Exhibit 99.1
| NEWS | |
Veeco Instruments Inc., Terminal Drive, Plainview, NY 11803 Tel. 516-677-0200 Fax. 516-677-0380
FOR IMMEDIATE RELEASE
Financial Contact: Debra Wasser, SVP Investor Relations & Corporate Communications, 516-677-0200 x1472
Media Contact: Fran Brennen, Senior Director Marcom, 516-677-0200 x1222
VEECO ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS
Plainview, NY, April 26, 2010 — Veeco Instruments Inc. (Nasdaq: VECO) announced its financial results for the first quarter ended March 31, 2010. Veeco reports its results on a generally accepted accounting principles (“GAAP”) basis, and also provides results excluding certain items. Please refer to the attached table for details of the reconciliation between GAAP operating results and Non-GAAP operating results.
GAAP Results ($M except EPS)
| | Q1 ‘10 | | Q1 ‘09 | |
Revenues | | $ | 163.2 | | $ | 62.8 | |
Net income (loss) | | $ | 26.0 | | $ | (20.9 | ) |
EPS | | $ | 0.62 | | $ | (0.66 | ) |
Non-GAAP Results ($M except EPS)
| | Q1 ‘10 | | Q1 ‘09 | |
EBITA | | $ | 32.8 | | $ | (9.7 | ) |
EPS | | $ | 0.49 | | $ | (0.22 | ) |
John R. Peeler, Veeco’s Chief Executive Officer, commented, “We are pleased to report these excellent first quarter results, with record revenue of $163 million, an increase of 160% from last year and 12% sequentially. We are executing well, with revenues and profitability increasing sequentially in all three Veeco businesses. EBITA was a record $32.8 million, or 20% of sales, resulting in record quarterly GAAP EPS of $0.62 per share and non-GAAP EPS of $0.49 per share. Veeco generated $42 million in cash from operations during the first quarter.”
“Veeco’s first quarter bookings were $268 million, another record for the Company,” continued Mr. Peeler. “LED & Solar orders were a record $212 million, up 20% sequentially, driven by accelerating orders for TurboDisc® Metal Organic Chemical Vapor Deposition (MOCVD) Systems. We continued to see strong MOCVD demand as an expanding LED customer list ramps production for laptop and TV backlighting, as well as for general illumination. Data Storage and Metrology orders were $26 million and $30 million respectively, each significantly better than the same period a year ago but down on a sequential basis.” Veeco’s Q1 ‘10 book-to-bill ratio was 1.64, with a record backlog of $502 million at the end of the quarter.
Outlook
Regarding Veeco’s outlook, Mr. Peeler commented, “We continue to see strong momentum in our LED business. We believe our TurboDisc K465i™ MOCVD System has hit the market at the right time, offering high productivity and best-in-class yields. As a result, Veeco has been gaining share and winning business at many of the world’s top LED manufacturers. To date, second quarter business patterns remain extremely strong, with multi-tool system orders being quoted at a large number of customers. In fact, several key Asian customers have already booked sizeable orders in April. We continue to increase our MOCVD manufacturing capacity, with a goal to ship more than 75 systems this quarter. We are currently planning to further build capacity to ship more than 100 and 120 systems in the third and fourth quarters, respectively. Our highest priority is to satisfy our customers with on-time deliveries and world-class customer support of their manufacturing ramps.”
1
Mr. Peeler concluded, “In 2010, our Data Storage business will perform well as customers invest in capacity additions and next-generation recording head technology. In Metrology we are winning in the market due to our new AFM products such as Dimension ICON®, BioScope™ Catalyst™ and the MultiMode® 8, and our recently introduced NPFlex Optical Profiler. In the first quarter we also introduced another new optical profiler, the NT9080 and the Dimension® Edge™ AFM. We currently expect both of these businesses to gain share and grow revenue and profits in 2010.”
Q2’10 Guidance
Veeco’s second quarter 2010 revenue is currently forecasted to be between $220 to $240 million. Earnings per share are currently forecasted to be between $1.02 to $1.20 on a GAAP basis and $0.78 to $0.90 on a non-GAAP basis. Please refer to the attached financial tables for more details.
Conference Call Information
Veeco will host a conference call reviewing these results at 5:00pm today at 877-675-4756 (toll-free) or 719-325-4838 using passcode 8449787. The call will also be webcast live at www.veeco.com. A replay of the call will be available beginning at 8:00pm tonight through midnight on May 10, 2010 at 888-203-1112 or 719-457-0820 using passcode 8449787, or on the Veeco website. A slide presentation reviewing these results has also been posted on our website.
About Veeco
Veeco Instruments Inc. designs, manufactures, markets and services enabling solutions for customers in the HB-LED, solar, data storage, semiconductor, scientific research and industrial markets. We have leading technology positions in our three businesses: LED & Solar Process Equipment, Data Storage Process Equipment, and Metrology Instruments. Veeco’s product development, marketing, engineering and manufacturing facilities are located in New York, New Jersey, California, Colorado, Arizona, Massachusetts and Minnesota. Global sales and service offices are located throughout the U.S., Europe, Japan and Asia Pacific. http://www.veeco.com/
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, 2009 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-
2
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
| | Three months ended | |
| | March 31, | |
| | 2010 | | 2009 | |
| | | | | |
Net sales | | $ | 163,231 | | $ | 62,849 | |
Cost of sales | | 92,882 | | 42,467 | |
Gross profit | | 70,349 | | 20,382 | |
| | | | | |
Operating (income) expenses: | | | | | |
Selling, general and administrative | | 23,420 | | 18,607 | |
Research and development | | 16,440 | | 12,886 | |
Amortization | | 1,685 | | 1,829 | |
Restructuring | | (179 | ) | 4,431 | |
Other, net | | (153 | ) | 1,486 | |
Total operating expenses | | 41,213 | | 39,239 | |
| | | | | |
Operating income (loss) | | 29,136 | | (18,857 | ) |
| | | | | |
Interest expense, net | | 1,782 | | 1,709 | |
| | | | | |
Income (loss) before income taxes | | 27,354 | | (20,566 | ) |
Income tax provision | | 1,310 | | 378 | |
Net income (loss) including noncontrolling interest | | 26,044 | | (20,944 | ) |
Net loss attributable to noncontrolling interest | | — | | (42 | ) |
Net income (loss) attributable to Veeco | | $ | 26,044 | | $ | (20,902 | ) |
| | | | | |
Income (loss) per common share attributable to Veeco: | | | | | |
Basic | | $ | 0.67 | | $ | (0.66 | ) |
Diluted | | $ | 0.62 | | $ | (0.66 | ) |
| | | | | |
Weighted average shares outstanding: | | | | | |
Basic | | 38,784 | | 31,515 | |
Diluted | | 42,269 | | 31,515 | |
3
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
| | March 31, | | December 31, | |
| | 2010 | | 2009 | |
| | (Unaudited) | | | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 194,047 | | $ | 148,589 | |
Short-term investments | | 155,500 | | 135,000 | |
Accounts receivable, net | | 89,828 | | 84,358 | |
Inventories, net | | 84,959 | | 77,564 | |
Prepaid expenses and other current assets | | 10,238 | | 7,819 | |
Deferred income taxes | | 3,029 | | 3,105 | |
Total current assets | | 537,601 | | 456,435 | |
| | | | | |
Property, plant and equipment, net | | 56,968 | | 59,389 | |
Goodwill | | 59,422 | | 59,422 | |
Other assets, net | | 27,656 | | 30,126 | |
Total assets | | $ | 681,647 | | $ | 605,372 | |
| | | | | |
LIABILITIES AND EQUITY | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 35,836 | | $ | 29,112 | |
Accrued expenses | | 117,375 | | 106,445 | |
Deferred profit | | 6,362 | | 2,520 | |
Income taxes payable | | 1,341 | | 829 | |
Current portion of long-term debt | | 216 | | 212 | |
Total current liabilities | | 161,130 | | 139,118 | |
| | | | | |
Deferred income taxes | | 5,039 | | 5,039 | |
Long-term debt | | 101,649 | | 100,964 | |
Other non-current liabilities | | 717 | | 1,192 | |
Total non-current liabilities | | 107,405 | | 107,195 | |
| | | | | |
Equity | | 413,112 | | 359,059 | |
| | | | | |
Total liabilities and equity | | $ | 681,647 | | $ | 605,372 | |
4
Veeco Instruments Inc. and Subsidiaries
Reconciliation of operating income (loss) to earnings (loss) excluding certain items
(In thousands, except per share data)
(Unaudited)
| | Three months ended | |
| | March 31, | |
| | 2010 | | 2009 | |
| | | | | |
Operating income (loss) | | $ | 29,136 | | $ | (18,857 | ) |
| | | | | |
Adjustments: | | | | | |
| | | | | |
Amortization | | 1,685 | | 1,829 | |
Equity-based compensation | | 2,170 | | 1,398 | |
Restructuring | | (179 | ) (1) | 4,431 | (2) |
Inventory write-off | | — | | 1,526 | (3) |
| | | | | |
Earnings (loss) before interest, income taxes and amortization excluding certain items (“EBITA”) | | 32,812 | | (9,673 | ) |
| | | | | |
Interest expense, net | | 1,782 | | 1,709 | |
Adjustment to add back non-cash portion of interest expense | | (741 | ) (4) | (699 | ) (4) |
Earnings (loss) excluding certain items before income taxes | | 31,771 | | (10,683 | ) |
| | | | | |
Income tax provision (benefit) at 35% | | 11,120 | | (3,739 | ) |
| | | | | |
Earnings (loss) excluding certain items | | 20,651 | | (6,944 | ) |
| | | | | |
Loss attributable to noncontrolling interest, net of income tax benefit at 35% | | — | | (27 | ) |
| | | | | |
Earnings (loss) excluding certain items attributable to Veeco | | $ | 20,651 | | $ | (6,917 | ) |
| | | | | |
Earnings (loss) excluding certain items per diluted share attributable to Veeco | | $ | 0.49 | | $ | (0.22 | ) |
| | | | | |
Diluted weighted average shares outstanding | | 42,269 | | 31,515 | |
(1) During the first quarter of 2010, we recorded a restructuring credit of $0.2 million associated with a change in estimate.
(2) During the first quarter of 2009, we recorded a restructuring charge of $4.4 million, consisting primarily of personnel severance and related costs.
(3) During the first quarter of 2009, we recorded a $1.5 million inventory write-off in our Data Storage Process Equipment segment associated with the discontinuance of certain products. This charge was included in cost of sales in our GAAP statement of operations.
(4) Adjustment to exclude non-cash interest expense on convertible subordinated notes.
NOTE - The above reconciliation is intended to present Veeco’s operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.
5
Veeco Instruments Inc. and Subsidiaries
Reconciliation of operating income to earnings excluding certain items
(In thousands, except per share data)
(Unaudited)
| | Guidance for the three | |
| | months ending June 30, 2010 | |
| | LOW | | HIGH | |
| | | | | |
Operating income | | $ | 48,710 | | $ | 57,134 | |
| | | | | |
Adjustments: | | | | | |
| | | | | |
Amortization | | 1,674 | | 1,674 | |
Equity-based compensation | | 3,085 | | 3,085 | |
| | | | | |
Earnings before interest, income taxes and amortization excluding certain items (“EBITA”) | | 53,469 | | 61,893 | |
| | | | | |
Interest expense, net | | 1,699 | | 1,699 | |
Adjustment to add back non-cash portion of interest expense | | (760 | ) (1) | (760 | ) (1) |
| | | | | |
Earnings excluding certain items before income taxes | | 52,530 | | 60,954 | |
| | | | | |
Earnings tax expense at 35% | | 18,386 | | 21,334 | |
| | | | | |
Earnings excluding certain items | | $ | 34,144 | | $ | 39,620 | |
| | | | | |
Earnings per diluted share excluding certain items | | $ | 0.78 | | $ | 0.90 | |
| | | | | |
Diluted weighted average shares outstanding | | 44,000 | | 44,000 | |
(1) Adjustment to exclude non-cash interest expense on convertible subordinated notes.
NOTE - The above reconciliation is intended to present Veeco’s operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on earnings before interest, income taxes and amortization excluding certain items (“EBITA”), which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.
6
Veeco Instruments Inc. and Subsidiaries
Segment Bookings, Revenues, and Reconciliation
of Operating income (loss) to EBITA (loss)**
(In thousands)
(Unaudited)
| | Three months ended | |
| | March 31, | |
| | 2010 | | 2009 | |
LED & Solar Process Equipment | | | | | |
Bookings | | $ | 211,663 | | $ | 28,521 | |
Revenues | | $ | 111,504 | | $ | 22,202 | |
| | | | | |
Operating income (loss) | | $ | 28,554 | | $ | (5,377 | ) |
Amortization | | 796 | | 775 | |
Equity-based compensation | | 467 | | 156 | |
Restructuring | | — | | 734 | |
EBITA (loss)** | | $ | 29,817 | | $ | (3,712 | ) |
| | | | | |
Data Storage Process Equipment | | | | | |
Bookings | | $ | 26,373 | | $ | 7,818 | |
Revenues | | $ | 23,245 | | $ | 16,905 | |
| | | | | |
Operating income (loss) | | $ | 2,778 | | $ | (5,201 | ) |
Amortization | | 383 | | 405 | |
Equity-based compensation | | 215 | | 252 | |
Restructuring | | (179 | ) | 1,386 | |
Inventory write-off | | — | | 1,526 | |
EBITA (loss)** | | $ | 3,197 | | $ | (1,632 | ) |
| | | | | |
Metrology | | | | | |
Bookings | | $ | 29,808 | | $ | 16,711 | |
Revenues | | $ | 28,482 | | $ | 23,742 | |
| | | | | |
Operating income (loss) | | $ | 2,181 | | $ | (5,642 | ) |
Amortization | | 447 | | 577 | |
Equity-based compensation | | 304 | | 236 | |
Restructuring | | — | | 2,124 | |
EBITA (Loss)** | | $ | 2,932 | | $ | (2,705 | ) |
| | | | | |
Unallocated Corporate | | | | | |
Operating loss | | $ | (4,377 | ) | $ | (2,637 | ) |
Amortization | | 59 | | 72 | |
Equity-based compensation | | 1,184 | | 754 | |
Restructuring | | — | | 187 | |
Loss ** | | $ | (3,134 | ) | $ | (1,624 | ) |
| | | | | |
Total | | | | | |
Bookings | | $ | 267,844 | | $ | 53,050 | |
Revenues | | $ | 163,231 | | $ | 62,849 | |
| | | | | |
Operating income (loss) | | $ | 29,136 | | $ | (18,857 | ) |
Amortization | | 1,685 | | 1,829 | |
Equity-based compensation | | 2,170 | | 1,398 | |
Restructuring | | (179 | ) | 4,431 | |
Inventory write-off | | — | | 1,526 | |
EBITA (loss)** | | $ | 32,812 | | $ | (9,673 | ) |
** Refer to footnotes on ‘Reconciliation of operating income (loss) to earnings (loss) excluding certain items’ for further details.
7
