back-up and Reconciliation Data
Slide 19: Statements of Operations
Statements of Operations (in Thousands, except per share data) 31,347 32,628 31,500 37,742 Diluted weighted average shares outstanding 31,347 32,628 31,500 35,623 Weighted average shares outstanding ($2.40) ($0.48) ($2.35) $0.50 Diluted net income (loss) attributable to Veeco ($2.40) ($0.48) ($2.35)
Slide 20: Balance Sheets
Balance Sheets (In thousands) $ 429,541 $ 605,372 Total liabilities and equity 225,810 359,059 Total equity 784 - Noncontrolling interest 225,026 359,059 Equity attributable to Veeco 105,261 107,195 Total non-current liabilities 2,391 1,192 Other non-current liabilities 98,330 100,964 Long-term debt
Slide 21: Reconciliation - Unaudited
Reconciliation - Unaudited (In thousands, except per share data) During the year ended December 31, 2009, the Company recorded a restructuring charge of $7.7 million, of which $0.1 million was recorded during the fourth quarter. These restructuring charges consisted principally of $6.3 million of pe
Slide 22: Segment Bookings, Revenues & Reconciliation
Segment Bookings, Revenues & Reconciliation (in thousands) ** Refer to footnotes on Reconciliation for further details. (unaudited) $ 35,972 $ 17,950 $ 8,045 $ 25,135 EBITA ** 73,322 304 73,037 - Asset impairment charge 2,900 1,526 2,900 - Inventory write-off 1,492 - 565 - Purchase accounting adjust
Slide 23: Reconciliation of Operating Income to Income Excluding Certain Items
Reconciliation of Operating Income to Income Excluding Certain Items - Unaudited (in thousands, except per share data) (Unaudited) Adjustment to exclude non-cash interest expense on convertible subordinated notes. NOTE The above reconciliation is intended to present Veeco's operating results, exclud