Veeco Instruments Inc. · NASDAQ:VECO
Veeco Instruments — Q3 2020 Earnings Presentation
20 slides from Veeco Instruments's earnings presentation, Oct 27, 2020
Slide 1: Q3 2020 Financial Results Conference Call
Q3 2020 Financial Results Conference Call Veeco (Nasdaq: VECO) October 27, 2020
Slide 2: Safe Harbor
Safe Harbor This presentation 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,
Slide 3: CEO Overview
CEO Overview William J. Miller, Ph.D.
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights $112M $14M 22¢ Revenue Non-GAAP Non-GAAP EPS Operating Income • Top Line driven by strength in Data Storage • Maintaining employee health measures and business resiliency during global pandemic • Demonstrated consistent profitability • Healthy backlog • $10M in cashflow from opera
Slide 5: CFO Financial Review
CFO Financial Review John P. Kiernan
Slide 6: Q3 2020 Revenue by Market & Region
Q3 2020 Revenue by Market & Region Revenue by Market Revenue by Region Front-End EMEA Semiconductor 13% 18% Scientific & China ROW Industrial 9% 42% 47% $112M 18% LED Lighting, Display & Compound Semiconductor 36% 17% United States Advanced Packaging, MEMS & RF Filters 6 Q3 2020 Financial Results Co
Slide 7: Operating Results
Operating Results GAAP Non-GAAP $ millions (except per share amounts) Q2 20 Q3 20 Q2 20 Q3 20 Revenue $98.6 $112.1 $98.6 $112.1 Gross Profit 41.9 49.1 42.4 49.8 Gross Margin 42.5% 43.8% 43.0% 44.5% Operating Expenses 41.5 42.2 34.4 35.7 Operating Income / (Loss) 0.4 7.0 8.0 14.1 Net Income / (Loss)
Slide 8: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights $ millions Q2 20 Q3 20 Cash & Short-Term Investments 301 310 Accounts Receivable 67 80 Inventories 137 143 Accounts Payable 26 34 Long-Term Debt 317 321 Cash Flow from Operations 20 10 DSO (days) 61 64 DOI 211 200 DPO 42 49 8 Q3 2020 Financial Results Conferenc
Slide 9: Q4 2020 Guidance
Q4 2020 Guidance GAAP Non-GAAP Revenue $120M - $135M $120M - $135M Gross Margin 42% - 44% 42% - 44% Operating Expenses $43M - $45M $36M - $38M Net Income / (Loss) $1M - $9M $11M - $19M Earnings/(Loss) Per Share $0.02 - $0.17 $0.22 - $0.37 9 Q3 2020 Financial Results Conference Call | All Rights Rese
Slide 10: CEO Market Update
CEO Market Update William J. Miller, Ph.D.
Slide 11: Markets and Technologies
Markets and Technologies Market Served Drivers Veeco Technologies Laser Annealing Front End Semi High Performance Computing Ion Beam Compound MOCVD Photonics / 5G Semi* Wet Etch & Clean Scientific & Cloud / Data Storage Ion Beam Industrial Advanced Packaging, AI / High Performance Computing AP Litho
Slide 12: Market Segmentation Update
Market Segmentation Update Current Market Segments Future Market Segments Front-End Semiconductor Semiconductor (includes Advanced Packaging) LED Lighting, Display & Compound Semiconductor Compound Semiconductor (includes RF Filters) Advanced Packaging, Data Storage MEMS & RF Filters Scientific & In
Slide 13: 2020 Progress
2020 Progress Phase I of Company Transformation Phase II of Company Transformation Resilient Strengthen Focus Extend essential business leverage & profitability product lines core technologies • Employees • Reduce operating expenses • Optimize R&D spending • Front End Semi • Service • Deliver strong
Slide 14: Q&A
MAKING A MATERIAL DIFFERENCE Q&A
Slide 15: Reconciliation Tables
MAKING A MATERIAL DIFFERENCE Reconciliation Tables
Slide 16: Note on Reconciliation Tables
Note on Reconciliation Tables These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: sh
Slide 17: Supplemental Information—GAAP to Non-GAAP Reconciliation
Supplemental Information—GAAP to Non-GAAP Reconciliation US$ millions Q2 20 Q3 20 US$ millions, except per share amounts Q2 20 Q3 20 Net Sales $98.6 $112.1 GAAP Basic EPS (0.17) 0.01 GAAP Gross Profit 41.9 49.1 GAAP Diluted EPS (0.17) 0.01 GAAP Gross Margin 42.5% 43.8% GAAP Net Income (Loss) (8.3) 0
Slide 18: Q3 2020 Actual: GAAP to Non-GAAP Reconciliation
Q3 2020 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 $112.1 $112.1 Gross Profit 49.1 0.4 0.3 49.8 Gross Margin 43.8% 44.5% Operating Expenses 42.2 (2.6) (3.8) 35.8 Operating Inco
Slide 19: Q4 2020 Guidance: GAAP to Non-GAAP Reconciliation
Q4 2020 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 $120–$135 $120–$136 Gross Profit 50–60 — — — 50–60 Gross Margin 42%–44% 42%–44% Operating Expenses $43–$45 (3) (4) — $36–$3
Slide 20: Thank You
MAKING A MATERIAL DIFFERENCE *