Slide 1: 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 2: CEO Introduction
CEO Introduction John Peeler
Slide 3: Q2 2018 Highlights
Q2 2018 Highlights All Non-GAAP P&L metrics either met or exceeded guidance Bookings declined due to LED market weakness Recorded intangible asset impairment charge of $252M Initiated cost reduction by eliminating redundant Singapore manufacturing operations Announced wins in growth markets – Photon
Slide 4: CFO Financial Review
CFO Financial Review Sam Maheshwari
Slide 5: Intangible Asset Impairment
Intangible Asset Impairment Ultratech product lines have performed below prior projections Current projections triggered an impairment of intangible assets of $252M This non-cash charge does not affect our liquidity nor our day-to-day operations Remain optimistic about the combined strength of Veeco
Slide 6: Q2 2018 Revenue by End Market and Geography
Q2 2018 Revenue by End Market and Geography 7 Diversification will be More Pronounced in Q3 and Q4 Mix by End Market Mix by Geography 16% Advanced Packaging, MEMS & RF Filters 17% Scientific & Industrial 55% LED Lighting, Display & Compound Semi $158M 18% Rest of World 45% China 16% EMEA 21% United
Slide 7: P&L Highlights
P&L Highlights 8 Amounts may not calculate precisely due to rounding. A reconciliation of GAAP to Non-GAAP financial measures can be found in the backup section of this presentation. Gross Margin Improvement Expected in 2nd Half GAAP Non-GAAP $ millions (except per share amounts) Q1 18 Q2 18 Q1 18 Q
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 9 Amounts may not calculate precisely due to rounding. A reconciliation of GAAP to Non-GAAP financial measures can be found in the backup section of this presentation. Increased Working Capital Drove Down Cash Balance $ millions Q1 18 Q2 18 Cash & Short-Term Investments 311
Slide 9: Q3 2018 Guidance
Q3 2018 Guidance 10 GAAP Non-GAAP Revenue $130M - $140M $130M - $140M Gross Margin 35% - 37% 36% - 38% Net Income (Loss) ($12M)-($7M) $1M-$6M Earnings Per Share ($0.25)-($0.15) $0.03-$0.13 Non-GAAP Operating Income $4M-$9M Q2 2018 Conference Call © 2018 Veeco Instruments Inc. . A reconciliation of G
Slide 10: Q3 2018 Guidance
Q3 2018 Guidance | cme | roncanr | Revenue Gross Margin Net Income (Loss) Earnings Per Share Non-GAAP Operating Income Veeco
Slide 11: Advanced Packaging, MEMS & RF Filters
Advanced Packaging, MEMS & RF Filters 12 Advanced Packaging Will Accelerate as Moore’s Law Slows Source: Veeco estimates High-End Computing Driving Need for Advanced Packaging Artificial intelligence Big data analytics Autonomous vehicles (ADAS) Mobile processors FO-WLP Demand Forecasted to Increase
Slide 12: LED Lighting, Display & Compound Semiconductor
Driven by mega trends: 3D Sensing/VCSEL Autonomous Vehicles 5G RF & High Speed Data Displays Emerging Applications Photonics GaN RF GaN Power Electronics Micro LED Broad portfolio of MOCVD products to address market needs: K475i™ EPIK® Propel™ New Products LED Lighting, Display & Compound Semiconduc
Slide 13: Front-End Semiconductor Provides Growth Opportunities
Front-End Semiconductor 14 Front-End Semiconductor Provides Growth Opportunities Source: Adapted from New Street Research, May 2018 Extreme Ultraviolet (EUV) Lithography is an Enabler for Leading-Edge Nodes ASML is shipping/forecasting 50 EUV Lithography tools between 2018 and 2019* Veeco’s Ion Beam
Slide 14: Scientific & Industrial Provides Foundational Support
Scientific & Industrial 15 Scientific & Industrial Consistently Provides Foundational Support Source: Veeco estimates Data Storage Endures through Cycles Megatrends drive increases in cloud storage Thin film magnetic head (TFMH) unit volumes are increasing to support larger hard drive storage capaci
Slide 15: 2018 Priorities Update
2018 Priorities Update 16 Q2 2018 Conference Call © 2018 Veeco Instruments Inc. Ultratech Integration Proceeding according to plan with additional manufacturing cost reduction underway Continuing to Invest in Innovation Ongoing development in MOCVD, Lithography, Laser Anneal, Wet Etch Delivering Gro
Slide 16: 2018 Priorities Update
2018 Priorities Update Delivering Growth — Diversifying Company al, Wet Etch
Slide 17: Backup & Reconciliation Tables
Backup & Reconciliation Tables
Slide 18: 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 19: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation Q2 2018 Conference Call © 2018 Veeco Instruments Inc. 20 Amounts may not calculate precisely due to rounding. Prior period results have been recast to reflect the retrospective adoption of ASC 606. US$ millions Q1 18 Q2 18 Net Sales $158.6 $15
Slide 20: Q2 2018 GAAP to Non-GAAP Reconciliation
Q2 2018 GAAP to Non-GAAP Reconciliation 21 Q2 2018 Conference Call © 2018 Veeco Instruments Inc. Amounts may not calculate precisely due to rounding Non-GAAP Adjustments In millions, except per share amounts GAAP Share-Based Compensation Amortization Other Non-GAAP Net Sales $157.8 $157.8 Gross Prof
Slide 21: Thank You!
Thank You! Veeco Instruments, Inc. www.veeco.com Follow Us
Slide 22: Thank You!
Thank You! Veeco Instruments, Inc. ww-veeco.com Follow Us Lin Ef |