Slide 1: Q2 2013 Business Update Conference Call
Q2 2013 Business Update Conference Call July 29, 2013
Slide 2: Agenda
Agenda Select Second Quarter 2013 Metrics Current Business Conditions & Outlook
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 Second Quarter 2013 Metrics
Select Second Quarter 2013 Metrics
Slide 5: Select Q2 2013 Financial Metrics
Select Q2 2013 Financial Metrics Bookings up 20% to ~$85M Cash Balance $585M Continued weak overall business conditions MOCVD $52M (+42% sequentially) MBE $6M (flat) Data Storage $27M (flat) Down slightly – continued good job managing cash and working capital Shipments up sequentially; MOCVD pricing
Slide 6: Update on Accounting Review – Working to Be A Timely Filer as Soon as Possible
Update on Accounting Review – Working to Be A Timely Filer as Soon as Possible Primary area of focus remains on technical accounting issues related to “multiple element arrangements” for MOCVD transactions originating in 2009 and 2010 These systems were delivered, accepted and paid for in full Revie
Slide 7: Current Business Conditions and Outlook
Current Business Conditions and Outlook
Slide 8: Market Trends Still Mixed
Market Trends Still Mixed Data Storage: Little capacity buying Customers making strategic investments for HAMR and other next-gen technology MOCVD/LED: Utilization rates stable at high levels Increased quoting and pick-up in customer confidence But caution remains and orders still low MBE: Deal funn
Slide 9: Top LED Customers Add Capacity
Top LED Customers Add Capacity Strong China TV demand and high LED use in tablets LED lighting business continues to grow as a percentage of sales Lower LED prices in China are beginning to drive lighting marketing adoption We are winning capacity additions at key customers
Slide 10: Veeco Innovation Helped Accelerate LED Bulb to the "Teens Price"
Veeco Innovation Helped Accelerate LED Bulb to the “Teens Price” Veeco Epi Cost reduction is 2X faster than U.S. DOE Forecast (‘10-’12) Normalized Epi Cost ($/µm.cm2) 2010 2012 2015 2020 $50 LED bulb Price $13 $23 $6 $5 Throughput Yield (HP) Automation Cluster Yield Next Gen Next Gen U.S. Dept of En
Slide 11: Driving our Growth Strategy
Driving our Growth Strategy Expand Leadership in Core Markets LED Lighting Compound Semi Production Hard Disk Drive #1 Technology MOCVD 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
Slide 12: Key Take-Aways
Key Take-Aways We are managing our cash and expenses through the downturn We are focused on completing the accounting review and getting back to being current filers We continue to invest in next generation product development in LED & Power Electronics and for emerging opportunities in OLED, EUV an
Slide 13: Q&A Session
Veecm Q&A Session
Slide 14: Q2 2013 Business Update Conference Call
Q2 2013 Business Update Conference Call July 29, 2013