Slide 1: Q2 2022 Financial Results Conference Call
Q2 2022 Financial Results Conference Call Veeco (Nasdaq: VECO) August 8, 2022 1 Q2 2022 Financial Results Conference Call 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 3 Q2 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q2 2022 Highlights
Q2 2022 Highlights Revenue $164M • Another record quarter of semiconductor revenue • Demand for our products continues to Non-GAAP outpace supply – backlog growth Operating Income $23M • Published 2021 sustainability report • Supply chain challenges persist Diluted Non-GAAP EPS 35¢ Solid quarterly r
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 Computing/AI enable large scale data center applications and Semiconductor 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 ▪ 10% - 17% revenue ▪ Culture ▪ Quality ▪ New technology growth ▪ Delivery evaluations ▪ Evaluations ▪ Service capability A transformed
Slide 7: CFO Financial Review
CFO Financial Review John Kiernan 7 Q2 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 8: Q2 2022 Revenue by Market & Region
Q2 2022 Revenue by Market & Region Revenue by Market Revenue by Region Scientific & ROW is 1% Other EMEA Data Storage 8% Rest of 17% 13% APAC 30% $164M Semiconductor China 17% 19% 60% Compound United States Semiconductor 35% Revenue Trend ($M) Q2 21 Q1 22 Q2 22 Semiconductor 54 78 98 Compound Semi 2
Slide 9: Q2 Operating Results
Q2 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q1 22 Q2 22 Q1 22 Q2 22 Revenue $156.4 $164.0 $156.4 $164.0 Gross Profit 66.0 64.3 67.5 66.2 Gross Margin 42.2% 39.2% 43.1% 40.3% Operating Expenses 49.5 51.4 42.8 43.2 Operating Income 16.5 12.8 24.7 23.0 Net Income 13.3 9.7
Slide 10: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q1 22 Q2 22 Cash & Short-Term Investments 232 231 Accounts Receivable 99 127 Inventories 179 176 Accounts Payable 56 47 Long-Term Debt Including Current Portion 274 274 Cash Flow from Operations 25 3 DSO (days) 57 70 DIO 174 160 DPO 57 43 10 Q2 2022
Slide 11: Q3 2022 Guidance
Q3 2022 Guidance GAAP Non-GAAP Revenue $160M - $180M $160M - $180M Gross Margin 40% - 42% 41% - 43% Operating Expenses $53M - $55M $45M - $47M Net Income $7M - $17M $18M - $28M Diluted Earnings Per Share $0.14 – $0.30 $0.32 - $0.48 11 Q2 2022 Financial Results Conference Call Copyright © 2022 Veeco
Slide 12: Thank You Q&A
Thank You Q&A 12 Q2 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 13: Backup and Financial Tables
Backup and Financial Tables 13 Q2 2022 Financial Results Conference Call Copyright © 2022 Veeco Instruments Inc. All Rights Reserved.
Slide 14: 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 Q2 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 97.5 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
Slide 15: Convertible Notes as of June 30, 2022
Convertible Notes as of June 30, 2022 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 Co
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 Q1 22 Q2 22 In millions, except per share amounts Q1 22 Q2 22 Net sales $156.4 $164.0 GAAP Basic weighted average shares 49.6 49.7 GAAP gross profit 66.0 64.3 GAAP Diluted weighted average shares 65.3 59.5 GAAP gross margin 42.2% 3
Slide 19: Q2 2022 Actual: GAAP to Non-GAAP Reconciliation
Q2 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 $164.0 $164.0 Gross Profit 64.3 1.3 — 0.7 66.2 Gross Margin 39.2% 40.3% O
Slide 20: Q3 2022 Guidance
Q3 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 $160–$180 $160–$180 Gross Profit 64–75 1 — 1 66–77 Gross Margin 40%–42% 41%–43% Operating Expenses $53–$