Slide 1: Q1 2014 Conference Call
Q1 2014 Conference Call May 5, 2014
Slide 2: 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 3: Introduction – John Peeler, Chairman & CEO
John Peeler Chairman & CEO Introduction
Slide 4: A Better Start to the Year
A Better Start to the Year Q1 Orders up 21% sequentially to $103M Cash and Short Term Investments $483M Q1 Revenue up 24% sequentially to $91M Best MOCVD order quarter since Q3 2011 Used cash in Q1, but balance sheet remains very strong Improvement in MOCVD business drives revenue growth
Slide 5: Financial Highlights – Dave Glass, CFO
Dave Glass, CFO Financial Highlights
Slide 6: Q1 2014 vs. Q4 2013
Q1 2014 vs. Q4 2013 Q1 2014 Q4 2013 Revenue $91M $73M GM 37% 21% OPEX* $41M $48M Performance improves on higher volume, better margins and lower OPEX *Excludes amortization and restructuring. **Includes $29M gain resulting from reversal of Synos acquisition related contingency accruals. See financia
Slide 7: Revenue Highlights - Q1 2014
Revenue Highlights - Q1 2014 Total Revenue: $91M LED & Solar ~$71M MOCVD $64M; up 28% sequentially MBE $7M ($M) Q1 14 Q4 13 Adj EBITA $2.1M ($16.5M) ($M) Q1 14 Q4 13 Adj EBITA ($.6M) ($3.1M) Data Storage ~$20M Data Storage up 20% sequentially
Slide 8: Order Highlights - Q1 2014
Order Highlights - Q1 2014 Total Bookings: $103M LED & Solar ~$87M MOCVD at $83M; up 59% sequentially MBE $5M; down 59% sequentially No ALD orders Data Storage ~$15M Down 29% sequentially; continued lack of capacity buys
Slide 9: Strong Balance Sheet
Strong Balance Sheet 3/31/14 12/31/13 Cash & Short-term Investments* $483M $495M Accounts Receivable $51M $24M Inventory $52M $60M Fixed Assets, Net $87M $89M Total Assets $955M $948M Long-term Debt (including current portion) $2M $2M Equity $812M $780M *Includes $0.8 million of restricted cash as o
Slide 10: Q2 2014 Guidance
Q2 2014 Guidance Q2 2014 Orders Similar to or better than Q1 Revenue $87-97M Gross Margins 30-32% OPEX (Includes equity compensation and excludes amortization) $42-43M GAAP EPS ($0.46)-($0.36) Non-GAAP EPS ($0.23)-($0.14)
Slide 11: Business Update and Outlook
Veecp Business Update and Outlook
Slide 12: LED lighting expected to grow at a CAGR of 37.7% from 2012 to 2020
LED lighting expected to grow at a CAGR of 37.7% from 2012 to 2020 LED Lamp Shipments (in M units) Source: IHS Research Q1 2014 Nearly 40% CAGR LED Unit Percent Penetration LED unit penetration expected to reach 15-20% in key geographies by 2016; ~40% by 2020 LED Lighting Growth Accelerating NOW As
Slide 13: LED Fab Utilization Rates High and Stable
LED Fab Utilization Rates High and Stable CHINA Tier 1 85-95% Tier 2&3 <70% KOREA 75-95% TAIWAN 80-100% EUROPE >80% U.S. >80% Currently Quoting MOCVD Capacity Expansion Deals in Most Regions
Slide 14: First Half 2014 Trends Are Encouraging
First Half 2014 Trends Are Encouraging Market being driven by mid-power LED growth Further improvements in MOCVD cost-of-ownership and technology on the way Uncertain timing and magnitude of MOCVD deals LED ADOPTION Running faster than many have anticipated
Slide 15: Pursuing Multiple ALD Growth Opportunities
Pursuing Multiple ALD Growth Opportunities OLED Mobile $200-400M TAM OLED TV and Lighting >$200M TAM Energy Storage >$100M TAM Semiconductor >$200M TAM Solar and Other >$200M TAM Making Significant R&D Investments to Drive Flexible OLED and Adjacent Market Opportunities FAST-ALD
Slide 16: Veeco's Top Priorities
Veeco’s Top Priorities Developing and launching game changing new products Improving customers’ cost of ownership as well as our gross margins Driving process improvement initiatives Lowering expenses Transition to Profitable Growth
Slide 17: Q&A Session
Veecm Q&A Session
Slide 18: Financial Tables and Reconciliation
Financial Tables and Reconciliation
Slide 19: Condensed Consolidated Statements of Operations
Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) For the three months ended March 31, 2014 2013 Net sales $ 90,841 $ 61,781 Cost of sales 57,064 39,229 Gross profit 33,777 22,552 Operating expenses: Selling, gen
Slide 20: Condensed Consolidated Balance Sheets
Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2014 2013 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 214,682 $ 210,799 Short-term investments 267,402 281,538 Restricted cash 764 2,738 Accounts receivable, net 50,
Slide 21: Reconciliation of GAAP to non-GAAP results
Veeco Instruments Inc. and Subsidiaries Reconciliation of GAAP to non-GAAP results (In thousands, except per share data) (Unaudited) For the three months ended March 31, 2014 2013 Adjusted EBITA Operating income (loss) $ 18,627 $ (19,624) Non-GAAP adjustments: Amortization 2,903 856 Equity-based com
Slide 22: Segment Bookings, Revenues, and Reconciliation to Adjusted EBITA
Veeco Instruments Inc. and Subsidiaries Segment Bookings, Revenues, and Reconciliation of Operating Income (Loss) to Adjusted EBITA (In thousands) (Unaudited) For the three months ended March 31, 2014 2013 LED & Solar Bookings $ 87,138 $ 42,714 Revenues $ 70,755 $ 42,307 Operating income (loss) $ 26
Slide 23: Reconciliation of GAAP to non-GAAP results – Q2 2014 Guidance
Veeco Instruments Inc. and Subsidiaries Reconciliation of GAAP to non-GAAP results (In thousands, except per share data) (Unaudited) Guidance for the three months ending June 30, 2014 LOW HIGH Adjusted EBITA Operating income $ (19,120) $ (15,148) Adjustments: Amortization 2,931 2,931 Equity-based co