Slide 1: Q1 2017 Conference Call
Q1 2017 Conference Call Veeco Instruments Inc. May 4, 2017 1 | Investor Presentation
Slide 2: Cautionary Statements: Forward-looking Statements
Cautionary Statements Forward-looking Statements This written communication contains forward-looking statements that involve risks and uncertainties concerning the proposed acquisition by Veeco Instruments Inc. (“Veeco” or the “Company”) of Ultratech, Inc. (“Ultratech”), Ultratech’s and the Company’
Slide 3: Cautionary Statements: Additional Information and Where to Find It
Cautionary Statements Additional Information and Where to Find It In connection with the proposed acquisition of Ultratech by Veeco pursuant to the Agreement and Plan of Merger by and among Ultratech, Veeco and Ulysses Acquisition Subsidiary Corp., Veeco filed with the SEC a Registration Statement o
Slide 4: CEO Introduction
CEO Introduction John Peeler 4 | Investor Presentation
Slide 5: Q1 2017 Highlights
Q1 2017 Highlights Q1 $107M $94M 9¢ $6M Results Bookings Revenue Non-GAAP Cash Flow EPS from Operations > Bookings were >$100M for a third consecutive quarter; building backlog > Revenues were better than seasonal average; flat Q/Q and up ~21% Y/Y > Non-GAAP earnings were above the guidance midpoint
Slide 6: CFO Financial Review
CFO Financial Review Sam Maheshwari 6 | Investor Presentation
Slide 7: Q1 2017 Revenue Breakdown by End Market and Geography
Q1 2017 Revenue Breakdown by End Market and Geography Q1 2017 Revenue by End Market Q1 2017 Revenue by Geography 14% 18% Data Storage United States $29M 43% China Foundational Businesses 16% 58% Scientific & Industrial $94M Lighting, Display & Power Electronics 23% EMEA 12% 16% Advanced Packaging, M
Slide 8: P&L Highlights
P&L Highlights GAAP Non-GAAP ($M) Q4 16 Q1 17 Q4 16 Q1 17 Revenue $93.6 $94.4 $93.6 $94.4 Gross Profit 36.0 34.2 36.7 34.9 % 38.5% 36.2% 39.2% 37.0% R&D 17.5 15.0 17.2 14.6 SG&A & Other 18.8 20.4 15.7 15.9 Net Income (5.0) 1.1 3.8 3.6 EPS ($0.13) $0.03 $0.09 $0.09 Adjusted EBITDA 6.2 7.3 % 6.6% 7.7%
Slide 9: Financial Highlights
Financial Highlights ($M) Q4 16 Q1 17 Cash & Short-term Investments 344 682 Accounts Receivable 58 51 Inventories 77 65 Accounts Payable 23 31 Long-term Debt 0.8 268 Cash Flow from Operations 0.4 6.3 DSO 56 49 DOI 134 107 DPO 36 47 > Cash balance increased by $2M, excluding net proceeds from Convert
Slide 10: Q2 2017 Guidance
Q2 2017 Guidance GAAP Non-GAAP Revenue $85M–$100M $85M–$100M Gross Margins 37%–39% 38%–40% Net Income (Loss) ($5M)–$1M ($2M)–$4M Earnings Per ($0.14)–$0.02 ($0.05)–$0.09 Share Adjusted EBITDA $4M–$10M Note: A reconciliation of GAAP to Non-GAAP financial measures is contained in the Back Up & Reconci
Slide 11: Business Update & Outlook
Business Update & Outlook 11 | Investor Presentation
Slide 12: Positive LED Industry Trends
Positive LED Industry Trends Healthy demand for LCD panels » Larger sized TVs are key demand driver; require more LEDs to backlight » Average panel size is growing; expected to increase by 7% in 2017 Fine-pitch Signage adoption continues; positive for LED and MOCVD demand » Sharp image quality even
Slide 13: Veeco MOCVD – Executing A Winning Roadmap
Veeco MOCVD – Executing A Winning Roadmap Focused on Sustaining Our Competitive Advantage K465i MaxBright EPIK 700 New Product Coming Soon System Capacity Footprint Cost of Ownership 4” Wafers Efficiency Relative to K465i 62 3.0x 56 1.8x 20% 20% 1x Reduction 40% 14 from K465i Reduction from K465i K4
Slide 14: Veeco PSP – Forming a Winning Combination
Veeco PSP – Forming a Winning Combination The right combination to cost effectively address customers’ wet processing challenges Hardware Process flexibility expertise Trusted Global service & support sales presence 14 | Investor Presentation
Slide 15: Ultratech Acquisition - Update
Ultratech Acquisition - Update Reaction has been positive across all constituencies Based on interaction with customers, employees and shareholders Integration planning is well underway Both teams are heavily engaged and working closely together Preparing to hit the ground running on Day 1 Acquisiti
Slide 16: Summary
Summary > Expecting meaningful top and bottom line growth in 2H’17 » Building backlog with a disproportionate amount shipping in 2H » Completing consolidation efforts to drive operational leverage > Positioning Veeco for future growth » Executing MOCVD roadmap to maintain our competitive advantage »
Slide 17: Q&A
Q&A 17 | Investor Presentation
Slide 18: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables 18 | Investor Presentation
Slide 19: 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 20: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q4 16 Q1 17 US$ millions Q4 16 Q1 17 US$ millions, except per share data Q4 16 Q1 17 Net Sales $93.6 $94.4 GAAP Net Income (Loss) ($5.0) $1.1 GAAP Basic EPS (0.13) 0.03 GAAP Gross Profit 36.0 34.2 Add: Share-Based Comp 3.6 4.2 GAA
Slide 21: Q1 2017 GAAP to Non-GAAP Reconciliation
Q1 2017 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share data GAAP Compensation Amortization Other Non-GAAP Net Sales $94.4 $94.4 Gross Profit 34.2 0.7 0.1 34.9 Gross Margin 36.2% 37.0 % Research and Development 15.0 (0.4) 14.6 Selling, General, and Admi
Slide 22: Q2 2017 Guidance GAAP to Non-GAAP Reconciliation
Q2 2017 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Non-GAAP Adjustments Adjustments Share-Based In millions, except per share data GAAP Compensation Amortization Other Non-GAAP Net Sales $85–$100 $85–$100 Gross Profit 32–39 1 — — 33–40 Gross Margin 37%–39% 38%–40% Net Income (Loss) ($5)–$1 4