Slide 1: Q1 '08 Financial Data
Q1 ’08 Financial Data April 28, 2008
Slide 2: First Quarter Segment Results
©2008 Veeco Instruments Inc 042808 Investor Slides 2 $30 $39 $40 $24 $42 $36 First Quarter Segment Results LED & Solar Process Equipment Data Storage Process Equipment Metrology LED & Solar Process Equipment Data Storage Process Equipment Metrology (41%) (24%) (35%) (36%) (37%) (27%) Q1 08 Revenues
Slide 3: Q1 2008 Financials
©2008 Veeco Instruments Inc 042808 Investor Slides 3 Q1 2008 Financials ($M except EPS) * Excludes $4.8M inventory write-off associated with restructuring. Reported gross margin is 33% ** See reconciliation to GAAP at end of presentation Q4 ’07 $114.9 $106.8 38%* ($8.6) $4.1 $0.07 Q1 ’07 $105.9 $99.
Slide 4: Q1 Segment Data: Y/Y and Sequential Highlights
©2008 Veeco Instruments Inc 042808 Investor Slides 4 Q1 Segment Data: Y/Y and Sequential Highlights 4.1 5.6 5.3 EBITA 37.9% 44.1% 41.7% Gross Margin 114.9 105.9 109.3 Bookings 106.8 99.2 102.3 Revenues Total (2.4) (2.6) (3.6) Unallocated Corporate (1.5) 4.0 1.8 EBITA 39.3% 49.4% 46.6% Gross Margin 3
Slide 5: 2008 Recovery Year
©2008 Veeco Instruments Inc 042808 Investor Slides 5 2008 “Recovery Year” Goal is revenue growth at a minimum of 10% to $440M Operating spending forecasted to decline as a percentage of sales (38% in ’07 to 36-37% ’08) Continued focus on gross margin improvements: – Better than anticipated GMs in Q1
Slide 6: Veeco's 2008 Growth Outlook
©2008 Veeco Instruments Inc 042808 Investor Slides 6 Veeco’s 2008 Growth Outlook ~$440M ~10% $402M TOTAL $157-160M ~5-7% $150M Metrology $137-143M ~0-5% $136M Data Storage Process Equipment $140-145M ~20-25% $116M LED & Solar Process Equipment 2008 Revenue Range 2008 Revenue Growth Range* 2007 Reven
Slide 7: Q2 '08 Guidance
©2008 Veeco Instruments Inc 042808 Investor Slides 7 Q2 ’08 Guidance Q2 ‘08 Revenues $102-$110 million Q2 ‘08 Earnings ($0.02)-$0.07 per share GAAP Non-GAAP EPS $0.05 - $0.11 excluding amortization of $2.0 million, using a 35% tax rate Q2 ‘08 Orders $110-$118 million
Slide 8: Gross Margin Improvement Model
©2008 Veeco Instruments Inc 042808 Investor Slides 8 Gross Margin Improvement Model >5% 11 - 14% 3-5% 5.1% 2.7% 3.8% EBITA (%) 36-37% 32 - 34% 36-38% 36.5% 37.6% 34.1% Operating Expenses 42% 45-46% 41% 41.7% 40% 37.9% TOTAL 52% 46% 46.6% 44.1% 39.3% Metrology 43% 39% 39.0% 38.1% 37.2% Process Equipm
Slide 9: Veeco Balance Sheet
©2008 Veeco Instruments Inc 042808 Investor Slides 9 Veeco Balance Sheet December 31, 2007 March 31, 2008 $273.7 $276.9 Shareholder’s Equity 146.6 146.4 Long-Term Debt (including current portion) 529.3 532.0 Total Assets 66.1 65.7 Fixed Assets 174.5 181.2 Working Capital $117.1 $114.4 Cash and Inves
Slide 10: Safe Harbor Statement
©2008 Veeco Instruments Inc 042808 Investor Slides 10 Safe Harbor Statement To the extent that this presentation discusses expectations or otherwise make statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual re
Slide 11: Back-Up and Reconciliation Slides
©2008 Veeco Instruments Inc 042808 Investor Slides 11 Back-Up and Reconciliation Slides
Slide 12: Q1 '08 Veeco Reconciliation Table
©2008 Veeco Instruments Inc 042808 Investor Slides 12 Q1 ’08 Veeco Reconciliation Table 31,281 31,301 Diluted weighted average shares outstanding $0.10 $0.09 Earnings excluding certain items per diluted share $3,223 $2,893 Earnings excluding certain items (85) (49) Noncontrolling interest, net of in
Slide 13: Q1 2008 Segment Reconciliation
©2008 Veeco Instruments Inc 042808 Investor Slides 13 Q1 2008 Segment Reconciliation March 31, March 31, 2008 2007 LED & Solar Process Equipment Bookings 38.7 $ 36.4 $ Revenues 42.1 22.4 Operating income (loss) 8.1 (0.5) Amortization expense 0.5 2.3 EBITA 8.6 1.8 Data Storage Process Equipment Booki
Slide 14: Q2 '08 Guidance Reconciliation Table
©2008 Veeco Instruments Inc 042808 Investor Slides 14 Q2 ‘08 Guidance Reconciliation Table LOW HIGH Operating income $1,000 $4,000 Amortization expense 2,000 2,000 Earnings before interest, income taxes and amortization excluding certain items ("EBITA") 3,000 6,000 Interest expense, net 800 800 Earn
Slide 15: 2007 Segment Data
©2008 Veeco Instruments Inc 042808 Investor Slides 15 2007 Segment Data March 31, June 30, September 30, December 31, 2007 2007 2007 2007 LED & Solar Process Equipment Bookings 36.4 $ 36.4 $ 48.7 $ 42.5 $ Revenues 22.4 28.0 31.8 33.7 Operating (loss) income (0.5) 2.8 2.7 4.7 Amortization expense 2.3