Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Investor Presentation (January 2022)
33 slides from Veeco Instruments's investor presentation, Jan 11, 2022
Slide 1: Investor Presentation January 2022
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 1 January 2022 Investor Presentation
Slide 2: Safe Harbor
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 2 2 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 m
Slide 3: Agenda
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 3 Market Details Semiconductor Compound Semiconductor Data Storage Agenda Overview Background Transformed Company on Accelerated Growth Trajectory Compelling Investment Opportunity Megatrends, customers, resource al
Slide 4: Overview
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 4 Background Transformed Company on Accelerated Growth Trajectory Compelling Investment Opportunity Overview
Slide 5: Differentiated Semiconductor Capital Equipment Provider
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 5 5 Differentiated Semiconductor Capital Equipment Provider Global provider of semiconductor capital equipment that addresses complex materials challenges Differentiated portfolio of high-value technology that has e
Slide 6: Transformed Company on Accelerated Growth Trajectory
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 6 6 Transformed Company on Accelerated Growth Trajectory Compound Semiconductor Demonstrated leadership in MOCVD and Wet Processing Data Storage Long history of leadership in Ion Beam technologies Semiconductor Diff
Slide 7: Compelling Investment Opportunity
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 7 7 Aligned resources and investments with growth markets and technologies: service, evals, R&D and CAPEX in semi and compound semi Engaging with customers to solve their difficult materials challenges Winning team
Slide 8: Differentiated Technologies Aligned with Megatrends
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 8 8 Mobility and Immersive User Experience Connecting people on the move with technologies such as 5G, sensors, advanced displays The Cloud High speed communication and storage of enormous amounts of data Differenti
Slide 9: Serving a Diverse Customer Base
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 9 9 Power RF Logic Serving a Diverse Customer Base Memory Scientific Photonics Data Storage Foundries OSATs IDMs MicroLED Fabs RF Filter & Amplifier Fabs Power Device Producers HDD Manufacturers Labs & Universities
Slide 10: Resources Aligned for Growth
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 10 10 Resources Aligned for Growth R&D CAPEX Strategic Optimization of our R&D Spending Portfolio Elevated levels of capital spending in 2021 and 2022 as we fund our capacity expansion and complete the build-out of
Slide 11: Leadership Team and Core Values
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 11 11 Leadership Team and Core Values Susan Wilkerson Global Customer Operations Adrian Devasahayam Product Organization Peter Porshnev Engineering Ajit Paranjpe CTO John Kiernan CFO Bill Miller CEO Robert Bradshaw
Slide 12: Commitment to Corporate Responsibility
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 12 Commitment to Corporate Responsibility Carbon & Climate Commitment to 50% Renewable Energy Procurement in the U.S by 2030 Diversity & Inclusion Establishment of a D&I Council, Mission Statement, and Charter. Incr
Slide 13: Market Details
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 13 Semiconductor Compound Semiconductor Data Storage Market Details
Slide 14: Semiconductor Market: 2022 SAM
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 14 14 2022 SAM Laser Annealing • Annealing technology becoming more critical as industry moves to gate all around architecture in logic and with continued shrink in memory • Veeco laser annealing technology enables
Slide 15: Compound Semiconductor Market: 2022 SAM
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 15 15 2022 SAM 5G RF & Base Business* • RF content increasing in mobile devices as 5G is adopted • Veeco wet processing equipment is used in filter and power amplifier applications • Photonics devices for consumer,
Slide 16: Data Storage Market
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 16 16 Data Storage Market Increase in magnetic heads and in number of steps per head will drive long term data storage growth ▪ Market decreasing ~30% in 2022. Expecting market to recover in 2023 on sound fundamenta
Slide 17: Financials
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 17 Target Model Historical Financials & 2022 Outlook Financials
Slide 18: Improving Financial Trends (Non-GAAP)
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 18 18 Improving Financial Trends (Non-GAAP) 419 454 2019 2020 2021* 2022** Target^ Revenue ($m) ~580 ~800 39% 43% 2019 2020 2021* 2022** Target^ Gross Margin (%) ~42% 1% 12% 2019 2020 2021* 2022** Target^ Operating
Slide 19: Revenue Growth
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 19 19 Revenue Growth 2020 2021* 2022 ** Revenue ($m) Semi Compound Semi Data Storage Scientific & Other ~580 640 – 680 ~60 ~170 ~105 ~245 ~35% ~35% ‘21 to ’22 Projected Growth Rate (~30%) ~5% *2021 revenue based on
Slide 20: In Summary
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 20 20 Sustainable megatrends drive growth across our markets In Summary… Veeco is a transformed company on an accelerated growth trajectory Engaged with the right customers who are driving the megatrends Veeco Unite
Slide 21: Thank You
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 21 Thank You
Slide 22: Backups and Financial Tables
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 22 Backups and Financial Tables
Slide 23: Q3 2021 Revenue by Market & Region
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 23 23 Q3 2021 Revenue by Market & Region 51% 15% 26% 8% Revenue by Market Revenue by Region Scientific & Other Semiconductor Compound Semiconductor Data Storage 40% 33% 18% 9% EMEA China United States Rest of APAC $
Slide 24: Q3 Operating Results
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 24 24 Q3 Operating Results In millions (except per share amounts) GAAP Non-GAAP Q2 21 Q3 21 Q2 21 Q3 21 Revenue $146.3 $150.2 $146.3 $150.2 Gross Profit 60.2 63.2 60.8 63.9 Gross Margin 41.1% 42.0% 41.6% 42.6% Opera
Slide 25: Balance Sheet and Cash Flow Highlights
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 25 25 Balance Sheet and Cash Flow Highlights $ millions Q2 21 Q3 21 Cash & Short-Term Investments 330 336 Accounts Receivable 108 87 Inventories 164 171 Accounts Payable 55 49 Long-Term Debt 328 332 Cash Flow from O
Slide 26: Q4 2021 Guidance
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 26 26 Q4 2021 Guidance GAAP Non-GAAP Revenue $140M - $160M $140M - $160M Gross Margin 41% - 43% 41% - 43% Operating Expenses $49M - $51M $41M - $43M Net Income (Loss) $1M - $11M $14M - $24M Earnings (Loss) Per Share
Slide 27: Historical Revenue by End-Market
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 27 27 Historical Revenue by End-Market $M 2019 2020 2021 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Semiconductor 44.6 37.8 41.8 51.3 175.6 37.4 37.5 33.6 57.4 165.9 51.6 53.7 76.3 Compound Semi 15.0 16.4 26.3 28.1 85.9
Slide 28: Convertible Notes
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 28 28 Convertible Notes (1) Conversion price for 2027 Convertible Notes includes the effect of the Capped Call transaction (2) Weighted average (3) Reflects the adoption of ASU 2020-06, effective January 1, 2022 Amo
Slide 29: Effect of New Accounting Standard for Convertible Notes on Diluted EPS
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 29 29 Effect of New Accounting Standard for Convertible Notes on Diluted EPS (Effective Q1 2022) Based upon current Notes outstanding. The above calculations are intended to be estimates only, and reflect the use of
Slide 30: Note on Reconciliation Tables
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 30 30 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
Slide 31: Supplemental Information—GAAP to Non-GAAP Reconciliation
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 31 31 Supplemental Information—GAAP to Non-GAAP Reconciliation In millions Q1 21 Q2 21 Q3 21 2020 2019 Net sales $133.7 $146.3 $150.2 $454.2 $419.3 GAAP gross profit 54.9 60.2 63.2 194.3 158.2 GAAP gross margin 41.1
Slide 32: Q3 2021 Actual: GAAP to Non-GAAP Reconciliation
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 32 32 Q3 2021 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share amounts GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $150.2 $150.2 Gross Profit 63.2 0.
Slide 33: Q4 2021 Guidance: GAAP to Non-GAAP Reconciliation
Investor Presentation | Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 33 33 Non-GAAP Adjustments In millions, except per share amounts GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $140–$160 $140–$160 Gross Profit 58–69 1 —— 59–70 Gross Margin 41%–43% 41%–43% Ope
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