Oppenheimer Technology, Internet & Communications Conference

Transcription

1 Oppenheimer Technology, Internet & Communications Conference Veeco Instruments August 11, Investor Presentation

2 Veeco at a Glance > Leading deposition and etch solutions provider; Veeco enables high-tech electronic device manufacturing > Founded in 1989 > $393 million in 2014 sales > $396 million in cash > Operations in 10 countries > Based in Plainview, New York > ~800 employees worldwide 2 Oppenheimer Conference 2015 Veeco Instruments Inc.

3 Q Financial Performance Bookings $124M Revenue $131M Non-GAAP Gross Margin* 38% Adjusted EBITDA $12.8M Non-GAAP Diluted EPS* $0.20 Cash Stable at $396M * A reconciliation of GAAP to Non-GAAP financial measures is contained in Back Up & Reconciliation Tables 3 Oppenheimer Conference 2015 Veeco Instruments Inc.

4 Delivering Solid Financial Performance Revenue ($M) Gross Margin % Q2 14 Q3 14 Q4 14 Q1 15 Q Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 EBITDA ($M) Cash Flow from Operations ($M) Q2 14 Q3 14 Q4 14 Q1 15 Q Q2 14 Q3 14 Q4 14 Q1 15 Q Oppenheimer Conference 2015 Veeco Instruments Inc.

5 Q Market and Geography Data $124M Bookings by Market $131M Revenue by Market Scientific & Industrial Data Storage Advanced Packaging, MEMS & RF 6% 14% 10% 7% 14% 14% 70% 65% Lighting, Display & Power Electronics Data Storage Scientific & Industrial Advanced Packaging, MEMS & RF 14% 11% 13% 62% Lighting, Display & Power Electronics Revenue by Geography Rest of the World 18% 15% United States EMEA 17% 50% China Note: Amounts may not calculate precisely due to rounding 5 Oppenheimer Conference 2015 Veeco Instruments Inc.

6 Megatrends Fueling Massive Investment Energy Efficiency Mobility Internet of Things $48 trillion investment needed to meet energy needs to Billion Smart Phone Shipments in Billion Connected Devices by Gartner, 1 Ovum 2, International Energy Agency 3 6 Oppenheimer Conference 2015 Veeco Instruments Inc.

7 Veeco s Markets Well Aligned with Megatrends Energy Efficiency Mobility Internet of Things Driving today s growth LED Lighting & Display MEMS* & RF Fueling tomorrow s opportunities Advanced Power Electronics Advanced Packaging 7 Oppenheimer Conference 2015 Veeco Instruments Inc. *Micro-Electro -Mechanical Systems

8 Product Portfolio Aligned with Market Needs MOCVD Thin film process technology Precision Surface Processing Flexible process technology LED Lighting & Display MEMS & RF EPIK 700 WaferStorm 3300 Advanced Power Electronics Advanced Packaging Propel PowerGaN WaferEtch Oppenheimer Conference 2015 Veeco Instruments Inc.

9 Executing 2015 Objectives Strengthening Core Businesses > LED manufacturers recognize the value of industry leading EPIK 700 MOCVD System > Solid execution drives PSP revenue above target plan Penetrating New Markets > First Propel MOCVD System for GaN power electronics recognized revenue six months after launch > PSP gaining traction in WLFO* and TSV* Advanced Packaging applications Driving Profitable Growth > 2015 revenue growth forecast of >35% > Margins and profitability expanding 9 Oppenheimer Conference 2015 Veeco Instruments Inc. * WFLO Wafer Level Fan Out TSV Through Silicon Via

10 10 Oppenheimer Conference 2015 Veeco Instruments Inc. Thank You

11 Safe Harbor To the extent that this presentation 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 items 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, 2014 and subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K. Veeco does not undertake any obligation to update any forwardlooking statements to reflect future events or circumstances after the date of such statements. 11 Oppenheimer Conference 2015 Veeco Instruments Inc.

12 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: share-based compensation expense; non-recurring charges relating to restructuring initiatives, non-cash asset impairments, certain other non-operating gains and losses, and acquisition-related items such as one-time transaction costs, non-cash amortization of acquired intangible assets, incremental non-recurring compensation, and the stepped-up cost of sales associated with the purchase accounting of acquired inventory. 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 as 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 adjusted EBITDA, 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 Veeco s news release to their most directly comparable GAAP financial measures. 12 Oppenheimer Conference 2015 Veeco Instruments Inc.

13 Q GAAP to Non-GAAP Reconciliation In millions, except per share data Non-GAAP Adjustments GAAP Share-based Compensation Acquisition Related Other Non-GAAP Net sales $ $131.4 Gross profit Gross margin 37.3% 37.9% SG&A 24.4 (3.1) (0.2) R&D 20.1 (1.1) Amortization (8.0) - - Restructuring (0.7) - Other items (0.1) (0.1) Operating income (loss) ($4.0) $4.9 $8.2 $0.7 $9.8 Interest income, net Taxes (3.0) 1.5 Net income (loss) ($8.4) $4.9 $8.2 $3.7 $8.4 Basic EPS ($0.21) $0.21 Diluted EPS ($0.21) $0.20 Basic shares Diluted shares Non-GAAP operating income $9.8 Depreciation $3.0 Adjusted EBITDA $12.8 Note: Amounts may not calculate precisely due to rounding 13 Oppenheimer Conference 2015 Veeco Instruments Inc.