Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q3 2022 Earnings Presentation
20 slides from Veeco Instruments's earnings presentation, Nov 7, 2022
Slide 1: Q3 2022 Financial Results Conference Call
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 1 Veeco (Nasdaq: VECO) November 7, 2022 Q3 2022 Financial Results Conference Call
Slide 2: Safe Harbor
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 2 2 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 am
Slide 3: CEO Overview and Market Update
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 3 CEO Overview and Market Update Bill Miller
Slide 4: Q3 22 Highlights
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 4 4 Q3 2022 Highlights $172M $28M 45¢ Revenue Non - GAAP Operating Income Diluted Non - GAAP EPS • Robust revenue growth – up 32% YoY • Another record quarter of semiconductor revenue – up 21% YoY
Slide 5: Differentiated Technologies Aligned with Megatrends
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 5 5 Mobility and Immersive User Experience Connecting people on the move with technologies such as 5G, sensors, advanced displays The Cloud High speed communication and storage of enormous amounts
Slide 6: 2022 Priorities – Executing Our Growth Plan
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 6 6 2022 Priorities – Executing Our Growth Plan Protect ▪ Capacity Expansion ▪ New technology evaluations ▪ Service capability ▪ Safety ▪ Culture ▪ 10% - 14% revenue growth ▪ Supply chain ▪ Quality
Slide 7: CFO Financial Review
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 7 CFO Financial Review John Kiernan
Slide 8: Q3 22 Revenue by Market & Region
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 8 8 Q3 2022 Revenue by Market & Region 59% 16% 16% 9% Revenue by Market Revenue by Region Scientific & Other Semiconductor Compound Semiconductor Data Storage 38% 31% 21% 10% EMEA China United Stat
Slide 9: Q3 Operating Results
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 9 9 Q3 Operating Results In millions (except per share amounts) GAAP Non - GAAP Q2 22 Q3 22 Q2 22 Q3 22 Revenue $164.0 $171.9 $164.0 $171.9 Gross Profit 64.3 70.0 66.2 72.2 Gross Margin 39.2% 40.7%
Slide 10: Balance Sheet and Cash Flow Highlights
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 10 10 Balance Sheet and Cash Flow Highlights $ millions Q2 22 Q3 22 Cash & Short - Term Investments 231 272 Accounts Receivable 127 143 Inventories 176 188 Accounts Payable 47 51 Long - Term Debt I
Slide 11: Q4 2022 Guidance
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 11 11 Q4 2022 Guidance GAAP Non - GAAP Revenue $150M - $170M $150M - $170M Gross Margin 37% - 40% 39% - 41% Operating Expenses $51M - $53M $43M - $45M Net Income $2M - $12M $13M - $23M Diluted Earn
Slide 12: Thank You Q&A
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 12 Thank You Q&A
Slide 13: Backup and Financial Tables
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 13 Backup and Financial Tables
Slide 14: Historical Revenue by End-Market
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 14 14 Historical Revenue by End - Market $M 2019 2020 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 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.
Slide 15: Convertible Notes as of September 30, 2022
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 15 15 Convertible Notes as of September 30, 2022 (1) Conversion price for 2027 Convertible Notes includes the effect of the Capped Call transaction (2) Weighted average (3) Reflects the adoption of
Slide 16: Effect of New Accounting Standard for Convertible Notes on Diluted EPS
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 16 16 Effect of New Accounting Standard for Convertible Notes on Diluted EPS (Effective Q1 2022) Based upon current Notes outstanding. The above calculations are intended to be estimates only, and
Slide 17: Note on Reconciliation Tables
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 17 17 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 ..
Slide 18: Supplemental Information — GAAP to Non-GAAP Reconciliation
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 18 18 Supplemental Information — GAAP to Non - GAAP Reconciliation Amounts may not calculate precisely due to rounding. In millions Q2 22 Q3 22 Net sales $164.0 $171.9 GAAP gross profit 64.3 70.0 G
Slide 19: Reconciliation of GAAP to non-GAAP Financial Data
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 19 19 Reconciliation of GAAP to non - GAAP Financial Data Non - GAAP Adjustments GAAP Share - Based Compensation Amortization Other Non - GAAP Net Sales $171.9 $171.9 Gross Profit 70.0 1.2 — 1.1 72
Slide 20: Reconciliation of GAAP to non-GAAP: Q4 2022 Guidance
Q3 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved. 20 20 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 56 – 68