EX-99.1 2 veco-20240507xex99d1.htm EX-99.1

EXHIBIT 99.1

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VEECO REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

First Quarter 2024 Highlights:

Revenue of $174.5 million, compared with $153.5 million in the same period last year
GAAP net income of $21.9 million, or $0.37 per diluted share, compared with $8.7 million, or $0.17 per diluted share in the same period last year
Non-GAAP net income of $26.4 million, or $0.45 per diluted share, compared with $16.9 million, or $0.30 per diluted share in the same period last year

Plainview, N.Y., May 7, 2024 -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2024. 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 '24

Q1 '23

Revenue

$

174.5

$

153.5

Net income

$

21.9

$

8.7

Diluted earnings per share

$

0.37

$

0.17

Non-GAAP Results

 

Q1 '24

Q1 '23

Operating income

$

29.4

$

20.4

Net income

$

26.4

$

16.9

Diluted earnings per share

$

0.45

$

0.30

We delivered solid top and bottom line results toward the high-end of our guidance, led by record quarterly Semiconductor revenue.” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “We’re pleased to have received a multi-tool laser annealing order, including a Nanosecond annealing system, from a leading edge Semiconductor company for their 2 nanometer gate-all-around process. Our Laser Annealing business continues to gain share at our customers most advanced nodes, with this win further validating our position.”

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Guidance and Outlook

The following guidance is provided for Veeco’s second quarter 2024:

Revenue is expected in the range of $165 million to $185 million
GAAP diluted earnings per share are expected in the range of $0.22 to $0.33
Non-GAAP diluted earnings per share are expected in the range of $0.38 to $0.48

Conference Call Information

A conference call reviewing these results has been scheduled for today, May 7, 2024 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, chemical vapor deposition (CVD), 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) 500-8798apappone@veeco.com

Media:Kevin Long (516) 714-3978klong@veeco.com

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Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)
(unaudited)

Three months ended March 31,

 

    

2024

    

2023

 

Net sales

 

$

174,484

 

$

153,504

Cost of sales

 

99,065

 

91,487

Gross profit

 

75,419

 

62,017

Operating expenses, net:

Research and development

 

29,642

 

27,562

Selling, general, and administrative

 

24,700

 

22,627

Amortization of intangible assets

 

1,891

 

2,111

Other operating expense (income), net

 

(2,859)

 

(89)

Total operating expenses, net

 

53,374

 

52,211

Operating income

 

22,045

 

9,806

Interest expense, net

 

705

 

(802)

Income before income taxes

 

22,750

 

9,004

Income tax expense

 

896

 

263

Net income

 

$

21,854

 

$

8,741

Income per common share:

Basic

 

$

0.39

 

$

0.17

Diluted

 

$

0.37

 

$

0.17

Weighted average number of shares:

Basic

 

55,968

 

50,559

Diluted

 

60,764

 

59,856

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Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in thousands)

March 31,

December 31,

    

2024

    

2023

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

173,998

$

158,781

Restricted cash

 

326

 

339

Short-term investments

 

122,886

 

146,664

Accounts receivable, net

 

106,532

 

103,018

Contract assets

 

34,336

 

24,370

Inventories

 

243,266

 

237,635

Prepaid expenses and other current assets

 

34,550

 

35,471

Total current assets

 

715,894

 

706,278

Property, plant and equipment, net

 

115,297

 

118,459

Operating lease right-of-use assets

23,685

 

24,377

Intangible assets, net

 

42,054

 

43,945

Goodwill

 

214,964

 

214,964

Deferred income taxes

 

118,724

 

117,901

Other assets

 

3,075

 

3,117

Total assets

$

1,233,693

$

1,229,041

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

54,011

$

42,383

Accrued expenses and other current liabilities

 

59,259

 

57,624

Contract liabilities

 

93,812

 

118,026

Income taxes payable

 

852

 

Current portion of long-term debt

26,425

Total current liabilities

 

234,359

 

218,033

Deferred income taxes

 

6,496

 

6,552

Long-term debt

 

248,811

 

274,941

Long-term operating lease liabilities

30,949

 

31,529

Other liabilities

 

25,168

 

25,544

Total liabilities

 

545,783

 

556,599

Total stockholders’ equity

 

687,910

 

672,442

Total liabilities and stockholders’ equity

$

1,233,693

$

1,229,041

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.

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Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024)

(in thousands)
(unaudited)

Non-GAAP Adjustments

 

Share-Based

 

Three months ended March 31, 2024

    

GAAP

    

Compensation

    

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.

5


Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2023)

(in thousands, except per share amounts)
(unaudited)

Non-GAAP Adjustments

 

Share-based

Three months ended March 31, 2023

    

GAAP

    

Compensation

    

Amortization

    

Other

    

Non-GAAP

Net sales

$

153,504

$

153,504

Gross profit

 

62,017

 

1,451

 

232

 

63,700

Gross margin

 

40.4

%  

41.5

%

Operating expenses

 

52,211

 

(5,576)

(2,111)

(1,266)

43,258

Operating income

 

9,806

 

7,027

2,111

 

1,498

^

20,442

Net income

 

8,741

 

7,027

 

2,111

 

(1,006)

^

16,873


^

- See table below for additional details.

Other Non-GAAP Adjustments (Q1 2023)

(in thousands)
(unaudited)

Three months ended March 31, 2023

Transition expenses related to San Jose expansion project

$

780

Acquisition related

718

Subtotal

1,498

Non-cash interest expense

 

226

Non-GAAP tax adjustment *

 

(2,730)

Total Other

$

(1,006)


*

- The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2023)

(in thousands, except per share amounts)
(unaudited)

Three months ended March 31, 2023

GAAP

Non-GAAP

Numerator:

Net income

    

$

8,741

    

$

16,873

Interest expense associated with convertible notes

 

1,277

 

 

2,354

Net income available to common shareholders

$

10,018

$

19,227

Denominator:

Basic weighted average shares outstanding

50,559

50,559

Effect of potentially dilutive share-based awards

355

355

Dilutive effect of 2023 Convertible Senior Notes

82

Dilutive effect of 2025 Convertible Senior Notes

5,521

Dilutive effect of 2027 Convertible Senior Notes (1)

 

8,942

 

 

6,771

Diluted weighted average shares outstanding

59,856

63,288

Net income per common share:

Basic

$

0.17

$

0.33

Diluted

$

0.17

$

0.30


(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.

6


Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2024 and 2023)

(in thousands)
(unaudited)

    

Three months ended

    

Three months ended

March 31, 2024

March 31, 2023

GAAP Net income

$

21,854

$

8,741

Share-based compensation

 

8,082

 

7,027

Amortization

 

1,891

 

2,111

Sale of productive assets

 

(2,033)

 

Changes in contingent consideration

 

(625)

 

Transition expenses related to San Jose expansion project

780

Acquisition related

 

 

718

Interest (income) expense, net

 

(705)

 

802

Income tax expense

 

896

 

263

Non-GAAP Operating income

$

29,360

$

20,442

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2024)

(in millions, except per share amounts)

(unaudited)

Non-GAAP Adjustments

 

Guidance for the three months ending

Share-based

 

June 30, 2024

GAAP

Compensation

Amortization

   Other    

Non-GAAP

 

Net sales

    

$

165

    

-

    

$

185

    

    

    

    

$

165

    

-

    

$

185

Gross profit

 

69

 

-

 

80

 

2

 

 

 

71

 

-

 

82

Gross margin

 

42%

-

 

43%

 

 

 

43%

-

 

44%

Operating expenses

55

 

-

 

57

(7)

(2)

46

 

-

 

48

Operating income

14

-

23

9

2

25

-

33

Net income

$

13

 

-

$

20

 

9

 

2

(2)

$

22

 

-

$

29

Income per diluted common share

$

0.22

 

-

$

0.33

 

  

 

  

 

  

$

0.38

 

-

$

0.48

7


Income per Diluted Common Share (Q2 2024)

(in millions, except per share amounts)
(unaudited)

Guidance for the three months ending June 30, 2024

GAAP

Non-GAAP

Numerator:

Net income

    

$

13

    

-

    

$

20

    

$

22

    

-

    

$

29

Interest expense associated with convertible notes

 

 

 

 

 

 

 

Net income available to common shareholders

$

13

-

$

20

$

22

-

$

29

Denominator:

Basic weighted average shares outstanding

56

56

56

56

Effect of potentially dilutive share-based awards

2

 

2

2

 

2

Dilutive effect of 2025 Convertible Senior Notes

1

1

1

1

Dilutive effect of 2027 Convertible Senior Notes (1)

2

 

2

 

1

 

1

Dilutive effect of 2029 Convertible Senior Notes

 

1

 

1

 

 

1

 

1

Diluted weighted average shares outstanding

62

62

61

61

Net income per common share:

Income per diluted common share

$

0.22

-

$

0.33

$

0.38

-

$

0.48


(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 2024)

(in millions)
(unaudited)

Guidance for the three months ending June 30, 2024

    

    

    

GAAP Net income

$

13

 

-

$

20

Share-based compensation

 

9

 

-

 

9

Amortization

 

2

 

-

 

2

Interest income, net

 

(1)

 

-

 

(1)

Income tax expense

2

-

3

Non-GAAP Operating income

$

25

 

-

$

33

Note: Amounts may not calculate precisely due to rounding.

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