Slide 1: Q1 2015 Conference Call
Q1 2015 Conference Call May 6, 2015
Slide 2: CEO Introduction
CEO Introduction John Peeler
Slide 3: 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 4: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights On Track for a Better 2015 Non-GAAP Gross Margin 38% Bookings $102M Revenue $98M Cash Stable at $393M EBITDA $2.7M Achieved or Beat Guidance On All Metrics
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 6: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) ($M) Q1 14 Q2 14 Q3 14 Q4 14* Q1 15 Revenue $90.8 $95.1 $93.3 $113.6 $98.3 Gross Profit 34.3 31.3 33.2 43.7 37.0 % 37.8% 32.9% 35.5% 38.5% 37.7% SG&A** 18.4 18.4 18.9 18.9 19.1 R&D 18.7 19.9 18.9 19.2 18.0 OPEX 37.1 38.3 37.8 38.1 37.1 % 40.8% 40.2% 40.5% 33.6% 37.7% Adjust
Slide 7: Q1'15 Market and Geography Data
Q1’15 Market and Geography Data 65% 45% 59% 14% 7% 14% 13% 13% 15% 28% 18% Lighting, Display & Power Electronics Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial United States Rest of the World Lighting, Display & Power Electronics Advanced Packaging, MEMS & RF Data Storage Scienti
Slide 8: Balance Sheet Highlights
($M) Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Cash & Short-term Investments 483 485 487 392 393 Accounts Receivable 51 58 62 60 64 Inventory 52 48 47 61 57 Accounts Payable 28 28 26 18 41 Balance Sheet Highlights PSP Purchase Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 DSO 50 55 59 48 59 DOI 93 70 77 68 89 DPO 45 39 39 22 5
Slide 9: Q2 2015 Guidance
Q2 2015 Guidance EPIK 700™ deferred revenue to increase by $25-$65 million in Q2 2015 GAAP Non-GAAP Net Sales $100M - $150M $100M - $150M Gross Margins 35% - 38% 36% - 39% Adjusted EBITDA N/A $0 - $20M Net income (loss) ($20M) - $2M ($3M) - $14M EPS ($0.49) - $0.04 ($0.06) - $0.33
Slide 10: Business Update & Outlook
Business Update & Outlook Veeco
Slide 11: LED Lighting Adoption Accelerating
LED Lighting Adoption Accelerating 18%-28% Sources: Blue – Source IHS Research (% of Lighting Units Shipped) Green - Strategies Unlimited (% of Lighting Units Shipped) 5% 35%-52% 2022 2018 2014 Incandescent phase-outs Utilities broaden subsidies LED bulb prices come down
Slide 12: LED Demand Grows to >1 Trillion Units/Yr by 2019
LED Demand Grows to >1 Trillion Units/Yr by 2019 Sources: IHS Research and Strategies Unlimited New Segments 101% CAGR 2014 to 2019 Lighting 43% CAGR Automotive 13% CAGR Backlight 5% CAGR Mobile 5% CAGR Signage 11% CAGR 0 600 1200 2012 2013 2014 2015 2016 2017 2018 2019 LED Shipments (In B Units) Si
Slide 13: LED Demand Grows to >1 Trillion Units/Yr by 2019
LED Demand Grows to >1 Trillion Units/Yr by 2019 Source: IHS Research, Strategies Unlimited. Veeco Estimates only for “New Segments” 21% CAGR New Segments 101% CAGR 2014 to 2019 Lighting 43% CAGR 2012 to 2019 Automotive 13% CAGR Backlight 5% CAGR Mobile 5% CAGR Signage 11% CAGR LED Farming Off-grid
Slide 14: LED Industry Trends Favor Veeco
LED Industry Trends Favor Veeco TREND Mid-power LEDs gain share in lighting market – Greater China “sweet spot” Move to larger wafer sizes to reduce back-end processing cost LED customers continue to focus on lowest Cost of Ownership and ease of use China Central government may limit new MOCVD subsi
Slide 15: On Track for a Better 2015
On Track for a Better 2015 Targeting Gross Margins >40% Forecasting 2015 Revenue Growth >35% Existing and New Market Opportunities Drive Revenue Growth Focus on Differentiated Products & Reliable Performance Lower Manufacturing & Services Cost LED, Power Electronics & Mobility
Slide 16: Veeco
Veeco
Slide 17: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
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 consider exclusion of: sh
Slide 19: Supplemental Information – GAAP to Non-GAAP Reconciliation
Supplemental Information – GAAP to Non-GAAP Reconciliation Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Net Sales $90.8 $95.1 $93.3 $113.6 $98.3 GAAP Gross Profit 33.8 30.7 32.6 37.9 35.1 GAAP Gross Margin 37.2% 32.2% 34.9% 33.3% 35.7% Add: Equity Comp 0.5 0.6 0.6 0.6 0.6 Add: Acquisition Related - - - 5.2 1.3 Non
Slide 20: Q1 2015 GAAP to Non-GAAP Reconciliation
Q1 2015 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 $98.3 $ - $ - $ - $98.3 Gross profit 35.1 0.6 1.3 - 37.0 Gross margin 35.7% 37.7% SG&A 22.9 (2.8) - 20.1 R&D 18.6 (0.6) - - 18.0
Slide 21: Q2 2015 Guidance GAAP to Non-GAAP Reconciliation
Q2 2015 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 $100 - $150 $100 - $150 Gross Profit 35 - 58 1 - - 36 - 59 Gross Margin 35% - 38% 36% - 39% Net income (loss) ($20) - $2
Slide 22: Historical Revenue Trend by End-Market
Historical Revenue Trend by End-Market Bookings Note: Amounts may not calculate precisely due to rounding Includes PSP from time of Acquisition in December ($M) 63.9 66.2 70.1 78.4 64.3 0.8 1.8 0.9 7.9 13.2 8.5 14.1 10.1 11.7 13.6 17.7 13.0 12.3 15.5 7.2 - 20 40 60 80 100 120 Q1 2014 Q2 2014 Q3 2014