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Veeco Reports Fourth Quarter and Fiscal Year 2020 Financial Results

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·24 min read
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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.