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.