Slide 1: Q1 2022 Financial Results Conference Call
Q1 2022 Financial Results Conference Call Veeco (Nasdaq: VECO) May 9, 2022 Q1 2022 Financial Results Conference Call 1 Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
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 Bill Miller Q1 2022 Financial Results Conference Call 3 Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q1 2022 Highlights
Q1 2022 Highlights Revenue $156M • Strong demand environment • Top line driven primarily by record semiconductor revenue Non-GAAP Operating Income $25M • $25M in cash flow from operations • Published ESG goals • Supply chain challenges persist Diluted Non-GAAP EPS 38¢ Solid quarterly results despite
Slide 5: Differentiated Technologies Aligned with Megatrends
Differentiated Technologies Aligned with Megatrends Megatrends Growth Markets Core Technologies Laser Faster and more Annealing Ion Beam efficient computing to High Performance enable large scale data Computing/AI Semiconductor center applications and artificial intelligence AP Connecting people on
Slide 6: 2022 Priorities – Executing Our Growth Plan
2022 Priorities – Executing Our Growth Plan Strategy Execution Protect Execute Innovate & Growth & Invest Profitability § Safety § Supply chain § Capacity Expansion § Reaffirming 2022: § Culture § Quality § New technology § 10% - 17% revenue § Delivery evaluations growth § Evaluations § Service capa
Slide 7: CFO Financial Review
CFO Financial Review John Kiernan Q1 2022 Financial Results Conference Call 7 Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 8: Q1 2022 Revenue by Market & Region
Q1 2022 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & Other EMEA 13% 14% Rest of APAC Data Storage Semiconductor 37% 14% China $156M 49% 19% 24% United States 30% Compound Revenue Trend ($M) Q1 21 Q4 21 Q1 22 Semiconductor Semiconductor 52 65 78 Rest of World is less th
Slide 9: Q1 Operating Results
Q1 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q4 21 Q1 22 Q4 21 Q1 22 Revenue $153.0 $156.4 $153.0 $156.4 Gross Profit 64.0 66.0 64.9 67.5 Gross Margin 41.9% 42.2% 42.4% 43.1% Operating Expenses 46.4 49.5 40.0 42.8 Operating Income 17.6 16.5 24.9 24.7 Net Income 8.2 13.3
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q4 21 Q1 22 Cash & Short-Term Investments 225 232 Accounts Receivable 110 99 Inventories 171 179 Accounts Payable 44 56 Long-Term Debt Including Current Portion 229 274 Cash Flow from Operations 17 25 DSO (days) 64 57 DIO 173 174 DPO 46 57 Q1 2022 Fi
Slide 11: Q2 2022 Guidance
Q2 2022 Guidance GAAP Non-GAAP Revenue $150M - $170M $150M - $170M Gross Margin 38% - 39% 40% - 41% Operating Expenses $51M - $53M $44M - $46M Net Income $3M - $10M $12M - $19M Diluted Earnings Per Share $0.05 – $0.19 $0.22 - $0.34 Q1 2022 Financial Results Conference Call 11 Copyright © 2022 Veeco
Slide 12: Thank You Q&A
Thank You Q&A Q1 2022 Financial Results Conference Call 12 Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 13: Backup and Financial Tables
Backup and Financial Tables Q1 2022 Financial Results Conference Call 13 Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 14: Convertible Notes as of March 31, 2021
Convertible Notes as of March 31, 2021 Annual Cash Annual Non-Cash Initial Conversion Convertible Debt Principal Amount Carrying Value Coupon Interest Interest3 Price Convertible Notes Due Jan 2023 $20M $20M 2.7% $0.5M $0.1M $40.03 Convertible Notes Due Jan 2025 $133M $131M 3.5% $4.7M $0.5M $24.00 C
Slide 15: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2019 2020 2021 2022 Q1 Q2 Q3 Q4 FY 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 53.7 76.3 65.4 247.1 77.6 Compound Semi 15.0 16.4 26.3 28.1 85.9 18.4 17.8 26.6 45.2 107.9 24.8 24.2 23.3 34.7 107.0 37.1 Dat
Slide 16: Effect of New Accounting Standard for Convertible Notes on Diluted EPS
Effect of New Accounting Standard for Convertible Notes on Diluted EPS (Effective Q1 2022) Quarterly GAAP Non-GAAP* EPS threshold before Reduction to Interest expense Incremental Dilutive EPS threshold before Reduction to Interest expense Incremental Dilutive effect of Notes for EPS calculation Shar
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—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation In millions Q4 21 Q1 22 In millions, except per share amounts Q4 21 Q1 22 Net sales $153.0 $156.4 GAAP Basic weighted average shares 49.2 49.6 GAAP gross profit 64.0 66.0 GAAP Diluted weighted average shares 54.9 65.3 GAAP gross margin 41.9% 4
Slide 19: Q1 2022 Actual: GAAP to Non-GAAP Reconciliation
Q1 2022 Actual: GAAP to Non-GAAP Reconciliation (in millions, except per share amounts) Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $156.4 $156.4 Gross Profit 66.0 0.9 — 0.5 67.5 Gross Margin 42.2% 43.1% O
Slide 20: Q2 2022 Guidance
Q2 2022 Guidance (in millions, except per share amounts) Reconciliation of GAAP to non-GAAP Financial Data Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $150–$170 $150–$170 Gross Profit 58–67 1 — 1 60–69 Gross Margin 38%–39% 40%–41% Operating Expenses $51–$