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Veeco Reports Fourth Quarter and Fiscal Year 2020 Financial Results

February, 11, 2021

Fourth Quarter 2020 Highlights:

  • Revenues of $138.9 million, compared with $113.2 million in the same period last year
  • GAAP net loss of $0.1 million, or $(0.00) per diluted share, compared with a loss of $32.9 million, or $0.69 loss per diluted share in the same period last year
  • Non-GAAP net income of $15.0 million, or $0.30 per diluted share, compared with $5.4 million, or $0.11 per diluted share in the same period last year

PLAINVIEW, N.Y., Feb. 11, 2021 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 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
                         
    4th Quarter   Full Year
GAAP Results   Q4 '20   Q4 '19   2020       2019  
Revenue   $ 138.9     $ 113.2     $ 454.2     $ 419.3  
Net income (loss)   $ (0.1 )   $ (32.9 )   $ (8.4 )   $ (78.7 )
Diluted earnings (loss) per share   $ (0.00 )   $ (0.69 )   $ (0.17 )   $ (1.66 )

 

    4th Quarter   Full Year
Non-GAAP Results   Q4 '20   Q4 '19   2020   2019  
Net income (loss)   $ 15.0   $ 5.4   $ 42.3   $ (1.3 )
Operating income (loss)   $ 17.6   $ 7.4   $ 52.5   $ 5.1  
Diluted earnings (loss) per share   $ 0.30   $ 0.11   $ 0.86   $ (0.03 )

“Our year-over-year financial performance dramatically improved in 2020 and we are proud to conclude this remarkable year of transformation by delivering solid fourth quarter results. These fourth quarter results were driven primarily by system sales in support of semiconductor advanced-node manufacturing, as well as compound semiconductor system sales for 5G RF applications,” commented William J. Miller, Ph.D., Chief Executive Officer.

“We enter 2021 with healthy backlog, strong customer engagements and overall positive momentum. We look forward to executing our near-term growth strategy driven in large part by our Laser Annealing, 5G RF and Data Storage applications.”

Guidance and Outlook

The following guidance is provided for Veeco’s first quarter 2021:

  • Revenue is expected in the range of $115 million to $135 million
  • GAAP diluted earnings (loss) per share are expected in the range of $(0.09) to $0.09
  • Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.30

Please refer to the tables at the end of this press release for further details.

Conference Call Information

A conference call reviewing these results has been scheduled for today, February 11, 2021 starting at 5:00pm ET. To join the call, dial 1-866-248-8441 (toll free) or 1-929-477-0577 and use passcode 7940308. 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

This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, the impact of the COVID-19 pandemic, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; the effects of regional or global health epidemics, including the effects of the COVID-19 pandemic on the Company’s operations and on those of our customers and suppliers; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

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


Veeco Instruments Inc. and Subsidiaries

Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)

                         
    Three months ended December 31,   Year ended December 31,
       2020        2019        2020        2019  
Net sales   $ 138,946     $ 113,202     $ 454,163     $ 419,349  
Cost of sales     82,101       68,232       259,863       261,155  
Gross profit     56,845       44,970       194,300       158,194  
Operating expenses, net:                        
Research and development     21,417       21,655       78,994       90,557  
Selling, general, and administrative     20,710       19,128       76,251       79,749  
Amortization of intangible assets     3,831       4,312       15,333       17,085  
Restructuring           2,529       1,097       6,403  
Asset impairment           4,020       281       4,020  
Other operating expense (income), net     281       190       (221 )     (42 )
Total operating expenses, net     46,239       51,834       171,735       197,772  
Operating income (loss)     10,606       (6,864 )     22,565       (39,578 )
Interest expense, net     (6,516 )     (4,663 )     (23,188 )     (17,405 )
Other income (expense), net     (4,794 )     (20,973 )     (7,841 )     (20,973 )
Income (loss) before income taxes     (704 )     (32,500 )     (8,464 )     (77,956 )
Income tax expense (benefit)     (602 )     371       (73 )     777  
Net income (loss)   $ (102 )   $ (32,871 )   $ (8,391 )   $ (78,733 )
                         
Income (loss) per common share:                        
Basic   $ (0.00 )   $ (0.69 )   $ (0.17 )   $ (1.66 )
Diluted   $ (0.00 )   $ (0.69 )   $ (0.17 )   $ (1.66 )
                         
Weighted average number of shares:                        
Basic     48,340       47,519       48,362       47,482  
Diluted     48,340       47,519       48,362       47,482  


Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)

             
    December 31,   December 31,
       2020      2019
    (unaudited)      
Assets            
Current assets:            
Cash and cash equivalents   $ 129,625   $ 129,294
Restricted cash     658     657
Short-term investments     189,771     115,252
Accounts receivable, net     79,991     45,666
Contract assets     21,246     25,351
Inventories     145,906     133,067
Deferred cost of sales     433     445
Prepaid expenses and other current assets     19,301     14,966
Assets held for sale         11,180
Total current assets     586,931     475,878
Property, plant and equipment, net     65,271     75,711
Operating lease right-of-use assets     10,275     14,453
Intangible assets, net     46,185     61,518
Goodwill     181,943     181,943
Deferred income taxes     1,440     1,549
Other assets     6,019     7,036
Total assets   $ 898,064   $ 818,088
             
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $ 33,656   $ 21,281
Accrued expenses and other current liabilities     44,876     41,243
Customer deposits and deferred revenue     67,235     54,870
Income taxes payable     914     830
Total current liabilities     146,681     118,224
Deferred income taxes     5,240     5,648
Long-term debt     321,115     300,068
Operating lease long-term liabilities     6,305     10,300
Other liabilities     10,349     9,336
Total liabilities     489,690     443,576
             
Total stockholders’ equity     408,374     374,512
Total liabilities and stockholders’ equity   $ 898,064   $ 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 December 31, 2020      GAAP      Compensation      Amortization      Other      Non-GAAP  
Net sales   $ 138,946                 $ 138,946  
Gross profit     56,845     486         20       57,351  
Gross margin     40.9                 41.3 %
Operating expenses     46,239     (2,656 )   (3,831 )   (41 )     39,711  
Operating income (loss)     10,606     3,142     3,831     61   ^   17,640  
Net income (loss)     (102 )   3,142     3,831     8,085   ^   14,956  
                           
Income (loss) per common share:                          
Basic   $ (0.00 )               $ 0.31  
Diluted     (0.00 )                 0.30  
Weighted average number of shares:                          
Basic     48,340                   48,340  
Diluted     48,340                   49,663  
                             
^   - See table below for additional details.                            

 

 

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

       
Three months ended December 31, 2020         
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting   $ 61  
Subtotal     61  
Non-cash interest expense     3,511  
Loss on extinguishment of debt     4,794  
Non-GAAP tax adjustment *     (281 )
Total Other   $ 8,085  
         
*   - 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 December 31, 2019        GAAP      Compensation      Amortization      Other      Non-GAAP  
Net sales   $ 113,202                 $ 113,202  
Gross profit     44,970     455         29       45,454  
Gross margin     39.7                  40.2 %
Operating expenses     51,834     (3,287 )   (4,312 )   (6,213 )     38,022  
Operating income (loss)     (6,864 )   3,742     4,312     6,242   ^   7,432  
Net income (loss)     (32,871 )   3,742     4,312     30,262   ^   5,445  
                           
Income (loss) per common share:                          
Basic   $ (0.69 )               $ 0.11  
Diluted     (0.69 )                 0.11  
Weighted average number of shares:                          
Basic     47,519                   47,519  
Diluted     47,519                   48,404  
                             
^   - See table below for additional details.                            


Veeco Instruments Inc. and Subsidiaries

Other Non-GAAP Adjustments
(in thousands)
(unaudited)

       
Three months ended December 31, 2019      
Restructuring      $ 2,132  
Asset impairment     4,020  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting     90  
Subtotal     6,242  
Non-cash interest expense     3,257  
Impairment of equity investments     20,973  
Non-GAAP tax adjustment *     (210 )
Total Other   $ 30,262  
         
*   - 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
    December 31, 2020   December 31, 2019
GAAP Net income (loss)   $ (102 )   $ (32,871 )
Share-based compensation     3,142       3,742  
Amortization     3,831       4,312  
Restructuring           2,132  
Asset impairment           4,020  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting     61       90  
Interest (income) expense, net     6,516       4,663  
Impairment of equity investments           20,973  
Loss on extinguishment of debt     4,794        
Income tax expense (benefit)     (602 )     371  
Non-GAAP Operating income (loss)   $ 17,640     $ 7,432  

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.

 

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              
For the year ended December 31, 2020        GAAP      Compensation      Amortization      Other      Non-GAAP  
Net sales   $ 454,163                 $ 454,163  
Gross profit     194,300     1,870         348       196,518  
Gross margin     42.8                  43.3 %
Operating expenses     171,735     (10,833 )   (15,333 )   (1,530 )     144,039  
Operating income (loss)     22,565     12,703     15,333     1,878   ^   52,479  
Net income (loss)     (8,391 )   12,703     15,333     22,684   ^   42,329  
                           
Income (loss) per common share:                          
Basic   $ (0.17 )               $ 0.88  
Diluted     (0.17 )                 0.86  
Weighted average number of shares:                          
Basic     48,362                   48,362  
Diluted     48,362                   49,309  
                             
^   - See table below for additional details.                            


Veeco Instruments Inc. and Subsidiaries

Other Non-GAAP Adjustments
(in thousands)
(unaudited)

       
For the year ended December 31, 2020         
Restructuring   $ 1,097  
Asset impairment     281  
Release of inventory fair value step-up associated with the Ultratech purchase accounting     273  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting     227  
Subtotal     1,878  
Non-cash interest expense     13,792  
Loss on extinguishment of debt     7,841  
Non-GAAP tax adjustment *     (827 )
Total Other   $ 22,684  
         
*    - 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            
For the year ended December 31, 2019        GAAP      Compensation      Amortization      Other      Non-GAAP
Net sales   $ 419,349                 $ 419,349  
Gross profit     158,194     1,903         1,453       161,550  
Gross margin     37.7                  38.5
Operating expenses     197,772     (13,367 )   (17,085 )   (10,841 )     156,479  
Operating income (loss)     (39,578 )   15,270     17,085     12,294   ^   5,071  
Net income (loss)     (78,733 )   15,270     17,085     45,102   ^   (1,276 )
                         
Income (loss) per common share:                        
Basic   $ (1.66 )               $ (0.03 )
Diluted     (1.66 )                 (0.03 )
Weighted average number of shares:                        
Basic     47,482                   47,482  
Diluted     47,482                   47,482  
                             
^   - See table below for additional details.                        


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

       
For the year ended December 31, 2019      
Restructuring      $ 6,006  
Asset impairment     4,020  
Release of inventory fair value step-up associated with the Ultratech purchase accounting     1,270  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting     557  
Accelerated depreciation     397  
Other     44  
Subtotal     12,294  
Non-cash interest expense     12,676  
Impairment of equity investments     20,973  
Non-GAAP tax adjustment *     (841 )
Total Other   $ 45,102  
         
*    - 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)

             
       Year ended      Year ended
    December 31, 2020   December 31, 2019
GAAP Net income (loss)   $ (8,391 )   $ (78,733 )
Share-based compensation     12,703       15,270  
Amortization     15,333       17,085  
Restructuring     1,097       6,006  
Asset impairment     281       4,020  
Release of inventory fair value step-up associated with the Ultratech purchase accounting     273       1,270  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting     227       557  
Accelerated depreciation           397  
Other           44  
Interest (income) expense, net     23,188       17,405  
Impairment of equity investment           20,973  
Loss on extinguishment of debt     7,841        
Income tax expense (benefit)     (73 )     777  
Non-GAAP Operating income (loss)   $ 52,479     $ 5,071  

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.

 

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in millions, except per share amounts)
(unaudited)

                                               
                    Non-GAAP Adjustments                  
Guidance for the three months ending                   Share-based                          
March 31, 2021   GAAP   Compensation   Amortization       Other        Non-GAAP  
Net sales      $ 115        -      $ 135                             $ 115        -      $ 135    
Gross profit     47     -     58                 47     -     58    
Gross margin     40 %   -     42 %                 40 %   -     42 %  
Operating expenses     44     -     46     (3 )   (4 )       37     -     39    
Operating income (loss)     3     -     12     3     4         10     -     19    
Net income (loss)   $ (4 )   -   $ 5     3     4     3   $ 6     -   $ 15    
                                               
Income (loss) per diluted common share   $ (0.09 )   -   $ 0.09                    $ 0.12     -   $ 0.30    
Weighted average number of shares (1)     49           53                   50           50    
                                                       
(1)    - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, no incremental shares are added to the dilutive share count in periods in which the average stock price per share is below $18.46. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, incremental shares are added to the dilutive share count in periods in which the average stock price per share is above $13.98, and the Company is in a net income position.

 


Veeco Instruments Inc. and Subsidiaries

Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (Loss)
(in millions)
(unaudited)

                 
Guidance for the three months ending March 31, 2021                         
GAAP Net income (loss)   $ (4 )   -   $ 5
Share-based compensation     3     -     3
Amortization     4     -     4
Interest expense, net     7     -     7
Non-GAAP Operating income (loss)   $ 10     -   $ 19

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 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.


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Source: Veeco Instruments Inc.

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