Slide 1: Q4 2007 Financial Results
Q4 2007 Financial Results February 11, 2008
Slide 2: Q4 and Full Year 2007 Financial Results
Q4 and Full Year 2007 Financial Results ($M excep t EPS) Q4 ‘07 Q4 ‘06 2007 2006 Orders $114.9 (+5%) $109.1 $451.6 (-9%) $493.8 Revenues $106.8 (-13%) $123.1 $402.5 (-9%) $441.0 Gross Margin 38%* 45% 40% 44% Operating (Loss) Income ($8.6) $10.2 ($12.1) $22.5 EBITA** $4.1 $14.3 $10.8 $39.7 EPS (Non-
Slide 3: Q4 '07 Revenue Snapshot
©2008 Veeco Instruments Inc. 3 Q4 ‘07 Revenue Snapshot Revenue by Product Revenue by Market Revenue by Region $106.8M Q4$106.8M Q4’’07 vs. $123.1M Q407 vs.$123.1M Q4’’06 (down 13%)06 (down 13%) Process Equipment 66% $71.0M Metrology 34% $35.8M LED/Solar/ Wireless 31% Scientific Research 26% Data Sto
Slide 4: Q4 '07 Order Snapshot
©2008 Veeco Instruments Inc. 4 Orders by Product Q4 ‘07 Order Snapshot $114.9M Q4$114.9M Q4’’07 vs. $109.1M Q407 vs.$109.1M Q4’’06 (up 5%)06 (up 5%) Metrology $36.6M 32% Process Equipment $78.3M 68% LED/Solar/ Wireless 36% Scientific Research 27% Data Storage 32% Semiconductor 5% NA 25% APAC 32% Eur
Slide 5: Q4 '07 Profitability Analysis
Q4 ’07 Profitability Analysis • Gross profit was $40.5M, or 38% of sales (excluding $4.8M inventory write-offs associated with restructuring), compared to $54.8M, or 45% of sales in Q4 ’06 • GMs recovered from 36.7% in Q3 due to volume, price and mix improvements in Process Equipment. Volume decline
Slide 6: Q4 '07 Profitability Analysis cont'd
Q4 ‘07 Profitability Analysiscont’d • Amortization expense totaled $2.0M vs. $4.0M last year • Restructuring and other expenses of approximately $10.6 million consisted of: • $4.7M restructuring ($2.9 M severance; $1.8M of commitments associated with discontinued product lines) • $1.1M of asset impa
Slide 7: 2007 Revenue Snapshot
©2008 Veeco Instruments Inc. 7 2007 Revenue Snapshot Metrology $150.5M 37% Process Equipment $252.0M 63% LED/Solar/ Wireless 28% Scientific Research 29% Data Storage 34% Semiconductor 9% NA 33% APAC 34% Europe 19% Japan 14% $402.5M$402.5M‘‘07 vs. $441.0M in07 vs.$441.0M in‘‘06 (down 9%)06 (down 9%)
Slide 8: 2007 Order Snapshot
©2008 Veeco Instruments Inc. 8 2007 Order Snapshot Metrology $146.0M 32% Process Equipment $305.6M 68% LED/Solar/ Wireless 35% Scientific Research 26% Data Storage 32% Semiconductor 7% NA 33% APAC 32% Europe 24% Japan 11% $451.6M$451.6M‘‘07 vs. $493.8M07 vs.$493.8M’’06 (down 9%)06 (down 9%) Orders b
Slide 9: 2007 Profitability Analysis
2007 Profitability Analysis • Gross profit was $162.3M, or 40% of sales (non GAAP basis), compared to $194.1M, or 44% of sales in 2006 • SG&A was $90.4M vs $92.5M in the prior year • R&D was $61.2M compared to $61.9M in the prior year • Operating expenses totaled $151.5M , or 38% of sales, compared
Slide 10: Veeco Balance Sheet
Veeco Balance Sheet (in millions) December 31, 2007 December 31, 2006 Cash and Investments $117.1 $147.0 Working Capital 174.5 248.1 Fixed Assets, net 66.1 73.5 Total Assets 529.3 589.6 Long-Term Debt (including current portion) 146.6 209.2 Shareholder’s Equity $273.7 $281.8 During 2007, Veeco repur
Slide 11: Q1 '08 Outlook/Guidance
Q1 ’08 Outlook/Guidance • Q1 ‘08 Revenues $98-105 million • Q1 ‘08 Loss $(0.19)-($0.09) per share • Non-GAAP EPS $0.00 -$0.06, excluding amortization of $2.0 and restructuring charges of $3.6 million (estimated), using a 35% tax rate • Q1 2008 Orders $105-$112 million ©2008 Veeco Instruments Inc. 11
Slide 12: A Simpler Veeco
A Simpler Veeco • Historically we have presented revenue, order and profitabilityfor two product businesses (Process Equipment and Metrology) • We also provide revenue and order for end markets (Data Storage, LED/Wireless/Solar, Semiconductor, Scientific Research) • Going forward will report three m
Slide 13: Veeco's 2007 Results: Three Business Segments
Veeco’s 2007 Results: Three Business Segments 2007 Revenues = $402 Million 2007 Bookings = $452 Million LED & Solar Process Equipment Data Storage Process Equipment Metrology Japan 11% LED & Solar Process Equipment Data Storage Process Equipment Metrology 37%$150m 34%$136m 29%$116m 33%$146m 31%$142m
Slide 14: Process Equipment Segment Data
Process Equipment Segment Data LED & Solar Process Equipment Data Storage Process Equipment 2006 2007 2006 2007 Revenue ($m) $94.2 $115.9 $174.7 $136.2 Gross Margin 30.4% 37.8% 44.1% 38.3% EBITA ($m) $2.0 $14.0 $26.4 $5.9 ©2008 Veeco Instruments Inc. 14
Slide 15: Veeco's 2008 Growth Outlook
Veeco’s 2008 Growth Outlook 2007 Veeco Revenue 2008 Revenue Growth Range* 2008 Veeco Revenue Range LED & Solar Process Equipment $116M ~20-25% $140-145M Data Storage Process Equipment $136M ~0-5% $137-143M Metrology $150M ~5-7% $157-160M Total Veeco $402M ~10% growth ~$440M *Based upon end market in
Slide 16: Q4 '07 GAAP Reconciliation Table
Q4 ‘07 GAAP Reconciliation Table Three months ended December 31, 2007 2006 Year ended December 31, 2007 2006 Operating (loss) income ($8,602) $10,241 ($12,061) $22,456 Amortization expense 2,014 4,016 10,250 16,045 Restructuri ng expense rment charge te-offs 4,752 (1) -6,726 (1) Asset impai 1,068 (2
Slide 17: Q4 '07 GAAP Reconciliation Table (cont.)
Q4 ‘07 GAAP Reconciliation Table (cont. (1) During the fourth quarter of 2007, the C ompany recorded a restructuring charge of $4.7 million, consisting of $2.9 million of sev eranc e costs, and $1.8 million of comm itments ass ociated with discontinued product lines. In the second and third quarters
Slide 18: Q1 '08 Guidance Reconciliation Table
Q1 ‘08 Guidance Reconciliation Table Guidance for the Three months ended March 3 1, 2008 LOW HIGH Operating loss ( $5,1 00) ($1 ,900 ) Amo rtization e xpe nse 2,000 2 ,000 Restr ucturing expen se 3,600 3,600 Ea rnings before inter est, income ta xe s and amortization excluding ce rta in items ("EBIT
Slide 19: Safe Harbor Statement
Safe Harbor Statement 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.