Slide 1: Q1 2025 Financial Results Conference Call
Veeco Instruments Q1 2025 Financial Results Conference Call May 7th, 2025
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.
Slide 4: Q1 2025 Highlights
Q1 2025 Highlights Revenue • Revenue above mid-point of guidance, EPS above guidance $167M • Another strong quarter for Semi business, grows sequentially and year-over-year Non-GAAP • Growth driven by wet processing and lithography system shipments in Advanced Packaging Operating Income • Shipped se
Slide 5: Role in the Semi Manufacturing
Role in the Semi Manufacturing Representative Process Steps FRONT END BACK END Ion Inspection/ Advanced Deposition Lithography Etch Annealing Implantation Metrology Packaging IBD IBD Wet LSA NSA Processing Litho 300 EUV Veeco technologies are critical for several Semi manufacturing process steps IBD
Slide 6: Semi SAM Expansion To Drive Outperformance
Semi SAM Expansion To Drive Outperformance Industry Markets Enabling Technologies Inflections Advanced GAA/BSPD Logic 20% Device Shrink - EUV/High IBD NA Lithography LSA NSA IBD 300 EUV 15% Memory HBM/3D Devices 10% 5% 3D Packaging For AI 0% Advanced Wet 2025-2029 CAGR WFE Growth * Veeco Semi SAM Pr
Slide 7: Semi Evaluations Capture Industry Inflections
Semi Evaluations Capture Industry Inflections *Evaluations typically compete to win several applications. The number of applications under evaluation will vary by system, customer, and market. Increase in evaluations to enable penetration of key SAM growth opportunities
Slide 8: CFO Financial Overview
CFO Financial Overview John Kiernan
Slide 9: Q1 Revenue by Market & Region
Q1 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor Data Storage 9% 4% APAC Scientific & China Other APAC 13% China 36% $167M 42% United States United 74% EMEA States Semiconductor 7% EMEA 15% ROW is negligible Revenue Trend ($M) Q1 24 Q4 24 Q1 25 Revenue Trend (
Slide 10: Q1 Operating Results
Q1 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q4 24 Q1 25 Q4 24 Q1 25 Revenue $182.1 $167.3 $182.1 $167.3 Gross Profit 74.0 68.5 75.5 69.8 Gross Margin 40.6% 40.9% 41.5% 41.7% Operating Expenses 70.1 54.3 48.1 45.5 Operating Income 3.9 14.2 27.4 24.3 Net Income 15.0 11.9
Slide 11: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 24 Q1 25 Cash & Short-Term Investments 345 353 Accounts Receivable 97 114 Inventories 247 254 Accounts Payable 44 58 Cash Flow from Operations 28 20 Capital Expenditures 5 7 DSO (days) 48 62 DIO (days) 203 228 DPO (days) 37 53 Amounts may not calc
Slide 12: Q2 2025 Outlook
Q2 2025 Outlook GAAP Non-GAAP Revenue $135M - $165M $135M - $165M Gross Margin 39%-41% 40%-42% Operating Expenses $57M - $58M $47M - $48M Net Income $(3M) - $10M $7M - $20M Diluted Earnings Per Share $(0.05) - $0.17 $0.12 - $0.32 A reconciliation of GAAP to Non-GAAP financial measures can be found i
Slide 13: Q&A
Q&A (ace
Slide 14: Backup & Financial Tables
Backup & Financial Tables (ace
Slide 15: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2021 2022 2023 2024 2025 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Semi 247.1 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 115.2 412.7 120.4 109.9 124.1 112.1 466.6 123.8 Compound 107.0 37.1 31.1 28.1 24.9 121.2 21.2 24.1 25.7 16.3 87.3 21.0 18.2 15.6 22.8
Slide 16: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of March 31, 2025 Principal Carrying Annual Cash Annual Non-Cash Initial Conversion Convertible Notes Coupon Amount Value Interest Interest Price Convertible Notes Due June 2027 25M 25M 3.75% 0.9M 0.1M 18.46* Convertible Notes Due June 2029 230M 225M 2.875% 6.6M 1.
Slide 17: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q1 2025) 2027 Convertible Notes 2029 Convertible Notes (GAAP and Non-GAAP)** Quarterly Incremental GAAP Non-GAAP* Average Stock Price per Dilutive Shares (in Common Share Reduction to Interest Incremental Reduction to Interest Incremental thousan
Slide 18: 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 19: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions, except per share amounts Q4 24 Q1 25 $ millions Q4 24 Q1 25 GAAP Basic weighted average shares 56.5 57.8 Net sales $182.1 $167.3 GAAP Diluted weighted average shares 60.5 60.2 GAAP gross profit 74.0 68.5 GAAP Basic EPS $0.26 $0.21
Slide 20: Q1 2025 Actual: GAAP to Non-GAAP Reconciliation
Q1 2025 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $167.3 $167.3 Gross Profit 68.5 1.3 — — 69.8 Gross Margin 40.9% 41.7% Operating Expenses $54.3 (7.9) (0.8) (0.1) $45.5 Operating Income $14.1 9.2 0.8 0.
Slide 21: Q2 2025 Guidance
Q2 2025 Guidance ($ 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 $135–$165 $135–$165 Gross Profit 54–69 1 — — 55–70 Gross Margin 39%–41% 40%–42% Operating Expenses $57–$5