Slide 1: Safe Harbor
Safe Harbor To the extent that this presentation discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These item
Slide 2: CEO Introduction
CEO Introduction John Peeler
Slide 3: Q1 2016 Results Summary
Q1 2016 Results Summary Non-GAAP Gross Margin* 42% Revenue $78M Non-GAAP EPS* ($0.15) Adjusted EBITDA* ($2.1M) Cash & Short-term Investments $349M** *A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back Up & Reconciliation Tables **Repurchased ~730K shares of common stock
Slide 4: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 5: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) **This line item also includes “other items” Note: Amounts may not calculate precisely due to rounding ($M) Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Revenue $98.3 $131.4 $140.7 $106.5 $78.0 Gross Profit 37.0 49.8 55.0 39.2 32.5 % 37.7% 37.9% 39.1% 36.8% 41.7% SG&A** 19.1 21.0 18.2 18.
Slide 6: Revenue Breakdown by Market and Geography
30% Advanced Packaging, MEMS & RF Revenue Breakdown by Market and Geography Note: Amounts may not calculate precisely due to rounding *MBE - Molecular Beam Epitaxy 29% Lighting, Display & Power Electronics 19% Scientific & Industrial 22% Data Storage Q1 2016 Revenue by End Market $78M 35% United Sta
Slide 7: Financial Highlights
($M) Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Cash & Short-term Investments 393 396 403 385 349 Accounts Receivable 64 83 47 50 56 Inventories 57 64 70 77 77 Accounts Payable 41 46 25 30 31 Cash Flow from Operations 4 8 10 (6) (19) Financial Highlights DSO 59 57 30 42 65 DOI 89 72 73 101 157 DPO 59 51 26 41 61
Slide 8: Q2 2016 Guidance
Q2 2016 Guidance GAAP Non-GAAP Net Sales $70M–$83M $70M–$83M Gross Margins 38%–40% 39%–41% Adjusted EBITDA N/A ($6M)–$0M Net income (Loss) ($23M)–($17M) ($11M)–($5M) EPS ($0.59)–($0.44) ($0.29)–($0.14)
Slide 9: Q2 2016 Guidance
Q2 2016 Guidance ° | Investor Presentation GAAP Non-GAAP Net Sales $70M-$83M $70M-$83M Gross Margins 38%-40% 39% 41% Adjusted EBITDA NIA (S6M)-$OM Net income (Loss) — ($23M)-($17M) (S11M)($5M) EPS ($0.59)-($0.44) —_($0.29)-($0.14) Veeco
Slide 10: Current Business Outlook
Current Business Outlook LED Lighting & Display LED lighting adoption is growing, however, TV demand remains weak Customers focused on preserving cash and improving profitability MOCVD equipment investments remain muted MEMS & RF Weaker than expected demand for high-end smartphones Customers focused
Slide 11: Focusing on our Strategic Objectives
Focusing on our Strategic Objectives Strengthening our core Leveraging our existing technologies to capitalize on opportunities within our existing markets Maintaining operational focus Tightly controlling costs while positioning the company for long term growth Investing for growth Prioritizing inv
Slide 12: Applications Enabled by Veeco's MOCVD Technology Are Expanding
Applications Enabled by Veeco’s MOCVD Technology Are Expanding EPIKTM LED Lighting, Display K475iTM ROY* LED, IR Sensor, Laser Diode, Solar PropelTM GaN Power Device System Target Applications Solar AsP Device * ROY – Red, Orange, Yellow Smart-lighting IR Sensors LiFi Lighting Blue LED Display Blue
Slide 13: Veeco PSP Advantage for Through Silicon Via Reveal
Veeco PSP Advantage for Through Silicon Via Reveal 2 x Metrology 1 x Clean TSV Reveal (Plasma Etch) CMP** (5 Steps, 4 Tools) (2 Steps, 1 Tool) INTERPOSER SUBSTRATE CHIP TSV ~60% Veeco cost advantage vs. incumbent Fewer process steps and fewer tools, lower cost and reduce risk TSV Reveal Process Cost
Slide 14: Summary
Summary Strengthening our core Investing for growth Maintaining operational focus Expanding into adjacent markets LED Lighting & Display Leveraging our technology to capture opportunities beyond LED Advanced Packaging Formalizing customer engagements for TSV reveal Front-end Semi Generating strong c
Slide 15: Strategy Summary
Strengthening LED Lighting & Display Leveraging our technology to capture opportunities beyond LED Generating strong customer| interest for our ALD product) | Investor Presentation Expanding into adjacent markets Advanced Packaging Formalizing customer engagements for TSV reveal Maintaining operatio
Slide 16: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
Slide 17: 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 18: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions, except per share data Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Net Sales $98.3 $131.4 $140.7 $106.5 $78.0 GAAP Gross Profit 35.1 49.1 54.3 38.8 32.0 GAAP Gross Margin 35.7% 37.3% 38.5% 36.4% 41.0% Add: Equity Comp 0.6 0.7 0.8 0.4 0.5 Add: A
Slide 19: Q1 2016 GAAP to Non-GAAP Reconciliation
Q1 2016 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-based Compensation Acquisition Related Other Non-GAAP Net Sales $78.0 — — — $78.0 Gross Profit 32.0 0.5 — — 32.5 Gross Margin 41.0% 41.7% SG&A** 19.8 (2.7) (0.1) — 17.0 R&D 22.1 (1.1) — — 21.0
Slide 20: Q2 2016 Guidance GAAP to Non-GAAP Reconciliation
Q2 2016 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-Based Compensation Acquisition Related Other Non-GAAP Net Sales $70–$83 $70–$83 Gross Profit 26–34 1 — — 27–35 Gross Margin 38%–40% 39%–41% Adjusted EBITDA ($6)–$0 Net Income (Loss) ($
Slide 21: Q2 2016 Guidance GAAP to Non-GAAP Reconciliation
Q2 2016 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based Acquisition In millions, except per share data GAAP __Compensation _Related Other Non-GAAP Net Sales $70-$83 $70-$83 Gross Profit 26-34 1 - = 27-35 Gross Margin 38% 40% 39% -41% Adjusted EBITDA (86)-80 Net Income (Loss