Revenues of $158.6 million, compared with $94.5 million in the same period last year
GAAP net loss of $15.8 million, or $0.34 loss per share
Non-GAAP net income of $9.2 million, or $0.20 per diluted share
PLAINVIEW, N.Y., May 07, 2018 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq:VECO) today announced financial results for its first quarter ended March 31, 2018. 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 ‘18
Q1 ‘17
Revenue
$158.6
$94.5
Net income (loss)
($15.8)
$1.6
Diluted earnings (loss) per share
($0.34)
$0.04
Non-GAAP Results
Q1 ‘18
Q1 ‘17
Net income (loss)
$9.2
$4.2
Operating income (loss)
$11.3
$4.8
Diluted earnings (loss) per share
$0.20
$0.11
"2018 is off to a great start with strong sequential and year-over-year revenue growth. Our Non-GAAP gross margin, operating income, net income and EPS all exceeded our guided ranges,” commented John R. Peeler, Chairman and Chief Executive Officer. “Sales growth in the first quarter was driven primarily by shipments of our lithography systems into the advanced packaging market, and shipments of MOCVD systems for LED applications.
"As we work towards our goal of being a more diversified company, we are pleased to see orders grow in the Front-End Semi and Advanced Packaging, MEMS & RF Filter markets,” continued Mr. Peeler. “Our Ultratech integration is also proceeding well and we remain encouraged with Veeco’s growth prospects ahead.”
Guidance and Outlook
The following guidance is provided for Veeco’s second quarter 2018:
Revenue is expected in the range of $145 million to $170 million
Non-GAAP operating income is expected in the range of $2 million to $11 million
GAAP earnings (loss) per share are expected in the range of ($0.45) to ($0.26)
Non-GAAP earnings (loss) per share are expected in the range of $0.01 to $0.20
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, May 7, 2018, starting at 5:00pm ET. To join the call, dial 1-800-281-7973 (toll free) or 1-323-794-2093 and use passcode 1840311. 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 beginning at 8:00pm ET this evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.
New Accounting Standard
The Company adopted the new accounting standard, ASC 606, related to revenue recognition, effective January 1, 2018. The prior periods presented here have been recast to reflect the adoption of this new standard.
About Veeco
Veeco (NASDAQ:VECO) is a leading manufacturer of innovative semiconductor process equipment. Our proven MOCVD, lithography, laser annealing, ion beam and single wafer etch & clean technologies play an integral role in producing LEDs for solid-state lighting and displays, and in the fabrication of advanced semiconductor devices. With equipment designed to maximize performance, yield and cost of ownership, Veeco holds technology leadership positions in all these served markets. To learn more about Veeco's innovative equipment and services, 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, 2017 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: Anthony Bencivenga 516-677-0200 x1308 [email protected]
Selling, general, and administrative and Other, net
26,226
(2,857
)
(188
)
23,181
Net income (loss)
(15,827
)
4,537
13,532
6,985
9,227
Income (loss) per common share:
Basic
$
(0.34
)
$
0.20
Diluted
(0.34
)
0.20
Weighted average number of shares:
Basic
46,963
47,022
Diluted
46,963
47,191
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
Three months ended March 31, 2018
Restructuring
2,523
Acquisition related
1,342
Release of inventory fair value step-up associated with the Ultratech purchase accounting
514
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting
293
Non-cash interest expense
2,859
Other
(8
)
Non-GAAP tax adjustment *
(538
)
Total Other
6,985
* - 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, incremental transaction-related compensation, 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
Three months ended March 31, 2017
GAAP
Share-based Compensation
Amortization
Other
Non-GAAP
Net sales
$
94,499
$
94,499
Gross profit
34,500
657
89
35,246
Gross margin
36.5
%
37.3
%
Research and development
14,989
(429
)
14,560
Selling, general, and administrative and Other, net
19,027
(3,100
)
(1,361
)
14,566
Net income (loss)
1,640
4,186
2,867
(4,504
)
4,189
Income (loss) per common share:
Basic
$
0.04
$
0.11
Diluted
0.04
0.10
Weighted average number of shares:
Basic
39,619
39,619
Diluted
40,140
40,140
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
Three months ended March 31, 2017
Restructuring
1,338
Acquisition related
1,361
Asset impairment
463
Accelerated depreciation
89
Non-cash interest expense
2,185
Non-GAAP tax adjustment *
(9,940
)
Total Other
(4,504
)
* - The 'with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments. Also included in the Non-GAAP tax adjustment is the exclusion of a $4.9 million tax benefit associated with the Convertible Senior Notes, as well as a $4.9 million tax benefit associated with the reversal of a reserve for an uncertain tax position.
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, incremental transaction-related compensation, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors' operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating Income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (loss)
(in thousands)
(unaudited)
Three months ended
Three months ended
March 31, 2018
March 31, 2017
GAAP Net income (loss)
$
(15,827
)
$
1,640
Share-based compensation
4,537
4,186
Amortization
13,532
2,867
Restructuring
2,523
1,338
Acquisition related
1,342
1,361
Release of inventory fair value step-up associated with the Ultratech purchase accounting
514
-
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting
293
-
Asset impairment
-
463
Accelerated depreciation
-
89
Interest (income) expense
4,622
3,342
Other
(8
)
-
Income tax expense (benefit)
(230
)
(10,527
)
Non-GAAP Operating Income (loss)
$
11,298
$
4,759
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, incremental transaction-related compensation, 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 June 30, 2018
GAAP
Share-based Compensation
Amortization
Other
Non-GAAP
Net sales
$
145
-
$
170
$
145
-
$
170
Gross profit
47
-
58
1
-
-
48
-
59
Gross margin
33
%
-
35
%
33
%
-
35
%
Net income (loss)
$
(21
)
-
$
(12
)
4
14
4
$
1
-
$
10
Income (loss) per diluted common share
$
(0.45
)
-
$
(0.26
)
$
0.01
-
$
0.20
Weighted average number of shares
47
47
47
47
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 June 30, 2018
GAAP Net income (loss)
$
(21
)
-
$
(12
)
Share-based compensation
4
-
4
Amortization
14
-
14
Restructuring
1
-
1
Acquisition related
1
-
1
Interest expense, net
5
-
5
Income tax expense (benefit)
(2
)
-
(2
)
Non-GAAP Operating Income
$
2
-
$
11
Note: Amounts may not calculate precisely due to rounding.
These 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, incremental transaction-related compensation, 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.