Slide 1: Q2 2025 Financial Results Conference Call
Q2 2025 Financial Results Conference Call August 6th, 2025 Veeco Instruments
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
Bill Miller, Ph.D. CEO Overview
Slide 4: Q2 2025 Highlights
Q2 2025 Highlights • Revenue, Non-GAAP Operating Income, and Non-GAAP EPS all above high-end of guidance • Strong quarter for Semi business in key areas: • Wet processing and lithography systems for Advanced Packaging systems from AI demand • Ion Beam Deposition EUV systems for mask blanks • Laser S
Slide 5: Role in the Semi Manufacturing
Role in the Semi Manufacturing Deposition Lithography Ion Implantation Etch Annealing Inspection/ Metrology Advanced Packaging IBD 300 IBD EUV LSA NSA Wet Processing Litho New products FRONT END BACK END Driving business today Representative Process Steps Veeco Technologies are Critical for Several
Slide 6: Semi SAM Expansion To Drive Outperformance
Semi SAM Expansion To Drive Outperformance Markets Industry Inflections Advanced Logic GAA/BSPD Device Shrink - EUV/High NA Lithography Memory HBM/3D Devices Advanced Packaging 3D Packaging For AI Heterogeneous Integration LSA NSA IBD 300 Wet Processing IBD EUV 0% 5% 10% 15% 20% 2025-2029 CAGR WFE G
Slide 7: Semi Evaluations Capture Industry Inflections
Semi Evaluations Capture Industry Inflections Increase in Evaluations to Enable Penetration of Key SAM Growth Opportunities *Evaluations typically compete to win several applications. The number of applications under evaluation will vary by system, customer, and market.
Slide 8: Financial Overview
John Kiernan CFO Financial Overview
Slide 9: Q2 Revenue by Market & Region
Q2 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & Other Semiconductor Compound Semiconductor Data Storage EME A APAC China United States ROW is negligible 9% 9% 7% 75% 17% 13% 11% 59% United States EMEA APAC China $166M Amounts may not calculate precisely due to rounding
Slide 10: Q2 Operating Results
In millions (except per share amounts) GAAP Non-GAAP Non-GAAP Q1 25 Q2 25 Q1 25 Q2 25 Q2 25 Guidance (as of May 7th, 2025) Revenue $167.3 $166.1 $167.3 $166.1 $135M - $165M Gross Profit 68.5 68.7 69.8 70.7 Gross Margin 40.9% 41.4% 41.7% 42.6% 40% - 42% Operating Expenses 54.3 56.4 45.5 47.6 $47M - $
Slide 11: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q1 25 Q2 25 Cash & Short-Term Investments 353 355 Accounts Receivable 114 107 Inventories 254 259 Accounts Payable 58 50 Long-Term Debt 250 225 Cash Flow from Operations 20 9 Capital Expenditures 7 3 DSO (days) 62 58 DIO (days) 228 237 DPO (days) 53
Slide 12: Q3 2025 Guidance
Q3 2025 Guidance GAAP Non-GAAP Revenue $150M - $170M $150M - $170M Gross Margin 39% - 41% 40% - 42% Operating Expenses $57M - $58M $48M - $49M Net Income $3M - $13M $12M - $21M Diluted Earnings Per Share $0.04 - $0.22 $0.20 - $0.35 A reconciliation of GAAP to Non-GAAP financial measures can be found
Slide 13: cVeec>
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Slide 14: Backup & Financial Tables
Backup & Financial Tables CEC
Slide 15: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2022 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Semi 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 115.2 412.7 120.4 109.9 124.1 112.1 466.6 123.8 123.9 Compound Semi 37.1 31.1 28.1 24.9 121.2 21.2 24.1 25.7 16.3 87.3 21.0 18.2 15.6 22.8 77.6 1
Slide 16: Convertible Notes – Outstanding
Convertible Notes – Outstanding Convertible Notes Principal Amount Carrying Value Coupon Annual Cash Interest Annual Non-Cash Interest Initial Conversion Price Convertible Notes Due June 2029 230M 225M 2.875% 6.6M 1.1M 29.22 As of June 30, 2025
Slide 17: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q2 2025) * The Company is required to settle the principal amount of the 2029 Convertible Notes in cash,and has the option to settle the excess above principal in any combination of cash or shares. As such, only “in-the-money” shares above the im
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: sh
Slide 19: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions Q1 25 Q2 25 Net sales $167.3 $166.1 GAAP gross profit 68.5 68.7 GAAP gross margin 40.9% 41.4% Add: Share-based comp 1.3 2.0 Non-GAAP gross profit $69.8 $70.7 Non-GAAP gross margin 41.7% 42.6% $ millions Q1 25 Q2 25 GAAP Net income $
Slide 20: Q2 2025 Actual: GAAP to Non-GAAP Reconciliation
$ millions Non-GAAP Adjustments GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $166.1 $166.1 Gross Profit 68.7 2.0 — — 70.7 Gross Margin 41.4% 42.6% Operating Expenses $56.4 (7.7) (0.8) (0.3) $47.6 Operating Income $12.4 9.7 0.8 0.3 $23.1 Net Income $11.7 9.7 0.8 (0.7) $21.5 Q2
Slide 21: Reconciliation of GAAP to non-GAAP Financial Data
Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $150–$170 $150–$170 Gross Profit 59–70 2 — — 61–72 Gross Margin 39%–41% 40%–42% Operating Expenses $57–$58 (8) (1) — $48–$49 Operating Income $2–$12 10 1 — $13–$