Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q1 2021 Earnings Presentation
21 slides from Veeco Instruments's earnings presentation, May 4, 2021
Slide 1: Q1 2021 Financial Results Conference Call
Q1 2021 Financial Results Conference Call Veeco (Nasdaq: VECO) May 4, 2021
Slide 2: Safe Harbor
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 amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,
Slide 3: CEO Overview and Market Update
CEO Overview and Market Update William J. Miller, Ph.D.
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights $134M $16M 25¢ Revenue Non-GAAP Diluted Operating Income Non-GAAP EPS • Top line driven by Semiconductor and • $10M in cashflow from operations Data Storage markets • Broad Semiconductor order momentum • Non-GAAP gross margin of ~41% • Growth initiatives are aligned with a healthy
Slide 5: Significant Market Opportunities
Significant Market Opportunities Market Served Primary Drivers Primary Veeco Technologies Laser Annealing Semiconductor High Performance Computing Ion Beam / AP Lithography Wet Processing Compound 5G / Power / Photonics / Wet Processing Semiconductor MicroLED MOCVD Data Storage Cloud / Data Center I
Slide 6: 2021 Priorities – Building on a Profitable Growth Plan
2021 Priorities – Building on a Profitable Growth Plan Growth Phase of Transformation Maintain Resilience Focus Execute Near-Term Prepare Long-Term essential business profitability & products 2021 growth 2022 & beyond ▪ Employees ▪ Defend foundational businesses ▪ Laser Annealing ▪ Aggressively inve
Slide 7: CFO Financial Review
CFO Financial Review John P. Kiernan
Slide 8: Q1 2021 Revenue by Market & Region
Q1 2021 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & EMEA Other 10% 12% China Rest of APAC 39% Semiconductor 15% 41% Data Storage 31% $134M United States 34% 18% Compound Revenue Trend ($M) Q1 20 Q4 20 Q1 21 Semiconductor Semiconductor 37 57 52 Rest of World is less th
Slide 9: Q1 Operating Results
Q1 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q4 20 Q1 21 Q4 20 Q1 21 Revenue $138.9 $133.7 $138.9 $133.7 Gross Profit 56.8 54.9 57.4 55.4 Gross Margin 40.9% 41.1% 41.3% 41.5% Operating Expenses 46.2 45.5 39.7 39.3 Operating Income / (Loss) 10.6 9.4 17.6 16.1 Net Income /
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 20 Q1 21 Cash & Short-Term Investments 320 328 Accounts Receivable 80 87 Inventories 146 156 Accounts Payable 34 43 Long-Term Debt 321 325 Cash Flow from Operations 15 10 DSO (days) 52 59 DIO 159 173 DPO 37 49 10 Q1 2021 Financial Results Conferen
Slide 11: Q2 2021 Guidance
Q2 2021 Guidance GAAP Non-GAAP Revenue $125M - $145M $125M - $145M Gross Margin 40% - 42% 40% - 42% Operating Expenses $45M - $47M $38M - $40M Net Income (Loss) $(3M) - $6M $9M - $18M Earnings (Loss) Per Share $(0.06) – $0.11 $0.17 - $0.35 Diluted Shares 49M – 53M 51M 11 Q1 2021 Financial Results Co
Slide 12: Making a Material Difference
MAKING A MATERIAL DIFFERENCE &A
Slide 13: Backup & Reconciliation Tables
Backup & Reconciliation Tables
Slide 14: Convertible Notes
Convertible Notes Annual Annual Initial Principal Convertible Debt Coupon Cash Non-Cash Conversion Amount Interest Interest Price Convertible Notes Due Jan 2023 $132M 2.7% $3.6M $5.6 $40.03 As of March 31, Convertible Notes Due Jan 2025 $133M 3.5% $4.6M $4.9 $24.00 2021 Convertible Notes Due June 20
Slide 15: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2019 2020 2021 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Semiconductor 44.6 37.8 41.8 51.3 175.6 37.4 37.5 33.6 57.4 165.9 51.6 Compound Semi 15.0 16.4 26.3 28.1 85.9 18.4 17.7 26.6 45.2 107.9 24.8 Data Storage 19.6 22.7 24.1 17.6 84.1 38.9 28.3 36.9 19.2 123.3 41.0 Scient
Slide 16: Effect of Convertible Notes on Diluted Share Count
Effect of Convertible Notes on Diluted Share Count GAAP Approximate Non-GAAP Approximate Incremental Dilutive Shares Incremental Dilutive Shares (in thousands) (in thousands) Average Stock Price 2025 2027 2025 2027 per Common Share Notes Notes Total Notes Notes Total $15.00 - 609 609 - - - $16.00 -
Slide 17: 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 18: Supplemental Information— Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation In millions Q4 20 Q1 21 In millions, except per share amounts Q4 20 Q1 21 Net Sales $138.9 $133.7 GAAP Basic weighted average shares 48.3 48.6 GAAP Gross Profit 56.8 54.9 GAAP Diluted weighted average shares 48.3 53.1 GAAP Gross Margin 40.9% 4
Slide 19: Q1 2021 Actual: Reconciliation
Q1 2021 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $133.7 $133.7 Gross Profit 54.9 0.5 55.4 Gross Margin 41.1% 41.5% Operating Expenses 45.5 (2.7) (3.4) (0.1) 39.3 Operating In
Slide 20: Q2 2021 Guidance: Reconciliation
Q2 2021 Guidance: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $125–$145 $125–$145 Gross Profit 50–61 1 — — 51–62 Gross Margin 40%–42% 40%–42% Operating Expenses $45–$47 (3) (3) (1) $38–
Slide 21: Thank You
MAKING A MATERIAL DIFFERENCE *