EX-99.1 2 a07-5047_6ex99d1.htm EX-99.1

EXHIBIT 99.1

                    NEWS

Veeco Instruments Inc., 100 Sunnyside Boulevard, Suite B, Woodbury, New York 11797. Tel. 1 516-677-0200 Fax. 1 516-677-0380

FOR IMMEDIATE RELEASE

Financial Contact: Debra Wasser, SVP Investor Relations & Corporate Communications, 1 516-677-0200 x1472

Media Contact:  Fran Brennen, Senior Director Marcom, 1 516-677-0200 x1222

VEECO ANNOUNCES FIRST QUARTER 2007 FINANCIAL RESULTS

WOODBURY, NY, April 24, 2007 — Veeco Instruments Inc. (Nasdaq: VECO) today announced its financial results for the first quarter ended March 31, 2007. Veeco reports its results on a generally accepted accounting principles (“GAAP”) basis, and also provides results excluding certain items.  Investors should refer to the attached table for further details of the reconciliation of GAAP operating income to earnings excluding certain items.

First Quarter 2007 Highlights

·                  Revenue was $99.2 million, in line with guidance and a 6% increase over the $93.9 million reported in the first quarter of 2006. Shipments were approximately $110 million, reflecting increased new product activity with revenue recognition expected in subsequent quarters.

·                  Gross margins were 44%, ahead of Veeco’s guidance.

·                  Bookings were $105.9 million, in line with Veeco’s guidance range, and 16% below prior year.

·                  Net income was $0.3 million, or $0.01 per share (GAAP), compared to net loss of $0.2 million, or ($0.01) per share, last year, in line with Veeco’s guidance.

·                  Earnings per share, excluding certain items, were $0.10 compared to $0.09 last year, in line with guidance.

Edward H. Braun, Veeco’s Chairman and Chief Executive Officer, commented, “Veeco’s results were in line with guidance.  Revenues of $99.2 million produced a gross margin of 44%, higher than our forecast due to improved margins in metal organic chemical vapor deposition (MOCVD) systems. Veeco also recently reduced long-term debt by $56.0 million and exchanged a substantial portion of its Convertible Notes, significantly improving the Company’s capital structure.”

“Veeco’s first quarter orders of $105.9 million reflected significant growth in the high-brightness light emitting diode (HB-LED)/wireless sector and stabilization of data storage,” added Mr. Braun. “Veeco’s HB-LED/wireless revenues were up 39% and orders were up 60% year-over-year, as we continue to experience positive customer acceptance for our new K-Series MOCVD systems. We received multi-system orders from six LED customers. First quarter data storage orders of $29.4 million increased 37% sequentially from the fourth quarter trough. We expect continued growth in

5



the second quarter, as data storage investments in areal density, perpendicular recording and larger wafer sizes are required.”

First Quarter 2007 Summary

Veeco’s revenues for the first quarter of 2007 were $99.2 million, compared to $93.9 million in the first quarter of last year. First quarter 2007 operating income was $1.7 million, compared with operating income of $1.6 million in the first quarter of 2006.  Veeco’s first quarter 2007 EBITA was $5.6 million, approximately flat compared to the prior year.  First quarter net income was $0.3 million, or $0.01 per share, compared to a net loss of $0.2 million, or ($0.01) per share, in the first quarter of 2006.  Excluding certain items, and using a 35% tax rate in both periods, first quarter 2007 earnings were $0.10 per share, compared to earnings per share of $0.09 in 2006.  Details of revenues and bookings appear in the following tables.

Q1 2007 Revenues

Segment Analysis

 

$ Millions

 

%

 

Market Analysis

 

%

 

Regional Analysis

 

%

 

Process Equipment

 

$

58.1

 

59

%

Data Storage

 

36

%

North America

 

35

%

 

 

 

 

 

 

Semiconductor

 

10

%

Europe

 

15

%

Metrology

 

$

41.1

 

41

%

HB-LED/wireless

 

21

%

Japan

 

20

%

 

 

 

 

 

 

Scientific Research

 

33

%

APAC

 

30

%

Total

 

$

99.2

 

100

%

Total

 

100

%

Total

 

100

%

 

Q1 2007 Bookings

Segment Analysis

 

$ Millions

 

%

 

Market Analysis

 

%

 

Regional Analysis

 

%

 

Process Equipment

 

$

68.7

 

65

%

Data Storage

 

28

%

North America

 

32

%

 

 

 

 

 

 

Semiconductor

 

11

%

Europe

 

18

%

Metrology

 

$

37.2

 

35

%

HB-LED/wireless

 

37

%

Japan

 

12

%

 

 

 

 

 

 

Scientific Research

 

24

%

APAC

 

38

%

Total

 

$

105.9

 

100

%

Total

 

100

%

Total

 

100

%

Veeco’s first quarter book-to-bill ratio was 1.07 to 1.0.

Outlook

Veeco currently expects revenues to be in the range of $100-105 million for the second quarter of 2007, with earnings per share currently forecasted to be between ($0.03)-$0.02 on a GAAP basis and $0.07-$0.10 on a non-GAAP basis (excluding amortization of $2.5 million and using a 35% tax rate). Veeco currently expects that its second quarter 2007 bookings will be $110 million +/ - 5%.

Veeco will host a conference call reviewing these results at 5:00PM ET today at 1-800-500-0177 (toll free) or 1-719-457-2679.  The call will also be webcast live on the Veeco website at www.veeco.com.  A replay of the call will be available beginning at 8:00pm ET today through

6



midnight on May 8, 2007 at 1-888-203-1112 or 1-719-457-0820, using pass code 4739914, or on the Veeco website.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in the worldwide data storage, semiconductor, HB-LED/wireless and scientific research markets. Our Metrology products are used to measure at the nanoscale and our Process Equipment tools help create nanoscale devices. Veeco’s manufacturing and engineering facilities are located in New York, New Jersey, California, Colorado, Arizona and Minnesota. Global sales and service offices are located throughout the United States, Europe, Japan and Asia Pacific. Additional information on Veeco can be found at http://www.veeco.com/.

To the extent that this news release 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 factors include the risk factors discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2006.  Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

- financial tables attached -

7



 

Veeco Instruments Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Net sales

 

$

99,166

 

$

93,918

 

Cost of sales

 

55,471

 

52,149

 

Gross profit

 

43,695

 

41,769

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Selling, general and administrative expense

 

22,806

 

21,330

 

Research and development expense

 

15,389

 

14,586

 

Amortization expense

 

3,909

 

4,015

 

Other (income) expense, net

 

(147

)

199

 

 

 

 

 

 

 

Operating income

 

1,738

 

1,639

 

 

 

 

 

 

 

Interest expense, net

 

819

 

1,378

 

Gain on extinguishment of debt

 

(738

)

(330

)

 

 

 

 

 

 

Income before income taxes and noncontrolling interest

 

1,657

 

591

 

 

 

 

 

 

 

Income tax provision

 

1,494

 

833

 

Noncontrolling interest

 

(130

)

—

 

Net income (loss)

 

$

293

 

($242

)

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

Net income (loss) per common share

 

$

0.01

 

($0.01

)

Diluted net income (loss) per common share

 

$

0.01

 

($0.01

)

 

 

 

 

 

 

Weighted average shares outstanding

 

30,899

 

30,081

 

Diluted weighted average shares outstanding

 

31,281

 

30,081

 

 



 

Veeco Instruments Inc. and Subsidiaries

Reconciliation of operating income to earnings excluding certain items

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

1,738

 

$

1,639

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Amortization expense

 

3,909

 

4,015

 

 

 

 

 

 

 

Earnings before interest, income taxes and amortization excluding certain items (“EBITA”)

 

5,647

 

5,654

 

 

 

 

 

 

 

Interest expense, net

 

819

 

1,378

 

 

 

 

 

 

 

Gain on extinguishment of debt

 

(738

)(1)

(330

)(2)

 

 

 

 

 

 

Adjustment to exclude gain on extinguishment of debt

 

738

 

330

 

 

 

 

 

 

 

Earnings excluding certain items before income taxes

 

4,828

 

4,276

 

 

 

 

 

 

 

Income tax provision at 35%

 

1,690

 

1,497

 

 

 

 

 

 

 

Earnings excluding certain items

 

$

3,138

 

$

2,779

 

 

 

 

 

 

 

Earnings excluding certain items per diluted share

 

$

0.10

 

$

0.09

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

31,281

 

30,655

 

(1)     During the first quarter of 2007, the Company repurchased $56.0 million aggregate principal amount of its 4.125% convertible subordinated notes.  As a result of this repurchase, the amount of convertible subordinated notes outstanding was reduced to $144.0 million, and the Company recorded a gain from the early extinguishment of debt in the amount of $0.7 million.

(2)     During the first quarter of 2006, the Company repurchased $20.0 million aggregate principal amount of its 4.125% convertible subordinated notes.  As a result of this repurchase, the amount of convertible subordinated notes outstanding was reduced to $200.0 million, and the Company recorded a gain from the early extinguishment of debt in the amount of $0.3 million.

NOTE — The above reconciliation is intended to present Veeco’s operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used by management to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.



 

Veeco Instruments Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2007

 

2006

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

94,569

 

$

147,046

 

Accounts receivable, net

 

81,368

 

86,589

 

Inventories, net

 

105,620

 

100,355

 

Prepaid expenses and other current assets

 

9,370

 

9,378

 

Deferred income taxes

 

2,861

 

2,565

 

Total current assets

 

293,788

 

345,933

 

 

 

 

 

 

 

Property, plant and equipment, net

 

71,675

 

73,510

 

Goodwill

 

100,898

 

100,898

 

Other assets, net

 

64,791

 

69,259

 

Total assets

 

$

531,152

 

$

589,600

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

39,828

 

$

40,588

 

Accrued expenses

 

43,404

 

48,714

 

Deferred profit

 

2,882

 

251

 

Income taxes payable

 

2,713

 

2,723

 

Current portion of long-term debt

 

5,524

 

5,597

 

Total current liabilities

 

94,351

 

97,873

 

 

 

 

 

 

 

Deferred income taxes

 

2,662

 

2,423

 

Long-term debt

 

147,563

 

203,607

 

Other non-current liabilities

 

2,176

 

2,304

 

Total non-current liabilities

 

152,401

 

208,334

 

 

 

 

 

 

 

Noncontrolling interest

 

1,512

 

1,642

 

 

 

 

 

 

 

Shareholders’ equity

 

282,888

 

281,751

 

Total liabilities and shareholders’ equity

 

$

531,152

 

$

589,600