Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q4 2021 Earnings Presentation
26 slides from Veeco Instruments's earnings presentation, Feb 16, 2022
Slide 1: Q4 & FY 2021 Financial Results Conference Call
Q4 & FY 2021 Financial Results Conference Call Veeco (Nasdaq: VECO) February 16, 2022 1 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 2: Safe Harbor
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 management’s expectations, estimates, projections and assumptions. Words such as “expects,
Slide 3: CEO Overview
CEO Overview Bill Miller 3 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 4: 2021 – A Year of Progress
2021 – A Year of Progress ✓ R&D investments in laser annealing, IBD for semi, power, photonics Solidly Executing Multi-Year ✓ Robust evaluation program in place Growth Strategy ✓ San Jose expansion – shipped first systems ✓ Enhanced service offerings and capability ✓ Profitability grew faster than r
Slide 5: FY 2021 Highlights
FY 2021 Highlights Revenue $583M • 28% top line growth • 65% growth in Non-GAAP operating income • 66% growth in Diluted Non-GAAP EPS Non-GAAP • 58% growth in CFFO, $68M Operating Income $87M • 1.13 Book to Bill ratio with strong ending backlog of $440M Diluted Non-GAAP EPS $1.43 Solid full-year exe
Slide 6: Q4 2021 Highlights
Q4 2021 Highlights Revenue $153M • Top line driven primarily by semiconductor market Non-GAAP • Continued investment for growth Operating Income $25M • $17M in cashflow from operations Diluted Non-GAAP EPS 43¢ Solid quarterly results driving momentum into 2022 6 Q4 2021 Financial Results Conference
Slide 7: CFO Financial Review
CFO Financial Review John Kiernan 7 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 8: FY 2021 Revenue by Market & Region
FY 2021 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & Other EMEA 9% 10% China Semiconductor 35% Rest of Data Storage 18% 43% APAC 29% $583M United States 18% 38% Compound Revenue Trend ($M) FY 19 FY 20 FY 21 Semiconductor Semiconductor 176 166 247 Rest of World is less
Slide 9: Q4 2021 Revenue by Market & Region
Q4 2021 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & Other EMEA 10% 12% Rest of China APAC 26% Data Storage Semiconductor 24% 43% $153M 25% United States 23% 37% Compound Revenue Trend ($M) Q4 20 Q3 21 Q4 21 Semiconductor Semiconductor 57 76 65 Rest of World is less th
Slide 10: FY Operating Results
FY Operating Results GAAP Non-GAAP In millions (except per share amounts) FY 20 FY 21 FY 20 FY 21 Revenue $454.2 $583.3 $454.2 $583.3 Gross Profit 194.3 242.3 196.5 245.1 Gross Margin 42.8% 41.5% 43.3% 42.0% Operating Expenses 171.7 185.6 144.0 158.5 Operating Income 22.6 56.7 52.5 86.6 Net Income /
Slide 11: Q4 Operating Results
Q4 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q3 21 Q4 21 Q3 21 Q4 21 Revenue $150.2 $153.0 $150.2 $153.0 Gross Profit 63.2 64.0 63.9 64.9 Gross Margin 42.0% 41.9% 42.6% 42.4% Operating Expenses 46.8 46.4 39.6 40.0 Operating Income 16.4 17.6 24.3 24.9 Net Income 9.0 8.2 2
Slide 12: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 20 Q3 21 Q4 21 Cash & Short-Term Investments 320 336 225 Accounts Receivable 80 87 110 Inventories 146 171 171 Accounts Payable 34 49 44 Long-Term Debt 321 332 229 Cash Flow from Operations 15 30 17 DSO (days) 52 52 64 DIO 159 173 173 DPO 37 51 46
Slide 13: Convertible Notes as of December 31, 2021
Convertible Notes as of December 31, 2021 Annual Cash Annual Non-Cash Initial Conversion Convertible Debt Principal Amount Carrying Value Coupon Interest Interest3 Price Convertible Notes Due Jan 2023 $20M $19M 2.7% $0.5M $0.1M $40.03 Convertible Notes Due Jan 2025 $133M $115M 3.5% $4.7M $0.5M $24.0
Slide 14: Q1 2022 Guidance
Q1 2022 Guidance GAAP Non-GAAP Revenue $145M - $165M $145M - $165M Gross Margin 41% - 43% 42% - 44% Operating Expenses $48M - $50M $42M - $44M Net Income $7M - $18M $15M - $26M Diluted Earnings Per Share $0.15 – $0.32 $0.28 - $0.44 14 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco
Slide 15: Market Update
Market Update Bill Miller 15 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 16: Differentiated Technologies Aligned with Megatrends
Differentiated Technologies Aligned with Megatrends Megatrends Growth Markets Core Technologies Laser Faster and more Annealing Ion Beam efficient computing to High Performance Computing/AI enable large scale data center applications and Semiconductor artificial intelligence AP Connecting people on
Slide 17: 2022 Priorities – Executing Our Growth Plan
2022 Priorities – Executing Our Growth Plan Strategy Execution Protect Execute Innovate & Growth & Invest Profitability ▪ Safety ▪ Supply chain ▪ Capacity Expansion ▪ 10% - 17% revenue ▪ Culture ▪ Quality ▪ New technology ▪ +1 ppt gross margin ▪ Delivery evaluations ▪ Progress toward long ▪ Evaluati
Slide 18: Thank You Q&A
Thank You Q&A 18 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 19: Backup and Financial Tables
Backup and Financial Tables 19 Q4 2021 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 20: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2019 2020 2021 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 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 65.4 247.1 Compound Semi 15.0 16.4 26.3 28.1 85.9 18.4 17.8 26.6 45.2 107.9 24.8 24.2 23.3 34.7 107.0 Data Storage 19.6 22.
Slide 21: Effect of New Accounting Standard for Convertible Notes on Diluted EPS
Effect of New Accounting Standard for Convertible Notes on Diluted EPS (Effective Q1 2022) Quarterly GAAP Non-GAAP* EPS threshold before Reduction to Interest expense Incremental Dilutive EPS threshold before Reduction to Interest expense Incremental Dilutive effect of Notes for EPS calculation Shar
Slide 22: 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 23: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation In millions, except per share amounts Q3 21 Q4 21 2021 2020 In millions Q3 21 Q4 21 2021 2020 GAAP Basic weighted average shares 49.0 49.2 49.1 48.4 Net sales $150.2 $153.0 $583.3 $454.2 GAAP Diluted weighted average shares 53.8 54.9 53.6 48.4
Slide 24: Q4 2021 Actual: GAAP to Non-GAAP Reconciliation
Q4 2021 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $153.0 $153.0 Gross Profit 64.0 0.6 0.2 64.9 Gross Margin 41.9% 42.4% Operating Expenses 46.4 (2.9) (3.0) (0.5) 40.0 Operatin
Slide 25: FY 2021 Actual: GAAP to Non-GAAP Reconciliation
FY 2021 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $583.3 $583.3 Gross Profit 242.3 2.4 0.4 245.1 Gross Margin 41.5% 42.0% Operating Expenses 185.6 (12.9) (12.3) (1.9) 158.5 Op
Slide 26: Q1 2022 Guidance
Q1 2022 Guidance (in millions, except per share amounts) Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $145–$165 $145–$165 Gross Profit 58–71 1 — 1 60–73 Gross Margin 41%–43% 42%–44% Operating Expenses $48–$