Slide 1: Veeco Instruments Q3 2024 Financial Results Conference Call
Veeco Instruments Q3 2024 Financial Results Conference Call November 6th, 2024
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
CEO Overview Bill Miller, Ph.D.
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Revenue • Top and bottom-line results above mid-point of guide $185M • Semiconductor Business delivers record revenue • Increased 26% year-over-year and 13% sequentially Non-GAAP • Highlighted by growth in shipments to leading edge customers across several product lines Opera
Slide 5: Role in the Semi Manufacturing
Role in the Semi Manufacturing Representative Process Steps FRONT END BACK END Ion Inspection/ Advanced Deposition Lithography Etch Annealing Implantation Metrology Packaging IBD IBD Wet LSA NSA Processing Litho 300 EUV Veeco technologies are critical for several Semi manufacturing process steps IBD
Slide 6: Semi SAM Expansion To Drive Outperformance
Semi SAM Expansion To Drive Outperformance Industry Markets Enabling Technologies Inflections Advanced GAA/BSPDN Largest Drivers of SAM Growth Logic 25% Device Shrink - EUV/High IBD LSA NSA IBD ~2x increase NA Lithography 20% 300 EUV 15% Memory HBM/3D Devices 10% 5% 3D Packaging For AI 0% Advanced W
Slide 7: Semi Evaluations Capture Industry Inflections
Semi Evaluations Capture Industry Inflections *Evaluations typically compete to win several applications. The number of applications under evaluation will vary by system, customer, and market. Increase in evaluations to enable penetration of key SAM growth opportunities
Slide 8: CFO Financial Overview
CFO Financial Overview John Kiernan
Slide 9: Q3 Revenue by Market & Region
Q3 Revenue by Market & Region Revenue by Market Revenue by Region Compound Semiconductor 8% APAC Data Storage APAC China United 18% States 33% 32% Semiconductor 67% $185M 7% Scientific & United Other States 5% EMEAChina EMEA 30% ROW is negligible Revenue Trend ($M) Q3 23 Q2 24 Q3 24 Semiconductor 98
Slide 10: Q3 Operating Results
Q3 Operating Results GAAP Non-GAAP In millions (except per share amounts) Q2 24 Q3 24 Q2 24 Q3 24 Revenue $175.9 $184.8 $175.9 $184.8 Gross Profit 75.4 79.2 76.8 80.9 Gross Margin 42.9% 42.9% 43.7% 43.8% Operating Expenses 58.7 54.9 48.6 49.9 Operating Income 16.7 24.3 28.3 31.0 Net Income 14.9 22.0
Slide 11: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q2 24 Q3 24 Cash & Short-Term Investments 305 321 Accounts Receivable 92 132 Inventories 245 242 Accounts Payable 47 50 Cash Flow from Operations 8 18 Capital Expenditures 3 4 DSO (days) 47 64 DIO (days) 219 207 DPO (days) 43 43 Amounts may not calcu
Slide 12: Q4 & FY 2024 Outlook
Q4 & FY 2024 Outlook Q4 2024 GAAP Non-GAAP Revenue $165M - $185M $165M - $185M Gross Margin 42% - 43% 43% - 44% Operating Expenses $58M - $60M $48M - $51M Net Income $10M - $16M $21M - $27M Diluted Earnings Per Share $0.18 - $0.27 $0.35 - $0.45 Updated FY 2024 Outlook • Revenue to $700 - $720 millio
Slide 13: Why own Veeco?
Why own ? Investment Strategy For Industry Inflections Enabling SAM Expansion Technologies Drives For Semi Outperformance Manufacturing 3 Long-Term Execution to 2 4 Generate Long- WFE Growth Term Value 1 5
Slide 14: Q&A
Q&A (ace
Slide 15: Backup & Financial Tables
Backup & Financial Tables (ace
Slide 16: Historical Revenue by End-Market
Historical Revenue by End-Market $M 2021 2022 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Semi 51.6 53.7 76.3 65.4 247.1 77.6 97.5 100.4 93.8 369.4 93.1 106.3 98.2 115.2 412.7 120.4 109.9 124.1 Compound 24.8 24.2 23.3 34.7 107.0 37.1 31.1 28.1 24.9 121.2 21.2 24.1 25.7 16.3 87.3
Slide 17: Convertible Notes – Outstanding
Convertible Notes – Outstanding As of September 30, 2024 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 18: Effect of Convertible Notes on Diluted EPS (Effective Q3 2024)
Effect of Convertible Notes on Diluted EPS (Effective Q3 2024) 2025 and 2027 Convertible Notes 2029 Convertible Notes (GAAP and Non-GAAP)** Quarterly Incremental GAAP Non-GAAP* Average Stock Price per Dilutive Shares (in Common Share Reduction to Interest Incremental Reduction to Interest Incrementa
Slide 19: 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 20: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation $ millions, except per share amounts Q2 24 Q3 24 $ millions Q2 24 Q3 24 GAAP Basic weighted average shares 56.3 56.4 GAAP Diluted weighted average shares 62.5 62.7 Net sales $175.9 $184.8 GAAP Basic EPS $0.27 $0.39 GAAP gross profit 75.4 79.2
Slide 21: Q3 2024 Actual: GAAP to Non-GAAP Reconciliation
Q3 2024 Actual: GAAP to Non-GAAP Reconciliation $ millions Non-GAAP Adjustments Share-Based GAAP Compensation Amortization Other Non-GAAP Net Sales $184.8 $184.8 Gross Profit 79.2 1.6 — 0.2 80.9 Gross Margin 42.9% 43.8% Operating Expenses $54.9 (7.9) (1.7) 4.6 $49.9 Operating Income $24.3 9.5 1.7 (4
Slide 22: Q4 2024 Guidance
Q4 2024 Guidance ($ 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 $165–$185 $165–$185 Gross Profit 70–79 2 — — 72–81 Gross Margin 42%–43% 43%–44% Operating Expenses $58–$6