Slide 1: Q4 2018 Conference Call
Q4 2018 Conference Call Veeco Instruments Inc. February 11, 2019
Slide 2: 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 3: CEO Overview
CEO Overview William Miller 3 Q4 2018 Conference Call | © 2019 Veeco Instruments Inc.
Slide 4: Q4 2018 Highlights
Q4 2018 Highlights Q4 $112M $99.0M ($6.9M) (16¢) Results Bookings Revenue Non-GAAP Non-GAAP EPS Operating Loss ▪ Bookings led by Front-End Semiconductor ▪ Backlog grew to $288M Foundry and EUV Mask Blank Customers ▪ Ending cash and short-term ▪ Revenue declined due to significantly lower investments
Slide 5: 2019 Growth Opportunities
2019 Growth Opportunities Front-End Compound Advanced Semiconductor Semiconductor Packaging EUV Mask Blanks 3D Sensing / VCSEL Wafer Level Packaging Ion Beam Deposition MOCVD Lithography Front-End Wafer Processing Laser Annealing EUV – Extreme Ultraviolet 5 Q4 2018 Conference Call | © 2019 Veeco Ins
Slide 6: 2019 Focus
2019 Focus Innovate Penetrate Improve technology leadership market growth profitability ▪ Solve tough materials ▪ EUV Mask Blanks – Ion Beam ▪ Improve gross margin problems Deposition ▪ Reduce operating expenses ▪ Execute product roadmaps ▪ Leading-Edge Front-End Semiconductor – Laser Anneal ▪ 3D Se
Slide 7: CFO Financial Review
CFO Financial Review Sam Maheshwari 7 Q4 2018 Conference Call | © 2019 Veeco Instruments Inc.
Slide 8: Q4 2018 Revenue by Market & Region
Q4 2018 Revenue by Market & Region Revenue by Market Revenue by Region Front-End Semiconductor LED Lighting, Display 22% & Compound Semi United States 14% 41% ROW 33% $99.0M Advanced Packaging, MEMS Scientific & & RF Filters Industrial 14% 50% China EMEA 9% 17% 8 Q4 2018 Conference Call | © 2019 Vee
Slide 9: P&L Highlights
P&L Highlights GAAP Non-GAAP $ millions (except per share amounts) Q3 18 Q4 18 2018 Q3 18 Q4 18 2018 Revenue $126.8 $99.0 542.1 $126.8 $99.0 542.1 Gross Profit 46.4 35.3 193.7 48.4 35.7 198.5 Gross Margin 36.6% 35.6% 35.7% 38.2% 36.0% 36.6% R&D 23.5 25.0 97.8 22.8 24.1 94.1 SG&A & Other 20.2 21.3 92
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights $ millions Q3 18 Q4 18 Cash & Short-Term Investments 266 261 Accounts Receivable 91 67 Inventories 150 156 Accounts Payable 65 40 Long-Term Debt 284 287 Cash Flow from Operations 18 2 DSO (days) 64 61 DOI 173 219 DPO 74 56 Continued Investment in Inventory Related to New Pro
Slide 11: 2019 – Focus on Foundational & Growth Markets
2019 – Focus on Foundational & Growth Markets ▪ Commodity blue LED business reducing significantly in 2019 ▪ Reduced China revenue going forward ▪ Growth initiatives aligned with multiple megatrends ▪ Foundational businesses remain stable Foundational and Growth Revenue Combined are Expected to Incr
Slide 12: 2019 – Growth on a Solid Foundation
2019 – Growth on a Solid Foundation Key Foundational Businesses Key Growth Initiatives ▪ Service Business ▪ EUV Mask Blanks - Ion Beam Deposition ▪ Wet Etch & Clean ▪ Advanced Front-End Semiconductor – Laser Annealing ▪ Data Storage ▪ 3D Sensing / VCSEL – MOCVD ▪ Universities & Research Labs ▪ Advan
Slide 13: Q1 2019 Guidance
Q1 2019 Guidance GAAP Non-GAAP Revenue $85M - $105M $85M - $105M Gross Margin 33% - 35% 34% - 36% Net Income (Loss) ($28M)-($19M) ($14M)-($5M) Earnings Per Share ($0.59)-($0.39) ($0.30)-($0.10) Non-GAAP Operating ($12M)-($3M) Income (Loss) . A reconciliation of GAAP to Non-GAAP financial measures ca
Slide 14: Q&A
Q&A 14 Q4 2018 Conference Call | © 2019 Veeco Instruments Inc.
Slide 15: Reconciliation Tables
Reconciliation Tables 15 Q4 2018 Conference Call | © 2019 Veeco Instruments Inc.
Slide 16: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 17: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q3 18 Q4 18 2018 US$ millions, except per share amounts Q3 18 Q4 18 2018 Net Sales $126.8 $99.0 $542.1 GAAP Basic EPS (0.19) (3.11) (8.63) GAAP Gross Profit 46.4 35.3 193.7 GAAP Diluted EPS (0.19) (3.11) (8.63) GAAP Gross Margin 3
Slide 18: Q4 2018 GAAP to Non-GAAP Reconciliation
Q4 2018 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $99.0 $99.0 Gross Profit 35.3 0.3 0.1 35.7 Gross Margin 35.6% 36.0% Research and Development 25.0 (0.9) 24.1 Selling, General, and Ad
Slide 19: 2018 GAAP to Non-GAAP Reconciliation
2018 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $542.1 $542.1 Gross Profit 193.7 1.9 2.8 198.5 Gross Margin 35.7% 36.6% Research and Development 97.8 (3.6) 94.1 Selling, General, and A
Slide 20: Q1 2019 Guidance GAAP to Non-GAAP Reconciliation
Q1 2019 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $85–$105 $85–$105 Gross Profit 28–37 1 — — 29–38 Gross Margin 33%–35% 34%–36% Net Income (Loss) $(28)–$(19) 4 4 6 $(14)–$(5)
Slide 21: Thank You
Thank You Veeco Instruments www.veeco.com Ver:11072018