News Details

View all news

Veeco Reports First Quarter 2020 Financial Results

May, 07, 2020

First Quarter 2020 Highlights:

  • Revenues of $104.5 million, compared with $99.4 million in the same period last year
  • GAAP net loss of $0.6 million, or $0.01 loss per diluted share
  • Non-GAAP net income of $10.9 million, or $0.22 per diluted share

PLAINVIEW, N.Y., May 07, 2020 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2020. 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 operating results is provided at the end of this press release. 

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

 

             
GAAP Results   Q1 '20   Q1 '19
Revenue   $ 104.5     $ 99.4  
Net income (loss)   $  (0.6 )   $  (18.5 )
Diluted earnings (loss) per share   $  (0.01 )   $  (0.40 )

 

             
Non-GAAP Results   Q1 '20   Q1 '19
Net income (loss)   $ 10.9   $  (6.4 )
Operating income (loss)   $  12.7   $  (4.8 )
Diluted earnings (loss) per share   $  0.22   $  (0.14 )

“Our employees around the world have exhibited great professionalism and flexibility as they adapt to working from home or new health and safety measures in our facilities. It is because of their efforts that Veeco has been managing well through the COVID-19 pandemic,” commented William J. Miller, Ph.D., Chief Executive Officer. “Our supply chain, manufacturing and service operations have been successful in maintaining our ability to source materials, ship products and provide support for our customers with only minor disruptions.”

“Our semiconductor technologies enable a variety of important megatrends that are expected to perform well, such as cloud and high-performance computing, AI and 5G RF,” continued Dr. Miller.  “In the first quarter, sales were strong in our Data Storage market driven by demand in cloud computing. We improved gross margin and reduced operating expenses, driving solid Non-GAAP EPS. Furthermore, our cash balance, quality of our backlog and the cost reductions we realized over the last several quarters give me confidence in our ability to weather uncertainties we may face.”

Guidance and Outlook

Given the level of uncertainty resulting from the COVID-19 pandemic, Veeco is refraining from providing Q2 guidance.

Conference Call Information

A conference call reviewing these results has been scheduled for today, May 7, 2020 starting at 4:30pm ET. To join the call, dial 1-866-288-0540 (toll free) or 1-646-828-8143 and use passcode 9821676. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our proven ion beam, laser annealing, lithography, MOCVD, and single wafer etch & clean technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

Forward-looking Statements

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, 2019 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

-financial tables attached-

Veeco Contacts:  
   
Investors: Media:
Anthony Bencivenga (516) 252-1438 Kevin Long (516) 714-3978
abencivenga@veeco.com klong@veeco.com 

                                                                 

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)
(unaudited)

             
    Three months ended March 31,
    2020     2019  
Net sales   $  104,502     $  99,371  
Cost of sales      58,083        64,655  
Gross profit      46,419        34,716  
Operating expenses, net:            
Research and development      19,195        23,340  
Selling, general, and administrative      18,304        19,902  
Amortization of intangible assets      3,837        4,218  
Restructuring      625        1,430  
Other operating expense (income), net      (109 )      (34 )
Total operating expenses, net      41,852        48,856  
Operating income (loss)      4,567        (14,140 )
Interest expense, net      (4,866 )      (4,200 )
Income (loss) before income taxes      (299 )      (18,340 )
Income tax expense (benefit)      268        190  
Net income (loss)   $  (567 )   $  (18,530 )
             
Income (loss) per common share:            
Basic   $  (0.01 )   $  (0.40 )
Diluted   $  (0.01 )   $  (0.40 )
             
Weighted average number of shares:            
Basic      47,811        46,848  
Diluted      47,811        46,848  

 

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in thousands)

             
    March 31,   December 31,
    2020   2019
    (unaudited)      
Assets            
Current assets:            
Cash and cash equivalents   $  162,325   $  129,294
Restricted cash      652      657
Short-term investments      79,429      115,252
Accounts receivable, net      84,251      45,666
Contract assets      14,612      25,351
Inventories      129,611      133,067
Deferred cost of sales      1,981      445
Prepaid expenses and other current assets      16,446      14,966
Assets held for sale      11,183      11,180
Total current assets      500,490      475,878
Property, plant and equipment, net      72,291      75,711
Operating lease right-of-use assets      13,159      14,453
Intangible assets, net      57,680      61,518
Goodwill      181,943      181,943
Deferred income taxes      1,549      1,549
Other assets      5,774      7,036
Total assets   $  832,886   $  818,088
             
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $  36,359   $  21,281
Accrued expenses and other current liabilities      41,568      41,243
Customer deposits and deferred revenue      49,628      54,870
Income taxes payable      954      830
Total current liabilities      128,509      118,224
Deferred income taxes      5,763      5,648
Long-term debt      303,388      300,068
Operating lease long-term liabilities      9,294      10,300
Other liabilities      8,868      9,336
Total liabilities      455,822      443,576
             
Total stockholders’ equity      377,064      374,512
Total liabilities and stockholders’ equity   $  832,886   $  818,088

 

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data

(in thousands, except per share amounts)
(unaudited)

                           
          Non-GAAP Adjustments        
          Share-Based                
Three months ended March 31, 2020   GAAP   Compensation   Amortization   Other   Non-GAAP  
Net sales   $  104,502                 $  104,502  
Gross profit      46,419      521          21        46,961  
Gross margin      44.4                  44.9 %
Operating expenses      41,852      (3,125 )    (3,837 )    (667 )      34,223  
Operating income (loss)      4,567      3,646      3,837      688      12,738  
Net income (loss)      (567 )    3,646      3,837      3,935      10,851  
                           
Income (loss) per common share:                          
Basic   $  (0.01 )               $  0.23  
Diluted      (0.01 )                  0.22  
Weighted average number of shares:                          
Basic      47,811                    47,811  
Diluted      47,811                    48,437  

^ - See table below for additional details.

 

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

     
Three months ended March 31, 2020    
Restructuring    625  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting    63  
Subtotal    688  
Non-cash interest expense    3,320  
Non-GAAP tax adjustment *    (73 )
Total Other    3,935  

* - 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 certain integration costs.

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 Non-GAAP Operating income (loss), 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      
          Share-based            
Three months ended March 31, 2019     GAAP   Compensation   Amortization   Other   Non-GAAP
Net sales   $  99,371                 $  99,371  
Gross profit      34,716      470          47        35,233  
Gross margin      34.9                  35.5
Operating expenses      48,856      (2,687 )    (4,218 )    (1,967 )      39,984  
Operating income (loss)      (14,140 )    3,157      4,218      2,014      (4,751 )
Net income (loss)      (18,530 )    3,157      4,218      4,787      (6,368 )
                         
Income (loss) per common share:                        
Basic   $  (0.40 )               $  (0.14 )
Diluted      (0.40 )                  (0.14 )
Weighted average number of shares:                        
Basic      46,848                    46,848  
Diluted      46,848                    46,848  

^ - See table below for additional details.

 

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

     
Three months ended March 31, 2019    
Restructuring    1,430  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting    142  
Accelerated depreciation    397  
Other    45  
Subtotal    2,014  
Non-cash interest expense    3,081  
Non-GAAP tax adjustment *    (308 )
Total Other    4,787  

* - 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 certain integration costs.

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 Non-GAAP Operating income (loss), 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 Non-GAAP Operating Income (loss)
(in thousands)
(unaudited)

             
    Three months ended   Three months ended
    March 31, 2020   March 31, 2019
GAAP Net income (loss)   $  (567 )   $  (18,530 )
Share-based compensation      3,646        3,157  
Amortization      3,837        4,218  
Restructuring      625        1,430  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting      63        142  
Accelerated depreciation      —        397  
Interest (income) expense, net      4,866        4,200  
Other      —        45  
Income tax expense (benefit)      268        190  
Non-GAAP Operating income (loss)   $  12,738     $  (4,751 )

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 certain integration costs.

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 Non-GAAP Operating income (loss), 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.

VECO_Logo_NoTag_RGB_color.jpg

Source: Veeco Instruments Inc.

Multimedia Files:

Categories: Press Releases
View all news