Slide 1: Q1 2018 Conference Call
Q1 2018 Conference Call > Veeco Instruments Inc. > May 7, 2018 1 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
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 Introduction
CEO Introduction John Peeler 3 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
Slide 4: Q1 2018 Highlights
Q1 2018 Highlights Q1 $155M $159M $11M 20¢ Results Bookings Revenue Non-GAAP Non-GAAP Op Income EPS > Profit better than consensus and exceeded guided range > Maintained solid backlog of $331M > Strong revenue growth > Ultratech integration – On Track 2018 is off to a great start Note: A reconciliat
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari 5 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
Slide 6: Q1 2018 Revenue by End Market and Geography
Q1 2018 Revenue by End Market and Geography Mix by End Market Mix by Geography 20% 15% Scientific & United States Industrial 57% 47% LED Lighting, Display & 10% China 6% Compound Semi EMEA Front-End Semi $159M 17% 28% Advanced Packaging, Rest of World MEMS & RF Filters > Revenue concentration in LED
Slide 7: P&L Highlights
P&L Highlights GAAP Non-GAAP $ millions Q4 17 Q1 18 Q4 17 Q1 18 (except per share amounts) Revenue $139.7 $158.6 $139.7 $158.6 Gross Profit 55.4 56.7 56.5 57.8 Gross Margin 39.6% 35.7% 40.5% 36.5% R&D 24.3 24.3 23.3 23.4 SG&A & Other 28.5 26.2 25.6 23.2 Operating Income/(Loss) (15.0) (11.4) 7.5 11.3
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights $ millions Q4 17 Q1 18 Cash & Short-Term Investments 328 311 Accounts Receivable 99 108 Inventories 120 131 Accounts Payable 50 58 Long-Term Debt 276 278 Cash Flow from Operations 19 (12) DSO (days) 62 61 DOI 130 118 DPO 54 52 Working capital investment as we prepare for hig
Slide 9: Q2 2018 Guidance
Q2 2018 Guidance GAAP Non-GAAP Revenue $145M–$170M $145M–$170M Gross Margin 33%–35% 33%–35% Net Income (Loss) ($21M)–($12M) $1M–$10M Earnings Per ($0.45)–($0.26) $0.01–$0.20 Share Non-GAAP $2M–$11M Operating Income Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the Bac
Slide 10: Business Update & Outlook
Business Update & Outlook 10 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
Slide 11: Advanced Packaging, MEMS & RF Filters
Advanced Packaging, MEMS & RF Filters Ample Growth Drivers » Big data analytics » Autonomous vehicles (ADAS) » 5G RF » Cryptocurrency mining (GPUs) Capacity is Being Added » Etching for MEMS applications » Lithography – FOWLP & Cu Pillar Reflects new customers or application penetrations 2016 Applic
Slide 12: LED Lighting, Display & Compound Semi
LED Lighting, Display & Compound Semi Recent Wins in Photonics and Power » Photonics market: 25% CAGR to $1.5B by 2022 » EXALOS – Superluminescent LEDs for medical imaging, optical sensing and other applications » Power market: 80% CAGR to $500M by 2022 » ON Semiconductor – High voltage power manage
Slide 13: Front-End Semi
Front-End Semi 3D Wafer Inspection TM » Repeat order for multiple Superfast systems for 3D NAND application » Continuing high level of interest and engagement across customers STT-MRAM » Partnership with leading semiconductor capital equipment manufacturer » DTOR at leading memory manufacturer Appli
Slide 14: Scientific & Industrial
Scientific & Industrial Continued Momentum in Optical Coatings » Robust Q1 bookings » Broad-based market demand including industrial lasers, medical imaging & material processing Compound Semiconductor Innovation Award TM » GENxcel R&D MBE system » Enabling leading edge research in compound semicond
Slide 15: 2018 Priorities Update
2018 Priorities Update Delivering Growth – Diversifying Company Significant revenue growth and solid bookings New Product Innovation Underway in MOCVD, Lithography, Wet Etch, Optical, EUV Ultratech Integration ERP Go-Live Operating Leverage Solid Q1 results On track to achieve our 2018 priorities 15
Slide 16: Q&A
Q&A 16 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
Slide 17: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables 17 | Q1 2018 Conference Call | © 2018 Veeco Instruments Inc.
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 exclude items such as: s
Slide 19: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation In millions (except per share In millions Q4 17 Q1 18 In millions Q4 17 Q1 18 amounts) Q4 17 Q1 18 Net Sales $139.7 $158.6 GAAP Net Income (Loss) $(8.5) $(15.8) GAAP Basic EPS (0.18) (0.34) GAAP Gross Profit 55.4 56.7 Add: Share-Based Comp 4.4
Slide 20: Q1 2018 GAAP to Non-GAAP Reconciliation
Q1 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 $158.6 $158.6 Gross Profit 56.7 0.6 0.6 57.8 Gross Margin 35.7% 36.5% Research and Development 24.3 (1.0) 23.4 Selling, General, and
Slide 21: Q2 2018 Guidance GAAP to Non-GAAP Reconciliation
Q2 2018 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Non-GAAP Adjustments Adjustments Share-Based In millions (except per share amounts) GAAP Compensation Amortization Other Non-GAAP Net Sales $145–$170 $145–$170 Gross Profit 47–58 1 — — 48–59 Gross Margin 33%–35% 33%–35% Net Income (Loss) $(21
Slide 22: 2017 Recast Historical Financials Under ASC 606
2017 Recast Historical Financials Under ASC 606 Q1 2017 Q2 2017 In millions (except per share As As In millions (except per share As As Adjustments Adjustments amounts) reported adjusted amounts) reported adjusted Net Sales $94.4 $0.1 $94.5 Net Sales $115.1 $(2.8) $112.2 Cost of sales 60.2 (0.2) 60.