News Details

Veeco Reports Preliminary Fourth Quarter and Full Year 2016 Financial Results

January 10, 2017

PLAINVIEW, NY -- (Marketwired) -- 01/10/17 -- Veeco Instruments Inc. ("Veeco") (NASDAQ: VECO) today announced preliminary financial results for its fourth quarter and fiscal year ended December 31, 2016. 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 results is provided at the end of this press release.

Preliminary Estimated and Unaudited 2016 Financial and Other Data

Veeco's estimated and unaudited consolidated financial data presented below is preliminary and was prepared by management in good faith based upon internal reporting for the three months and year ended December 31, 2016. Although Veeco has not identified any unusual or unique events or trends that occurred during the period which might materially affect these estimates, actual results may still be outside of the ranges provided below. Veeco's independent registered public accounting firm, KPMG LLP, has not audited, reviewed, compiled or performed any procedures on this preliminary financial data. As a result, Veeco's full interim or audited annual financial statements prepared in accordance with GAAP for the periods shown may be different from the preliminary estimates herein. You should not place undue reliance on this preliminary and estimated financial information and should view this information in the context of Veeco's 2016 results when such results are disclosed in Veeco's Annual Report on Form 10-K for the year ended December 31, 2016.

In addition to the preliminary financial information set forth below, Veeco currently expects to record bookings of approximately $125 million for the fourth quarter. A preliminary estimate for cash, cash equivalents and short-term investments is approximately $344 million as of December 31, 2016 as compared to $337 million at the end of the third quarter of 2016.

Management will not be holding a call to discuss the preliminary financial information.

U.S. Dollars in millions, except per share data

                                                Three months ended December
                                                            31,
                                               -----------------------------
GAAP Results                                        2016 Range        2015
                                               ------------------- ---------
                                                  (estimated and
                                                    unaudited)
  Revenue                                          $91   - $95        $106.5
  Gross margin                                     38%   - 39%         36.4%
  Research and development                         $17   - $18         $20.6
  Selling, general, and administrative and
   Other                                               $19             $21.1
  Net income (loss)                               ($7)   - ($5)       ($9.8)
  Diluted earnings (loss) per share            ($0.18)   - ($0.12)   ($0.25)

                                                Three months ended December
                                                            31,
                                               -----------------------------
Non-GAAP Results                                    2016 Range        2015
                                               ------------------- ---------
                                                  (estimated and
                                                    unaudited)
  Revenue                                          $91   - $95        $106.5
  Gross margin                                   38.5%   - 39.5%       36.8%
  Research and development                         $17   - $18         $19.3
  Selling, general, and administrative and
   Other                                               $16             $18.7
  Adjusted net income (loss)                        $2   - $4           $0.6
  Adjusted EBITDA                                   $5   - $7           $4.4
  Adjusted diluted earnings (loss) per share     $0.04   - $0.10       $0.01

U.S. Dollars in millions, except per share data

                                                  Year ended December 31,
                                               -----------------------------
GAAP Results                                        2016 Range        2015
                                               ------------------- ---------
                                                  (estimated and
                                                    unaudited)
  Revenue                                         $330   - $334       $477.0
  Gross margin                                         40%             37.2%
  Research and development                         $81   - $82         $78.5
  Selling, general, and administrative and
   Other                                               $78             $89.5
  Net income (loss)                             ($124)   - ($122)    ($32.0)
  Diluted earnings (loss) per share            ($3.16)   - ($3.10)   ($0.80)

                                                  Year ended December 31,
                                               -----------------------------
Non-GAAP Results                                    2016 Range        2015
                                               ------------------- ---------
                                                  (estimated and
                                                    unaudited)
  Revenue                                         $330   - $334       $477.0
  Gross margin                                         41%             38.0%
  Research and development                         $78   - $79         $74.5
  Selling, general, and administrative and
   Other                                               $66             $77.1
  Adjusted net income (loss)                     ($12)   - ($10)       $22.1
  Adjusted EBITDA                                   $3   - $5          $41.7
  Adjusted diluted earnings (loss) per share   ($0.31)   - ($0.25)     $0.54

Sales by market and region:

                                                Year ended December 31,
                                           ---------------------------------
                                                 2016             2015
                                           ---------------- ----------------
                                            (estimated and
                                              unaudited)
Market Analysis
  Lighting, Display & Power Electronics           41%              61%
  Advanced Packaging, MEMS & RF                   21%              13%
  Scientific & Industrial                         22%              13%
  Data Storage                                    16%              13%

Market Analysis
  United States                                   26%              18%
  China                                           26%              51%
  EMEA                                            25%              13%
  Rest of World                                   23%              18%

About Veeco

Veeco's process equipment solutions enable the manufacture of LEDs, displays, power electronics, compound semiconductors, hard disk drives, semiconductors, MEMS and wireless chips. We are the leader in MOCVD, MBE, Ion Beam, Wet Etch single wafer processing 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.

Forward-Looking Statements and Disclosures

This news release discusses expectations or otherwise makes statements about the future, including statements about Veeco's preliminary financial results for the three months and full year ended December 31, 2016. 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 Risk Factors, Business Description and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2015 and in its subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. In addition, Veeco can provide no assurances that the preliminary financial results provided herein will be consistent with its audited financial results that will be included in its Annual Report on Form 10-K for the year ended December 31, 2016. 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
             Reconciliation of GAAP to Non-GAAP Financial Data
                  (in millions, except per share amounts)
                         (estimated and unaudited)

                                    Non-GAAP Adjustments
                              -------------------------------
Preliminary
 results for
 the three
months ended
 December 31,                  Share-based
 2016               GAAP      Compensation Amortization Other    Non-GAAP
----------------------------- ------------ ------------ ----- -------------
Net sales     $   91  -$   95                                 $  91  -$  95

Gross profit      34  -    37            1            –     –    35  -   38
  Gross margin    38% -    39%                                 38.5% - 39.5%

Research and
 development      17  -    18            –            –     – $  17  -$  18
Selling,
 general, and
 administra-
 tive and Other   19  -    19            3            –     – $  16  -$  16
Net income
 (loss)           (7) -    (5)           4            3     2 $   2  -$   4

Income (loss)
 per diluted
 common share $(0.18) -$(0.12)                                $0.04  -$0.10
  Weighted
   average
   number of
   shares         39       39                                    40      40

                   Veeco Instruments Inc. and Subsidiaries
                         Other Non-GAAP Adjustments
                                (in millions)
                          (estimated and unaudited)

Preliminary results for the three months ended December 31, 2016
Restructuring                                                        $     2
                                                                     -------
  Total Other                                                        $     2
                                                                     =======

Note: Amounts may not calculate precisely due to rounding.


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;
 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 incremental transaction-related compensation.

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 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 of GAAP Net Income (loss) to Adjusted EBITDA
                               (in millions)
                         (estimated and unaudited)

Preliminary results for the three months ended December
31, 2016
GAAP net income (loss)                                    $  (7)   -  $  (5)
Share-based compensation                                      4    -      4
Amortization                                                  3    -      3
Restructuring                                                 2    -      2
Interest (income) expense                                     0    -      0
Depreciation                                                  2    -      2
Income tax expense (benefit) *                                1    -      1
                                                          -----------------
  Adjusted EBITDA                                         $   5    -  $   7
                                                          =================

Note: Amounts may not calculate precisely due to rounding.

* - The 'with or without' method is utilized to determine the income tax
effect of all 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 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 incremental transaction-related compensation.

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 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 of GAAP to Non-GAAP Financial Data
                  (in millions, except per share amounts)
                         (estimated and unaudited)

                                  Non-GAAP Adjustments
                            -------------------------------
Prelimin-
 ary results
 for the
 year
ended
 December                    Share-based
 31, 2016        GAAP       Compensation Amortization Other     Non-GAAP
---------- ---------------  ------------ ------------ ----- ---------------
Net sales  $  330   - $334                                  $ 330   - $ 334

Gross
 profit       131   -  134             2            –     1   134   -   137
  Gross
   margin      40%  -   40%                                    41%  -    41%

Research
 and
 develop-
 ment            81   -   82             3            –     – $  78   - $  79
Selling,
 general,
 and
 administr-
 ative and
 Other         78   -   78            11            –     1 $  66   - $  66
Net income             (12
 (loss)      (124)  -    2)           16           19    77 $ (12)  - $ (10)

Income
 (loss)
 per
 diluted
 common                (3.                                   (0.3      (0.2
 share     $(3.16)  - $ 10)                                 $   1)  - $   5)
  Weighted
   average
   number
   of
   shares      39       39                                     39        39

                   Veeco Instruments Inc. and Subsidiaries
                         Other Non-GAAP Adjustments
                                (in millions)
                           (estimated & unaudited)
Preliminary results for the year
ended December 31, 2016
Asset impairment                                                     $    69
Accelerated depreciation                                                   1
Restructuring                                                              6
Pension termination                                                        1
                                                                     -------
  Total Other                                                        $    77
                                                                     =======

Note: Amounts may not calculate precisely due to rounding.


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;
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 incremental transaction-related compensation.

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 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 of GAAP Net Income (loss) to Adjusted EBITDA
                               (in millions)
                         (estimated and unaudited)
Preliminary results for the year
ended December 31, 2016
GAAP net income (loss)                                    $(124)  -   $(122)
Share-based compensation                                     16   -      16
Amortization                                                 19   -      19
Asset impairment                                             69   -      69
Accelerated depreciation                                      1   -       1
Restructuring                                                 6   -       6
Pension termination                                           1   -       1
Interest income                                              (1)  -      (1)
Depreciation                                                 12   -      12
Income tax expense (benefit) *                                4   -       4
                                                        -------------------
Adjusted EBITDA                                             $ 3   -     $ 5
                                                        ===================

Note: Amounts may not calculate precisely due to rounding.

* - The 'with or without' method is utilized to determine the income tax
effect of all 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 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 incremental transaction-related compensation.

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 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 of GAAP to Non-GAAP Financial Data
                  (in thousands, except per share amounts)
                                (unaudited)

                                     Non-GAAP Adjustments
                               --------------------------------
Three months ended              Share-based
 December 31, 2015    GAAP     Compensation  Amortization Other   Non-GAAP
------------------ ----------  ------------  ------------ -----  ----------
Net sales          $  106,543                                    $  106,543
Gross profit           38,786           393                          39,179
Gross margin             36.4%                                         36.8%
Research and
 development           20,639        (1,292)                         19,347
Selling, general,
 and
 administrative
 and Other             21,134        (2,277)               (188)     18,669
Net income (loss)      (9,788)        3,962         5,802   598         574

Income (loss) per
 common share:
  Basic            $    (0.25)                                   $     0.01
  Diluted               (0.25)                                         0.01
Weighted average
 number of shares:
  Basic                39,794                                        40,644
  Diluted              39,794                                        40,731

                  Veeco Instruments Inc. and Subsidiaries
                         Other Non-GAAP Adjustments
                               (in thousands)
                                (unaudited)
Three months ended December 31, 2015
  Restructuring                                                       1,170
  Acquisition related                                                   188
  One-time legal settlement                                               -
  Non-GAAP tax adjustment *                                            (760)
                                                                -----------
    Total Other                                                         598

* - The 'with or without' method is utilized to determine the income tax
effect of all non-GAAP adjustments.

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;
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 incremental transaction-related compensation.

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 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 of GAAP Net Income (loss) to Adjusted EBITDA
                              (in thousands)
                                (unaudited)
                                                              Three months
                                                                 ended
                                                              December 31,
                                                             -------------
                                                                  2015
                                                             -------------
GAAP net income (loss)                                       $      (9,788)
Share-based compensation                                             3,962
Amortization                                                         5,802
Restructuring                                                        1,170
Acquisition related                                                    188
Interest income                                                       (145)
Depreciation                                                         3,282
Income tax expense (benefit)                                           (26)
                                                             -------------
  Adjusted EBITDA                                            $       4,445
                                                             =============

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 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 incremental transaction-related compensation.

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 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 of GAAP to Non-GAAP Financial Data
                  (in thousands, except per share amounts)
                                (unaudited)

                                   Non-GAAP Adjustments
                            ----------------------------------
For the year
 ended December              Share-based
 31, 2015           GAAP    Compensation  Amortization  Other     Non-GAAP
----------------- --------  ------------  ------------ -------  -----------
Net sales         $477,038                                      $   477,038
Gross profit       177,241         2,495                 1,311      181,047
Gross margin          37.2%                                            38.0%
Research and
 development        78,543        (4,031)                            74,512
Selling, general,
 and
 administrative
 and Other          89,491       (11,474)                 (958)      77,059
Net income (loss)  (31,978)       18,000        27,634   8,408       22,064

Income (loss) per
 common share:
  Basic           $  (0.80)                                     $      0.54
  Diluted            (0.80)                                            0.54
Weighted average
 number of
 shares:
  Basic             39,742                                           40,759
  Diluted           39,742                                           40,905

                   Veeco Instruments Inc. and Subsidiaries
                         Other Non-GAAP Adjustments
                               (in thousands)
                                 (unaudited)
For the year ended December 31, 2015
  Restructuring                                                        4,679
  Acquisition related - PSP inventory fair value step-up               1,311
  Acquisition related                                                    563
  Asset impairment                                                       126
  One-time legal settlement                                              395
  Non-GAAP tax adjustment *                                            1,334
                                                                ------------
    Total Other                                                        8,408

* - The 'with or without' method is utilized to determine the income tax
effect of all non-GAAP adjustments.

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;
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 incremental transaction-related compensation.

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 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 of GAAP Net Income (loss) to Adjusted EBITDA
                               (in thousands)
                                (unaudited)
                                                              For the year
                                                             ended December
                                                                   31,
                                                             --------------
                                                                  2015
                                                             --------------
GAAP net income (loss)                                       $      (31,978)
Share-based compensation                                             18,000
Amortization                                                         27,634
Asset impairment                                                        126
Restructuring                                                         4,679
Acquisition related - PSP inventory fair value step-up                1,311
Acquisition related                                                     563
One-time legal settlement                                               395
Interest income                                                        (586)
Depreciation                                                         12,216
Income tax expense (benefit)                                          9,332
                                                             --------------
  Adjusted EBITDA                                            $       41,692
                                                             ==============
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 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 incremental transaction-related compensation.

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 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 ContactsInvestors: Shanye Hudson 516-677-0200x1272 [email protected]: Jeffery Pina 516-677-0200x1222 [email protected]

Source: Veeco Instruments Inc.