VECO

VEECO INSTRUMENTS INC

Technology | Small Cap

$0.31

EPS Forecast

$180.7

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 ex-99d1.htm EX-99.1 veco_Ex99_1

EXHIBIT 99.1

 

Picture 3

 

VEECO REPORTS FOURTH QUARTER AND FISCAL YEAR 2019 FINANCIAL RESULTS

 

Fourth Quarter 2019 Highlights:

 

·

Revenues of $113.2 million, compared with $99.0 million in the same period last year

·

GAAP net loss of $32.9 million, or $0.69 loss per diluted share

·

Non-GAAP net income of $5.4 million, or $0.11 per diluted share

 

Plainview, N.Y., February 13, 2020 -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 31, 2019. 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 '19

 

Q4 '18

 

2019

   

2018

Revenue

 

$

113.2

 

$

99.0

 

$

419.3

 

$

542.1

Net income (loss)

 

$

(32.9)

 

$

(144.7)

 

$

(78.7)

 

$

(407.1)

Diluted earnings (loss) per share

 

$

(0.69)

 

$

(3.11)

 

$

(1.66)

 

$

(8.63)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

Full Year

Non-GAAP Results

 

Q4 '19

 

Q4 '18

 

2019

 

2018

Net income (loss)

 

$

5.4

 

$

(7.5)

 

$

(1.3)

 

$

14.2

Operating income (loss)

 

$

7.4

 

$

(6.9)

 

$

5.1

 

$

23.2

Diluted earnings (loss) per share

 

$

0.11

 

$

(0.16)

 

$

(0.03)

 

$

0.30

 

 

“We executed well on the first phase of our transformation in 2019 by improving gross margins and reducing expenses, leading to a return to profitability in the second half of the year.  Our data storage business continued its solid performance.  Furthermore, we are positioning the company for long-term growth in the front-end semiconductor, advanced packaging and compound semiconductor markets by executing on our product roadmaps,” commented William J. Miller, Ph.D., Chief Executive Officer.

 

“As we enter 2020, we are focused on optimizing our product portfolio, extending our core technologies into new markets, and further increasing our profitability,” concluded Dr. Miller.

 

 

 

 

 

 

 

 

 

1

Guidance and Outlook

 

The following guidance is provided for Veeco’s first quarter 2020:

 

·

Revenue is expected to be in the range of $95 million to $120 million

·

GAAP loss per share is expected to be in the range of ($0.24) to ($0.01)  

·

Non-GAAP earnings per share is expected to be in the range of $0.00 to $0.22

 

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 13, 2020 starting at 4:30pm ET. To join the call, dial 1-888-394-8218 (toll free) or 1-646-828-8193 and use passcode 3039225. 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, 2018 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) 252-1438Kevin Long (516) 714-3978

abencivenga@veeco.comklong@veeco.com

2

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,

 

 

    

2019

    

2018

    

2019

    

2018

 

Net sales

 

$

113,202

 

$

98,972

 

$

419,349

 

$

542,082

 

Cost of sales

 

 

68,232

 

 

63,713

 

 

261,155

 

 

348,363

 

Gross profit

 

 

44,970

 

 

35,259

 

 

158,194

 

 

193,719

 

Operating expenses, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

21,655

 

 

24,962

 

 

90,557

 

 

97,755

 

Selling, general, and administrative

 

 

19,128

 

 

21,218

 

 

79,749

 

 

92,060

 

Amortization of intangible assets

 

 

4,312

 

 

4,249

 

 

17,085

 

 

32,351

 

Restructuring

 

 

2,529

 

 

887

 

 

6,403

 

 

8,556

 

Acquisition costs

 

 

 —

 

 

53

 

 

 —

 

 

2,959

 

Asset impairment

 

 

4,020

 

 

122,829

 

 

4,020

 

 

375,172

 

Other operating expense (income), net

 

 

190

 

 

42

 

 

(42)

 

 

368

 

Total operating expenses, net

 

 

51,834

 

 

174,240

 

 

197,772

 

 

609,221

 

Operating income (loss)

 

 

(6,864)

 

 

(138,981)

 

 

(39,578)

 

 

(415,502)

 

Interest expense, net

 

 

(4,663)

 

 

(4,485)

 

 

(17,405)

 

 

(18,332)

 

Other income (expense), net

 

 

(20,973)

 

 

 —

 

 

(20,973)

 

 

 —

 

Income (loss) before income taxes

 

 

(32,500)

 

 

(143,466)

 

 

(77,956)

 

 

(433,834)

 

Income tax expense (benefit)

 

 

371

 

 

1,208

 

 

777

 

 

(26,746)

 

Net income (loss)

 

$

(32,871)

 

$

(144,674)

 

$

(78,733)

 

$

(407,088)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.69)

 

$

(3.11)

 

$

(1.66)

 

$

(8.63)

 

Diluted

 

$

(0.69)

 

$

(3.11)

 

$

(1.66)

 

$

(8.63)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,519

 

 

46,551

 

 

47,482

 

 

47,151

 

Diluted

 

 

47,519

 

 

46,551

 

 

47,482

 

 

47,151

 

 

3

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

    

2019

    

2018

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

129,294

 

$

212,273

Restricted cash

 

 

657

 

 

809

Short-term investments

 

 

115,252

 

 

48,189

Accounts receivable, net

 

 

45,666

 

 

66,808

Contract assets

 

 

25,351

 

 

10,397

Inventories

 

 

133,067

 

 

156,311

Deferred cost of sales

 

 

445

 

 

3,072

Prepaid expenses and other current assets

 

 

14,966

 

 

22,221

Assets held for sale

 

 

11,180

 

 

 —

Total current assets

 

 

475,878

 

 

520,080

Property, plant and equipment, net

 

 

75,711

 

 

80,284

Operating lease right-of-use assets

 

 

14,453

 

 

 —

Intangible assets, net

 

 

61,518

 

 

85,149

Goodwill

 

 

181,943

 

 

184,302

Deferred income taxes

 

 

1,549

 

 

1,869

Other assets

 

 

7,036

 

 

29,132

Total assets

 

$

818,088

 

$

900,816

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

21,281

 

$

39,611

Accrued expenses and other current liabilities

 

 

41,243

 

 

46,450

Customer deposits and deferred revenue

 

 

54,870

 

 

72,736

Income taxes payable

 

 

830

 

 

1,256

Total current liabilities

 

 

118,224

 

 

160,053

Deferred income taxes

 

 

5,648

 

 

5,690

Long-term debt

 

 

300,068

 

 

287,392

Operating lease long-term liabilities

 

 

10,300

 

 

 —

Other liabilities

 

 

9,336

 

 

9,906

Total liabilities

 

 

443,576

 

 

463,041

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

374,512

 

 

437,775

Total liabilities and stockholders’ equity

 

$

818,088

 

$

900,816

4

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

 

 

 

 

 

 

 

 

47,525

 

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.

5

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, 2018

    

 

GAAP

    

Compensation

    

Amortization

    

Other

    

Non-GAAP

 

Net sales

 

$

98,972

 

 

 

 

 

 

 

$

98,972

 

Gross profit

 

 

35,259

 

282

 

 

 

134

 

 

35,675

 

Gross margin

 

 

35.6

%  

 

 

 

 

 

 

 

36.0

%

Operating expenses

 

 

174,240

 

(3,071)

 

(4,249)

 

(124,327)

 

 

42,593

 

Operating income (loss)

 

 

(138,981)

 

3,353

 

4,249

 

124,461

^

 

(6,918)

 

Net income (loss)

 

 

(144,674)

 

3,353

 

4,249

 

129,532

^

 

(7,540)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(3.11)

 

 

 

 

 

 

 

$

(0.16)

 

Diluted

 

 

(3.11)

 

 

 

 

 

 

 

 

(0.16)

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

46,551

 

 

 

 

 

 

 

 

46,551

 

Diluted

 

 

46,551

 

 

 

 

 

 

 

 

46,551

 


^- See table below for additional details.

Veeco Instruments Inc. and Subsidiaries

Other Non-GAAP Adjustments

(in thousands)
(unaudited)

 

 

 

Three months ended December 31, 2018

 

 

Restructuring

    

722

Acquisition related

 

53

Asset impairment

 

122,829

Release of inventory fair value step-up associated with the Ultratech purchase accounting

 

70

Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting

 

190

Accelerated depreciation

 

597

Subtotal

 

124,461

Non-cash interest expense

 

3,023

Non-GAAP tax adjustment *

 

2,048

Total Other

 

129,532


*- 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.

6

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, 2019

 

December 31, 2018

GAAP Net income (loss)

 

$

(32,871)

 

$

(144,674)

Share-based compensation

 

 

3,742

 

 

3,353

Amortization

 

 

4,312

 

 

4,249

Restructuring

 

 

2,132

 

 

722

Acquisition related

 

 

 —

 

 

53

Asset impairment

 

 

4,020

 

 

122,829

Release of inventory fair value step-up associated with the Ultratech purchase accounting

 

 

 —

 

 

70

Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting

 

 

90

 

 

190

Accelerated depreciation

 

 

 —

 

 

597

Interest (income) expense, net

 

 

4,663

 

 

4,485

Impairment of equity investments

 

 

20,973

 

 

 —

Income tax expense (benefit)

 

 

371

 

 

1,208

Non-GAAP Operating income (loss)

 

$

7,432

 

$

(6,918)

 

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.

7

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.

8

 

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, 2018

    

 

GAAP

    

Compensation

    

Amortization

    

Other

    

Non-GAAP

 

Net sales

 

$

542,082

 

 

 

 

 

 

 

$

542,082

 

Gross profit

 

 

193,719

 

1,885

 

 

 

2,849

 

 

198,453

 

Gross margin

 

 

35.7

%  

 

 

 

 

 

 

 

36.6

%

Operating expenses

 

 

609,221

 

(14,189)

 

(32,351)

 

(387,388)

 

 

175,293

 

Operating income (loss)

 

 

(415,502)

 

16,074

 

32,351

 

390,237

^

 

23,160

 

Net income (loss)

 

 

(407,088)

 

16,074

 

32,351

 

372,862

^

 

14,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(8.63)

 

 

 

 

 

 

 

$

0.30

 

Diluted

 

 

(8.63)

 

 

 

 

 

 

 

 

0.30

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,151

 

 

 

 

 

 

 

 

47,171

 

Diluted

 

 

47,151

 

 

 

 

 

 

 

 

47,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Veeco Instruments Inc. and Subsidiaries

Other Non-GAAP Adjustments

(in thousands)

(unaudited)

 

 

 

For the year ended December 31, 2018

 

 

Restructuring

    

7,395

Acquisition related

 

2,959

Asset impairment

 

375,172

Release of inventory fair value step-up associated with the Ultratech purchase accounting

 

2,516

Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting

 

1,011

Accelerated depreciation

 

1,184

Subtotal

 

390,237

Non-cash interest expense

 

11,762

Non-GAAP tax adjustment *

 

(29,137)

Total Other

 

372,862


*    -  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.

9

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, 2019

 

December 31, 2018

GAAP Net income (loss)

 

$

(78,733)

 

$

(407,088)

Share-based compensation

 

 

15,270

 

 

16,074

Amortization

 

 

17,085

 

 

32,351

Restructuring

 

 

6,006

 

 

7,395

Acquisition related

 

 

 —

 

 

2,959

Asset impairment

 

 

4,020

 

 

375,172

Release of inventory fair value step-up associated with the Ultratech purchase accounting

 

 

1,270

 

 

2,516

Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting

 

 

557

 

 

1,011

Accelerated depreciation

 

 

397

 

 

1,184

Other

 

 

44

 

 

 —

Interest (income) expense

 

 

17,405

 

 

18,332

Impairment of equity investments

 

 

20,973

 

 

 —

Income tax expense (benefit)

 

 

777

 

 

(26,746)

Non-GAAP Operating income (loss)

 

$

5,071

 

$

23,160

 

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.

 

10

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, 2020

 

GAAP

 

Compensation

 

Amortization

 

   Other    

 

Non-GAAP

 

Net sales

    

$

95

    

-

    

$

120

    

 

    

 

    

 

    

$

95

    

-

    

$

120

 

Gross profit

 

 

37

 

-

 

 

48

 

 1

 

 —

 

 —

 

 

38

 

-

 

 

49

 

Gross margin

 

 

39%

 

-

 

 

41%

 

 

 

 

 

 

 

 

39%

 

-

 

 

41%

 

Operating expenses

 

 

 

~$44

 

 

 

 2

 

 4

 

 1

 

 

 

~$37

 

 

 

Operating income (loss)

 

 

(7)

 

-

 

 

 4

 

 3

 

 4

 

 1

 

 

 1

 

-

 

 

12

 

Net income (loss)

 

$

(12)

 

-

 

$

(1)

 

 3

 

 4

 

 5

 

$

 —

 

-

 

$

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per diluted common share

 

$

(0.24)

 

-

 

$

(0.01)

 

  

 

  

 

  

 

$

0.00

 

-

 

$

0.22

 

Weighted average number of shares

 

 

48

 

 

 

 

48

 

 

 

 

 

 

 

 

48

 

 

 

 

48

 

 

 

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, 2020

    

 

 

    

 

    

 

 

GAAP Net income (loss)

 

$

(12)

 

-

 

$

(1)

Share-based compensation

 

 

 3

 

-

 

 

 3

Amortization

 

 

 4

 

-

 

 

 4

Restructuring

 

 

 1

 

-

 

 

 1

Interest expense, net

 

 

 4

 

-

 

 

 4

Other

 

 

 1

 

-

 

 

 1

Non-GAAP Operating income (loss)

 

$

 1

 

-

 

$

12

 

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.

 

11