Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q1 2024 Earnings Presentation
22 slides from Veeco Instruments's earnings presentation, May 7, 2024
Slide 1: Veeco Instruments Q1 2024 Financial Results Conference Call
Veeco Instruments Q1 2024 Financial Results Conference Call May 7th, 2024 1 Q1 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 Q1 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q1 Financial Highlights
Q1 Financial Highlights • Solid top and bottom-line results Revenue $174M • Revenue above mid-point of guide • EPS near high-end of guide • Record Semiconductor revenue for 2nd Non-GAAP consecutive quarter Operating Income $29M • Demand for LSA systems remains strong • Multi-System Laser Annealing o
Slide 5: Investment Strategy Enabling SAM Expansion
Investment Strategy Enabling SAM Expansion Future Technologies ➢ LSA gaining share in advanced logic due to performance benefits Driving Growth ➢ EUV Mask Blank Business well-positioned for High NA adoption ➢ Strength in Wet processing driven by High-Bandwidth Memory TODAY ➢ Laser Annealing SAM to g
Slide 6: Nanosecond Annealing Opportunity
Nanosecond Annealing Opportunity 2000 NSA Future (nanosecond) Traditional Temperature (°C) • Device scaling challenges driving the need for new annealing LSA Lamp Based capabilities 1000 (sub millisecond) (sub second) • NSA broadening Laser Annealing adoption to new Logic and Memory applications • S
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 Growth Technologies for Artificial Intelligence
Veeco Growth Technologies for Artificial Intelligence CPU/GPU Current PTOR High-Bandwidth Memory (HBM) DRAM • Laser-Spike Annealing (LSA) Current PTOR • IBD for EUV mask blanks • Laser-Spike Annealing (LSA) Additional Future Opportunities Additional Future Opportunities • Nanosecond Annealing (NSA)
Slide 9: CFO Financial Review
CFO Financial Review John Kiernan 9 Q1 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 10: Q1 Revenue by Market & Region
Q1 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor 12% Data Storage 10% APAC China 42% Semiconductor 69% $174M 9% Scientific & 37% Other ROW is negligible United States 5% 16% EMEA Revenue Trend ($M) Q1 23 Q4 23 Q1 24 Semiconductor 93 115 120 Compound Semi 21 16
Slide 11: Q1 Operating Results
Q1 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q4 23 Q1 24 Q4 23 Q1 24 Revenue $173.9 $174.5 $173.9 $174.5 Gross Profit 78.7 75.4 79.0 77.1 Gross Margin 45.2% 43.2% 45.4% 44.2% Operating Expenses 54.5 53.4 46.9 47.8 Operating Income 24.2 22.0 32.1 29.4 Net Income $21.6 $21
Slide 12: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 23 Q1 24 Cash & Short-Term Investments 306 297 Accounts Receivable 103 107 Inventories 238 243 Accounts Payable 42 54 Cash Flow from Operations 29 9 Capital Expenditures 11 6 12 Q1 2024 Financial Results Conference Call Copyright © 2024 Veeco Inst
Slide 13: 2024 Guidance
2024 Guidance Q2 2024 GAAP Non-GAAP Revenue $165M - $185M $165M - $185M Gross Margin 42% - 43% 43% - 44% Operating Expenses $55M - $57M $46M - $48M Net Income / (Loss) $13M - $20M $22M - $29M Diluted Earnings / (Loss) Per Share $0.22 - $0.33 $0.38 - $0.48 FY 2024 Non-GAAP Revenue $680M - $740M Non-G
Slide 14: Closing Remarks
Closing Remarks 14 Q1 2024 Financial Results Conference Call Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Slide 15: Backup and Financial Tables
Backup and Financial Tables 15 Q1 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 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 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 21.0 Semi
Slide 17: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of March 31, 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 0.1
Slide 18: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q1 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 Q4 23 Q1 24 $ millions, except per share amounts Q4 23 Q1 24 GAAP Basic weighted average shares 55.5 56.0 Net sales $173.9 $174.5 GAAP Diluted weighted average shares 59.8 60.8 GAAP gross profit 78.7 75.4 GAAP Basic EPS $0.39 $0.39
Slide 21: Q1 2024 Actual: GAAP to Non-GAAP Reconciliation
Q1 2024 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $174.5 $174.5 Gross Profit 75.4 1.7 — — 77.1 Gross Margin 43.2% 44.2% Operating Expenses $53.4 (6.4) (1.9) 2.7 $47.8 Operating Income $22.0 8.1 1.9 (2.7
Slide 22: Q2 2024 Guidance
Q2 2024 Guidance ($ 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 $165–$185 $165–$185 Gross Profit 69–80 2 — — 71–82 Gross Margin 42%–43% 43%–44% Operating Expenses $55–$5