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Veeco Reports First Quarter 2024 Financial Results
ソース: Nasdaq GlobeNewswire / 07 5 2024 16:05:01 America/New_York
First Quarter 2024 Highlights:
- Revenue of $174.5 million, compared with $153.5 million in the same period last year
- GAAP net income of $21.9 million, or $0.37 per diluted share, compared with $8.7 million, or $0.17 per diluted share in the same period last year
- Non-GAAP net income of $26.4 million, or $0.45 per diluted share, compared with $16.9 million, or $0.30 per diluted share in the same period last year
PLAINVIEW, N.Y., May 07, 2024 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2024. 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 '24 Q1 '23 Revenue $ 174.5 $ 153.5 Net income $ 21.9 $ 8.7 Diluted earnings per share $ 0.37 $ 0.17 Non-GAAP Results Q1 '24 Q1 '23 Operating income $ 29.4 $ 20.4 Net income $ 26.4 $ 16.9 Diluted earnings per share $ 0.45 $ 0.30 “We delivered solid top and bottom line results toward the high-end of our guidance, led by record quarterly Semiconductor revenue,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “We’re pleased to have received a multi-tool laser annealing order, including a Nanosecond annealing system, from a leading edge Semiconductor company for their 2 nanometer gate-all-around process. Our Laser Annealing business continues to gain share at our customers most advanced nodes, with this win further validating our position.”
Guidance and Outlook
The following guidance is provided for Veeco’s second quarter 2024:
- Revenue is expected in the range of $165 million to $185 million
- GAAP diluted earnings per share are expected in the range of $0.22 to $0.33
- Non-GAAP diluted earnings per share are expected in the range of $0.38 to $0.48
Conference Call Information
A conference call reviewing these results has been scheduled for today, May 7, 2024, starting at 5:00 PM ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. 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 laser annealing, ion beam, chemical vapor deposition (CVD), metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography 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, 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; 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; the effects of regional or global health epidemics; 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.
-financial tables attached-
Veeco Contacts: Investors: Anthony Pappone (516) 500-8798 apappone@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 March 31, 2024 2023 Net sales $ 174,484 $ 153,504 Cost of sales 99,065 91,487 Gross profit 75,419 62,017 Operating expenses, net: Research and development 29,642 27,562 Selling, general, and administrative 24,700 22,627 Amortization of intangible assets 1,891 2,111 Other operating expense (income), net (2,859 ) (89 ) Total operating expenses, net 53,374 52,211 Operating income 22,045 9,806 Interest expense, net 705 (802 ) Income before income taxes 22,750 9,004 Income tax expense 896 263 Net income $ 21,854 $ 8,741 Income per common share: Basic $ 0.39 $ 0.17 Diluted $ 0.37 $ 0.17 Weighted average number of shares: Basic 55,968 50,559 Diluted 60,764 59,856 Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)March 31, December 31, 2024 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 173,998 $ 158,781 Restricted cash 326 339 Short-term investments 122,886 146,664 Accounts receivable, net 106,532 103,018 Contract assets 34,336 24,370 Inventories 243,266 237,635 Prepaid expenses and other current assets 34,550 35,471 Total current assets 715,894 706,278 Property, plant and equipment, net 115,297 118,459 Operating lease right-of-use assets 23,685 24,377 Intangible assets, net 42,054 43,945 Goodwill 214,964 214,964 Deferred income taxes 118,724 117,901 Other assets 3,075 3,117 Total assets $ 1,233,693 $ 1,229,041 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 54,011 $ 42,383 Accrued expenses and other current liabilities 59,259 57,624 Contract liabilities 93,812 118,026 Income taxes payable 852 — Current portion of long-term debt 26,425 — Total current liabilities 234,359 218,033 Deferred income taxes 6,496 6,552 Long-term debt 248,811 274,941 Long-term operating lease liabilities 30,949 31,529 Other liabilities 25,168 25,544 Total liabilities 545,783 556,599 Total stockholders’ equity 687,910 672,442 Total liabilities and stockholders’ equity $ 1,233,693 $ 1,229,041 Note on Reconciliation Tables
The below 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.
Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-Based Three months ended March 31, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 174,484 $ 174,484 Gross profit 75,419 1,730 77,149 Gross margin 43.2 % 44.2 % Operating expenses 53,374 (6,352 ) (1,891 ) 2,658 47,789 Operating income 22,045 8,082 1,891 (2,658 ) ^ 29,360 Net income 21,854 8,082 1,891 (5,384 ) ^ 26,443 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (Q1 2024)
(in thousands)
(unaudited)Three months ended March 31, 2024 Changes in contingent consideration $ (625 ) Sale of productive assets (2,033 ) Subtotal (2,658 ) Non-cash interest expense 296 Non-GAAP tax adjustment * (3,022 ) Total Other $ (5,384 ) ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (Q1 2024)
(in thousands, except per share amounts)
(unaudited)Three months ended March 31, 2024 GAAP Non-GAAP Numerator: Net income $ 21,854 $ 26,443 Interest expense associated with 2025 and 2027 Convertible Senior Notes 514 466 Net income available to common shareholders $ 22,368 $ 26,909 Denominator: Basic weighted average shares outstanding 55,968 55,968 Effect of potentially dilutive share-based awards 939 939 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes(1) 1,788 1,354 Dilutive effect of 2029 Convertible Senior Notes 965 965 Diluted weighted average shares outstanding 60,764 60,330 Net income per common share: Basic $ 0.39 $ 0.47 Diluted $ 0.37 $ 0.45 ____________________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2023)
(in thousands, except per share amounts)
(unaudited)Non-GAAP Adjustments Share-based Three months ended March 31, 2023 GAAP Compensation Amortization Other Non-GAAP Net sales $ 153,504 $ 153,504 Gross profit 62,017 1,451 232 63,700 Gross margin 40.4 % 41.5 % Operating expenses 52,211 (5,576 ) (2,111 ) (1,266 ) 43,258 Operating income 9,806 7,027 2,111 1,498 ^ 20,442 Net income 8,741 7,027 2,111 (1,006 ) ^ 16,873 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (Q1 2023)
(in thousands)
(unaudited)Three months ended March 31, 2023 Transition expenses related to San Jose expansion project $ 780 Acquisition related 718 Subtotal 1,498 Non-cash interest expense 226 Non-GAAP tax adjustment * (2,730 ) Total Other $ (1,006 ) ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (Q1 2023)
(in thousands, except per share amounts)
(unaudited)Three months ended March 31, 2023 GAAP Non-GAAP Numerator: Net income $ 8,741 $ 16,873 Interest expense associated with convertible notes 1,277 2,354 Net income available to common shareholders $ 10,018 $ 19,227 Denominator: Basic weighted average shares outstanding 50,559 50,559 Effect of potentially dilutive share-based awards 355 355 Dilutive effect of 2023 Convertible Senior Notes — 82 Dilutive effect of 2025 Convertible Senior Notes — 5,521 Dilutive effect of 2027 Convertible Senior Notes(1) 8,942 6,771 Diluted weighted average shares outstanding 59,856 63,288 Net income per common share: Basic $ 0.17 $ 0.33 Diluted $ 0.17 $ 0.30 ____________________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2024 and 2023)
(in thousands)
(unaudited)Three months ended Three months ended March 31, 2024 March 31, 2023 GAAP Net income $ 21,854 $ 8,741 Share-based compensation 8,082 7,027 Amortization 1,891 2,111 Sale of productive assets (2,033 ) — Changes in contingent consideration (625 ) — Transition expenses related to San Jose expansion project — 780 Acquisition related — 718 Interest (income) expense, net (705 ) 802 Income tax expense 896 263 Non-GAAP Operating income $ 29,360 $ 20,442 Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2024)
(in millions, except per share amounts)
(unaudited)Non-GAAP Adjustments Guidance for the three months ending Share-based June 30, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 165 - $ 185 $ 165 - $ 185 Gross profit 69 - 80 2 — — 71 - 82 Gross margin 42 % - 43 % 43 % - 44 % Operating expenses 55 - 57 (7 ) (2 ) — 46 - 48 Operating income 14 - 23 9 2 — 25 - 33 Net income $ 13 - $ 20 9 2 (2 ) $ 22 - $ 29 Income per diluted common share $ 0.22 - $ 0.33 $ 0.38 - $ 0.48 Income per Diluted Common Share (Q2 2024)
(in millions, except per share amounts)
(unaudited)Guidance for the three months ending June 30, 2024 GAAP Non-GAAP Numerator: Net income $ 13 - $ 20 $ 22 - $ 29 Interest expense associated with convertible notes — — — — Net income available to common shareholders $ 13 - $ 20 $ 22 - $ 29 Denominator: Basic weighted average shares outstanding 56 56 56 56 Effect of potentially dilutive share-based awards 2 2 2 2 Dilutive effect of 2025 Convertible Senior Notes 1 1 1 1 Dilutive effect of 2027 Convertible Senior Notes(1) 2 2 1 1 Dilutive effect of 2029 Convertible Senior Notes 1 1 1 1 Diluted weighted average shares outstanding 62 62 61 61 Net income per common share: Income per diluted common share $ 0.22 - $ 0.33 $ 0.38 - $ 0.48 ____________________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2024)
(in millions)
(unaudited)Guidance for the three months ending June 30, 2024 GAAP Net income $ 13 - $ 20 Share-based compensation 9 - 9 Amortization 2 - 2 Interest income, net (1 ) - (1 ) Income tax expense 2 - 3 Non-GAAP Operating income $ 25 - $ 33 Note: Amounts may not calculate precisely due to rounding.
