Slide 1: Q3 2014 Conference Call
Q3 2014 Conference Call October 29, 2014
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: Introduction – John Peeler, Chairman & CEO
John Peeler Chairman & CEO Introduction
Slide 4: Third Quarter 2014 Highlights
Third Quarter 2014 Highlights Orders improve 3% to $107M Cash and Short Term Investments $487M Revenue at $93M Fourth sequential quarter with a positive book-to-bill ratio Track record of solid cash management continues Increase in MOCVD offset by declines in MBE and Data Storage
Slide 5: P&L Highlights ($M)
P&L Highlights ($M) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Revenue 99 73 91 95 93 Gross Profit 30 16 34 31 33 % 31% 21% 37% 32% 35% SG&A 19 26 21 22 22 R&D 19 21 20 21 20 OPEX* 38 46 41 43 42 % 38% 63% 45% 45% 45% Adjusted EBITDA (2) (23) 0 (4) (2) % -2% -32% 0% -4% -2% GAAP EPS ($0.16) ($0.57) $0.48** (0.39
Slide 6: Q3 2014 Bookings and Revenue Highlights and Trends
Q3 2014 Bookings and Revenue Highlights and Trends Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 LED & Solar 75 57 71 77 77 MOCVD 68 50 64 67 71 MBE 7 6 7 10 6 ALD NA 1 0 0 0 Data Storage 24 16 20 18 16 Total 99 73 91 95 93 Total Bookings: $107M Revenue Data Storage ~$14M LED & Solar ~$93M Total Revenue: $93M Booki
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Track Record of Solid Cash Management Continues ($M) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Cash & Short-term Investments 573 495 483 485 487 Accounts Receivable 38 24 51 58 62 Inventory 58 60 52 48 47 Accounts Payable 28 36 28 28 26 ($M) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 DSO 34 29 50 55
Slide 8: Q4 2014 Guidance
Q4 2014 Guidance Q4 2014 Orders Higher than Q3 2014 Revenue $107.5M +/- $7.5M Gross Margins 35% +/- 1% OPEX* $41M +/- $1M GAAP EPS $(0.19) +/- $0.06 Adjusted EBITDA $4.2M +/- $2.5M Non-GAAP EPS $0.03 +/- $0.06 Orders on Track to Grow in 2H 2014 Compared with 1H 2014 *Excludes Amortization, Restructu
Slide 9: Business Update and Outlook
Veecp Business Update and Outlook
Slide 10: Trends favoring LED
Trends favoring LED: Sources: DisplaySearch, IHS Research, Digitimes Forecast Reports iPhone shipments 200M by 2015 UHD TV sales expected to double to 32M in 2015 from 13.5M in 201414% of TV market by 2015 Apple iPhone 6 and 6+ Larger screens = more LEDs Wearables gain traction Unit shipments to gro
Slide 11: Asian LED Customers Benefitting from Growth in Mid-Power Chips
Asian LED Customers Benefitting from Growth in Mid-Power Chips Price vs. Performance Advantage for Taiwan & China LED Chip Makers Source LEDInside Mid-Power Forecasted to be 50% of LED Lighting by 2018
Slide 12: EPIK700: Highest Productivity and Lowest Cost of Ownership
EPIK700: Highest Productivity and Lowest Cost of Ownership MOCVD System Highest productivity platform with up to 20% improved CoO compared to previous generations Designed for best-in-class uniformity which provides greater wafer yield Fastest to production with easy process transfer Most efficient
Slide 13: EPIK700 Roll-Out Status
EPIK700 Roll-Out Status In Production at Beta Customers Demo Lab Active Currently Plan to Ship Multiple EPIK700s before end of 2014 In Commercial Discussions with many Customers “EPIK’s performance, reliability and production readiness, as well as the support we received fully met our high manufactu
Slide 14: Aligning FAST-ALD Technology for Market Growth Opportunities
1 Aligning FAST-ALD Technology for Near and Longer-Term Market Growth Opportunities Engaged with Key Customer on 6G-H Process Development; 2015 Ramp Opportunity OLED Mobile Encapsulation $300-500M TAM Sell 3.5G FAST-ALD System to OLED Panel Makers Lab Tool On-Line by Q1’15 2 OLED Display Encapsulati
Slide 15: On-Track for Profitable Growth in 2015
On-Track for Profitable Growth in 2015 Goal to be EBITDA Profitable in Every Quarter of 2015 Develop and launch game changing new products EPIK700 and FAST-ALD to drive growth in 2015 GM Goal >40% Streamlining initiatives to improve profitabilityOPEX below $40M by Q1’15 Improve customers’ CoO and ou
Slide 16: Q&A Session
Veecm Q&A Session
Slide 17: Reconciliation Tables
Veecp Reconciliation Tables
Slide 18: Q3 2014 GAAP-Non-GAAP Reconciliation
Q3 2014 GAAP-Non-GAAP Reconciliation NOTE - This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States ("GAAP"), and may be different from similar measures presented by other companies. Management of the Company evaluate
Slide 19: Q4 2014 GAAP-Non-GAAP Guidance Reconciliation
Q4 2014 GAAP-Non-GAAP Guidance Reconciliation NOTE - This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States ("GAAP"), and may be different from similar measures presented by other companies. Management of the Company