Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q1 2013 Earnings Presentation
24 slides from Veeco Instruments's earnings presentation, Apr 22, 2013
Slide 1: Q1 2013 Business Update Conference Call
Q1 2013 Business Update Conference Call April 22, 2013
Slide 2: Agenda
Agenda Select First Quarter 2013 Metrics Current Business Conditions Growth Opportunities
Slide 3: 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 4: Select First Quarter 2013 Metrics
Select First Quarter 2013 Metrics
Slide 5: Select Q1 2013 Financial Metrics
Select Q1 2013 Financial Metrics Bookings ~$70M Trough conditions continued in MOCVD Cash Balance $588M Very weak overall business conditions MOCVD $37M (-42% sequentially) MBE $6M (-51%) Data Storage $27M (+64%) Good job managing cash and working capital Sequential shipments decline sharply: MOCVD
Slide 6: Highlights of Accounting Review
Highlights of Accounting Review Technical accounting issues related to “multiple element arrangements” for MOCVD transactions originating in 2009 and 2010 These systems were delivered, accepted and paid for in full Review is not related to product quality or any customer satisfaction issues The Comp
Slide 7: Veeco's Growth Opportunities
Veeco’s Growth Opportunities Growth Exciting Power Electronics OLED EUV MBE R&D Systems MEMS MOCVD Services OPP RTUNITY in LED Lighting Huge
Slide 8: Veeco's Growth Strategy
Veeco’s Growth Strategy Expand Leadership in Core Markets LED Lighting Compound Semi Production Hard Disk Drive #1 Technology MBE IBD, IBE, PVD (Data Storage) Extend to New Growth Markets Organic and Acquisitions GaN Power Electronics Grow Share in MBE R&D Penetrate OLED MEMS EUV Photomask MOCVD
Slide 9: LED - New, Greener Paradigm for Lighting
LED - New, Greener Paradigm for Lighting 62% Source: DOE website; data for U.S. alone Reduce electricity demands from lighting by: By 2025, LED Lighting Adoption Will ...
Slide 10: LED - New, Greener Paradigm for Lighting
Eliminate 258 million metric tons of carbon emissions LED - New, Greener Paradigm for Lighting By 2025, LED Lighting Adoption Will ...
Slide 11: LED - New, Greener Paradigm for Lighting
LED - New, Greener Paradigm for Lighting Save over $280B and enable us to avoid building 133 new power plants By 2025, LED Lighting Adoption Will ...
Slide 12: LED Lighting Adoption is Accelerating
LED TV 1500 MOCVD LED Lighting Adoption is Accelerating LED Lighting projected to grow at 35% CAGR from 2010 to 2020 LED Demand by Area (B mm2) Cellphone 250 MOCVD LED Lighting ~3000+ MOCVD LED Lighting CAGR 35% LED TV Wall Street and Veeco Estimates 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 13: Veeco Helping to Drive the LED Lighting Market
Veeco Helping to Drive the LED Lighting Market 24 % 29 % 44 % 62% 51% 2007 2008 2009 2010 2011 2012 Veeco investments and innovation will enable LED lighting mass adoption Next Generation Platform ↑ Yield, ↓ CoO ↑ Brightness In-situ Control Automation Note: Estimated comparative market share Veeco a
Slide 14: Focus on Services Growth Continues
Focus on Services Growth Continues New Service Products Expand Veeco Certified Equipment across more product lines “Designed in” Services for new products MOCVD: post-warranty parts and services, local depots, consumables, performance upgrades MOCVD Services to Increase ~70% from 2011 to 2013 25% Gr
Slide 15: Power Electronics: New Growth Opportunity for MOCVD
Power Electronics: New Growth Opportunity for MOCVD Power Supplies Solar Consumer Electronics Wind Automobile Power Electronics device market continues to grow1 GaN-based power devices offer higher efficiency, switching speed and lower power consumption Veeco is positioned at key customer sites arou
Slide 16: Growing MBE in 2013 and Beyond
Growing MBE in 2013 and Beyond Capitalizing on our Leadership MBE Position To Increase Our Market Share in R&D Veeco GEN2000 on Cover
Slide 17: Entering OLED Market Through Core Deposition Source Technology
Entering OLED Market Through Core Deposition Source Technology Veeco Deposition Source for OLED OLED equipment is quickly becoming a billion dollar plus opportunity
Slide 18: Hard Disk Drives Will Continue to Dominate Storage
Hard Disk Drives Will Continue to Dominate Storage 2012 3,500 0 2020 It took Seagate 29 years to reach their first billion hard drives and only four years to reach their second billion Source: Western Digital Exabyte Shipments Over 85% of exabytes in 2020 will be stored on HDDs 2016 Client PC Person
Slide 19: Global Trends Driving Veeco's MEMS Opportunity
Global Trends Driving Veeco’s MEMS Opportunity We are the largest supplier of thin film magnetics process equipment Over 800 etch and deposition systems installed worldwide Strong technical team and dedicated applications lab Source: Semico Research Corp. Dec 2012 $Billions of dollars $20 2005 2015
Slide 20: Veeco IBD Required for EUV Mask Roadmap
Veeco IBD Required for EUV Mask Roadmap $300B semiconductor market investing heavily in EUV to solve lithography challenges Defect-free photomasks are a technical roadblock We have 100% market share in Ion Beam Deposition for this application Currently engaged with key industry players on next-gen e
Slide 21: Veeco's Growth Opportunities
Veeco’s Growth Opportunities Growth Exciting Power Electronics OLED EUV MBE R&D Systems MEMS MOCVD Services OPP RTUNITY in LED Lighting Huge
Slide 22: Market Outlook
; a Market Outlook
Slide 23: Markets Showing Signs of Improvement
Markets Showing Signs of Improvement Utilization rates high – first “rush” MOCVD orders in 2 years China fab build-outs continue for select funded companies Data storage customers making select technology investments Anticipate Higher Bookings in Q2 Increase in quotations for MBE R&D systems LED Lig
Slide 24: Q&A Session
Veecm Q&A Session