Veeco Reports Second Quarter 2025 Financial Results

About this update from Veeco Instruments Inc.

Second Quarter 2025 Highlights: Revenue of $166.1 million , compared with $175.9 million in the same period last year GAAP net income of $11.7 million , or $0.20 per diluted share, compared with $14.9 million , or $0.25 per diluted share in the same period last year Non-GAAP net income of $21.5 million , or $0.36 per diluted share, compared with $25.4 million , or $0.42 per diluted share in the same period last year PLAINVIEW, N.Y. , Aug. 06, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 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 Q2 '25 Q2 '24 Revenue $ 166.1 $ 175.9 Net income $ 11.7 $ 14.9 Diluted earnings per share $ 0.20 $ 0.25 Non-GAAP Results Q2 '25 Q2 '24 Operating income $ 23.1 $ 28.3 Net income $ 21.5 $ 25.4 Diluted earnings per share $ 0.36 $ 0.42 “Veeco delivered strong financial results this quarter, fueled by rapid expansion of High-Performance Computing and AI technologies,” said Bill Miller , Ph.D., Veeco’s Chief Executive Officer. “This performance was driven by shipments of our wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks.” Guidance and Outlook The following guidance is provided for Veeco’s third quarter 2025: Revenue is expected in the range of $150 million to $170 million GAAP diluted earnings per share are expected in the range of $0.04 to $0.22 Non-GAAP diluted earnings per share are expected in the range of $0.20 to $0.35 Conference Call Information A conference call reviewing these results has been scheduled for today, August 6, 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, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography 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: Brenden Wright (410) 984-2610 [email protected] Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts)(unaudited) Three months ended June 30 , Six months ended June 30 , 2025 2024 2025 2024 Net sales $ 166,104 $ 175,879 $ 333,396 $ 350,363 Cost of sales 97,377 100,489 196,202 199,554 Gross profit 68,727 75,390 137,194 150,809 Operating expenses, net: Research and development 31,560 31,696 60,074 61,338 Selling, general, and administrative 23,927 24,595 48,955 49,295 Amortization of intangible assets 821 1,825 1,642 3,716 Other operating expense (income), net 49 552 5 (2,307 ) Total operating expenses, net 56,357 58,668 110,676 112,042 Operating income 12,370 16,722 26,518 38,767 Interest income (expense), net 905 349 1,741 1,054 Other income (expense), net (653 ) — (653 ) — Income before income taxes 12,622 17,071 27,606 39,821 Income tax expense 889 2,127 3,926 3,023 Net income $ 11,733 $ 14,944 $ 23,680 $ 36,798 Income per common share: Basic $ 0.20 $ 0.27 $ 0.41 $ 0.66 Diluted $ 0.20 $ 0.25 $ 0.40 $ 0.61 Weighted average number of shares: Basic 59,076 56,277 58,434 56,160 Diluted 60,237 62,535 60,072 61,733 Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) June 30 , December 31 , 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 188,902 $ 145,595 Restricted cash 87 224 Short-term investments 165,890 198,719 Accounts receivable, net 106,524 96,834 Contract assets 36,475 37,109 Inventories 258,984 246,735 Prepaid expenses and other current assets 35,030 39,316 Total current assets 791,892 764,532 Property, plant and equipment, net 111,098 113,789 Operating lease right-of-use assets 25,877 26,503 Intangible assets, net 7,189 8,832 Goodwill 214,964 214,964 Deferred income taxes 119,936 120,191 Other assets 3,749 2,766 Total assets $ 1,274,705 $ 1,251,577 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 49,529 $ 43,519 Accrued expenses and other current liabilities 47,412 55,195 Contract liabilities 57,675 64,986 Income taxes payable 622 2,086 Current portion of long-term debt — 26,496 Total current liabilities 155,238 192,282 Deferred income taxes 646 689 Long-term debt 225,441 249,702 Long-term operating lease liabilities 33,413 34,318 Other liabilities 3,771 3,816 Total liabilities 418,509 480,807 Total stockholders’ equity 856,196 770,770 Total liabilities and stockholders’ equity $ 1,274,705 $ 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 (Q2 2025) (in thousands)(unaudited) Non-GAAP Adjustments Share-Based Three months ended June 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 166,104 $ 166,104 Gross profit 68,727 1,991 70,718 Gross margin 41.4 % 42.6 % Operating expenses 56,357 (7,660 ) (821 ) (255 ) 47,621 Operating income 12,370 9,651 821 255 ^ 23,097 Net income 11,733 9,651 821 (670 ) ^ 21,535 _____________________________^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2025) (in thousands)(unaudited) Three months ended June 30, 2025 Other $ 255 Subtotal 255 Non-cash interest expense 292 Other (income) expense, net 653 Non-GAAP tax adjustment * (1,870 ) Total Other $ (670 ) _____________________________* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2025) (in thousands, except per share amounts)(unaudited) Three months ended June 30, 2025 GAAP Non-GAAP Numerator: Net income $ 11,733 $ 21,535 Interest expense associated with 2027 Convertible Senior Notes 125 113 Net income available to common shareholders $ 11,858 $ 21,648 Denominator: Basic weighted average shares outstanding 59,076 59,076 Effect of potentially dilutive share-based awards 257 257 Dilutive effect of 2027 Convertible Senior Notes (1) 904 685 Diluted weighted average shares outstanding 60,237 60,018 Net income per common share: Basic $ 0.20 $ 0.36 Diluted $ 0.20 $ 0.36 _____________________________(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 (Q2 2024) (in thousands)(unaudited) Non-GAAP Adjustments Share-based Three months ended June 30, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 175,879 $ 175,879 Gross profit 75,390 1,445 76,835 Gross margin 42.9 % 43.7 % Operating expenses 58,668 (7,788 ) (1,825 ) (494 ) 48,561 Operating income 16,722 9,233 1,825 494 ^ 28,274 Net income 14,944 9,233 1,825 (570 ) ^ 25,432 _____________________________^ - See table below for additional details. Other Non-GAAP Adjustments (Q2 2024) (in thousands)(unaudited) Three months ended June 30, 2024 Changes in contingent consideration $ 494 Subtotal 494 Non-cash interest expense 316 Non-GAAP tax adjustment * (1,380 ) Total Other $ (570 ) _____________________________* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q2 2024) (in thousands, except per share amounts)(unaudited) Three months ended June 30, 2024 GAAP Non-GAAP Numerator: Net income $ 14,944 $ 25,432 Interest expense associated with 2025 and 2027 Convertible Senior Notes 512 466 Net income available to common shareholders $ 15,456 $ 25,898 Denominator: Basic weighted average shares outstanding 56,277 56,277 Effect of potentially dilutive share-based awards 1,316 1,316 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 2,050 2,050 Diluted weighted average shares outstanding 62,535 62,101 Net income per common share: Basic $ 0.27 $ 0.45 Diluted $ 0.25 $ 0.42 _____________________________(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 and 2024) (in thousands)(unaudited) Three months ended Three months ended June 30, 2025 June 30, 2024 GAAP Net income $ 11,733 $ 14,944 Share-based compensation 9,651 9,233 Amortization 821 1,825 Changes in contingent consideration — 494 Interest (income) expense, net (905 ) (349 ) Other 908 — Income tax expense (benefit) 889 2,127 Non-GAAP Operating income $ 23,097 $ 28,274 Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2025) (in millions, except per share amounts)(unaudited) Non-GAAP Adjustments Guidance for the three months ending Share-based September 30, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 150 - $ 170 $ 150 - $ 170 Gross profit 59 - 70 2 — — 61 - 72 Gross margin 39 % - 41 % 40 % - 42 % Operating expenses 57 - 58 (8 ) (1 ) — 48 - 49 Operating income 2 - 12 10 1 — 13 - 24 Net income $ 3 - $ 13 10 1 (2 ) $ 12 - $ 21 Income per diluted common share $ 0.04 - $ 0.22 $ 0.20 - $ 0.35 Weighted average number of shares 60 60 60 60 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2025) (in millions)(unaudited) Guidance for the three months ending September 30, 2025 GAAP Net income $ 3 - $ 13 Share-based compensation 10 - 10 Amortization 1 - 1 Income tax expense (benefit) (1 ) - 1 Non-GAAP Operating income $ 13 - $ 24 Note: Amounts may not calculate precisely due to rounding. Source: Veeco Instruments Inc.

View stock analysis, news, and events for Veeco Instruments Inc.