PLAINVIEW, N.Y.--(BUSINESS WIRE)--
Veeco Instruments Inc. (Nasdaq: VECO) announced its financial results
for the fourth quarter and year ended December 31, 2014. Veeco reports
its results in conformity with U.S. generally accepted accounting
principles (“GAAP”) and also provides results adjusting for certain
items. 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
|
|
|
4th Quarter
|
|
|
|
Full Year
|
|
|
|
Q4 ‘14
|
|
|
|
Q4 ‘13
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Revenues
|
|
|
$113.6
|
|
|
|
|
$73.2
|
|
|
|
$392.9
|
|
|
|
|
$331.7
|
|
|
Net loss
|
|
|
(56.9
|
)
|
|
|
|
(22.1
|
)
|
|
|
(66.9
|
)
|
|
|
|
(42.3
|
)
|
|
Earnings (loss) per share
|
|
|
(1.44
|
)
|
|
|
|
(0.57
|
)
|
|
|
(1.70
|
)
|
|
|
|
(1.09
|
)
|
|
|
|
Non-GAAP Results
|
|
|
4th Quarter
|
|
|
|
Full Year
|
|
|
|
Q4 ‘14
|
|
|
|
Q4 ‘13
|
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Adjusted EBITDA
|
|
|
$8.3
|
|
|
|
|
($23.3
|
)
|
|
|
|
$2.6
|
|
|
|
|
($36.7
|
)
|
|
Earnings (loss) per share
|
|
|
0.13
|
|
|
|
|
(0.42
|
)
|
|
|
|
(0.10
|
)
|
|
|
|
(0.72
|
)
|
CEO Commentary
“Veeco achieved significant milestones during 2014 as part of the
transition back to growth and profitability,” commented John R. Peeler,
Chairman and Chief Executive Officer. “For the full year, revenue
increased 18% to $393 million, bookings were up more than 50% to $510
million, and we returned to adjusted EBITDA profitability. We developed
differentiated new products, lowered operating expenses and improved
gross margins. We also completed the acquisition of Solid State
Equipment LLC (now Veeco Precision Surface Processing or “PSP”) in the
fourth quarter, improving access to high growth markets through
complementary technology that will drive increased sales and
profitability.”
“Fourth quarter results were within our guidance for revenue and above
guidance for gross margin and adjusted EBITDA performance. Bookings
totaled $196 million, the highest quarterly level since 2011. MOCVD
booked $142 million, primarily due to orders for our next generation
EPIK700TM MOCVD system. Data Storage bookings of $45 million
were also the highest level since 2011, as customers invested in both
capacity and technology.”
ALD Business Update
Veeco successfully demonstrated its FAST-ALDTM technology for
flexible OLED encapsulation, but at the same time the incumbent
deposition technology has progressed to satisfy the current market
requirements. As a result, Veeco lowered the near term revenue forecasts
for its ALD technology and took an asset impairment charge (goodwill,
intangibles and property, plant and equipment) in the fourth quarter.
The Company will lower its spending rate in ALD, refocus R&D efforts on
semiconductor and other applications, and continue to monitor the
flexible OLED market opportunity.
Outlook
Veeco has begun shipping its new EPIK700 MOCVD system, which is a highly
competitive product that improves LED customers’ productivity and yield
and lowers their total cost of ownership. As is standard practice with
new product introductions, accounting rules require deferral of revenue
on initial system shipments. The Company expects to ship over $25
million of EPIK700 systems in the first quarter. The value of these
shipments will largely appear as deferred revenue on the balance sheet,
and, as a result, Veeco’s first quarter 2015 revenue is currently
forecasted to be between $92 and $100 million. Loss per share is
currently forecasted to be between ($0.59) to ($0.53) on a GAAP basis
and ($0.13) to ($0.07) on a non-GAAP basis. Please refer to the attached
financial table for more details.
Mr. Peeler added, “I am highly confident that 2015 will be another year
of improved performance for Veeco, fueled by great new products targeted
at growth opportunities in LED, power electronics and mobile devices. We
have a strong team focused on keeping our organization streamlined and
improving both gross margin and bottom line performance.”
Conference Call Information
A conference call reviewing these results has been scheduled for today
at 5:00pm ET. To join the call, dial 1-888-724-9511 (toll free)
or 913-312-1236 and use passcode 9582112. The call will also be webcast
live on the Veeco website at ir.veeco.com.
A replay of the call will be available beginning at 8:00pm ET tonight
through 8:00pm ET on March 3, 2015 at 1-888-203-1112 (toll free) or
1-719-457-0820, using passcode 9582112, and on the Veeco website. We
will post an accompanying slide presentation to our website prior to the
beginning of the call.
About Veeco
Our process equipment solutions enable the manufacture of LEDs, power
electronics, wireless devices, hard disk drives, and semiconductors. 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 allowing
our customers to maximize productivity and achieve a lower cost of
ownership. For information on our Company, products, or 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.
|
Veeco Instruments Inc. and Subsidiaries
|
|
Consolidated Statements of Operations
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the year ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Net sales
|
|
|
$
|
113,569
|
|
|
$
|
73,209
|
|
|
$
|
392,873
|
|
|
$
|
331,749
|
|
|
Cost of sales
|
|
|
|
75,695
|
|
|
|
57,567
|
|
|
|
257,991
|
|
|
|
228,607
|
|
|
Gross profit
|
|
|
|
37,874
|
|
|
|
15,642
|
|
|
|
134,882
|
|
|
|
103,142
|
|
|
Operating expenses, net:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
24,490
|
|
|
|
26,409
|
|
|
|
89,760
|
|
|
|
85,486
|
|
|
Research and development
|
|
|
|
20,424
|
|
|
|
20,824
|
|
|
|
81,171
|
|
|
|
81,424
|
|
|
Amortization
|
|
|
|
4,195
|
|
|
|
2,961
|
|
|
|
13,146
|
|
|
|
5,527
|
|
|
Restructuring
|
|
|
|
884
|
|
|
|
(286
|
)
|
|
|
4,394
|
|
|
|
1,485
|
|
|
Asset impairment
|
|
|
|
55,306
|
|
|
|
1,220
|
|
|
|
58,170
|
|
|
|
1,220
|
|
|
Changes in contingent consideration
|
|
|
|
-
|
|
|
|
829
|
|
|
|
(29,368
|
)
|
|
|
829
|
|
|
Other income, net
|
|
|
|
(2,848
|
)
|
|
|
(876
|
)
|
|
|
(3,182
|
)
|
|
|
(1,017
|
)
|
|
Total operating expenses, net
|
|
|
|
102,451
|
|
|
|
51,081
|
|
|
|
214,091
|
|
|
|
174,954
|
|
|
Operating loss
|
|
|
|
(64,577
|
)
|
|
|
(35,439
|
)
|
|
|
(79,209
|
)
|
|
|
(71,812
|
)
|
|
Interest income (expense), net
|
|
|
|
314
|
|
|
|
(18
|
)
|
|
|
855
|
|
|
|
602
|
|
|
Loss before income taxes
|
|
|
|
(64,263
|
)
|
|
|
(35,457
|
)
|
|
|
(78,354
|
)
|
|
|
(71,210
|
)
|
|
Income tax benefit
|
|
|
|
(7,351
|
)
|
|
|
(13,372
|
)
|
|
|
(11,414
|
)
|
|
|
(28,947
|
)
|
|
Net loss
|
|
|
$
|
(56,912
|
)
|
|
$
|
(22,085
|
)
|
|
$
|
(66,940
|
)
|
|
$
|
(42,263
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(1.44
|
)
|
|
$
|
(0.57
|
)
|
|
$
|
(1.70
|
)
|
|
$
|
(1.09
|
)
|
|
Diluted
|
|
|
$
|
(1.44
|
)
|
|
$
|
(0.57
|
)
|
|
$
|
(1.70
|
)
|
|
$
|
(1.09
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
39,446
|
|
|
|
38,904
|
|
|
|
39,350
|
|
|
|
38,807
|
|
|
Diluted
|
|
|
|
39,446
|
|
|
|
38,904
|
|
|
|
39,350
|
|
|
|
38,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
270,811
|
|
$
|
210,799
|
|
Short-term investments
|
|
|
|
120,572
|
|
|
281,538
|
|
Restricted cash
|
|
|
|
539
|
|
|
2,738
|
|
Accounts receivable, net
|
|
|
|
60,085
|
|
|
23,823
|
|
Inventories
|
|
|
|
61,471
|
|
|
59,726
|
|
Deferred cost of sales
|
|
|
|
5,076
|
|
|
724
|
|
Prepaid expenses and other current assets
|
|
|
|
23,132
|
|
|
22,579
|
|
Assets held for sale
|
|
|
|
6,000
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
7,976
|
|
|
11,716
|
|
Total current assets
|
|
|
|
555,662
|
|
|
613,643
|
|
Property, plant and equipment at cost, net
|
|
|
|
78,752
|
|
|
89,139
|
|
Goodwill
|
|
|
|
114,959
|
|
|
91,348
|
|
Deferred income taxes
|
|
|
|
1,180
|
|
|
397
|
|
Intangible assets, net
|
|
|
|
159,308
|
|
|
114,716
|
|
Other assets
|
|
|
|
19,594
|
|
|
38,726
|
|
Total assets
|
|
|
$
|
929,455
|
|
$
|
947,969
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
18,111
|
|
$
|
35,755
|
|
Accrued expenses and other current liabilities
|
|
|
|
48,418
|
|
|
51,084
|
|
Customer deposits and deferred revenue
|
|
|
|
96,004
|
|
|
34,754
|
|
Income taxes payable
|
|
|
|
5,441
|
|
|
6,149
|
|
Deferred income taxes
|
|
|
|
120
|
|
|
159
|
|
Current portion of long-term debt
|
|
|
|
314
|
|
|
290
|
|
Total current liabilities
|
|
|
|
168,408
|
|
|
128,191
|
|
Deferred income taxes
|
|
|
|
16,397
|
|
|
28,052
|
|
Long-term debt
|
|
|
|
1,533
|
|
|
1,847
|
|
Other liabilities
|
|
|
|
4,185
|
|
|
9,649
|
|
Total liabilities
|
|
|
|
190,523
|
|
|
167,739
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
738,932
|
|
|
780,230
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
929,455
|
|
$
|
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 December 31, 2014
|
|
|
GAAP
|
|
Share-based
Compensation
|
|
Acquisition
Related
|
|
|
Other
|
|
Non-GAAP
|
|
Net sales
|
|
|
$
|
113,569
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
113,569
|
|
|
Cost of sales
|
|
|
|
75,695
|
|
|
|
(657
|
)
|
|
|
(5,175
|
)
|
(a)
|
|
|
-
|
|
|
|
69,863
|
|
|
Gross profit
|
|
|
|
37,874
|
|
|
|
657
|
|
|
|
5,175
|
|
|
|
|
-
|
|
|
|
43,706
|
|
|
Gross margin
|
|
|
|
33.3
|
%
|
|
|
|
|
|
|
|
|
|
38.5
|
%
|
|
Operating expenses, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
24,490
|
|
|
|
(2,667
|
)
|
|
|
(3,242
|
)
|
(b)
|
|
|
-
|
|
|
|
18,581
|
|
|
Research and development
|
|
|
|
20,424
|
|
|
|
(1,185
|
)
|
|
|
-
|
|
|
|
|
-
|
|
|
|
19,239
|
|
|
Amortization
|
|
|
|
4,195
|
|
|
|
-
|
|
|
|
(4,195
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring
|
|
|
|
884
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(884
|
)
|
|
|
-
|
|
|
Asset impairment
|
|
|
|
55,306
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(55,306
|
)
|
|
|
-
|
|
|
Other expense (income), net
|
|
|
|
(2,848
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,142
|
|
(c)
|
|
294
|
|
|
Total operating expenses, net
|
|
|
|
102,451
|
|
|
|
(3,852
|
)
|
|
|
(7,437
|
)
|
|
|
|
(53,048
|
)
|
|
|
38,114
|
|
|
Operating income (loss)
|
|
|
|
(64,577
|
)
|
|
|
4,509
|
|
|
|
12,612
|
|
|
|
|
53,048
|
|
|
|
5,592
|
|
|
Interest income, net
|
|
|
|
314
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
314
|
|
|
Income (loss) before income taxes
|
|
|
|
(64,263
|
)
|
|
|
4,509
|
|
|
|
12,612
|
|
|
|
|
53,048
|
|
|
|
5,906
|
|
|
Income tax provision (benefit)
|
|
|
|
(7,351
|
)
|
|
|
-
|
|
|
|
2,705
|
|
(d)
|
|
|
5,428
|
|
(e)
|
|
782
|
|
|
Net income (loss)
|
|
|
$
|
(56,912
|
)
|
|
$
|
4,509
|
|
|
$
|
9,907
|
|
|
|
$
|
47,620
|
|
|
$
|
5,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
$
|
(1.44
|
)
|
|
|
|
|
|
|
|
|
$
|
0.13
|
|
|
Diluted EPS
|
|
|
$
|
(1.44
|
)
|
|
|
|
|
|
|
|
|
$
|
0.13
|
|
|
Basic shares
|
|
|
|
39,446
|
|
|
|
|
|
|
|
|
|
|
39,446
|
|
|
Diluted shares
|
|
|
|
39,446
|
|
|
|
|
|
|
|
|
|
|
40,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,592
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
2,728
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,320
|
|
|
Note: Amounts may not calculate precisely due to rounding.
|
|
|
|
(a) The inventory fair value step-up associated with the PSP
acquisition's purchase accounting.
|
|
(b) One-time PSP acquisition related transaction costs.
|
|
(c) One-time cumulative translation gain related to the
liquidation of our Japanese subsidiary.
|
|
(d) Valuation allowance reversal associated with the recognition
of deferred tax liabilities related to the PSP acquisition.
|
|
(e) $4.9 million tax liability reversal related to an incentive
tax rate in a foreign subsidiary as well as utilization of the
'with or without' method.
|
|
|
|
This table includes 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 consider
exclusion of: share-based compensation expense; one-time 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, 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 this news release to their
most directly comparable GAAP financial measures.
|
|
|
|
|
|
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 December 31, 2013
|
|
|
GAAP
|
|
Share-based
Compensation
|
|
Other
|
|
Non-GAAP
|
|
|
Net sales
|
|
|
$
|
73,209
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
73,209
|
|
|
|
Cost of sales
|
|
|
|
57,567
|
|
|
|
(462
|
)
|
|
|
-
|
|
|
|
57,105
|
|
|
|
Gross profit
|
|
|
|
15,642
|
|
|
|
462
|
|
|
|
-
|
|
|
|
16,104
|
|
|
|
Gross margin
|
|
|
|
21.4
|
%
|
|
|
|
|
|
|
22.0
|
%
|
|
|
Operating expenses, net:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
26,409
|
|
|
|
(2,414
|
)
|
|
|
-
|
|
|
|
23,995
|
|
|
|
Research and development
|
|
|
|
20,824
|
|
|
|
(1,199
|
)
|
|
|
-
|
|
|
|
19,625
|
|
|
|
Amortization
|
|
|
|
2,961
|
|
|
|
-
|
|
|
|
(2,961
|
)
|
|
|
-
|
|
|
|
Restructuring
|
|
|
|
(286
|
)
|
|
|
-
|
|
|
|
286
|
|
|
|
-
|
|
|
|
Asset impairment
|
|
|
|
1,220
|
|
|
|
-
|
|
|
|
(1,220
|
)
|
|
|
-
|
|
|
|
Changes in contingent consideration
|
|
|
|
829
|
|
|
|
-
|
|
|
|
(829
|
)
|
|
|
-
|
|
|
|
Other income, net
|
|
|
|
(876
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(876
|
)
|
|
|
Total operating expenses, net
|
|
|
|
51,081
|
|
|
|
(3,613
|
)
|
|
|
(4,724
|
)
|
|
|
42,744
|
|
|
|
Operating income (loss)
|
|
|
|
(35,439
|
)
|
|
|
4,075
|
|
|
|
4,724
|
|
|
|
(26,640
|
)
|
|
|
Interest expense, net
|
|
|
|
(18
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(18
|
)
|
|
|
Income (loss) before income taxes
|
|
|
|
(35,457
|
)
|
|
|
4,075
|
|
|
|
4,724
|
|
|
|
(26,658
|
)
|
|
|
Income tax provision (benefit)
|
|
|
|
(13,372
|
)
|
|
|
1,419
|
|
|
|
1,645
|
|
|
|
(10,308
|
)
|
*
|
|
Net income (loss)
|
|
|
$
|
(22,085
|
)
|
|
$
|
2,656
|
|
|
$
|
3,079
|
|
|
$
|
(16,350
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
$
|
(0.57
|
)
|
|
|
|
|
|
$
|
(0.42
|
)
|
|
|
Diluted EPS
|
|
|
$
|
(0.57
|
)
|
|
|
|
|
|
$
|
(0.42
|
)
|
|
|
Basic shares
|
|
|
|
38,904
|
|
|
|
|
|
|
|
38,904
|
|
|
|
Diluted shares
|
|
|
|
38,904
|
|
|
|
|
|
|
|
38,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating loss
|
|
|
|
|
|
|
|
|
$
|
(26,640
|
)
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
3,384
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
$
|
(23,256
|
)
|
|
|
Note: Amounts may not calculate precisely due to rounding.
|
|
|
|
|
* The 'with or without method' is utilized to determine the income
tax effect of the non-GAAP adjustments.
|
|
|
|
|
This table includes 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 consider
exclusion of: share-based compensation expense; one-time 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, 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 this news release to their
most directly comparable GAAP financial measures.
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
|
|
Reconciliation GAAP to Non-GAAP Financial Data
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
For the twelve months ended December 31, 2014
|
|
|
GAAP
|
|
Share-based
Compensation
|
|
Acquisition
Related
|
|
Other
|
|
Non-GAAP
|
|
Net sales
|
|
|
$
|
392,873
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
392,873
|
|
|
Cost of sales
|
|
|
|
257,991
|
|
|
|
(2,456
|
)
|
|
|
(5,175
|
)
|
(a)
|
|
-
|
|
|
|
250,360
|
|
|
Gross profit
|
|
|
|
134,882
|
|
|
|
2,456
|
|
|
|
5,175
|
|
|
|
-
|
|
|
|
142,513
|
|
|
Gross margin
|
|
|
|
34.3
|
%
|
|
|
|
|
|
|
|
|
36.3
|
%
|
|
Operating expenses, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
89,760
|
|
|
|
(11,859
|
)
|
|
|
(3,242
|
)
|
(b)
|
|
-
|
|
|
|
74,659
|
|
|
Research and development
|
|
|
|
81,171
|
|
|
|
(4,498
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
76,673
|
|
|
Amortization
|
|
|
|
13,146
|
|
|
|
-
|
|
|
|
(13,146
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring
|
|
|
|
4,394
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,394
|
)
|
|
|
-
|
|
|
Asset impairment
|
|
|
|
58,170
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(58,170
|
)
|
|
|
-
|
|
|
Changes in contingent consideration
|
|
|
|
(29,368
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
29,368
|
|
|
|
-
|
|
|
Other expense (income), net
|
|
|
|
(3,182
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
3,142
|
|
(c)
|
|
(40
|
)
|
|
Total operating expenses, net
|
|
|
|
214,091
|
|
|
|
(16,357
|
)
|
|
|
(16,388
|
)
|
|
|
(30,054
|
)
|
|
|
151,292
|
|
|
Operating income (loss)
|
|
|
|
(79,209
|
)
|
|
|
18,813
|
|
|
|
21,563
|
|
|
|
30,054
|
|
|
|
(8,779
|
)
|
|
Interest income, net
|
|
|
|
855
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
855
|
|
|
Income (loss) before income taxes
|
|
|
|
(78,354
|
)
|
|
|
18,813
|
|
|
|
21,563
|
|
|
|
30,054
|
|
|
|
(7,924
|
)
|
|
Income tax provision (benefit)
|
|
|
|
(11,414
|
)
|
|
|
-
|
|
|
|
2,705
|
|
(d)
|
|
4,908
|
|
(e)
|
|
(3,801
|
)
|
|
Net income (loss)
|
|
|
$
|
(66,940
|
)
|
|
$
|
18,813
|
|
|
$
|
18,858
|
|
|
$
|
25,146
|
|
|
$
|
(4,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
$
|
(1.70
|
)
|
|
|
|
|
|
|
|
$
|
(0.10
|
)
|
|
Diluted EPS
|
|
|
$
|
(1.70
|
)
|
|
|
|
|
|
|
|
$
|
(0.10
|
)
|
|
Basic shares
|
|
|
|
39,350
|
|
|
|
|
|
|
|
|
|
39,350
|
|
|
Diluted shares
|
|
|
|
39,350
|
|
|
|
|
|
|
|
|
|
39,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating loss
|
|
|
|
|
|
|
|
|
|
|
$
|
(8,779
|
)
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
11,426
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
2,647
|
|
|
Note: Amounts may not calculate precisely due to rounding.
|
|
|
|
|
(a) The inventory fair value step-up associated with the PSP
acquisition's purchase accounting.
|
|
(b) One-time PSP acquisition related transaction costs.
|
|
(c) One-time cumulative translation gain related to the liquidation
of our Japanese subsidiary.
|
|
(d) Valuation allowance reversal associated with the recognition of
deferred tax liabilities related to the PSP acquisition.
|
|
(e) $4.9 million tax liability reversal related to an incentive tax
rate in a foreign subsidiary as well as utilization of the 'with or
without' method.
|
|
|
|
This table includes 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 consider
exclusion of: share-based compensation expense; one-time 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, 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 this news release to their
most directly comparable GAAP financial measures.
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
Reconciliation GAAP to Non-GAAP Financial Data
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
For the twelve months ended December 31, 2013
|
|
|
GAAP
|
|
Share-based
Compensation
|
|
Other
|
|
Non-GAAP
|
|
Net sales
|
|
|
$
|
331,749
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
331,749
|
|
|
|
Cost of sales
|
|
|
|
228,607
|
|
|
|
(1,446
|
)
|
|
|
-
|
|
|
|
227,162
|
|
|
|
Gross profit
|
|
|
|
103,142
|
|
|
|
1,446
|
|
|
|
-
|
|
|
|
104,588
|
|
|
|
Gross margin
|
|
|
|
31.1
|
%
|
|
|
|
|
|
|
31.5
|
%
|
|
|
Operating expenses, net:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
85,486
|
|
|
|
(8,338
|
)
|
|
|
-
|
|
|
|
77,148
|
|
|
|
Research and development
|
|
|
|
81,424
|
|
|
|
(3,347
|
)
|
|
|
-
|
|
|
|
78,077
|
|
|
|
Amortization
|
|
|
|
5,527
|
|
|
|
-
|
|
|
|
(5,527
|
)
|
|
|
-
|
|
|
|
Restructuring
|
|
|
|
1,485
|
|
|
|
-
|
|
|
|
(1,485
|
)
|
|
|
-
|
|
|
|
Asset impairment
|
|
|
|
1,220
|
|
|
|
-
|
|
|
|
(1,220
|
)
|
|
|
-
|
|
|
|
Changes in contingent consideration
|
|
|
|
829
|
|
|
|
-
|
|
|
|
(829
|
)
|
|
|
-
|
|
|
|
Other income, net
|
|
|
|
(1,017
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,017
|
)
|
|
|
Total operating expenses, net
|
|
|
|
174,954
|
|
|
|
(11,685
|
)
|
|
|
(9,061
|
)
|
|
|
154,208
|
|
|
|
Operating income (loss)
|
|
|
|
(71,812
|
)
|
|
|
13,130
|
|
|
|
9,061
|
|
|
|
(49,621
|
)
|
|
|
Interest income, net
|
|
|
|
602
|
|
|
|
-
|
|
|
|
-
|
|
|
|
602
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(71,210
|
)
|
|
|
13,130
|
|
|
|
9,061
|
|
|
|
(49,019
|
)
|
|
|
Income tax provision (benefit)
|
|
|
|
(28,947
|
)
|
|
|
4,733
|
|
|
|
3,266
|
|
|
|
(20,948
|
)
|
*
|
|
Net income (loss)
|
|
|
$
|
(42,263
|
)
|
|
$
|
8,398
|
|
|
$
|
5,795
|
|
|
$
|
(28,071
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
|
$
|
(1.09
|
)
|
|
|
|
|
|
$
|
(0.72
|
)
|
|
|
Diluted EPS
|
|
|
$
|
(1.09
|
)
|
|
|
|
|
|
$
|
(0.72
|
)
|
|
|
Basic shares
|
|
|
|
38,807
|
|
|
|
|
|
|
|
38,807
|
|
|
|
Diluted shares
|
|
|
|
38,807
|
|
|
|
|
|
|
|
38,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income (loss)
|
|
|
|
|
|
|
|
|
$
|
(49,621
|
)
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
12,898
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
$
|
(36,723
|
)
|
|
|
Note: Amounts may not calculate precisely due to rounding.
|
|
|
|
|
|
* The 'with or without method' is utilized to determine the income
tax effect of the non-GAAP adjustments.
|
|
|
|
This table includes 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 consider
exclusion of: share-based compensation expense; one-time 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, 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 this news release to their
most directly comparable GAAP financial measures.
|
|
|
|
|
|
Veeco Instruments Inc. and Subsidiaries
|
|
Reconciliation GAAP to Non-GAAP Financial Data
|
|
(In millions, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
Guidance for the three months ended March 31, 2015
|
|
|
GAAP
|
|
Share-based
Compensation
|
|
Acquisition
Related
|
|
Other
|
|
Non-GAAP
|
|
Net sales
|
|
|
$
|
92
|
|
|
-
|
|
$
|
100
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
92
|
|
|
-
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
31.0
|
|
|
-
|
|
|
35.5
|
|
|
|
0.7
|
|
|
|
|
1.8
|
|
(a)
|
|
|
-
|
|
|
|
33.5
|
|
|
-
|
|
|
38.0
|
|
|
|
Gross margin
|
|
|
|
33
|
%
|
|
-
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
36
|
%
|
|
-
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses, net
|
|
|
|
52.4
|
|
|
-
|
|
|
54.4
|
|
|
|
(4.5
|
)
|
|
|
|
(8.4
|
)
|
(b)
|
|
|
(3.0
|
)
|
(c)
|
|
36.5
|
|
|
-
|
|
|
38.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(21.4
|
)
|
|
-
|
|
|
(18.9
|
)
|
|
|
|
|
|
|
|
|
|
|
(3.0
|
)
|
|
-
|
|
|
(0.5
|
)
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.0
|
|
|
|
|
|
3.0
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.0
|
|
|
-
|
|
$
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
(23.6
|
)
|
|
-
|
|
|
(21.0
|
)
|
|
|
5.2
|
|
|
|
|
10.2
|
|
|
|
|
3.0
|
|
|
|
(5.2
|
)
|
|
-
|
|
|
(2.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per diluted common share:
|
|
|
$
|
(0.59
|
)
|
|
-
|
|
$
|
(0.53
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(0.13
|
)
|
|
-
|
|
$
|
(0.07
|
)
|
|
Weighted average number of diluted shares:
|
|
|
|
39.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39.7
|
|
|
|
|
|
|
Note: Amounts may not calculate precisely due to rounding.
|
|
|
|
|
(a) The inventory fair value step-up associated with the PSP
acquisition's purchase accounting.
|
|
(b) Acquisition related amortization expense.
|
|
(c) Restructuring charges.
|
|
|
|
|
This table includes 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 consider
exclusion of: share-based compensation expense; one-time 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, 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 this news release to their
most directly comparable GAAP financial measures.
|
Source: Veeco Instruments Inc.