Slide 1: Earnings Conference Call 2/6/12
Earnings Conference Call 2/6/12
Slide 2: Introduction - Debra A. Wasser, SVP, Investor Relations
Introduction Debra A. Wasser, SVP, Investor Relations
Slide 3: Safe Harbor Statement
Safe Harbor Statement 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.
Slide 4: Introduction - John Peeler, CEO
Introduction John Peeler, CEO
Slide 5: Q4 2011 Results - David D. Glass, CFO
Q4 2011 Results David D. Glass, CFO
Slide 6: Q4 2011 Revenue & Profit In-Line with Guidance
Q4 2011 Revenue & Profit In-Line with Guidance *See reconciliation to GAAP at end of presentation $ Millions Revenue decreased 36% from Q4 ‘10 GAAP EPS was $0.61 and non-GAAP EPS was $0.72 Gross margin was 43% Operating expenses declined $2M sequentially to $48M Adjusted EBITA was $39M, or 21% of sa
Slide 7: Q4 2011 Revenue & Adjusted EBITA
Q4 2011 Revenue & Adjusted EBITA Data Storage $32M Down from $42M in Q4 2010 and $34M in Q3 2011 LED & Solar $160M Down from $258M in Q4 2010 and $234M Q3 2011 MOCVD at $150M in Q4 2011 ($M) Q4 ‘11 Q4 ’10 Adj EBITA $34.2 $107.6 ($M) Q4 ‘11 Q4 ‘10 Adj EBITA $5.2 $12.5 See reconciliation to GAAP at en
Slide 8: Q4 2011 Bookings: Weak in LED; Strong in Data Storage
Q4 2011 Bookings: Weak in LED; Strong in Data Storage Data Storage $76M Thailand rebuild and capacity expansions drive record orders, up 258% sequentially Total Bookings: $143M LED & Solar $67M Down from $253M in Q4 2010 and $112M in Q3 2011 Q4 2011 MOCVD $59M & MBE $8M Book to Bill = .75 to 1; Back
Slide 9: Veeco's Strong Balance Sheet
Veeco’s Strong Balance Sheet 12/31/2011 09/30/2011 Cash & Short-term Investments* $492 $449 Accounts Receivable 95 115 Inventory 113 128 Fixed Assets, Net 86 76 Total Assets 936 934 Long-term Debt (including current portion) 3 3 Equity 761 735 * Includes restricted cash of $0.6M at 12/31/11 and $22.
Slide 10: Full-Year 2011 Highlights
Full-Year 2011 Highlights
Slide 11: Solid 2011 Performance
Solid 2011 Performance *See reconciliation to GAAP at end of presentation $ Millions Non-GAAP EPS Record 2011 revenue $979M $296 million in adjusted EBITA Record Non-GAAP EPS of $5.01 Gross margins 48% Non-GAAP Net Income $931 Revenue
Slide 12: Strong Execution in a Dynamic Year
Strong Execution in a Dynamic Year Gained dramatic market share in LED as K465i and MaxBright systems penetrated top tier accounts and new LED players around the world Supported rapid expansion of new, emerging LED customer base in China Well-aligned with Data Storage customers to support rebuilding
Slide 13: Business Update and Outlook
Business Update and Outlook
Slide 14: Short-Term LED Market Dynamics Remain Muted
Short-Term LED Market Dynamics Remain Muted LED Backlighting Demand Remains Weak Despite BLU rush orders for new TV models in Q4 Factory utilization rates remain low – 50-70% in Korea and Taiwan Customers cautious Global LED TV penetration rate in 2011 was ~40%; expect ~60-70% in 2012 Near-Term MOCV
Slide 15: LED Lighting Market is in its Infancy
LED Lighting Market is in its Infancy CHINA Expands LED Streetlight Replacements; China to release its LED incentive policy for the 12th 5-year plan LED Lighting Prices Approaching Mainstream Adoption Levels KOREA “20-60” Plan targeting 60% penetration of lighting by 2020 JAPAN Basic Energy Plan: sp
Slide 16: Tier LED Lighting & Chip Companies Position for Growth
Tier 1 LED Lighting & Chip Companies Position for Growth Philips to set up LED lighting plant in Chengdu, China Samsung EC merging with Samsung LED to accelerate LED lighting business Panasonic targets LED lighting sales >50% by 2016 New Energy-Star Toshiba LED’s installed at Louvre and Smithsonian
Slide 17: LED Lighting Market: Veeco Roadmap Drives Multi-Billion Dollar MOCVD Opportunity
LED Lighting Market: Veeco Roadmap Drives Multi-Billion Dollar MOCVD Opportunity in LED Lighting After a 2012 Transition Year, MOCVD Demand Will Reaccelerate.. Thousands of Additional Tools Will Be Needed Over the Next Few Years to Satisfy Lighting Market 1) LED TV Revenue 2009 to 2011 IMS Research;
Slide 18: R&D to Production MOCVD Growth Opportunities
R&D to Production MOCVD Growth Opportunities Vast supply of low cost, high quality large diameter Si wafers Leveraging existing depreciated Si semiconductor fabs & wafer level packaging process Enables lower LED cost Veeco engaged in top customer programs Power Electronics device market forecasted t
Slide 19: Growing Services Business
Growing Services Business Services business grew to nearly $100M in 2011, up >40% Broad range of spare parts, consumables, upgrades that drive tool performance 400 MOCVD reactors go “off-warranty” this year – sell extended plans Asia centers ideal for customer training and process development suppor
Slide 20: Foundation Businesses Balance MOCVD Cycles
Foundation Businesses Balance MOCVD Cycles Data Storage and MBE provide: Customer and capital investment cycle diversity Exposure to hard drive, optical coating, wireless market growth Regional diversity (<10% revenues China, Korea, Taiwan) Consistent quarterly EBITA 10-30%1 Expect similar growth in
Slide 21: Q1 2012 Guidance
Q1 2012 Guidance Note: Guidance is for Veeco’s Continuing Operations See reconciliation to GAAP at end of presentation Q1 2012 Revenue $115 - $140M Gross Margins 43-45% Operating Spending $46-$49M Adjusted EBITA 6-13% GAAP EPS $0.04-$0.25 Non-GAAP EPS $0.13-$0.34
Slide 22: 2012 Outlook
2012 Outlook See no signs of near-term improvement in MOCVD orders – recovery will be driven by LED lighting investments Data Storage, MBE and Services provide “cushion” during LED market pause Focused on driving future growth while delivering reasonable profitability in a down revenue year Maintain
Slide 23: Veeco's Value Proposition
Veeco’s Value Proposition PROVEN ABILITY to execute through industry investment cycles COMPELLING LONG-TERM GROWTH STORY: enabling technology to support energy efficiency consumer electronics, network storage MARKET-LEADING POSITION in MOCVD as the world is poised for massive LED lighting adoption F
Slide 24: Q&A Session
Q&A Session
Slide 25: Income Statement
Income Statement Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) Three months ended Year ended December 31, December 31, 2011 2010 2011 2010 Net sales $ 191,685 $ 299,762 $ 979,135 $ 930,892 Cost of sales 108,597 144,579 504,801 481,407 Gross profit 83,0
Slide 26: Balance Sheets
Balance Sheets Condensed Consolidated Balance Sheets (In thousands) December 31, December 31, 2011 2010 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 217,922 $ 245,132 Short-term investments 273,591 394,180 Restricted cash 577 76,115 Accounts receivable, net 95,038 150,528 Inventori
Slide 27: Q411 and 2011 Reconciliation
Q411 and 2011 Reconciliation Reconciliation of GAAP to non-GAAP results (In thousands, except per share data) (Unaudited) Three months ended Year ended December 31, December 31, 2011 2010 2011 2010 Adjusted EBITA Operating income $ 32,198 $ 110,188 $ 276,259 $ 303,253 Adjustments: Amortization 1,215
Slide 28: Q1 2012 Guidance Reconciliation
Q1 2012 Guidance Reconciliation Reconciliation of GAAP to non-GAAP results (In thousands, except per share data) (Unaudited) Guidance for the three months ending March 31, 2012 LOW HIGH Adjusted EBITA Operating income $ 2,343 $ 13,150 Adjustments: Amortization 1,298 1,298 Equity-based compensation 3
Slide 29: Segment Data
Segment Data Segment Bookings, Revenues, and Reconciliation of Operating Income (Loss) to Adjusted EBITA (Loss) (In thousands) (Unaudited) Three months ended Year ended December 31, December 31, 2011 2010 2011 2010 LED & Solar Bookings $ 67,184 $ 252,912 $ 650,608 $ 968,143 Revenues $ 160,100 $ 257,
Slide 30: Earnings Conference Call 2/6/12
Earnings Conference Call 2/6/12