Slide 1: Veeco Instruments Q3 2023 Financial Results Conference Call
Veeco Instruments Q3 2023 Financial Results Conference Call - November 6th, 2023 1 Q3 2023 Financial Results Conference Call Copyright © 2023 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 Business Update
CEO Overview and Business Update Bill Miller, Ph.D. 3 Q3 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 4: Q3 Financial & Business Highlights
Q3 Financial & Business Highlights Revenue $177M • Top and bottom-line results above high-end of guidance • Semiconductor revenue remains elevated Non-GAAP • Sequential growth in Data Storage Operating Income $33M • Shipped LSA systems to Tier 1 Logic and Memory customers • New application wins: • L
Slide 5: Market Update
Market Update Core Technologies Laser Wet Annealing Ion Beam Processing Lithography Semiconductor strength driven by broad demand for LSA systems. LSA adoption for new applications expected to drive future growth. Wet Epitaxy Processing Compound Semiconductor opportunity driven by demand for epitaxy
Slide 6: Veeco Technologies for Artificial Intelligence
Veeco Technologies for Artificial Intelligence GPU High-Bandwidth Memory (HBM) DRAM Advanced Packaging Current PTOR Current PTOR Current PTOR • Laser-Spike Annealing (LSA) • Laser-Spike Annealing (LSA) • Wet Processing for micro-bump flux • IBD for EUV mask blanks clean Additional Future Opportuniti
Slide 7: Nanosecond Annealing Opportunity
Nanosecond Annealing Opportunity 2000 NSA (nanosecond) • Shipped 1st NSA500TM eval system to Tier 1 logic customer Temperature (°C) LSA 1000 (sub millisecond) Lamp based • Solidifies Veeco’s leadership in advanced laser annealing (sub second) technology and helps drive the Semi industry roadmap • Op
Slide 8: Ion Beam Deposition – Advanced Node Semi Opportunity
Ion Beam Deposition– Advanced Node Semi Opportunity Illustration of grain size and distribution PVD IBD • Leveraging decades of experience and core IBD technology in Semiconductor market • Innovative technology addresses gaps with traditional technologies • Lower resistance metals essential for devi
Slide 9: CFO Financial Review
CFO Financial Review John Kiernan 9 Q3 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 10: Q3 2023 Revenue by Market & Region
Q3 2023 Revenue by Market & Region Revenue by Market Revenue by Region Data Storage 19% APAC Semiconductor United States 29% Compound 33% 56% $177M 14% Semiconductor EMEA China 11% 15% 23% Scientific & Other Revenue Trend ($M) Q3 22 Q2 23 Q3 23 Semiconductor 100 106 98 ROW is negligible Compound Sem
Slide 11: Q3 2023 Operating Results
Q3 2023 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q2 23 Q3 23 Q2 23 Q3 23 Revenue $161.6 $177.4 $161.6 $177.4 Gross Profit 67.5 76.9 69.1 78.4 Gross Margin 41.8% 43.3% 42.7% 44.2% Operating Expenses 53.8 54.6 44.8 45.7 Operating Income 13.7 22.3 24.3 32.7 Net Income (Los
Slide 12: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q2 23 Q3 23 Cash & Short-Term Investments 287 287 Accounts Receivable 130 122 Inventories 244 252 Accounts Payable 63 63 Long-Term Debt Including Current Portion 274 275 Cash Flow from Operations 11 7 DSO (days) 72 62 DIO (days) 225 222 DPO (days) 61
Slide 13: 2023 Guidance
2023 Guidance Q4 2023 GAAP Non-GAAP Revenue $155M - $175M $155M - $175M Gross Margin 42% - 43% 43% - 44% Operating Expenses $53M - $55M $45M - $47M Net Income / (Loss) $13M - $20M $20M - $27M Diluted Earnings / (Loss) Per Share $0.22 - $0.33 $0.35 - $0.45 Updated 2023 Revenue Outlook • Revenue from
Slide 14: CEO Closing Remarks
CEO Closing Remarks 14 Q3 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 15: Thank You Q&A
Thank You Q&A 15 Q3 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 16: Backup and Financial Tables
Backup and Financial Tables 16 Q3 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved.
Slide 17: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2020 2021 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Semiconductor 37.4 37.5 33.6 57.4 165.9 51.6 53.7 76.3 65.4 247.1 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 Compound 18.4 17.8 26.6 45.2 107.9 24.8 24.2 23.3 34.7 107.0 37.1 31.1 28.1 24.9
Slide 18: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of September 30, 2023 Annual Cash Annual Non-Cash Initial Conversion Convertible Notes Principal Amount Carrying Value Coupon Interest Interest Price Convertible Notes Due Jan 2025 $27M $26M 3.5% $0.9M $0.1M $24.00 Convertible Notes Due June 2027 25M 25M 3.75% 0.9M
Slide 19: Effect of Convertible Notes on Diluted EPS
Effect of Convertible Notes on Diluted EPS (Effective Q3 2023) 2029 Convertible Notes (GAAP and 2025 and 2027 Convertible Notes Non-GAAP)** Quarterly Incremental Dilutive Average Stock Price per Shares (in GAAP Non-GAAP* Common Share thousands) EPS threshold Reduction to Interest EPS threshold Reduc
Slide 20: 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 21: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions, except per share amounts Q2 23 Q3 23 $ millions Q2 23 Q3 23 GAAP Basic weighted average shares 52.9 55.4 GAAP Diluted weighted average shares 52.9 59.6 Net sales $161.6 $177.4 GAAP Basic EPS ($1.61) $0.44 GAAP gross profit 67.5 76.
Slide 22: Q3 2023 Actual: GAAP to Non-GAAP Reconciliation
Q3 2023 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $177.4 $177.4 Gross Profit 76.9 1.5 — — 78.4 Gross Margin 43.3% 44.2% Operating Expenses $54.6 (5.9) (2.1) (0.9) $45.7 Operating Income $22.3 7.4 2.1 0.
Slide 23: Q4 2023 Guidance
Q4 2023 Guidance ($ 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 $155–$175 $155–$175 Gross Profit 66–76 1 — — 67–77 Gross Margin 42%–43% 43%–44% Operating Expenses $53–$5