Exhibit 99.1
Item 6. Selected Consolidated Financial Data
As discussed in Note 1 to our consolidated financial statements, our consolidated financial statements for each period presented have been adjusted for the retrospective application of FSP APB 14-1 and SFAS 160.
The financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and with our Consolidated Financial Statements and notes thereto included elsewhere herein.
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| Years ended December 31, |
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| 2008(1) |
| 2007(2) |
| 2006(3) |
| 2005(4) |
| 2004(5) |
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| (In thousands, except per share data) |
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Statement of Operations Data: |
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Net sales |
| $ | 442,809 |
| $ | 402,475 |
| $ | 441,034 |
| $ | 410,190 |
| $ | 390,443 |
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Operating (loss) income |
| (70,558 | ) | (12,061 | ) | 22,456 |
| 11,066 |
| (11,558 | ) | |||||
Net (loss) income attributable to Veeco |
| $ | (75,191 | ) | $ | (19,210 | ) | $ | 14,917 |
| $ | (897 | ) | $ | (62,555 | ) |
Net (loss) income per common share: |
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Net (loss) income attributable to Veeco |
| $ | (2.40 | ) | $ | (0.62 | ) | $ | 0.49 |
| $ | (0.03 | ) | $ | (2.11 | ) |
Diluted net (loss) income attributable to Veeco |
| $ | (2.40 | ) | $ | (0.62 | ) | $ | 0.48 |
| $ | (0.03 | ) | $ | (2.11 | ) |
Weighted average shares outstanding |
| 31,347 |
| 31,020 |
| 30,492 |
| 29,921 |
| 29,650 |
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Diluted weighted average shares outstanding |
| 31,347 |
| 31,020 |
| 31,059 |
| 29,921 |
| 29,650 |
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| Years ended December 31, |
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
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| (In thousands) |
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Balance Sheet Data: |
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Cash and cash equivalents |
| $ | 103,799 |
| $ | 117,083 |
| $ | 147,046 |
| $ | 124,499 |
| $ | 100,276 |
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Working capital |
| 168,528 |
| 174,516 |
| 248,060 |
| 229,650 |
| 216,802 |
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Goodwill |
| 59,160 |
| 100,898 |
| 100,898 |
| 99,622 |
| 94,645 |
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Total assets |
| 429,541 |
| 529,334 |
| 589,600 |
| 567,860 |
| 576,913 |
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Long-term debt (including current installments) |
| 98,526 |
| 132,118 |
| 209,204 |
| 229,580 |
| 229,935 |
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Shareholders’ equity |
| 225,810 |
| 289,158 |
| 283,393 |
| 248,587 |
| 252,352 |
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(1) Operating loss and net loss attributable to Veeco include a $73.3 million asset impairment charge of which $52.3 million was related to goodwill and $21.0 million was related to other long-lived assets, a restructuring charge of $10.6 million consisting of lease-related commitments, the mutually agreed-upon termination of the employment agreement with our former CEO and personnel severance costs, an inventory write-off of $2.9 million included in cost of sales in Metrology and $1.5 million in cost of sales related to the required purchase accounting adjustment to write up inventory to fair value in connection with the purchase of Mill Lane Engineering. Net loss attributable to Veeco also reflects a net gain from the early extinguishment of debt in the amount of $3.8 million and the elimination of 80.1% of the net operating results of the Fluens Corporation (“Fluens”) due to the noncontrolling interest.
(2) Operating loss and net loss attributable to Veeco include restructuring expenses of $6.7 million, as well as charges of $1.1 million and $4.8 million associated with the write-off of property and equipment and inventory, respectively, related to product lines discontinued as part of management’s cost reduction plan. Net income attributable to Veeco also reflects a net gain from the early extinguishment of debt in the amount of $0.7 million and the elimination of 80.1% of the net operating results of Fluens due to the noncontrolling interest.
(3) Operating income and net income attributable to Veeco are net of a write-off of $1.2 million of in-process research and development projects related to the Fluens acquisition. Net income attributable to Veeco also reflects a net gain from the early extinguishment of debt in the amount of $0.3 million and the elimination of 80.1% of the net operating results of Fluens due to the noncontrolling interest.
(4) Operating income and net loss attributable to Veeco include restructuring expenses of $1.2 million.
(5) Operating loss and net loss attributable to Veeco include (a) restructuring costs of $2.8 million, (b) costs related to the internal investigation of improper accounting transactions at our TurboDisc business unit of $0.8 million, (c) asset impairment charges of $0.8 million related to the consolidation of the Advanced Imaging, Inc. (“Aii”) and MTI businesses, and (d) $0.6 million related to the write-off of purchased in-process technology in connection with the MTI acquisition. Net loss attributable to Veeco also includes a charge of approximately $54.0 million to establish a valuation allowance against substantially all of our domestic net deferred tax assets.