Slide 1: Q1 2010 Highlights
Q1 2010 Highlights April 26, 2010
Slide 2: Q1'10 Highlights
Q1’10 Highlights
Slide 3: First Quarter 2010: Continued Strong Performance & Record Results
First Quarter 2010: Continued Strong Performance & Record Results Revenue was $163.2 million, up 160% compared to $62.8 million in Q1’09. Revenue increased 12% sequentially. Bookings were $267.8 million, up over 400% from prior year and 2% sequentially. Surpassing our prior quarterly record level of
Slide 4: First Quarter 2010: Continued Strong Performance & Record Results (continued)
First Quarter 2010: Continued Strong Performance & Record Results (continued) Operating expenses - $39.7 million Continued strong OPEX management Q1’10 OPEX @ 24% of sales Q1’10 gross margins were 43%, in-line with guidanceEBITA profit at 20%, top of guidance range. Company generated $42 million in
Slide 5: Q1 2010 Financial Highlights
Q1 2010 Financial Highlights ($0.22) $0.41 $0.49 Non-GAAP EPS (Loss) ($9.7) $25.1 $32.8 EBITA (Loss) ($18.9) $20.5 $29.1 Operating Income (Loss) 34.9% 45.0% 43.1% Gross Margin $62.8 $146.4 $163.2 Revenues $53.1 $262.2 $267.8 Orders Q1’09 Q4’09 Q1’10 ($M except GM & EPS) See reconciliation to GAAP at
Slide 6: LED & Solar Grows As Percentage of Veeco: First Quarter Results
LED & Solar Grows As Percentage of Veeco: First Quarter Results LED & Solar Process Equipment Data Storage Process Equipment LED & Solar Process Equipment Data Storage Process Equipment (69%) (17%) (79%) (10%) (11%) Q1 10 Revenues ($M) $163 Million Q1 10 Bookings ($M) $268 Million Metrology Metrolog
Slide 7: Q1 '10 Segment Performance (Sequential Change)
Q1 ‘10 Segment Performance (Sequential Change) $32.8 (3.1) 2.9 3.2 $29.8 Q1 ’10 +31% $25.1 +12% $146.4 $163.2 +2% $262.2 $267.8 Veeco Total - (4.5) -- -- -- -- Unallocated Corporate +107% 1.4 +5% 27.3 28.5 -8% 32.4 29.8 Metrology +166% 1.2 +10% 21.0 23.2 -50% 53.1 26.4 Data Storage EBITA Revenue Boo
Slide 8: Record Q1 '10 Bookings
Record Q1 ’10 Bookings Q1’10 bookings $268M, up 2% sequentially and 405% higher than prior year LED & Solar: $212M LED & Solar – + 20% sequentially...Approximately $200M MOCVD – a record Accelerating demand for TV and laptop backlighting – over one dozen LED companies place MOCVD orders –Korea, Chin
Slide 9: Veeco Balance Sheet
$135.0 $155.5 Short-term Investments $413.1 $101.9 $681.6 $57.0 $376.5 $194.0 03/31/2010 12/31/2009 $359.1 Shareholder’s Equity $101.2 Long-Term Debt (including current portion) $605.4 Total Assets $59.4 Fixed Assets, Net $317.3 Working Capital $148.6 Cash & Cash Equivalents Veeco Balance Sheet (in
Slide 10: Q2 2010 Guidance and Outlook
Q2 2010 Guidance and Outlook
Slide 11: Veeco Top Line Growth and OPEX Management Drives Record Profitability
Veeco Top Line Growth and OPEX Management Drives Record Profitability 24-26% $47-49M (20-22%) 44-45% $220-240M Q2 ’10F 20% $40M (24%) 43% $163M Q1’10 17% $43M (30%) 45% $146M Q4’09 (15%) 7% EBITA% $33M (52%) $37M (34%) Operating Spending 35% 40% GM $63M $110M Revenue Q1 ‘09 Q4 ‘08 See reconciliation
Slide 12: Q2 2010 Guidance
Q2 2010 Guidance Revenue $220M-$240M GAAP EPS $1.02-$1.20 per share Non-GAAP EPS $0.78-$0.90 per share (utilizing 35% tax rate) Note: Share Count 44 Million
Slide 13: Veeco MOCVD Capacity Ramp Plan
Veeco MOCVD Capacity Ramp Plan 22 Shipped Veeco utilizes “flexible” outsourcing model for MOCVD System manufacturing Ability to ramp capacity up/down as market demand changes Building capacity for >100 tools by Q3 & >120 by Q4 Ship Goal = >75 40 Shipped 48 Shipped Capacity Target>100 Capacity Target
Slide 14: Q2 2010 Business Outlook
Q2 2010 Business Outlook Veeco begins Q2 with record level of backlog of $502 million: $415M LED & Solar; $63M Data Storage; $24M Metrology LED & Solar business patterns remain extremely strong in Q2: Similar to what we have been experiencing last three quarters Key China & Korea customers (includin
Slide 15: Back-up and Reconciliation Data
Back-up and Reconciliation Data
Slide 16: Balance Sheets
Balance Sheets $ 605,372 $ 681,647 Total liabilities and equity 359,059 413,112 Equity 107,195 107,405 Total non-current liabilities 1,192 717 Other non-current liabilities 100,964 101,649 Long-term debt 5,039 5,039 Deferred income taxes 139,118 161,130 Total current liabilities 212 216 Current port
Slide 17: Q110 & Q109 Reconciliation to GAAP
Q110 & Q109 Reconciliation to GAAP During the first quarter of 2010, we recorded a restructuring credit of $0.2 million associated with a change in estimate. During the first quarter of 2009, we recorded a restructuring charge of $4.4 million, consisting primarily of personnel severance and related
Slide 18: Q409 & Q408 Reconciliation to GAAP
Q409 & Q408 Reconciliation to GAAP (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 millio
Slide 19: Q2 Guidance: Reconciliation of Operating Income to Earnings Excluding Certain Items
Q2 Guidance: Reconciliation of Operating Income to Earnings Excluding Certain Items Adjustment to exclude non-cash interest expense on convertible subordinated notes. NOTE - The above reconciliation is intended to present Veeco’s operating results, excluding certain items and providing income taxes
Slide 20: Segment Bookings, Revenues & Reconciliation to GAAP
Segment Bookings, Revenues & Reconciliation to GAAP Veeco Instruments Inc. and Subsidiaries Segment Bookings, Revenues, and Reconciliation of Operating income (loss) to EBITA (loss)** (In thousands) (Unaudited) Three months ended March 31, 2010 2009 LED & Solar Process Equipment Bookings $ 211,663 $
Slide 21: Segment Bookings, Revenues & Reconciliation to GAAP
Segment Bookings, Revenues & Reconciliation to GAAP ** Refer to footnotes on Q409 & Q408 Reconciliation to GAAP (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 adjustment 10,