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Veeco Reports Third Quarter 2022 Financial Results
ソース: Nasdaq GlobeNewswire / 07 11 2022 16:05:01 America/New_York
Third Quarter 2022 Highlights:
- Revenues of $171.9 million, compared with $150.2 million in the same period last year
- GAAP net income of $15.0 million, or $0.27 per diluted share, compared with $9.0 million, or $0.17 per diluted share in the same period last year
- Non-GAAP net income of $26.0 million, or $0.45 per diluted share, compared with $20.5 million, or $0.40 per diluted share in the same period last year
PLAINVIEW, N.Y., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its third quarter ended September 30, 2022. 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 Q3 '22 Q3 '21 Revenue $ 171.9 $ 150.2 Net income $ 15.0 $ 9.0 Diluted earnings per share $ 0.27 $ 0.17 Non-GAAP Results Q3 '22 Q3 '21 Operating income $ 28.4 $ 24.3 Net income $ 26.0 $ 20.5 Diluted earnings per share $ 0.45 $ 0.40 “With significant contributions from our laser annealing product line, as well as systems for advanced packaging and EUV mask blank production, we achieved another record revenue quarter in our semiconductor business which drove robust year-on-year revenue growth for the company,” commented Bill Miller, Veeco’s Chief Executive Officer. “Despite the challenging current macro environment, we continue to invest in executing our growth strategy, are well positioned with attractive technologies and we are optimistic about expanding our served available market.”
Guidance and Outlook
The following guidance is provided for Veeco’s fourth quarter 2022:
- Revenue is expected in the range of $150 million to $170 million
- GAAP diluted earnings per share are expected in the range of $0.05 to $0.23
- Non-GAAP diluted earnings per share are expected in the range of $0.24 to $0.40
Conference Call Information
A conference call reviewing these results has been scheduled for today, November 7, 2022 starting at 5:00pm ET. To join the call, dial 1-866-580-3963 (toll free) or 1-786-697-3501 and use password VECOQ32022. 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.
-financial tables attached-
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 September 30, Nine months ended September 30, 2022 2021 2022 2021 Net sales $ 171,913 $ 150,246 $ 492,338 $ 430,305 Cost of sales 101,962 87,077 292,109 252,055 Gross profit 69,951 63,169 200,229 178,250 Operating expenses, net: Research and development 27,104 21,999 77,237 66,397 Selling, general, and administrative 22,144 21,603 67,987 63,325 Amortization of intangible assets 2,505 2,976 7,514 9,305 Other operating expense (income), net 634 175 587 138 Total operating expenses, net 52,387 46,753 153,325 139,165 Operating income 17,564 16,416 46,904 39,085 Interest expense, net (2,315 ) (7,012 ) (7,753 ) (20,221 ) Income before income taxes 15,249 9,404 39,151 18,864 Income tax expense (benefit) 208 411 1,125 1,029 Net income $ 15,041 $ 8,993 $ 38,026 $ 17,835 Income per common share: Basic $ 0.30 $ 0.18 $ 0.76 $ 0.36 Diluted $ 0.27 $ 0.17 $ 0.70 $ 0.33 Weighted average number of shares: Basic 49,887 49,021 49,831 48,968 Diluted 65,151 53,849 65,090 53,606
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)September 30, December 31, 2022 2021 (unaudited) Assets Current assets: Cash and cash equivalents $ 169,111 $ 119,747 Restricted cash 557 725 Short-term investments 101,862 104,181 Accounts receivable, net 142,985 109,609 Contract assets 29,865 18,293 Inventories 187,737 170,858 Prepaid expenses and other current assets 17,586 25,974 Total current assets 649,703 549,387 Property, plant and equipment, net 108,416 99,743 Operating lease right-of-use assets 25,119 28,813 Intangible assets, net 26,391 33,905 Goodwill 181,943 181,943 Deferred income taxes 1,639 1,639 Other assets 3,406 3,546 Total assets $ 996,617 $ 898,976 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 51,129 $ 44,456 Accrued expenses and other current liabilities 65,062 79,752 Customer deposits and deferred revenue 122,285 63,136 Income taxes payable 1,565 1,860 Current portion of long-term debt 20,144 — Total current liabilities 260,185 189,204 Deferred income taxes 4,748 4,792 Long-term debt 254,272 229,438 Long-term operating lease liabilities 31,266 32,834 Other liabilities 5,031 5,080 Total liabilities 555,502 461,348 Total stockholders’ equity 441,115 437,628 Total liabilities and stockholders’ equity $ 996,617 $ 898,976 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 (Q3 2022)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-Based Three months ended September 30, 2022 GAAP Compensation Amortization Other Non-GAAP Net sales $ 171,913 $ 171,913 Gross profit 69,951 1,195 1,102 72,248 Gross margin 40.7 % 42.0 % Operating expenses 52,387 (5,015 ) (2,505 ) (981 ) 43,886 Operating income 17,564 6,210 2,505 2,083 ^ 28,362 Net income 15,041 6,210 2,505 2,252 ^ 26,008 ______________________
^ - See table below for additional details.
Other Non-GAAP Adjustments (Q3 2022)
(in thousands)
(unaudited)Three months ended September 30, 2022 Transition expenses related to San Jose expansion project $ 1,936 Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting 147 Subtotal 2,083 Non-cash interest expense 242 Non-GAAP tax adjustment * (73 ) Total Other $ 2,252 ______________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.
Net Income per Common Share (Q3 2022)
(in thousands, except per share amounts)
(unaudited)Three months ended September 30, 2022 GAAP Non-GAAP Numerator: Net income $ 15,041 $ 26,008 Interest expense associated with convertible notes 2,549 2,467 Net income available to common shareholders $ 17,590 $ 28,475 Denominator: Basic weighted average shares outstanding 49,887 49,887 Effect of potentially dilutive share-based awards 801 801 Dilutive effect of 2023 Convertible Senior Notes — 504 Dilutive effect of 2025 Convertible Senior Notes 5,521 5,521 Dilutive effect of 2027 Convertible Senior Notes(1) 8,942 6,771 Diluted weighted average shares outstanding 65,151 63,484 Net income per common share: Basic $ 0.30 $ 0.52 Diluted $ 0.27 $ 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 (Q3 2021)
(in thousands, except per share amounts)
(unaudited)Non-GAAP Adjustments Share-based Three months ended September 30, 2021 GAAP Compensation Amortization Other Non-GAAP Net sales $ 150,246 $ 150,246 Gross profit 63,169 620 150 63,939 Gross margin 42.0 % 42.6 % Operating expenses 46,753 (3,510 ) (2,976 ) (637 ) 39,630 Operating income 16,416 4,130 2,976 787 ^ 24,309 Net income 8,993 4,130 2,976 4,375 ^ 20,474 Income per common share: Basic $ 0.18 $ 0.42 Diluted 0.17 0.40 Weighted average number of shares: Basic 49,021 49,021 Diluted(1) 53,849 51,679 ______________________
^ - See table below for additional details.(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. The average stock price for the three months ended September 30, 2021 was $22.24, and therefore 1.2 million shares were included in the non-GAAP diluted share count, and 3.3 million shares were included in the GAAP diluted share count related to the 2027 Notes.
Other Non-GAAP Adjustments (Q3 2021)
(in thousands)
(unaudited)Three months ended September 30, 2021 Transition expenses related to San Jose expansion project $ 705 Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting 82 Subtotal 787 Non-cash interest expense 3,663 Non-GAAP tax adjustment * (75 ) Total Other $ 4,375 ______________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.
Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2022 and 2021)
(in thousands)
(unaudited)Three months ended Three months ended September 30, 2022 September 30, 2021 GAAP Net income $ 15,041 $ 8,993 Share-based compensation 6,210 4,130 Amortization 2,505 2,976 Transition expenses related to San Jose expansion project 1,936 705 Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting 147 82 Interest (income) expense, net 2,315 7,012 Income tax expense (benefit) 208 411 Non-GAAP Operating income $ 28,362 $ 24,309
Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2022)
(in millions, except per share amounts)
(unaudited)Non-GAAP Adjustments Guidance for the three months ending Share-based December 31, 2022 GAAP Compensation Amortization Other Non-GAAP Net sales $ 150 - $ 170 $ 150 - $ 170 Gross profit 56 - 68 1 — 1 58 - 70 Gross margin 37 % - 40 % 39 % - 41 % Operating expenses 51 - 53 (5 ) (3 ) (1 ) 43 - 45 Operating income 5 - 15 6 3 1 15 - 25 Net income $ 2 - $ 12 6 3 2 $ 13 - $ 23 Income per diluted common share $ 0.05 - $ 0.23 $ 0.24 - $ 0.40
Income per Diluted Common Share (Q4 2022)
(in millions, except per share amounts)
(unaudited)Guidance for the three months ending December 31, 2022 GAAP Non-GAAP Numerator: Net income $ 2 - $ 12 $ 13 - $ 23 Interest expense associated with convertible notes — 3 2 2 Net income available to common shareholders $ 2 - $ 15 $ 15 - $ 25 Denominator: Basic weighted average shares outstanding 50 50 50 50 Effect of potentially dilutive share-based awards 1 1 1 1 Dilutive effect of 2023 Convertible Senior Notes — — — — Dilutive effect of 2025 Convertible Senior Notes — 6 6 6 Dilutive effect of 2027 Convertible Senior Notes(1) — 9 7 7 Diluted weighted average shares outstanding 51 66 64 64 Net income per common share: Income per diluted common share $ 0.05 - $ 0.23 $ 0.24 - $ 0.40 ______________________
(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 (Q4 2022)
(in millions)
(unaudited)Guidance for the three months ending December 31, 2022 GAAP Net income $ 2 - $ 12 Share-based compensation 6 - 6 Amortization 3 - 3 Interest expense, net 2 - 2 Other 2 - 2 Non-GAAP Operating income $ 15 - $ 25 Note: Amounts may not calculate precisely due to rounding.
