Slide 1: Q2 2015 Conference Call
Q2 2015 Conference Call Veeco Instruments August 3, 2015
Slide 2: 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 3: CEO Introduction
CEO Introduction John Peeler
Slide 4: Q2 2015 Financial Performance
Non-GAAP Gross Margin* 38% Revenue $131M Non-GAAP Diluted EPS* $0.20 Adjusted EBITDA $12.8M Cash Stable at $396M Q2 2015 Financial Performance Bookings $124M * A reconciliation of GAAP to Non-GAAP financial measures is contained in Back Up & Reconciliation Tables
Slide 5: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 6: P&L Highlights (Non-GAAP)
P&L Highlights (Non-GAAP) ($M) Q2 14 Q3 14 Q4 14* Q1 15 Q2 15 Revenue $95.1 $93.3 $113.6 $98.3 $131.4 Gross Profit 31.3 33.2 43.7 37.0 49.8 % 32.9% 35.5% 38.5% 37.7% 37.9% SG&A** 18.4 18.9 18.9 19.1 21.0 R&D 19.9 18.9 19.2 18.0 19.0 OPEX 38.3 37.8 38.1 37.1 40.0 % 40.2% 40.5% 33.6% 37.7% 30.5% Adjus
Slide 7: Q2 2015 Market and Geography Data
Lighting, Display & Power Electronics Advanced Packaging, MEMS & RF Data Storage Scientific & Industrial 62% 14% 13% 11% Q2 2015 Market and Geography Data 50% 15% 18% United States Rest of the World China 17% EMEA Lighting, Display & Power Electronics 65% 14% 7% 14% Advanced Packaging, MEMS & RF Dat
Slide 8: Financial Highlights
($M) Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Cash & Short-term Investments 485 487 392 393 396 Accounts Receivable 58 62 60 64 83 Inventory 48 47 61 57 64 Accounts Payable 28 26 18 41 46 Cash Flow from Operations 2 10 49 4 8 Financial Highlights PSP Purchase Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 DSO 55 59 48 59 57 DO
Slide 9: Q3 2015 Guidance
Q3 2015 Guidance GAAP Non-GAAP Net Sales $135M - $160M $135M - $160M Gross Margins 37.0% - 39.0% 37.5% - 39.5% Adjusted EBITDA N/A $14M - $24M Net income (loss) ($2M) - $8M $9M - $17M EPS ($0.05) - $0.19 $0.22 - $0.40
Slide 10: Business Update & Outlook
Business Update & Outlook Veeco
Slide 11: Waves of LED Demand
Waves of LED Demand Source: IHS and Veeco Estimates LED Demand by Units (B) 2015: LED Lighting <10% penetration Mobile-Backlighting TV-Backlighting LED Lighting Wave 1 Wave 2 Wave 3 Backlighting LED Lighting 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 12: Emerging Applications Driving 4th Demand Wave
Emerging Applications Driving 4th Demand Wave Off-Grid Farming Medical IoT* LED Li-Fi 4th Wave Backlighting LED Lighting LED Demand by Units (B) 2024: >1.5 Trillion Units/Year Source: IHS and Veeco Estimates * IoT – Internet of Things 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 13: EPIK MOCVD: Enabling Lower Production Costs
EPIKTM 700 MOCVD: Enabling Lower Production Costs LED manufacturers must lower production costs to: Accelerate market adoption Preserve profitability EPIK 700 competitive advantage: >20% CoO* advantage Higher footprint efficiency, higher yield Award Winning Technology Production Proven Performance C
Slide 14: Veeco PSP – Contributing and Growing
Veeco PSP – Contributing and Growing Differentiated process solutions Established leader for MLO* Largest ever single customer sale in Q2 Award winning technology Flexibility to address specific needs Multiple engagements with leading IDMs Seamless integration Leveraging Veeco’s infrastructure Posit
Slide 15: Executing 2015 Objectives
Executing 2015 Objectives LED manufacturers recognize the value of industry leading EPIK 700 MOCVD System Solid execution drives PSP revenue above target plan 2015 revenue growth forecast of >35% Margins and profitability expanding First PropelTM MOCVD System for GaN power electronics recognized rev
Slide 16: Veeco
Veeco
Slide 17: Back Up & Reconciliation Tables
Back Up & Reconciliation Tables
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 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Net Sales $95.1 $93.3 $113.6 $98.3 $131.4 GAAP Gross Profit 30.7 32.6 37.9 35.1 49.1 GAAP Gross Margin 32.2% 34.9% 33.3% 35.7% 37.3% Add: Equity Comp 0.6 0.6 0.6 0.6 0.7 Add: Acquisition Related - - 5.2 1.3 - No
Slide 20: Q2 2015 GAAP to Non-GAAP Reconciliation
Q2 2015 GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-based Compensation Acquisition Related Other Non-GAAP Net sales $131.4 - - - $131.4 Gross profit 49.1 0.7 - - 49.8 Gross margin 37.3% 37.9% SG&A 24.4 (3.1) (0.2) - 21.1 R&D 20.1 (1.1) - - 19.0
Slide 21: Q3 2015 Guidance GAAP to Non-GAAP Reconciliation
Q3 2015 Guidance GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments In millions, except per share data GAAP Share-based compensation Acquisition Related Other Non-GAAP Net Sales $135 - $160 $135 - $160 Gross Profit 50 - 62 1 - - 51 - 63 Gross Margin 37.0% - 39.0% 37.5% - 39.5% Net income (loss) (2