PLAINVIEW, N.Y.--(BUSINESS WIRE)--
Veeco Instruments Inc. (Nasdaq:VECO) announced its financial results for
the third quarter ended September 30, 2014. Veeco reports its results on
a U.S. generally accepted accounting principles (“GAAP”) basis, and also
provides results excluding certain items. Refer to the attached table
for details of the reconciliation between GAAP operating results and
Non-GAAP operating results.
GAAP Results ($M except per share data)
|
|
|
|
|
|
|
|
Q3 ‘14
|
|
|
|
Q3 ‘13
|
Revenues
|
|
|
|
|
|
|
|
$93.3
|
|
|
|
$99.3
|
Net loss
|
|
|
|
|
|
|
|
($14.0)
|
|
|
|
($6.0)
|
Per share loss
|
|
|
|
|
|
|
|
($0.35)
|
|
|
|
($0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results ($M except per share data)
|
|
|
|
|
|
|
|
Q3 ‘14
|
|
|
|
Q3 ‘13
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
($1.8)
|
|
|
|
($1.8)
|
Net loss
|
|
|
|
|
|
|
|
($0.8)
|
|
|
|
($3.0)
|
Per share loss
|
|
|
|
|
|
|
|
($0.02)
|
|
|
|
($0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Veeco reported $93 million in revenues, a slight decline from the
second quarter of 2014, as an increase in MOCVD revenue was offset by
declines in our other businesses,” commented John R. Peeler, Chairman
and Chief Executive Officer. “We have been steadily improving Veeco’s
bottom line performance this year by lowering our operating expenses and
driving higher gross margins, resulting in an adjusted EBITDA loss of
$2M. We continue to manage our cash well, ending the quarter with a cash
balance of $487 million, up $2 million from the prior quarter.”
“Third quarter 2014 orders were $107 million, higher than the second
quarter of 2014,” continued Peeler. “LED & Solar orders totaled $93M,
the highest level since the third quarter of 2011, driven by an 8%
increase in MOCVD. MBE won several key R&D deals and booked a total of
$9 million in the quarter, the highest level this year. We also booked
our prototype FAST-ALD system for development of flexible OLED displays
at our key customer. With no capacity purchases by hard drive customers,
Data Storage orders remained weak at $14M.”
Outlook
Veeco’s fourth quarter 2014 revenue is currently forecasted to be
between $100 and $115 million. Earnings per share is currently
forecasted to be a loss of between ($0.25) to ($0.13) on a GAAP basis,
and a ($0.03) loss to $0.09 earnings on a non-GAAP basis. Please refer
to the attached financial table for more details.
Peeler added, “Veeco’s second half 2014 orders are currently expected to
be higher than the first half, driven by growth in MOCVD, as LED unit
demand and quoting activity remain strong. Veeco is making progress
improving bottom line performance through a combination of better
business conditions, execution on growth initiatives, and a more
streamlined company with lower operating expenses.”
Conference Call Information
A conference call reviewing these results has been scheduled for today
at 5:00pm ET. To join the call, dial 1-888-684-1278 (toll free) or
1-913-312-0829 and use passcode 7677500. The call will also be webcast
live on the Veeco website at ir.veeco.com. A replay of the call will be
available beginning tonight at 8:00pm ET through 8:00pm ET on Wednesday,
November 12, 2014 at 1-888-203-1112 (toll free) or 1-719-457-0820, using
passcode 7677500, and on the Veeco website. We will post an
accompanying slide presentation to our website prior to the beginning of
the call.
About Veeco
Veeco’s process equipment solutions enable the manufacture of LEDs,
flexible OLED displays, solar cells, power electronics, hard drives,
MEMS and wireless chips. We are the market leader in MOCVD, MBE, Ion
Beam and other advanced thin film process technologies. Our high
performance systems drive innovation in energy efficiency, consumer
electronics and network storage and allow our customers to maximize
productivity and achieve lower cost of ownership. For information on our
company, products and worldwide service and support, please visit 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 risks 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, 2013 and in
our subsequent quarterly reports on Form 10-Q, current reports on Form
8-K and press releases. 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-
Veeco Instruments Inc. and Subsidiaries
|
Consolidated Statements of Operations
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Net sales
|
|
$
|
93,341
|
|
|
$
|
99,324
|
|
|
$
|
279,304
|
|
|
$
|
258,540
|
|
Cost of sales
|
|
|
60,783
|
|
|
|
69,016
|
|
|
|
182,296
|
|
|
|
171,040
|
|
Gross profit
|
|
|
32,558
|
|
|
|
30,308
|
|
|
|
97,008
|
|
|
|
87,500
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
21,712
|
|
|
|
19,650
|
|
|
|
65,270
|
|
|
|
59,077
|
|
Research and development
|
|
|
19,968
|
|
|
|
18,993
|
|
|
|
60,747
|
|
|
|
60,600
|
|
Amortization
|
|
|
3,149
|
|
|
|
855
|
|
|
|
8,951
|
|
|
|
2,566
|
|
Restructuring
|
|
|
2,317
|
|
|
|
1,240
|
|
|
|
3,510
|
|
|
|
1,771
|
|
Asset impairment
|
|
|
2,864
|
|
|
|
-
|
|
|
|
2,864
|
|
|
|
-
|
|
Total operating expenses
|
|
|
50,010
|
|
|
|
40,738
|
|
|
|
141,342
|
|
|
|
124,014
|
|
Other operating, net
|
|
|
36
|
|
|
|
(493
|
)
|
|
|
(334
|
)
|
|
|
(141
|
)
|
Changes in contingent consideration
|
|
|
-
|
|
|
|
-
|
|
|
|
(29,368
|
)
|
|
|
-
|
|
Operating income (loss)
|
|
|
(17,488
|
)
|
|
|
(9,937
|
)
|
|
|
(14,632
|
)
|
|
|
(36,373
|
)
|
Interest income (expense), net
|
|
|
305
|
|
|
|
192
|
|
|
|
541
|
|
|
|
620
|
|
Income (loss) before income taxes
|
|
|
(17,183
|
)
|
|
|
(9,745
|
)
|
|
|
(14,091
|
)
|
|
|
(35,753
|
)
|
Income tax provision (benefit)
|
|
|
(3,206
|
)
|
|
|
(3,719
|
)
|
|
|
(4,063
|
)
|
|
|
(15,575
|
)
|
Net income (loss)
|
|
$
|
(13,977
|
)
|
|
$
|
(6,026
|
)
|
|
$
|
(10,028
|
)
|
|
$
|
(20,178
|
)
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Income (loss)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.16
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.52
|
)
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Income (loss)
|
|
$
|
(0.35
|
)
|
|
$
|
(0.16
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.52
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,401
|
|
|
|
38,841
|
|
|
|
39,317
|
|
|
|
38,774
|
|
Diluted
|
|
|
39,401
|
|
|
|
38,841
|
|
|
|
39,317
|
|
|
|
38,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(In thousands)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
264,008
|
|
$
|
210,799
|
Short-term investments
|
|
|
222,954
|
|
|
281,538
|
Restricted cash
|
|
|
487
|
|
|
2,738
|
Accounts receivable, net
|
|
|
61,588
|
|
|
23,823
|
Inventories
|
|
|
46,594
|
|
|
59,726
|
Prepaid expenses and other current assets
|
|
|
51,332
|
|
|
23,303
|
Assets held for sale
|
|
|
2,653
|
|
|
-
|
Deferred income taxes
|
|
|
8,384
|
|
|
11,716
|
Total current assets
|
|
|
658,000
|
|
|
613,643
|
|
|
|
|
|
Property, plant and equipment at cost, net
|
|
|
80,720
|
|
|
89,139
|
Goodwill
|
|
|
91,521
|
|
|
91,348
|
Deferred income taxes
|
|
|
397
|
|
|
397
|
Intangible assets, net
|
|
|
106,015
|
|
|
114,716
|
Other assets
|
|
|
19,745
|
|
|
38,726
|
Total assets
|
|
$
|
956,398
|
|
$
|
947,969
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
26,113
|
|
$
|
35,755
|
Accrued expenses and other current liabilities
|
|
|
40,468
|
|
|
51,084
|
Customer deposits and deferred revenue
|
|
|
65,553
|
|
|
34,754
|
Income taxes payable
|
|
|
6,840
|
|
|
6,149
|
Deferred income taxes
|
|
|
159
|
|
|
159
|
Current portion of long-term debt
|
|
|
308
|
|
|
290
|
Total current liabilities
|
|
|
139,441
|
|
|
128,191
|
|
|
|
|
|
Deferred income taxes
|
|
|
19,741
|
|
|
28,052
|
Long-term debt
|
|
|
1,614
|
|
|
1,847
|
Other liabilities
|
|
|
3,484
|
|
|
9,649
|
Total liabilities
|
|
|
164,280
|
|
|
167,739
|
|
|
|
|
|
Equity
|
|
|
792,118
|
|
|
780,230
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
956,398
|
|
$
|
947,969
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
|
Reconciliation GAAP to Non-GAAP Financial Data
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
For the three months ended September 30, 2014
|
|
GAAP
|
|
Equity-based
Compensation
|
|
Other
|
|
Non-GAAP
|
|
|
Net sales
|
|
$
|
93,341
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
93,341
|
|
|
|
Cost of sales
|
|
|
60,783
|
|
|
|
(619
|
)
|
|
|
-
|
|
|
|
60,164
|
|
|
|
Gross profit
|
|
|
32,558
|
|
|
|
619
|
|
|
|
-
|
|
|
|
33,177
|
|
|
|
Gross margin
|
|
|
34.9
|
%
|
|
|
|
|
|
|
35.5
|
%
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
21,712
|
|
|
|
(2,766
|
)
|
|
|
-
|
|
|
|
18,946
|
|
|
|
Research and development
|
|
|
19,968
|
|
|
|
(1,105
|
)
|
|
|
-
|
|
|
|
18,863
|
|
|
|
Amortization
|
|
|
3,149
|
|
|
|
-
|
|
|
|
(3,149
|
)
|
|
|
-
|
|
|
|
Restructuring
|
|
|
2,317
|
|
|
|
-
|
|
|
|
(2,317
|
)
|
|
|
-
|
|
|
|
Asset impairment
|
|
|
2,864
|
|
|
|
-
|
|
|
|
(2,864
|
)
|
|
|
-
|
|
|
|
Total operating expenses
|
|
|
50,010
|
|
|
|
(3,871
|
)
|
|
|
(8,330
|
)
|
|
|
37,809
|
|
|
|
Other operating, net
|
|
|
36
|
|
|
|
-
|
|
|
|
-
|
|
|
|
36
|
|
|
|
Operating income (loss)
|
|
|
(17,488
|
)
|
|
|
4,490
|
|
|
|
8,330
|
|
|
|
(4,668
|
)
|
|
|
Interest income (expense), net
|
|
|
305
|
|
|
|
-
|
|
|
|
-
|
|
|
|
305
|
|
|
|
Income (loss) before income taxes
|
|
|
(17,183
|
)
|
|
|
4,490
|
|
|
|
8,330
|
|
|
|
(4,363
|
)
|
|
|
Income tax provision (benefit)
|
|
|
(3,206
|
)
|
|
|
(140
|
)
|
|
|
(261
|
)
|
|
|
(3,607
|
)
|
|
(1)
|
Net income (loss)
|
|
$
|
(13,977
|
)
|
|
$
|
4,630
|
|
|
$
|
8,591
|
|
|
$
|
(756
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
(0.35
|
)
|
|
|
|
|
|
$
|
(0.02
|
)
|
|
|
Diluted EPS
|
|
$
|
(0.35
|
)
|
|
|
|
|
|
$
|
(0.02
|
)
|
|
|
Basic shares
|
|
|
39,401
|
|
|
|
|
|
|
|
39,401
|
|
|
|
Diluted shares
|
|
|
39,401
|
|
|
|
|
|
|
|
39,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
$
|
(4,668
|
)
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
2,900
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
(1,768
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company utilized the with and without method to determine the
income tax effect of non-GAAP adjustments.
NOTE - This reconciliation is not in accordance with, or an
alternative method for, generally accepted accounting principles in the
United States ("GAAP"), and may be different from similar measures
presented by other companies. Management of the Company evaluates
performance of its business units based on adjusted EBITDA, which is the
primary indicator used to plan and forecast future periods. The
presentation of this financial measure facilitates meaningful comparison
with prior periods, as management of the Company believes adjusted
EBITDA reports baseline performance and thus provides useful information.
Veeco Instruments Inc. and Subsidiaries
|
Reconciliation GAAP to Non-GAAP Financial Data
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
For the three months ended September 30, 2013
|
|
GAAP
|
|
Equity-based
Compensation
|
|
Other
|
|
Non-GAAP
|
|
|
Net sales
|
|
$
|
99,324
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
99,324
|
|
|
|
Cost of sales
|
|
|
69,016
|
|
|
|
(295
|
)
|
|
|
-
|
|
|
|
68,721
|
|
|
|
Gross profit
|
|
|
30,308
|
|
|
|
295
|
|
|
|
-
|
|
|
|
30,603
|
|
|
|
Gross margin
|
|
|
30.5
|
%
|
|
|
|
|
|
|
30.8
|
%
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
19,650
|
|
|
|
(1,794
|
)
|
|
|
-
|
|
|
|
17,856
|
|
|
|
Research and development
|
|
|
18,993
|
|
|
|
(674
|
)
|
|
|
-
|
|
|
|
18,319
|
|
|
|
Amortization
|
|
|
855
|
|
|
|
-
|
|
|
|
(855
|
)
|
|
|
-
|
|
|
|
Restructuring
|
|
|
1,240
|
|
|
|
-
|
|
|
|
(1,240
|
)
|
|
|
-
|
|
|
|
Total operating expenses
|
|
|
40,738
|
|
|
|
(2,468
|
)
|
|
|
(2,095
|
)
|
|
|
36,175
|
|
|
|
Other operating, net
|
|
|
(493
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(493
|
)
|
|
|
Operating income (loss)
|
|
|
(9,937
|
)
|
|
|
2,763
|
|
|
|
2,095
|
|
|
|
(5,079
|
)
|
|
|
Interest income (expense), net
|
|
|
192
|
|
|
|
-
|
|
|
|
-
|
|
|
|
192
|
|
|
|
Income (loss) before income taxes
|
|
|
(9,745
|
)
|
|
|
2,763
|
|
|
|
2,095
|
|
|
|
(4,887
|
)
|
|
|
Income tax provision (benefit)
|
|
|
(3,719
|
)
|
|
|
1,036
|
|
|
|
786
|
|
|
|
(1,897
|
)
|
|
(1)
|
Net income (loss)
|
|
$
|
(6,026
|
)
|
|
$
|
1,727
|
|
|
$
|
1,309
|
|
|
$
|
(2,990
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
$
|
(0.08
|
)
|
|
|
Diluted EPS
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
$
|
(0.08
|
)
|
|
|
Basic shares
|
|
|
38,841
|
|
|
|
|
|
|
|
38,841
|
|
|
|
Diluted shares
|
|
|
38,841
|
|
|
|
|
|
|
|
38,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
$
|
(5,079
|
)
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
3,240
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
(1,839
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company utilized the with and without method to determine the
income tax effect of non-GAAP adjustments.
NOTE - This reconciliation is not in accordance with, or an
alternative method for, generally accepted accounting principles in the
United States ("GAAP"), and may be different from similar measures
presented by other companies. Management of the Company evaluates
performance of its business units based on adjusted EBITDA, which is the
primary indicator used to plan and forecast future periods. The
presentation of this financial measure facilitates meaningful comparison
with prior periods, as management of the Company believes adjusted
EBITDA reports baseline performance and thus provides useful information.
Veeco Instruments Inc. and Subsidiaries
|
|
|
|
|
|
|
Reconciliation GAAP to Non-GAAP Financial Data
|
|
|
|
|
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance range for
the three months ending
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
(8.0
|
)
|
|
+/- $ 2.5
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
2.8
|
|
|
-
|
|
|
Amortization
|
|
|
3.1
|
|
|
-
|
|
|
Equity-based compensation
|
|
|
4.6
|
|
|
-
|
|
|
Restructuring & other items, net
|
|
|
1.7
|
|
|
-
|
|
|
Adjusted EBITDA
|
|
$
|
4.2
|
|
|
+/- $ 2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (GAAP basis)
|
|
$
|
(7.6
|
)
|
|
+/- $ 2.5
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
|
|
|
3.1
|
|
|
-
|
|
|
Equity-based compensation
|
|
|
4.6
|
|
|
-
|
|
|
Restructuring & other items, net
|
|
|
1.7
|
|
|
-
|
|
|
Income tax effect of non-GAAP adjustments
|
|
|
(0.5
|
)
|
|
-
|
|
(1)
|
Non-GAAP net income (loss)
|
|
$
|
1.3
|
|
|
+/- $ 2.5
|
|
|
Non-GAAP earnings per diluted share excluding certain items
("Non-GAAP EPS")
|
|
$
|
0.03
|
|
|
+/- $ 0.06
|
|
|
|
|
|
|
|
|
|
GAAP earnings per diluted share excluding certain items ("GAAP EPS")
|
|
$
|
(0.19
|
)
|
|
+/- $ 0.06
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
39,455
|
|
|
39,455
|
|
|
Diluted
|
|
|
40,065
|
|
|
40,065
|
|
|
|
|
|
|
|
|
|
(1) The Company utilizes the with and without method to determine the
income tax effect of non-GAAP adjustments.
NOTE - This reconciliation is not in accordance with, or an
alternative method for, generally accepted accounting principles in the
United States ("GAAP"), and may be different from similar measures
presented by other companies. Management of the Company evaluates
performance of its business units based on adjusted EBITDA, which is the
primary indicator used to plan and forecast future periods. The
presentation of this financial measure facilitates meaningful comparison
with prior periods, as management of the Company believes adjusted
EBITDA reports baseline performance and thus provides useful information.
Source: Veeco Instruments Inc.