Slide 1: Q3 2019 Conference Call
Q3 2019 Conference Call Veeco Instruments Inc. November 4, 2019
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: CEO Overview
CEO Overview William J. Miller, Ph.D. 3 Q3 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights Q3 $115M $109M $4.0M 5¢ Results Bookings Revenue Non-GAAP Non-GAAP EPS Operating Income ▪ Top and bottom line exceeded midpoint of ▪ Non-GAAP gross margin at 40.3% guided range – achieved non-GAAP ▪ Grew backlog to $279M profitability ▪ Strong revenue in the Front-End Semi and Dat
Slide 5: Transformation Update
Transformation Update Phase 1: Returning to Profitability ▪ Shift MOCVD market focus from commodity LED to higher value photonics ▪ Execute general infrastructure reductions ▪ Rationalize product line investments Phase 1: well underway Phase 2: Driving Growth Grow in current markets Penetrate with n
Slide 6: Markets and Technologies
Megatrend Markets and Technologies Technology High Performance AI / High Performance Computing Computing • Laser Annealing • AP Lithography • Ion Beam Deposition & Etch Advanced Front-End Packaging, Advanced Front-End Semi Semi MEMS & RFMEMS Packaging, & RF Filters Filters Compound Scientific Semi &
Slide 7: 2019 Update
2019 Update Innovate Penetrate Improve technology leadership market growth profitability ▪ Solve tough materials ▪ EUV Mask Blanks – Ion Beam ▪ Improve gross margin problems Deposition ▪ Reduce operating expenses ▪ Execute product roadmaps ▪ Leading-Edge Front-End Semiconductor – Laser Anneal ▪ 3D S
Slide 8: CFO Financial Review
CFO Financial Review Sam Maheshwari 8 Q3 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 9: Q3 2019 Revenue by Market & Region
Q3 2019 Revenue by Market & Region Revenue by Market Revenue by Region Front-End United States Semiconductor LED Lighting, Display 25% 31% & Compound Semi 22% ROW 41% $109M EMEA Advanced 18% Packaging, MEMS & RF Filters 10% China Scientific & Industrial 16% 37% 9 Q3 2019 Conference Call | © 2019 Vee
Slide 10: Operating Results
Operating Results GAAP Non-GAAP $ millions (except per share amounts) Q2 19 Q3 19 Q2 19 Q3 19 Revenue $97.8 $109.0 $97.8 $109.0 Gross Profit 36.3 42.2 36.9 43.9 Gross Margin 37.1% 38.8% 37.8% 40.3% Operating Expenses 47.5 49.6 38.5 40.0 Operating Income/(Loss) (11.2) (7.4) (1.6) 4.0 Net Income/(Loss
Slide 11: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q2 19 Q3 19 Cash & Short-Term Investments 247 232 Accounts Receivable 59 73 Inventories 140 135 Accounts Payable 22 35 Long-Term Debt 294 297 Cash Flow from Operations 14 (15) DSO (days) 54 60 DOI 210 185 DPO 33 47 Amounts may not calculate precisely
Slide 12: Q4 2019 Guidance
Q4 2019 Guidance GAAP Non-GAAP Revenue $100M - $120M $100M - $120M Gross Margin 39% - 41% 39% - 41% Operating Expenses ~$48M ~$39M Net Income (Loss) $(15M) - $(5M) $(2) - $8M Earnings (Loss) Per Share $(0.32) - $(0.10) $(0.03) - $0.18 . A reconciliation of GAAP to Non-GAAP financial measures can be
Slide 13: Q&A
Q&A 13 Q3 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 14: Reconciliation Tables
Reconciliation Tables 14 Q3 2019 Conference Call | © 2019 Veeco Instruments Inc.
Slide 15: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 16: Supplemental Information— Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q2 19 Q3 19 US$ millions Q2 19 Q3 19 US$ millions, except per share Q2 19 Q3 19 amounts Net Sales $97.8 $109.0 GAAP Net Income (Loss) $(15.6) $(11.8) GAAP Basic EPS (0.33) (0.25) GAAP Gross Profit 36.3 42.2 Add: Share-Based Comp 4
Slide 17: Q3 2019 Actual: Reconciliation
Q3 2019 Actual: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $109.0 $109.0 Gross Profit 42.2 0.4 1.3 43.9 Gross Margin 38.8% 40.3% Operating Expenses 49.6 (3.4) (4.3) (1.9) 40.0 Operatin
Slide 18: Q4 2019 Guidance: Reconciliation
Q4 2019 Guidance: GAAP to Non-GAAP Reconciliation Non-GAAP Adjustments Share-Based In millions, except per share amounts GAAP Compensation Amortization Other Non-GAAP Net Sales $100–$120 $100–$120 Gross Profit 38–48 1 — — 39–49 Gross Margin 39%–41% 39%–41% Operating Expenses ~$48 3 4 2 ~$39 Operatin
Slide 19: Thank You
Thank You Veeco Instruments www.veeco.com Ver:11072018