Veeco Reports First Quarter 2025 Financial Results

About this update from Veeco Instruments Inc.

First Quarter 2025 Highlights: Revenue of $167.3 million , compared with $174.5 million in the same period last year GAAP net income of $11.9 million , or $0.20 per diluted share, compared with $21.9 million , or $0.37 per diluted share in the same period last year Non-GAAP net income of $22.2 million , or $0.37 per diluted share, compared with $26.4 million , or $0.45 per diluted share in the same period last year PLAINVIEW, N.Y. , May 07, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025 . Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. U.S. Dollars in millions, except per share data GAAP Results Q1 '25 Q1 '24 Revenue $ 167.3 $ 174.5 Net income $ 11.9 $ 21.9 Diluted earnings per share $ 0.20 $ 0.37 Non-GAAP Results Q1 '25 Q1 '24 Operating income $ 24.3 $ 29.4 Net income $ 22.2 $ 26.4 Diluted earnings per share $ 0.37 $ 0.45 “Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging ,” commented Bill Miller , Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.” Guidance and Outlook The following guidance is provided for Veeco’s second quarter 2025: Revenue is expected in the range of $135 million to $165 million GAAP diluted earnings (loss) per share are expected in the range of ( $0.05 ) to $0.17 Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32 Conference Call Information A conference call reviewing these results has been scheduled for today, May 7, 2025 starting at 5:00pm ET . To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com . A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call. About Veeco Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com . Forward-looking Statements This press release 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,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China , and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. - financial tables attached- Veeco Contacts: Investors: Anthony Pappone (516) 500-8798 [email protected] Media: Javier Banos (516) 673-7328 [email protected] Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts)(unaudited) Three months ended March 31 , 2025 2024 Net sales $ 167,292 $ 174,484 Cost of sales 98,825 99,065 Gross profit 68,467 75,419 Operating expenses, net: Research and development 28,514 29,642 Selling, general, and administrative 25,028 24,700 Amortization of intangible assets 821 1,891 Other operating expense (income), net (44 ) (2,859 ) Total operating expenses, net 54,319 53,374 Operating income 14,148 22,045 Interest income (expense), net 836 705 Income (loss) before income taxes 14,984 22,750 Income tax expense (benefit) 3,037 896 Net income $ 11,947 $ 21,854 Income per common share: Basic $ 0.21 $ 0.39 Diluted $ 0.20 $ 0.37 Weighted average number of shares: Basic 57,753 55,968 Diluted 60,234 60,764 Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) March 31 , December 31 , 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 174,898 $ 145,595 Restricted cash 169 224 Short-term investments 178,395 198,719 Accounts receivable, net 114,368 96,834 Contract assets 33,586 37,109 Inventories 254,051 246,735 Prepaid expenses and other current assets 39,338 39,316 Total current assets 794,805 764,532 Property, plant and equipment, net 113,787 113,789 Operating lease right-of-use assets 25,991 26,503 Intangible assets, net 8,010 8,832 Goodwill 214,964 214,964 Deferred income taxes 118,567 120,191 Other assets 2,700 2,766 Total assets $ 1,278,824 $ 1,251,577 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 57,845 $ 43,519 Accrued expenses and other current liabilities 62,257 55,195 Contract liabilities 57,211 64,986 Income taxes payable 1,546 2,086 Current portion of long-term debt — 26,496 Total current liabilities 178,859 192,282 Deferred income taxes 663 689 Long-term debt 249,955 249,702 Long-term operating lease liabilities 33,694 34,318 Other liabilities 3,795 3,816 Total liabilities 466,966 480,807 Total stockholders’ equity 811,858 770,770 Total liabilities and stockholders’ equity $ 1,278,824 $ 1,251,577 Note on Reconciliation Tables The below 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: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures. Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025) (in thousands)(unaudited) Non-GAAP Adjustments Three months ended March 31, 2025 GAAP Share-BasedCompensation Amortization Other Non-GAAP Net sales $ 167,292 $ 167,292 Gross profit 68,467 1,343 69,810 Gross margin 40.9 % 41.7 % Operating expenses 54,319 (7,865 ) (821 ) (99 ) 45,534 Operating income 14,148 9,208 821 99 ^ 24,276 Net income 11,947 9,208 821 231 ^ 22,207 _______________^ - See table below for additional details. Other Non-GAAP Adjustments (Q1 2025) (in thousands)(unaudited) Three months ended March 31, 2025 Other $ 99 Subtotal 99 Non-cash interest expense 257 Non-GAAP tax adjustment * (125 ) Total Other $ 231 _______________* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q1 2025) (in thousands, except per share amounts)(unaudited) Three months ended March 31, 2025 GAAP Non-GAAP Numerator: Net income $ 11,947 $ 22,207 Interest expense associated with 2025 and 2027 Convertible Senior Notes 253 273 Net income available to common shareholders $ 12,200 $ 22,480 Denominator: Basic weighted average shares outstanding 57,753 57,753 Effect of potentially dilutive share-based awards 693 693 Dilutive effect of 2025 Convertible Senior Notes — 174 Dilutive effect of 2027 Convertible Senior Notes (1) 1,788 1,354 Diluted weighted average shares outstanding 60,234 59,974 Net income per common share: Basic $ 0.21 $ 0.38 Diluted $ 0.20 $ 0.37 _______________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024) (in thousands)(unaudited) Non-GAAP Adjustments Three months ended March 31, 2024 GAAP Share-basedCompensation Amortization Other Non-GAAP Net sales $ 174,484 $ 174,484 Gross profit 75,419 1,730 77,149 Gross margin 43.2 % 44.2 % Operating expenses 53,374 (6,352 ) (1,891 ) 2,658 47,789 Operating income 22,045 8,082 1,891 (2,658 ) ^ 29,360 Net income 21,854 8,082 1,891 (5,384 ) ^ 26,443 _______________^ - See table below for additional details. Other Non-GAAP Adjustments (Q1 2024) (in thousands)(unaudited) Three months ended March 31, 2024 Changes in contingent consideration $ (625 ) Sale of productive assets (2,033 ) Subtotal (2,658 ) Non-cash interest expense 296 Non-GAAP tax adjustment * (3,022 ) Total Other $ (5,384 ) _______________* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q1 2024) (in thousands, except per share amounts)(unaudited) Three months ended March 31, 2024 GAAP Non-GAAP Numerator: Net income $ 21,854 $ 26,443 Interest expense associated with 2025 and 2027 Convertible Senior Notes 514 466 Net income available to common shareholders $ 22,368 $ 26,909 Denominator: Basic weighted average shares outstanding 55,968 55,968 Effect of potentially dilutive share-based awards 939 939 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes (1) 1,788 1,354 Dilutive effect of 2029 Convertible Senior Notes 965 965 Diluted weighted average shares outstanding 60,764 60,330 Net income per common share: Basic $ 0.39 $ 0.47 Diluted $ 0.37 $ 0.45 _______________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024) (in thousands)(unaudited) Three months ended Three months ended March 31, 2025 March 31, 2024 GAAP Net income $ 11,947 $ 21,854 Share-based compensation 9,208 8,082 Amortization 821 1,891 Sale of productive assets — (2,033 ) Changes in contingent consideration — (625 ) Interest (income) expense, net (836 ) (705 ) Other 99 — Income tax expense (benefit) 3,037 896 Non-GAAP Operating income $ 24,276 $ 29,360 Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025) (in millions, except per share amounts)(unaudited) Non-GAAP Adjustments Guidance for the three months ending Share-based June 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 135 - $ 165 $ 135 - $ 165 Gross profit 54 - 69 1 — — 55 - 70 Gross margin 39 % - 41 % 40 % - 42 % Operating expenses 57 - 58 (9 ) (1 ) — 47 - 48 Operating income (loss) (3 ) - 11 10 1 — 8 - 22 Net income (loss) $ (3 ) - $ 10 10 1 (1 ) $ 7 - $ 20 Income (loss) per diluted common share $ (0.05 ) - $ 0.17 $ 0.12 - $ 0.32 Income per Diluted Common Share (Q2 2025) (in millions, except per share amounts)(unaudited) Guidance for the three months ending June 30, 2025 GAAP Non-GAAP Numerator: Net income (loss) available to common shareholders $ (3 ) - $ 10 $ 7 - $ 20 Denominator: Basic weighted average shares outstanding 58 58 58 58 Effect of potentially dilutive share-based awards — 1 1 1 Dilutive effect of 2027 Convertible Senior Notes (1) — 2 — 1 Diluted weighted average shares outstanding 58 61 59 61 Net income per common share: Income (loss) per diluted common share $ (0.05 ) - $ 0.17 $ 0.12 - $ 0.32 _______________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025) (in millions)(unaudited) Guidance for the three months ending June 30, 2025 GAAP Net income (loss) $ (3 ) - $ 10 Share-based compensation 10 - 10 Amortization 1 - 1 Interest income, net (1 ) - (1 ) Income tax expense (benefit) — - 1 Non-GAAP Operating income $ 8 - $ 22 Note: Amounts may not calculate precisely due to rounding. Source: Veeco Instruments Inc.

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