Veeco Instruments (VECO) 10-Q 7 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 25, 2019
Document and Entity Information
Entity Registrant Name	VEECO INSTRUMENTS INC
Entity Central Index Key	0000103145
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,675,196
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 169,439	$ 212,273
Restricted cash	804	809
Short-term investments	67,215	48,189
Accounts receivable, net	74,860	66,808
Contract assets	10,479	10,397
Inventories	148,103	156,311
Deferred cost of sales	2,921	3,072
Prepaid expenses and other current assets	24,943	22,221
Total current assets	498,764	520,080
Property, plant, and equipment, net	77,737	80,284
Operating lease right-of-use-assets	12,874
Intangible assets, net	80,931	85,149
Goodwill	184,302	184,302
Deferred income taxes	1,869	1,869
Other assets	29,117	29,132
Total assets	885,594	900,816
Current liabilities:
Accounts payable	36,315	39,611
Accrued expenses and other current liabilities	44,040	46,450
Customer deposits and deferred revenue	68,881	72,736
Income taxes payable	792	1,256
Total current liabilities	150,028	160,053
Deferred income taxes	5,675	5,690
Long-term debt	290,473	287,392
Operating lease long-term liabilities	8,382
Other liabilities	9,238	9,906
Total liabilities	463,796	463,041
Stockholders' equity:
Preferred stock, $0.01 par value; 500,000 shares authorized; no shares issued and outstanding.
Common stock, $0.01 par value; 120,000,000 shares authorized; 48,675,196 and 48,547,417 shares issued at March 31, 2019 and December 31, 2018, respectively; 48,675,196 and 48,024,685 shares outstanding at March 31, 2019 and December 31, 2018, respectively	487	485
Additional paid-in capital	1,058,179	1,061,325
Accumulated deficit	(638,726)	(619,983)
Accumulated other comprehensive income	1,858	1,820
Treasury stock, at cost, 522,732 shares at December 31, 2018.		(5,872)
Total stockholders' equity	421,798	437,775
Total liabilities and stockholders' equity	$ 885,594	$ 900,816

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	120,000,000	120,000,000
Common stock, shares issued	48,675,196	48,547,417
Common stock, shares outstanding	48,675,196	48,024,685
Treasury stock, shares		522,732

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements of Operations
Net sales	$ 99,371	$ 158,574
Cost of sales	64,655	101,894
Gross profit	34,716	56,680
Operating expenses, net:
Research and development	23,340	24,320
Selling, general, and administrative	19,902	26,383
Amortization of intangible assets	4,218	13,532
Restructuring	1,430	2,695
Acquisition costs		1,342
Other, net	(34)	(157)
Total operating expenses, net	48,856	68,115
Operating income (loss)	(14,140)	(11,435)
Interest income	1,245	624
Interest expense	(5,445)	(5,246)
Income (loss) before income taxes	(18,340)	(16,057)
Income tax expense (benefit)	190	(230)
Net income (loss)	$ (18,530)	$ (15,827)
Income (loss) per common share:
Basic (in dollars per share)	$ (0.40)	$ (0.34)
Diluted (in dollars per share)	$ (0.40)	$ (0.34)
Weighted average number of shares:
Basic (in shares)	46,848	46,963
Diluted (in shares)	46,848	46,963

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (18,530)	$ (15,827)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available-for-sale securities	27	(8)
Foreign currency translation	11	32
Total other comprehensive income (loss), net of tax	38	24
Total comprehensive income (loss)	$ (18,492)	$ (15,803)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities
Net income (loss)	$ (18,530)	$ (15,827)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	8,796	17,726
Non-cash interest expense	3,081	2,859
Deferred income taxes	(15)	(269)
Share-based compensation expense	3,157	4,537
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(8,134)	(11,177)
Inventories and deferred cost of sales	8,489	4,555
Prepaid expenses and other current assets	(2,457)	3,824
Accounts payable and accrued expenses	(12,260)	2,009
Customer deposits and deferred revenue	(3,855)	(17,559)
Income taxes receivable and payable, net	(463)	(2,283)
Other, net	(100)	(202)
Net cash provided by (used in) operating activities	(22,291)	(11,807)
Cash Flows from Investing Activities
Capital expenditures	(2,180)	(2,259)
Proceeds from the sale of investments	22,500	34,000
Payments for purchases of investments	(41,258)	(54,300)
Net cash provided by (used in) investing activities	(20,938)	(22,559)
Cash Flows from Financing Activities
Cash withholdings for employee stock purchase plan	1,021	1,136
Restricted stock tax withholdings	(642)	(427)
Purchases of common stock		(592)
Net cash provided by (used in) financing activities	379	117
Effect of exchange rate changes on cash and cash equivalents	11	32
Net increase (decrease) in cash, cash equivalents, and restricted cash	(42,839)	(34,217)
Cash, cash equivalents, and restricted cash - beginning of period	213,082	280,583
Cash, cash equivalents, and restricted cash - end of period	170,243	246,366
Supplemental Disclosure of Cash Flow Information
Interest paid	4,693	4,674
Income taxes paid	2,341	2,373
Non-cash operating and financing activities
Net transfer of property, plant and equipment to inventory	130	$ 339
Net transfer of inventory to property, plant and equipment	$ 238

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Basis of Presentation
Basis of Presentation	Note 1 — Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Veeco have been prepared in accordance with U.S. GAAP as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 270 for interim financial information and with the instructions to Rule 10-01 of Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements as the interim information is an update of the information that was presented in Veeco’s most recent annual financial statements. For further information, refer to Veeco’s Consolidated Financial Statements and Notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. Veeco reports interim quarters on a 13-week basis ending on the last Sunday of each quarter. The fourth quarter always ends on the last day of the calendar year, December 31. The 2019 interim quarters end on March 31, June 30, and September 29, and the 2018 interim quarters ended on April 1, July 1, and September 30. These interim quarters are reported as March 31, June 30, and September 30 in Veeco’s interim consolidated financial statements. Revenue Recognition Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another. When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach. Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met. In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets. The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement. The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less. The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue. Leases At contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined, and therefore the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for real estate leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02: Leases , which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which the Company adopted effective January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company has adopted using this transition method, and therefore prior period balances have not been adjusted. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company has elected certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs were not reassessed under the new standard. The adoption of the standard impacted the Company’s Consolidated Balance Sheets through the recognition of ROU assets and lease liabilities of approximately $14.2 million each as of January 1, 2019, but did not have an impact on the Consolidated Statements of Operations, Statements of Comprehensive Income, or Statements of Cash Flows.

Income (Loss) Per Common Share

Income (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2019
Income (Loss) Per Share
Income (Loss) Per Share	Note 2 — Income (Loss) Per Common Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of shares used to calculate basic income (loss) per share plus the weighted average number of common share equivalents outstanding during the period. The dilutive effect of outstanding options to purchase common stock and share-based awards is considered in diluted income per share by application of the treasury stock method. The dilutive effect of performance share units is included in diluted income per common share in the periods the performance targets have been achieved. The computations of basic and diluted income (loss) per share for the three months ended March 31, 2019 and 2018 are as follows: Three months ended March 31, 2019 2018 (in thousands, except per share amounts) Net income (loss) $ (18,530) $ (15,827) Net income (loss) per common share: Basic $ (0.40) $ (0.34) Diluted $ (0.40) $ (0.34) Basic weighted average shares outstanding 46,848 46,963 Effect of potentially dilutive share-based awards — — Diluted weighted average shares outstanding 46,848 46,963 Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive 320 169 Potentially dilutive shares excluded from the diluted calculation as their effect would be antidilutive 2,426 2,092 Maximum potential shares to be issued for settlement of the Convertible Senior Notes excluded from the diluted calculation as their effect would be antidilutive 8,618 8,618

Assets

Assets	3 Months Ended
	Mar. 31, 2019
Assets
Assets	Note 3 — Assets Investments Short-term investments are generally classified as available-for-sale and reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income” in the Consolidated Balance Sheets. These securities may include U.S. treasuries, government agency securities, corporate debt, and commercial paper, all with maturities of greater than three months when purchased. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary are included in “Other, net” in the Consolidated Statements of Operations. Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. Veeco classifies certain assets based on the following fair value hierarchy: Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Veeco has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts. The following table presents the portion of Veeco’s assets that were measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018: Level 1 Level 2 Level 3 Total (in thousands) March 31, 2019 Cash equivalents Certificate of deposits and time deposits $ 66,863 $ — $ — $ 66,863 U.S. treasuries 19,917 — — 19,917 Commercial paper — 11,257 — 11,257 Total $ 86,780 $ 11,257 $ — $ 98,037 Short-term investments U.S. treasuries $ 51,726 $ — $ — $ 51,726 Government agency securities — 4,964 — 4,964 Corporate debt — 1,999 — 1,999 Commercial paper — 8,526 — 8,526 Total $ 51,726 $ 15,489 $ — $ 67,215 December 31, 2018 Cash equivalents Certificate of deposits and time deposits $ 65,571 $ — $ — $ 65,571 U.S. treasuries 3,990 — — 3,990 Total $ 69,561 $ — $ — $ 69,561 Short-term investments U.S. treasuries $ 37,184 $ — $ — $ 37,184 Corporate debt — 8,516 — 8,516 Commercial paper — 2,489 — 2,489 Total $ 37,184 $ 11,005 $ — $ 48,189 There were no transfers between fair value measurement levels during the three months ended March 31, 2019. At March 31, 2019 and December 31, 2018, the amortized cost and fair value of available-for-sale securities consist of: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) March 31, 2019 U.S. treasuries $ 51,715 $ 11 $ — $ 51,726 Government agency securities 4,964 — — 4,964 Corporate debt 1,999 — — 1,999 Commercial paper 8,526 — — 8,526 Total $ 67,204 $ 11 $ — $ 67,215 December 31, 2018 U.S. treasuries $ 37,191 $ — $ (7) $ 37,184 Corporate debt 8,525 — (9) 8,516 Commercial paper 2,489 — — 2,489 Total $ 48,205 $ — $ (16) $ 48,189 There were no available-for-sale securities in a loss position at March 31, 2019. Available-for-sale securities in a loss position at December 31, 2018 consist of: December 31, 2018 Gross Estimated Unrealized Fair Value Losses (in thousands) U.S. treasuries $ 37,184 $ (7) Corporate debt 8,516 (9) Total $ 45,700 $ (16) At March 31, 2019 and December 31, 2018, there were no short-term investments that had been in a continuous loss position for more than 12 months. The maturities of securities classified as available-for-sale at March 31, 2019 were all due in one year or less. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were no realized gains or losses for the three months ended March 31, 2019 and 2018. Accounts Receivable Accounts receivable is presented net of an allowance for doubtful accounts of $0.2 million and $0.3 million at March 31, 2019 and December 31, 2018, respectively. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Inventories at March 31, 2019 and December 31, 2018 consist of the following: March 31, December 31, 2019 2018 (in thousands) Materials $ 84,711 $ 90,816 Work-in-process 36,299 42,354 Finished goods 27,093 23,141 Total $ 148,103 $ 156,311 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily consist of supplier deposits, prepaid value-added tax, lease deposits, prepaid insurance, and prepaid licenses. Veeco had deposits with its suppliers of $15.1 million and $12.8 million at March 31, 2019 and December 31, 2018, respectively. Property, Plant, and Equipment Property, plant, and equipment at March 31, 2019 and December 31, 2018 consist of the following: March 31, December 31, 2019 2018 (in thousands) Land $ 5,669 $ 5,669 Building and improvements 61,286 61,124 Machinery and equipment (1) 129,864 128,385 Leasehold improvements 7,041 9,033 Gross property, plant, and equipment 203,860 204,211 Less: accumulated depreciation and amortization 126,123 123,927 Net property, plant, and equipment $ 77,737 $ 80,284 (1) Machinery and equipment also includes software, furniture and fixtures For the three months ended March 31, 2019 and 2018, depreciation expense was $4.6 million and $4.2 million, respectively. Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. There were no changes to goodwill during the three months ended March 31, 2019. Intangible Assets Intangible assets consist of purchased technology, customer relationships, patents, trademarks and tradenames, and backlog, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined. The components of purchased intangible assets were as follows: March 31, 2019 December 31, 2018 Accumulated Accumulated Gross Amortization Gross Amortization Carrying and Net Carrying and Net Amount Impairment Amount Amount Impairment Amount (in thousands) Technology $ 337,218 $ 293,528 $ 43,690 $ 337,218 $ 290,808 $ 46,410 Customer relationships 164,595 137,257 27,338 164,595 136,126 28,469 In-process R&D 13,710 10,530 3,180 13,710 10,530 3,180 Trademarks and tradenames 30,910 24,239 6,671 30,910 23,899 7,011 Other 3,686 3,634 52 3,686 3,607 79 Total $ 550,119 $ 469,188 $ 80,931 $ 550,119 $ 464,970 $ 85,149 Other intangible assets primarily consist of patents, licenses, and backlog. Other Assets The Company has a non-marketable investment in Kateeva, Inc. (“Kateeva”), with a carrying value of $21.0 million at March 31, 2019 and December 31, 2018. Additionally, the Company has a non-marketable investment in a separate entity, with a carrying value of $3.5 million at March 31, 2019 and December 31, 2018. The Company does not exert significant influence over these investments, and its ownership interest is less than 20%. Neither equity investment has a readily observable market price, and therefore the Company has elected to measure these investments at cost, adjusted for changes in observable market prices minus impairment. The investments are included in “Other assets” on the Consolidated Balance Sheets. There were no changes in observable market prices for either investment for the three months ended March 31, 2019. These investments are subject to periodic impairment reviews; as there are no open-market valuations, the impairment analyses require judgment. The analyses include assessments of the companies’ financial condition, the business outlooks for their products and technologies, their projected results and cash flow, business valuation indications from recent rounds of financing, the likelihood of obtaining subsequent rounds of financing, and the impact of equity preferences held by Veeco relative to other investors.

Liabilities

Liabilities	3 Months Ended
	Mar. 31, 2019
Liabilities
Liabilities	Note 4 — Liabilities Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities at March 31, 2019 and December 31, 2018 consist of: March 31, December 31, 2019 2018 (in thousands) Payroll and related benefits $ 17,722 $ 20,486 Warranty 7,226 7,852 Operating lease liabilities 4,797 — Interest 1,992 4,321 Professional fees 3,059 2,897 Sales, use, and other taxes 1,256 2,670 Restructuring liability 1,720 2,213 Other 6,268 6,011 Total $ 44,040 $ 46,450 Warranty Warranties are typically valid for one year from the date of system final acceptance, and Veeco estimates the costs that may be incurred under the warranty. Estimated warranty costs are determined by analyzing specific product and historical configuration statistics and regional warranty support costs and are affected by product failure rates, material usage, and labor costs incurred in correcting product failures during the warranty period. Unforeseen component failures or exceptional component performance can also result in changes to warranty costs. Changes in product warranty reserves for the three months ended March 31, 2019 include: (in thousands) Balance - December 31, 2018 $ 7,852 Warranties issued 1,427 Consumption of reserves (1,978) Changes in estimate (75) Balance - March 31, 2019 $ 7,226 Restructuring Accruals During the second quarter of 2018, the Company initiated plans to further reduce excess capacity associated with the manufacture and support of the Company's advanced packaging lithography and 3D wafer inspection systems by consolidating these operations into its San Jose, California facility. As a result of this and other cost saving initiatives, the Company announced headcount reductions of approximately 40 employees. During the three months ended March 31, 2019, additional accruals were recognized and payments were made related to these restructuring initiatives. The Company continued to record restructuring charges in the first quarter of 2019 in an effort to streamline operations, enhance efficiencies, and reduce costs. Personnel Facility Severance and Related Costs Related Costs and Other Total (in thousands) Balance - December 31, 2018 $ 2,143 $ 70 $ 2,213 Provision 1,320 110 1,430 Payments (1,743) (180) (1,923) Balance - March 31, 2019 $ 1,720 $ — $ 1,720 Customer Deposits and Deferred Revenue Customer deposits totaled $26.6 million and $28.3 million at March 31, 2019 and December 31, 2018, respectively. Deferred revenue represents amounts billed, other than deposits, in excess of the revenue that can be recognized on a particular contract at the balance sheet date. Changes in deferred revenue were as follows: (in thousands) Balance - December 31, 2018 $ 44,415 Deferral of revenue 792 Recognition of previously deferred revenue (2,887) Balance - March 31, 2019 $ 42,320 As of March 31, 2019, the Company has approximately $68.5 million of remaining performance obligations on contracts with an original estimated duration of one year or more, of which approximately 65% is expected to be recognized within one year, with the remaining amounts expected to be recognized between one to three years. The Company has elected to exclude disclosures regarding remaining performance obligations that have an original expected duration of one year or less. Convertible Senior Notes On January 10, 2017, the Company issued $345.0 million of 2.70% convertible senior unsecured notes (the “Convertible Senior Notes”). The Company received net proceeds, after deducting underwriting discounts and fees and expenses payable by the Company, of approximately $335.8 million. The Convertible Senior Notes bear interest at a rate of 2.70% per year, payable semiannually in arrears on January 15 and July 15 of each year, commencing on July 15, 2017. The Convertible Senior Notes mature on January 15, 2023 (the “Maturity Date”), unless earlier purchased by the Company, redeemed, or converted. The carrying value of the Convertible Senior Notes is as follows: March 31, December 31, 2019 2018 (in thousands) Principal amount $ 345,000 $ 345,000 Unamortized debt discount (49,537) (52,336) Unamortized transaction costs (4,990) (5,272) Net carrying value $ 290,473 $ 287,392 Total interest expense related to the Convertible Senior Notes is as follows: Three months ended March 31, 2019 2018 (in thousands) Cash Interest Expense Coupon interest expense $ 2,329 $ 2,329 Non-Cash Interest Expense Amortization of debt discount 2,799 2,598 Amortization of transaction costs 282 261 Total Interest Expense $ 5,410 $ 5,188 The Company determined the Convertible Senior Notes is a Level 2 liability in the fair value hierarchy and estimated its fair value as $295.0 million at March 31, 2019. Other Liabilities As part of the acquisition of Ultratech, the Company assumed an executive non-qualified deferred compensation plan that allowed qualifying executives to defer cash compensation. The plan was frozen at the time of acquisition and no further contributions have been made. At March 31, 2019 and December 31, 2018, plan assets approximated $3.4 million and $3.2 million, respectively, representing the cash surrender value of life insurance policies and is included within “Other assets” in the Consolidated Balance Sheets, while plan liabilities approximated $2.9 million and $3.5 million, respectively, and is included within “Other liabilities” in the Consolidated Balance Sheets. Other liabilities at both March 31, 2019 and December 31, 2018 also includes asset retirement obligations of $3.2 million, medical and dental benefits of $2.2 million, and income tax payables of $1.0 million.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	Note 5 — Commitments and Contingencies Leases The Company’s operating leases primarily include real estate leases for properties used for manufacturing, R&D activities, sales and service, and administration, as well as certain equipment leases. Some leases may include options to renew for a period of up to 5 years, while others may include options to terminate the lease. The weighted average remaining lease term of the Company’s operating leases as of March 31, 2019 was 3 years, and the weighted average discount rate used in determining the present value of future lease payments was 6.0%. Minimum lease commitments at March 31, 2019 for property and equipment under operating lease agreements are payable as follows: Operating Leases (in thousands) Payments due by period: 2019 (excluding three months ended March 31, 2019) $ 4,144 2020 5,233 2021 2,431 2022 1,334 2023 853 Thereafter 548 Total future minimum lease payments 14,543 Less: Imputed interest (1,364) Total 13,179 Reported as of March 31, 2019 Other current liabilities 4,797 Operating lease liabilities 8,382 Total $ 13,179 Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements were payable as follows: Operating Leases (in thousands) Payments due by period: 2019 $ 5,143 2020 5,056 2021 2,432 2022 1,812 2023 1,066 Thereafter 548 Total $ 16,057 Operating lease cost and variable lease cost for the three months ended March 31, 2019 were $1.4 million and $0.6 million, respectively. Additionally, the Company has an immaterial amount of short term leases. Lease expense for the three months ended March 31, 2018 was $1.7 million. Operating cash flows from operating leases for the three months ended March 31, 2019 was $1.5 million. Purchase Commitments Veeco has purchase commitments of $90.5 million at March 31, 2019, substantially all of which become due within one year. Bank Guarantees Veeco has bank guarantees and letters of credit issued by a financial institution on its behalf as needed. At March 31, 2019, outstanding bank guarantees and letters of credit totaled $8.5 million, and unused bank guarantees and letters of credit of $66.1 million were available to be drawn upon. Legal Proceedings On June 8, 2018, an Ultratech shareholder who received Veeco stock as part of the consideration for the Ultratech acquisition filed a purported class action complaint in the Superior Court of the State of California, County of Santa Clara, captioned Wolther v. Maheshwari et al., Case No. 18CV329690, on behalf of himself and others who purchased or acquired shares of Veeco pursuant to the registration statement and prospectus which Veeco filed with the SEC in connection with the Ultratech acquisition (the “Wolther Action”). On August 2 and August 8, 2018, two purported class action complaints substantially similar to the Wolther Action were filed on behalf of different plaintiffs in the same court as the Wolther Action. These cases have been consolidated with the Wolther Action, and a consolidated complaint was filed on December 11, 2018. The consolidated complaint seeks to recover damages and fees under Sections 11, 12, and 15 of the Securities Act of 1933 for, among other things, alleged false/misleading statements in the registration statement and prospectus relating to the Ultratech acquisition, relating primarily to the alleged failure to disclose delays in the advanced packaging business, increased MOCVD competition in China, and an intellectual property dispute. Veeco is defending this matter vigorously. On December 21, 2018, a purported Veeco stockholder filed a derivative action in the Superior Court of the State of California, County of Santa Clara, captioned Vladimir Gusinsky Revocable Trust v. Peeler, et al., Case No. 18CV339925, on behalf of nominal defendant Veeco. The complaint seeks to assert claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against current and former Veeco directors premised on purported misstatements and omissions in the registration statement relating to the Ultratech acquisition. The court ordered this action stayed until a future case management conference. Veeco is defending this matter vigorously. The Company is involved in various other legal proceedings arising in the normal course of business. The Company does not believe that the ultimate resolution of these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2019
Derivative Financial Instruments
Derivative Financial Instruments	Note 6 — Derivative Financial Instruments The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rates could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted cash flows. The Company enters into monthly forward derivative contracts with the intent of mitigating a portion of this risk. The Company only uses derivative financial instruments in the context of hedging and not for speculative purposes and had not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts are recorded as “Other, net” in the Company’s Consolidated Statements of Operations. The Company executes derivative transactions with highly rated financial institutions to mitigate counterparty risk. The Company did not have any outstanding derivative contracts at March 31, 2019 or December 31, 2018. Additionally, the Company did not have any gains or losses from currency exchange derivatives during the three months ended March 31, 2019. The following table shows the gains and (losses) from currency exchange derivatives during the three months ended March 31, 2018, which are included in “Other, net” in the Consolidated Statements of Operations, as well as the weighted average notional amount of derivatives outstanding for the period: Three months ended March 31, 2018 Gains Weighted average (in thousands) Foreign currency exchange forwards $ 17 $ 930

Equity

Equity	3 Months Ended
	Mar. 31, 2019
Equity
Equity	Note 7 — Equity Statement of Stockholders’ Equity The following tables present the changes in Stockholders’ Equity: Accumulated Additional Other Common Stock Treasury Stock Paid-in Accumulated Comprehensive Shares Amount Shares Amount Capital Deficit Income Total (in thousands) Balance at December 31, 2018 48,547 $ 485 523 $ (5,872) $ 1,061,325 $ (619,983) $ 1,820 $ 437,775 Net loss — — — — — (18,530) — (18,530) Other comprehensive income, net of tax — — — — — — 38 38 Share-based compensation expense — — — — 3,157 — — 3,157 Net issuance under employee stock plans 128 2 (523) 5,872 (6,303) (213) — (642) Balance at March 31, 2019 48,675 $ 487 — $ — $ 1,058,179 $ (638,726) $ 1,858 $ 421,798 Accumulated Additional Other Common Stock Treasury Stock Paid-in Accumulated Comprehensive Shares Amount Shares Amount Capital Deficit Income Total (in thousands) Balance at December 31, 2017 48,229 $ 482 85 $ (1,284) $ 1,051,953 $ (212,870) $ 1,812 $ 840,093 Net loss — — — — — (15,827) — (15,827) Other comprehensive income, net of tax — — — — — — 24 24 Share-based compensation expense — — — — 4,537 — — 4,537 Net issuance under employee stock plans 462 5 (115) 1,728 (2,159) — — (426) Purchases of common stock — — 30 (444) — — — (444) Balance at March 31, 2018 48,691 $ 487 — $ — $ 1,054,331 $ (228,697) $ 1,836 $ 827,957 Accumulated Other Comprehensive Income (“AOCI”) The following table presents the changes in the balances of each component of AOCI, net of tax: Unrealized Gains (Losses) Foreign on Available Currency for Sale Translation Securities Total (in thousands) Balance - December 31, 2018 $ 1,836 $ (16) $ 1,820 Other comprehensive income (loss) 11 27 38 Balance - March 31, 2019 $ 1,847 $ 11 $ 1,858 There were minimal reclassifications from AOCI into net income for the three months ended March 31, 2019 and 2018.

Share-based compensation

Share-based compensation	3 Months Ended
	Mar. 31, 2019
Stock Plans
Stock Plans	Note 8 — Share-based compensation Restricted share awards are issued to employees that are subject to specified restrictions and a risk of forfeiture. The restrictions typically lapse over one to five years and may entitle holders to dividends and voting rights. Other types of share-based compensation include performance share awards, performance share units, and restricted share units (collectively with restricted share awards, “restricted shares”), as well as options to purchase common stock. Share-based compensation expense was recognized in the following line items in the Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018: Three months ended March 31, 2019 2018 (in thousands) Cost of sales $ 470 $ 554 Research and development 792 954 Selling, general, and administrative 1,895 2,857 Restructuring — 172 Total $ 3,157 $ 4,537 For the three months ended March 31, 2019, equity activity related to stock options was as follows: Weighted Number of Average Shares Exercise Price (in thousands) Balance - December 31, 2018 1,222 34.80 Expired or forfeited (33) 33.82 Balance - March 31, 2019 1,189 34.83 For the three months ended March 31, 2019, equity activity related to non-vested restricted shares and performance shares was as follows: Weighted Average Number of Grant Date Shares Fair Value (in thousands) Balance - December 31, 2018 2,218 20.74 Granted 974 11.32 Performance award adjustments (9) 32.67 Vested (156) 21.71 Forfeited (89) 21.84 Balance - March 31, 2019 2,938 17.50

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Taxes
Income Taxes	Note 9 — Income Taxes Income taxes are estimated for each of the jurisdictions in which the Company operates. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Realization of net deferred tax assets is dependent on future taxable income. At March 31, 2019, the Company’s U.S. deferred tax assets are fully offset by a valuation allowance since the Company cannot conclude that it is more likely than not that these future benefits will be realized. At the end of each interim reporting period, the effective tax rate is aligned with expectations for the full year. This estimate is used to determine the income tax provision on a year-to-date basis and may change in subsequent interim periods. If necessary, the year-to-date tax benefit for interim period losses is limited to the amount that could be recognizable at the end of the fiscal year. Loss before income taxes and income tax expense (benefit) for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 (in thousands) Loss before income taxes $ (18,340) $ (16,057) Income tax expense (benefit) $ 190 $ (230) The Company’s tax expense for the three months ended March 31, 2019 was $0.2 million, compared to a tax benefit of $0.2 million for the comparable prior period. The 2019 tax expense included an expense of $0.1 million related to the Company’s domestic operations, and $0.1 million related to the Company’s non-U.S. operations, compared to 2018 when the benefit included an expense of $0.1 million related to the Company’s domestic operations, and a $0.3 million tax benefit related to the Company’s non-U.S. operations. Although there was a domestic pre-tax loss for the three months ended March 31, 2019 and 2018, the Company did not provide a current tax benefit on domestic pre-tax losses, as the amounts are not realizable on a more-likely-than-not basis. The domestic tax expense for the three months ended March 31, 2019 and 2018 is primarily attributable to the tax amortization of indefinite-lived intangible assets that is not available to offset U.S. deferred tax assets. The non-US tax expense for the three months ended March 31, 2019 is primarily attributable to tax expense on non-U.S operation profits and foreign withholding taxes on unremitted earnings as of March 31, 2019, offset by the amortization of intangible assets. The non-U.S. tax benefit for the three months ended March 31, 2018 is primarily attributable to the amortization of intangible assets, offset by tax expense on non-U.S operation profits incurred during the period, as well as foreign withholding taxes on unremitted earnings as of March 31, 2018.

Segment Reporting and Geographi

Segment Reporting and Geographic Information	3 Months Ended
	Mar. 31, 2019
Segment Reporting and Geographic Information
Segment Reporting and Geographic Information	Note 10 — Segment Reporting and Geographic Information Veeco operates and measures its results in one operating segment and therefore has one reportable segment: the design, development, manufacture, and support of thin film process equipment primarily sold to make electronic devices. Veeco categorizes its sales into the following four end-markets: Advanced Packaging, MEMS & RF Filters Advanced Packaging includes a portfolio of wafer-level assembly technologies that enable the miniaturization and performance improvement of electronic products, such as smartphones, smartwatches, tablets, and laptops. Micro-Electro Mechanical Systems (“MEMS”) includes tiny mechanical devices such as sensors, switches, mirrors, and actuators embedded in semiconductor chips used in vehicles, smartphones, tablets, and games. RF Filters refers to RF filters used in smartphones, tablets, and mobile devices. LED Lighting, Display & Compound Semiconductor LED Lighting refers to Light Emitting Diode (“LED”) and semiconductor illumination sources used in various applications including, but not limited to, displays such as backlights, general lighting, automotive running lights, and headlamps. Display refers to LEDs used for displays and Organic Light Emitting Diode (“OLED”) displays found in outdoor display/signage applications, TVs, smartphones, wearable devices, and tablets. Compound Semiconductor includes Photonics, Power Electronics, and Radio Frequency (“RF”) Devices. Photonics refers to laser diodes, Vertical Cavity Surface Emitting Lasers (“VCSEL”) in 3D sensing and communications, and various other optical devices. Power Electronics refers to semiconductor devices such as rectifiers, inverters, and converters for the control and conversion of electric power. RF devices refers to radio frequency emitting and receiving devices that enable wireless communications. Such devices include power amplifiers, switches, and transceivers for applications such as mobile (including handsets and base stations), defense, automobile, and the Internet of Things. Front-End Semiconductor Front-End Semiconductor refers to the early steps in the process of integrated circuit fabrication where the microchips are created but still remain on the silicon wafer. This category includes Laser Spike Anneal, Ion Beam etch for front-end semiconductor applications, and Ion Beam deposition for EUV mask blanks. Scientific & Industrial Scientific refers to advanced materials research at university research institutions, industry research institutions, industry consortiums, and government research agencies. Industrial refers to large-scale product manufacturing applications including data storage and optical coatings: thin layers of material deposited on a lens or mirror that alters how light reflects and transmits. Sales by end-market and geographic region for the three months ended March 31, 2019 and 2018 were as follows: Three months ended March 31, 2019 2018 (in thousands) Sales by end-market Advanced Packaging, MEMS & RF Filters $ 23,127 $ 27,153 LED Lighting, Display & Compound Semiconductor 13,550 89,916 Front-End Semiconductor 22,617 9,457 Scientific & Industrial 40,077 32,048 Total $ 99,371 $ 158,574 Sales by geographic region United States $ 32,315 $ 23,754 China 10,159 75,395 EMEA (1) 17,827 15,745 Rest of World 39,070 43,680 Total $ 99,371 $ 158,574 (1) EMEA consists of Europe, the Middle East, and Africa For geographic reporting, sales are attributed to the location in which the customer facility is located.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2019
Basis of Presentation
Basis of Presentation	The accompanying unaudited Consolidated Financial Statements of Veeco have been prepared in accordance with U.S. GAAP as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 270 for interim financial information and with the instructions to Rule 10-01 of Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements as the interim information is an update of the information that was presented in Veeco’s most recent annual financial statements. For further information, refer to Veeco’s Consolidated Financial Statements and Notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature.
Fiscal Period	Veeco reports interim quarters on a 13-week basis ending on the last Sunday of each quarter. The fourth quarter always ends on the last day of the calendar year, December 31. The 2019 interim quarters end on March 31, June 30, and September 29, and the 2018 interim quarters ended on April 1, July 1, and September 30. These interim quarters are reported as March 31, June 30, and September 30 in Veeco’s interim consolidated financial statements.
Revenue recognition	Revenue Recognition Revenue is recognized upon the transfer of control of the promised product or service to the customer in an amount that reflects the consideration the Company expects to receive in exchange for such product or service. The Company’s contracts with customers generally do not contain variable consideration. In the rare instances where variable consideration is included, the Company estimates the amount of variable consideration and determines what portion of that, if any, has a high probability of significant subsequent revenue reversal, and if so, that amount is excluded from the transaction price. The Company’s contracts with customers frequently contain multiple deliverables, such as systems, upgrades, components, spare parts, installation, maintenance, and service plans. Judgment is required to properly identify the performance obligations within a contract and to determine how the revenue should be allocated among the performance obligations. The Company also evaluates whether multiple transactions with the same customer or related parties should be considered part of a single contract based on an assessment of whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of one another. When there are separate units of accounting, the Company allocates revenue to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling prices are determined based on the prices at which the Company separately sells the systems, upgrades, components, spare parts, installation, maintenance, and service plans. For items that are not sold separately, the Company estimates stand-alone selling prices generally using an expected cost plus margin approach. Most of the Company’s revenue is recognized at a point in time when the performance obligation is satisfied. The Company considers many facts when evaluating each of its sales arrangements to determine the timing of revenue recognition, including its contractual obligations and the nature of the customer’s post-delivery acceptance provisions. The Company’s system sales arrangements, including certain upgrades, generally include field acceptance provisions that may include functional or mechanical test procedures. For many of these arrangements, a customer source inspection of the system is performed in the Company’s facility, test data is sent to the customer documenting that the system is functioning to the agreed upon specifications prior to delivery, or other quality assurance testing is performed internally to ensure system functionality prior to shipment. Historically, such source inspection or test data replicates the field acceptance provisions that are performed at the customer’s site prior to final acceptance of the system. When the Company objectively demonstrates that the criteria specified in the contractual acceptance provisions are achieved prior to delivery either through customer testing or the Company’s historical experience of its tools meeting specifications, transfer of control of the product to the customer is considered to have occurred and revenue is recognized upon system delivery since there is no substantive contingency remaining related to the acceptance provisions at that date. For new products, new applications of existing products, or for products with substantive customer acceptance provisions where the Company cannot objectively demonstrate that the criteria specified in the contractual acceptance provisions have been achieved prior to delivery, revenue and the associated costs are deferred. The Company recognizes such revenue and costs upon obtaining objective evidence that the acceptance provisions can be achieved, assuming all other revenue recognition criteria have been met. In certain cases the Company’s contracts with customers contain a billing retention, typically 10% of the sales price, which is billed by the Company and payable by the customer when field acceptance provisions are completed. Revenue recognized in advance of the amount that has been billed is recorded as a contract asset on the Consolidated Balance Sheets. The Company recognizes revenue related to maintenance and service contracts over time based upon the respective contract term. Installation revenue is recognized over time as the installation services are performed. The Company recognizes revenue from the sales of components, spare parts, and specified service engagements at a point in time, which is typically consistent with the time of delivery in accordance with the terms of the applicable sales arrangement. The Company may receive customer deposits on system transactions. The timing of the transfer of goods or services related to the deposits is either at the discretion of the customer or expected to be within one year from the deposit receipt. As such, the Company does not adjust transaction prices for the time value of money. Incremental direct costs incurred related to the acquisition of a customer contract, such as sales commissions, are expensed as incurred since the expected amortization period is one year or less. The Company has elected to treat shipping and handling costs as a fulfillment activity, and the Company includes such costs in cost of services when the Company recognizes revenue for the related goods. Taxes assessed by governmental authorities that are collected by the Company from a customer are excluded from revenue.
Leases	Leases At contract inception, the Company determines if an arrangement is a lease, or contains a lease, of an identified asset for which the Company has the right to obtain substantially all of the economic benefits from its use and the right to direct its use. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit discount rate in the Company’s leases generally cannot readily be determined, and therefore the Company uses its incremental borrowing rate based on information available at lease commencement date in determining the present value of future payments. The Company has options to renew or terminate certain leases. These options are included in the determination of lease term when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components in determining ROU assets or lease liabilities for real estate leases. Additionally, the Company does not recognize ROU assets or lease liabilities for leases with original terms or renewals of one year or less.
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02: Leases , which, along with subsequent ASUs related to this topic, has been codified as Accounting Standards Codification 842 (“ASC 842”). ASC 842 generally requires operating lessee rights and obligations to be recognized as assets and liabilities on the balance sheet. The new standard, which the Company adopted effective January 1, 2019, offers a transition option whereby companies can recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. The Company has adopted using this transition method, and therefore prior period balances have not been adjusted. In addition, ASC 842 provides for a number of optional exemptions in transition. The Company has elected certain exemptions whereby prior conclusions regarding lease identification, lease classification, and initial direct costs were not reassessed under the new standard. The adoption of the standard impacted the Company’s Consolidated Balance Sheets through the recognition of ROU assets and lease liabilities of approximately $14.2 million each as of January 1, 2019, but did not have an impact on the Consolidated Statements of Operations, Statements of Comprehensive Income, or Statements of Cash Flows.

Income (Loss) Per Common Share

Income (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2019
Income (Loss) Per Share
Schedule of basic and diluted income (loss) per share and weighted average shares	Three months ended March 31, 2019 2018 (in thousands, except per share amounts) Net income (loss) $ (18,530) $ (15,827) Net income (loss) per common share: Basic $ (0.40) $ (0.34) Diluted $ (0.40) $ (0.34) Basic weighted average shares outstanding 46,848 46,963 Effect of potentially dilutive share-based awards — — Diluted weighted average shares outstanding 46,848 46,963 Common share equivalents excluded from the diluted weighted average shares outstanding since Veeco incurred a net loss and their effect would be antidilutive 320 169 Potentially dilutive shares excluded from the diluted calculation as their effect would be antidilutive 2,426 2,092 Maximum potential shares to be issued for settlement of the Convertible Senior Notes excluded from the diluted calculation as their effect would be antidilutive 8,618 8,618

Assets (Tables)

Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Assets
Schedule of portion of Veeco's assets (excluding cash balances) that are measured at fair value on a recurring basis	Level 1 Level 2 Level 3 Total (in thousands) March 31, 2019 Cash equivalents Certificate of deposits and time deposits $ 66,863 $ — $ — $ 66,863 U.S. treasuries 19,917 — — 19,917 Commercial paper — 11,257 — 11,257 Total $ 86,780 $ 11,257 $ — $ 98,037 Short-term investments U.S. treasuries $ 51,726 $ — $ — $ 51,726 Government agency securities — 4,964 — 4,964 Corporate debt — 1,999 — 1,999 Commercial paper — 8,526 — 8,526 Total $ 51,726 $ 15,489 $ — $ 67,215 December 31, 2018 Cash equivalents Certificate of deposits and time deposits $ 65,571 $ — $ — $ 65,571 U.S. treasuries 3,990 — — 3,990 Total $ 69,561 $ — $ — $ 69,561 Short-term investments U.S. treasuries $ 37,184 $ — $ — $ 37,184 Corporate debt — 8,516 — 8,516 Commercial paper — 2,489 — 2,489 Total $ 37,184 $ 11,005 $ — $ 48,189
Trading Securities And Certain Trading Asset [Table Text Block]	Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value (in thousands) March 31, 2019 U.S. treasuries $ 51,715 $ 11 $ — $ 51,726 Government agency securities 4,964 — — 4,964 Corporate debt 1,999 — — 1,999 Commercial paper 8,526 — — 8,526 Total $ 67,204 $ 11 $ — $ 67,215 December 31, 2018 U.S. treasuries $ 37,191 $ — $ (7) $ 37,184 Corporate debt 8,525 — (9) 8,516 Commercial paper 2,489 — — 2,489 Total $ 48,205 $ — $ (16) $ 48,189
Schedule of fair value and unrealized losses of available-for-sale securities in a loss position	December 31, 2018 Gross Estimated Unrealized Fair Value Losses (in thousands) U.S. treasuries $ 37,184 $ (7) Corporate debt 8,516 (9) Total $ 45,700 $ (16)
Schedule of inventories	March 31, December 31, 2019 2018 (in thousands) Materials $ 84,711 $ 90,816 Work-in-process 36,299 42,354 Finished goods 27,093 23,141 Total $ 148,103 $ 156,311
Schedule of property, plant, and equipment	March 31, December 31, 2019 2018 (in thousands) Land $ 5,669 $ 5,669 Building and improvements 61,286 61,124 Machinery and equipment (1) 129,864 128,385 Leasehold improvements 7,041 9,033 Gross property, plant, and equipment 203,860 204,211 Less: accumulated depreciation and amortization 126,123 123,927 Net property, plant, and equipment $ 77,737 $ 80,284 (1) Machinery and equipment also includes software, furniture and fixtures
Schedule of intangible assets excluding goodwill	March 31, 2019 December 31, 2018 Accumulated Accumulated Gross Amortization Gross Amortization Carrying and Net Carrying and Net Amount Impairment Amount Amount Impairment Amount (in thousands) Technology $ 337,218 $ 293,528 $ 43,690 $ 337,218 $ 290,808 $ 46,410 Customer relationships 164,595 137,257 27,338 164,595 136,126 28,469 In-process R&D 13,710 10,530 3,180 13,710 10,530 3,180 Trademarks and tradenames 30,910 24,239 6,671 30,910 23,899 7,011 Other 3,686 3,634 52 3,686 3,607 79 Total $ 550,119 $ 469,188 $ 80,931 $ 550,119 $ 464,970 $ 85,149

Liabilities (Tables)

Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
Liabilities
Schedule of accrued expenses and other current liabilities	March 31, December 31, 2019 2018 (in thousands) Payroll and related benefits $ 17,722 $ 20,486 Warranty 7,226 7,852 Operating lease liabilities 4,797 — Interest 1,992 4,321 Professional fees 3,059 2,897 Sales, use, and other taxes 1,256 2,670 Restructuring liability 1,720 2,213 Other 6,268 6,011 Total $ 44,040 $ 46,450
Schedule of changes in product warranty reserves	(in thousands) Balance - December 31, 2018 $ 7,852 Warranties issued 1,427 Consumption of reserves (1,978) Changes in estimate (75) Balance - March 31, 2019 $ 7,226
Schedule of restructuring accrual activities	Personnel Facility Severance and Related Costs Related Costs and Other Total (in thousands) Balance - December 31, 2018 $ 2,143 $ 70 $ 2,213 Provision 1,320 110 1,430 Payments (1,743) (180) (1,923) Balance - March 31, 2019 $ 1,720 $ — $ 1,720
Schedule of changes in deferred revenue	(in thousands) Balance - December 31, 2018 $ 44,415 Deferral of revenue 792 Recognition of previously deferred revenue (2,887) Balance - March 31, 2019 $ 42,320
Schedule of carrying value of Convertible Senior Notes	March 31, December 31, 2019 2018 (in thousands) Principal amount $ 345,000 $ 345,000 Unamortized debt discount (49,537) (52,336) Unamortized transaction costs (4,990) (5,272) Net carrying value $ 290,473 $ 287,392
Schedule of interest expense related to Convertible Senior Notes	Three months ended March 31, 2019 2018 (in thousands) Cash Interest Expense Coupon interest expense $ 2,329 $ 2,329 Non-Cash Interest Expense Amortization of debt discount 2,799 2,598 Amortization of transaction costs 282 261 Total Interest Expense $ 5,410 $ 5,188

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Schedule of minimum lease commitments 2019	Minimum lease commitments at March 31, 2019 for property and equipment under operating lease agreements are payable as follows: Operating Leases (in thousands) Payments due by period: 2019 (excluding three months ended March 31, 2019) $ 4,144 2020 5,233 2021 2,431 2022 1,334 2023 853 Thereafter 548 Total future minimum lease payments 14,543 Less: Imputed interest (1,364) Total 13,179 Reported as of March 31, 2019 Other current liabilities 4,797 Operating lease liabilities 8,382 Total $ 13,179
Schedule of minimum lease commitments 2018	Minimum lease commitments at December 31, 2018 for property and equipment under operating lease agreements were payable as follows: Operating Leases (in thousands) Payments due by period: 2019 $ 5,143 2020 5,056 2021 2,432 2022 1,812 2023 1,066 Thereafter 548 Total $ 16,057

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Financial Instruments
Schedule of gains and (losses) and weighted average notional amount of derivatives	Three months ended March 31, 2018 Gains Weighted average (in thousands) Foreign currency exchange forwards $ 17 $ 930

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity
Schedule of Stockholders' Equity	Accumulated Additional Other Common Stock Treasury Stock Paid-in Accumulated Comprehensive Shares Amount Shares Amount Capital Deficit Income Total (in thousands) Balance at December 31, 2018 48,547 $ 485 523 $ (5,872) $ 1,061,325 $ (619,983) $ 1,820 $ 437,775 Net loss — — — — — (18,530) — (18,530) Other comprehensive income, net of tax — — — — — — 38 38 Share-based compensation expense — — — — 3,157 — — 3,157 Net issuance under employee stock plans 128 2 (523) 5,872 (6,303) (213) — (642) Balance at March 31, 2019 48,675 $ 487 — $ — $ 1,058,179 $ (638,726) $ 1,858 $ 421,798 Accumulated Additional Other Common Stock Treasury Stock Paid-in Accumulated Comprehensive Shares Amount Shares Amount Capital Deficit Income Total (in thousands) Balance at December 31, 2017 48,229 $ 482 85 $ (1,284) $ 1,051,953 $ (212,870) $ 1,812 $ 840,093 Net loss — — — — — (15,827) — (15,827) Other comprehensive income, net of tax — — — — — — 24 24 Share-based compensation expense — — — — 4,537 — — 4,537 Net issuance under employee stock plans 462 5 (115) 1,728 (2,159) — — (426) Purchases of common stock — — 30 (444) — — — (444) Balance at March 31, 2018 48,691 $ 487 — $ — $ 1,054,331 $ (228,697) $ 1,836 $ 827,957
Schedule of the changes in the balances of each component of AOCI, net of tax	Unrealized Gains (Losses) Foreign on Available Currency for Sale Translation Securities Total (in thousands) Balance - December 31, 2018 $ 1,836 $ (16) $ 1,820 Other comprehensive income (loss) 11 27 38 Balance - March 31, 2019 $ 1,847 $ 11 $ 1,858

Share-based compensation (Table

Share-based compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Stock Plans
Schedule of share-based compensation expense	Three months ended March 31, 2019 2018 (in thousands) Cost of sales $ 470 $ 554 Research and development 792 954 Selling, general, and administrative 1,895 2,857 Restructuring — 172 Total $ 3,157 $ 4,537
Summary of stock option activity	Weighted Number of Average Shares Exercise Price (in thousands) Balance - December 31, 2018 1,222 34.80 Expired or forfeited (33) 33.82 Balance - March 31, 2019 1,189 34.83
Summary of non-vested restricted and performance shares activity	Weighted Average Number of Grant Date Shares Fair Value (in thousands) Balance - December 31, 2018 2,218 20.74 Granted 974 11.32 Performance award adjustments (9) 32.67 Vested (156) 21.71 Forfeited (89) 21.84 Balance - March 31, 2019 2,938 17.50

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2019
Income Taxes
Schedule of loss before income taxes and income tax benefit	Three months ended March 31, 2019 2018 (in thousands) Loss before income taxes $ (18,340) $ (16,057) Income tax expense (benefit) $ 190 $ (230)

Segment Reporting and Geograp_2

Segment Reporting and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting and Geographic Information
Schedule of sales by end-market	Three months ended March 31, 2019 2018 (in thousands) Sales by end-market Advanced Packaging, MEMS & RF Filters $ 23,127 $ 27,153 LED Lighting, Display & Compound Semiconductor 13,550 89,916 Front-End Semiconductor 22,617 9,457 Scientific & Industrial 40,077 32,048 Total $ 99,371 $ 158,574 Sales by geographic region United States $ 32,315 $ 23,754 China 10,159 75,395 EMEA (1) 17,827 15,745 Rest of World 39,070 43,680 Total $ 99,371 $ 158,574 (1) EMEA consists of Europe, the Middle East, and Africa

Basis of Presentation - Fiscal

Basis of Presentation - Fiscal Period (Details)	3 Months Ended
	Mar. 31, 2019
Basis of Presentation
Fiscal period duration (in days)	91 days

Basis of Presentation - Revenue

Basis of Presentation - Revenue Recognition (Details)	3 Months Ended
	Mar. 31, 2019
Basis of Presentation
Billing retention recognized at time of transfer of control (as a percent)	10.00%
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract	true

Basis of Presentation - Recentl

Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Accounting Changes
Lease, Practical Expedients, Package	true
Operating lease right-of-use-assets	$ 12,874
Operating lease liability	$ 13,179
ASU 2016-02 | Adjustment
Accounting Changes
Operating lease right-of-use-assets		$ 14,200
Operating lease liability		$ 14,200

Income (Loss) Per Common Shar_2

Income (Loss) Per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income (Loss) Per Share
Net income (loss)	$ (18,530)	$ (15,827)
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.40)	$ (0.34)
Diluted (in dollars per share)	$ (0.40)	$ (0.34)
Weighted average shares reconciliation
Basic weighted average shares outstanding	46,848	46,963
Diluted weighted average shares outstanding	46,848	46,963

Income (Loss) Per Common Shar_3

Income (Loss) Per Common Share - Shares Excluded from EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Common share equivalents
Diluted income (loss) per share
Securities excluded from the diluted calculation as their effect would be antidilutive	320	169
Potentially dilutive shares
Diluted income (loss) per share
Securities excluded from the diluted calculation as their effect would be antidilutive	2,426	2,092
Potential shares to be issued for settlement of the Convertible Senior Notes
Diluted income (loss) per share
Securities excluded from the diluted calculation as their effect would be antidilutive	8,618	8,618

Assets - Fair Value (Details)

Assets - Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Short-term investments
Transfer of assets from Level 1 to Level 2	$ 0
Transfer of assets from Level 2 to Level 1	0
Transfer of Liabilities from Level 1 to Level 2	0
Transfer of Liabilities from Level 2 to Level 1	0
Measured at fair value on a recurring basis
Cash equivalents
Total Cash equivalents	98,037	$ 69,561
Short-term investments
Total Short-term investments	67,215	48,189
Measured at fair value on a recurring basis | Certificate of deposits and time deposits
Cash equivalents
Total Cash equivalents	66,863	65,571
Measured at fair value on a recurring basis | U.S. treasuries
Cash equivalents
Total Cash equivalents	19,917	3,990
Short-term investments
Total Short-term investments	51,726	37,184
Measured at fair value on a recurring basis | Government agency securities
Short-term investments
Total Short-term investments	4,964
Measured at fair value on a recurring basis | Corporate debt
Short-term investments
Total Short-term investments	1,999	8,516
Measured at fair value on a recurring basis | Commercial paper
Cash equivalents
Total Cash equivalents	11,257
Short-term investments
Total Short-term investments	8,526	2,489
Measured at fair value on a recurring basis | Level 1
Cash equivalents
Total Cash equivalents	86,780	69,561
Short-term investments
Total Short-term investments	51,726	37,184
Measured at fair value on a recurring basis | Level 1 | Certificate of deposits and time deposits
Cash equivalents
Total Cash equivalents	66,863	65,571
Measured at fair value on a recurring basis | Level 1 | U.S. treasuries
Cash equivalents
Total Cash equivalents	19,917	3,990
Short-term investments
Total Short-term investments	51,726	37,184
Measured at fair value on a recurring basis | Level 2
Cash equivalents
Total Cash equivalents	11,257
Short-term investments
Total Short-term investments	15,489	11,005
Measured at fair value on a recurring basis | Level 2 | Government agency securities
Short-term investments
Total Short-term investments	4,964
Measured at fair value on a recurring basis | Level 2 | Corporate debt
Short-term investments
Total Short-term investments	1,999	8,516
Measured at fair value on a recurring basis | Level 2 | Commercial paper
Cash equivalents
Total Cash equivalents	11,257
Short-term investments
Total Short-term investments	$ 8,526	$ 2,489

Assets - Available-For-Sale Sec

Assets - Available-For-Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Dec. 31, 2018
Total available-for-sale securities
Amortized Cost	$ 67,204				$ 48,205
Gross Unrealized Gains	11
Gross Unrealized Losses					(16)
Estimated Fair Value	67,215				48,189
Available-for-sale securities in a loss position
Estimated Fair Value					45,700
Gross Unrealized Losses					(16)
Short-term investments in a continuous loss position
Investments that had been in a continuous loss position for more than 12 months	0				0
Realized gains or losses
Realized gains	0		$ 0
Realized losses		$ 0		$ 0
U.S. treasuries
Total available-for-sale securities
Amortized Cost	51,715				37,191
Gross Unrealized Gains	11
Gross Unrealized Losses					(7)
Estimated Fair Value	51,726				37,184
Available-for-sale securities in a loss position
Estimated Fair Value					37,184
Gross Unrealized Losses					(7)
Government agency securities
Total available-for-sale securities
Amortized Cost	4,964
Estimated Fair Value	4,964
Corporate debt
Total available-for-sale securities
Amortized Cost	1,999				8,525
Gross Unrealized Losses					(9)
Estimated Fair Value	1,999				8,516
Available-for-sale securities in a loss position
Estimated Fair Value					8,516
Gross Unrealized Losses					(9)
Commercial paper
Total available-for-sale securities
Amortized Cost	8,526				2,489
Estimated Fair Value	$ 8,526				$ 2,489

Assets - Accounts Receivable (D

Assets - Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets
Allowance for doubtful accounts receivable	$ 0.2	$ 0.3

Assets - Inventories (Details)

Assets - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories
Materials	$ 84,711	$ 90,816
Work-in-process	36,299	42,354
Finished goods	27,093	23,141
Total	$ 148,103	$ 156,311

Assets - Prepaid Expenses and O

Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Prepaid expenses and other current assets
Deposits with suppliers	$ 15.1	$ 12.8

Assets - Property, Plant, and E

Assets - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property, plant, and equipment
Gross property, plant and equipment	$ 203,860		$ 204,211
Less: accumulated depreciation and amortization	126,123		123,927
Net property, plant, and equipment	77,737		80,284
Depreciation expense	4,600	$ 4,200
Land
Property, plant, and equipment
Gross property, plant and equipment	5,669		5,669
Building and improvements
Property, plant, and equipment
Gross property, plant and equipment	61,286		61,124
Machinery and equipment
Property, plant, and equipment
Gross property, plant and equipment	129,864		128,385
Leaseholds improvements
Property, plant, and equipment
Gross property, plant and equipment	$ 7,041		$ 9,033

Assets - Goodwill (Details)

Assets - Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Goodwill
Changes in goodwill during the period	$ 0

Assets - Intangible Assets (Det

Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Intangible assets
Total Gross Intangible Assets	$ 550,119	$ 550,119
Accumulated Amortization and Impairment	469,188	464,970
Total Net Intangible Assets	80,931	85,149
In-process R&D
Intangible assets
Gross Carrying Amount, Indefinite-lived intangible assets	13,710	13,710
Accumulated Amortization and Impairment, Indefinite-lived intangible assets	10,530	10,530
Net Amount, Indefinite-lived intangible assets	3,180	3,180
Technology
Intangible assets
Gross Carrying Amount, Definite-lived intangible assets	337,218	337,218
Accumulated Amortization and Impairment, Definite-lived intangible assets	293,528	290,808
Net Amount, Definite-lived intangible assets	43,690	46,410
Customer relationships
Intangible assets
Gross Carrying Amount, Definite-lived intangible assets	164,595	164,595
Accumulated Amortization and Impairment, Definite-lived intangible assets	137,257	136,126
Net Amount, Definite-lived intangible assets	27,338	28,469
Trademarks and tradenames
Intangible assets
Gross Carrying Amount, Definite-lived intangible assets	30,910	30,910
Accumulated Amortization and Impairment, Definite-lived intangible assets	24,239	23,899
Net Amount, Definite-lived intangible assets	6,671	7,011
Other Intangible Assets
Intangible assets
Gross Carrying Amount, Definite-lived intangible assets	3,686	3,686
Accumulated Amortization and Impairment, Definite-lived intangible assets	3,634	3,607
Net Amount, Definite-lived intangible assets	$ 52	$ 79

Assets - Other Assets (Details)

Assets - Other Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Kateeva
Other Investment
Carrying value of investment	$ 21	$ 21
Separate non-marketable investment
Other Investment
Amount of investment made	$ 3.5	$ 3.5
Separate non-marketable investment | Maximum
Other Investment
Percentage ownership of cost method investee	20.00%

Liabilities - Accrued Expenses

Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accrued expenses and other current liabilities
Payroll and related benefits	$ 17,722	$ 20,486
Warranty	7,226	7,852
Operating lease liability	4,797
Interest	1,992	4,321
Professional fees	3,059	2,897
Sales, use, and other taxes	1,256	2,670
Restructuring liability	1,720	2,213
Other	6,268	6,011
Total	$ 44,040	$ 46,450

Liabilities - Warranty (Details

Liabilities - Warranty (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Warranty
Warranty period	1 year
Balance, beginning of the year	$ 7,852
Warranties issued	1,427
Consumption of reserves	(1,978)
Changes in estimate	(75)
Balance, end of the year	$ 7,226

Liabilities - Restructuring Acc

Liabilities - Restructuring Accruals (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Jun. 30, 2018employee	Mar. 31, 2018USD ($)
Restructuring Accruals
Number of employees terminated | employee		40
Restructuring charges	$ 1,430		$ 2,695
Restructuring accruals roll forward
Balance at the beginning of the period	2,213
Provision	1,430
Payments	(1,923)
Balance at the end of the period	1,720
Personnel severance and related costs
Restructuring accruals roll forward
Balance at the beginning of the period	2,143
Provision	1,320
Payments	(1,743)
Balance at the end of the period	1,720
Facility Related Costs and Other
Restructuring accruals roll forward
Balance at the beginning of the period	70
Provision	110
Payments	$ (180)

Liabilities - Customer Deposits

Liabilities - Customer Deposits and Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Liabilities
Customer deposits and deferred revenue	$ 26,600	$ 28,300
Changes in deferred revenue
Beginning balance	44,415
Deferral of revenue	792
Recognition of previously deferred revenue	(2,887)
Ending balance	$ 42,320

Liabilities - Performance Oblig

Liabilities - Performance Obligations Amount (Details) $ in Millions	Mar. 31, 2019USD ($)
Liabilities
Remaining performance obligations	$ 68.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Performance obligations
Remaining performance obligations, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Performance obligations
Remaining performance obligations, expected timing of satisfaction	2 years

Liabilities - Performance Obl_2

Liabilities - Performance Obligations Timing (Details)	3 Months Ended
	Mar. 31, 2019
Liabilities
Revenue, Practical Expedient, Remaining Performance Obligation	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Performance obligations
Percentage of remaining performance obligation expected to be recognized	65.00%

Liabilities - Convertible Senio

Liabilities - Convertible Senior Notes (Details) - Convertible Notes - USD ($) $ in Thousands	Jan. 10, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Debt
Principal amount	$ 345,000	$ 345,000		$ 345,000
Interest rate (as a percent)	2.70%
Proceeds received, net of transaction fees	$ 335,800
Unamortized debt discount		(49,537)		(52,336)
Unamortized transaction costs		(4,990)		(5,272)
Net carrying value		290,473		$ 287,392
Cash Interest Expense
Coupon interest expense		2,329	$ 2,329
Non-Cash Interest Expense
Amortization of debt discount		2,799	2,598
Amortization of transaction costs		282	261
Total Interest Expense		5,410	$ 5,188
Estimated fair value		$ 295,000
Convertible Debt, Fair Value by Fair Value Hierarchy Level [Extensible List]		Fair Value Inputs Level2 [Member]

Liabilities - Other Liabilities

Liabilities - Other Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Other Assets
Other liabilities
Deferred compensation plan assets	$ 3.4	$ 3.2
Other Liabilities
Other liabilities
Deferred compensation plan liabilities	2.9	3.5
Asset retirement obligations	3.2	3.2
Medical and dental benefits	2.2	2.2
Income taxes payable	$ 1	$ 1

Commitments and Contingencies -

Commitments and Contingencies - Lease terms (Details)	Mar. 31, 2019
Leases
Remaining lease term	3 years
Weighted average discount rate (as a percent)	6.00%

Commitments and Contingencies_2

Commitments and Contingencies - Minimum lease commitments 2019 (Details) $ in Thousands	Mar. 31, 2019USD ($)
Minimum lease commitments, Payments due by period:
2019 (excluding three months ended March 31, 2019)	$ 4,144
2020	5,233
2021	2,431
2022	1,334
2023	853
Thereafter	548
Total future minimum lease payments	14,543
Less: Imputed interest	(1,364)
Total operating lease liabilities	13,179
Operating lease liability, current	$ 4,797
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued and Other Liabilities, Current
Operating lease liability, noncurrent	$ 8,382
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating lease liability, noncurrent
Total operating lease liabilities	$ 13,179

Commitments and Contingencies_3

Commitments and Contingencies - Minimum lease commitments 2018 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Minimum lease commitments, Payments due by period:
2019	$ 5,143
2020	5,056
2021	2,432
2022	1,812
2023	1,066
Thereafter	548
Total	$ 16,057

Commitments and Contingencies_4

Commitments and Contingencies - Lease costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Lease cost
Operating lease cost	$ 1.4
Variable lease cost	0.6
Lease expense		$ 1.7
Operating cash flows from operating leases	$ 1.5

Commitments and Contingencies_5

Commitments and Contingencies - Purchase Commitments and Bank Guarantees (Details) $ in Millions	Mar. 31, 2019USD ($)
Purchase commitments
Purchase commitments due within one year	$ 90.5
Bank guarantees
Bank guarantees and letters of credit outstanding	8.5
Unused bank guarantees and letters of credit	$ 66.1

Commitments and Contingencies_6

Commitments and Contingencies - Legal Proceedings (Detail)	Aug. 08, 2018case
Ultratech acquisition litigation
Legal Proceedings
Number of purported class action complaints filed	2

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - Not designated as hedges - Foreign currency exchange forwards $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Derivative Financial Instruments
Gains (losses)	$ 17
Weighted average notional amount	$ 930

Equity - Statement of Stockhold

Equity - Statement of Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	$ 437,775	$ 840,093
Net loss	(18,530)	(15,827)
Other comprehensive income, net of tax	38	24
Share-based compensation expense	3,157	4,537
Net issuance under employee stock plans	(642)	(426)
Purchases of common stock		(444)
Balance at the end of the period	421,798	827,957
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	$ 485	$ 482
Balance (in shares)	48,547	48,229
Net issuance under employee stock plans	$ 2	$ 5
Net issuance under employee stock plans (in shares)	128	462
Balance at the end of the period	$ 487	$ 487
Balance (in shares)	48,675	48,691
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	$ (5,872)	$ (1,284)
Balance (in shares)	523	85
Net issuance under employee stock plans	$ 5,872	$ 1,728
Net issuance under employee stock plans (in shares)	(523)	(115)
Purchases of common stock		$ (444)
Purchase of common stock (in shares)		30
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	$ 1,061,325	$ 1,051,953
Share-based compensation expense	3,157	4,537
Net issuance under employee stock plans	(6,303)	(2,159)
Balance at the end of the period	1,058,179	1,054,331
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	(619,983)	(212,870)
Net loss	(18,530)	(15,827)
Net issuance under employee stock plans	(213)
Balance at the end of the period	(638,726)	(228,697)
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period	1,820	1,812
Other comprehensive income, net of tax	38	24
Balance at the end of the period	$ 1,858	$ 1,836

Equity - AOCI Rollforward (Deta

Equity - AOCI Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in the balances of each component of AOCI
Balance at the beginning of the period	$ 437,775	$ 840,093
Total other comprehensive income (loss), net of tax	38	24
Balance at the end of the period	421,798	827,957
Accumulated Other Comprehensive Income
Changes in the balances of each component of AOCI
Balance at the beginning of the period	1,820	1,812
Total other comprehensive income (loss), net of tax	38
Balance at the end of the period	1,858	$ 1,836
Foreign Currency Translation
Changes in the balances of each component of AOCI
Balance at the beginning of the period	1,836
Total other comprehensive income (loss), net of tax	11
Balance at the end of the period	1,847
Unrealized Gains (Losses) on Available for Sale Securities
Changes in the balances of each component of AOCI
Balance at the beginning of the period	(16)
Total other comprehensive income (loss), net of tax	27
Balance at the end of the period	$ 11

Share-based compensation (Detai

Share-based compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation
Total	$ 3,157	$ 4,537
Cost of sales
Share-based compensation
Total	470	554
Research and development
Share-based compensation
Total	792	954
Selling, general and administrative
Share-based compensation
Total	$ 1,895	2,857
Restructuring
Share-based compensation
Total		$ 172
Restricted stock awards | Minimum
Share-based compensation
Expiration term	1 year
Restricted stock awards | Maximum
Share-based compensation
Expiration term	5 years
Stock options
Number of Shares
Outstanding at the beginning of the period (in shares)	1,222
Expired or forfeited (in shares)	(33)
Outstanding at the end of the period (in shares)	1,189
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 34.80
Expired or forfeited (in dollars per share)	33.82
Outstanding at the end of the period (in dollars per share)	$ 34.83
Non-vested restricted shares and performance shares
Number of Shares
Outstanding at the beginning of the period (in shares)	2,218
Granted (in shares)	974
Performance award adjustments (in shares)	(9)
Vested (in shares)	(156)
Forfeited (in shares)	(89)
Outstanding at the end of the period (in shares)	2,938
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 20.74
Granted (in dollars per share)	11.32
Performance award adjustments (in dollars per share)	32.67
Vested (in dollars per share)	21.71
Forfeited (in dollars per share)	21.84
Outstanding at the end of the period (in dollars per share)	$ 17.50

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Tax reconciliation disclosures
Loss before income taxes	$ (18,340)	$ (16,057)
Income tax expense (benefit)	190	(230)
Domestic
Tax reconciliation disclosures
Income tax expense (benefit)	100	100
Foreign tax
Tax reconciliation disclosures
Income tax expense (benefit)	$ 100	$ (300)

Segment Reporting and Geograp_3

Segment Reporting and Geographic Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)itemsegment	Mar. 31, 2018USD ($)
Revenue reporting by end-market and geographic region
Number of operating segments | segment	1
Number of reportable segments | segment	1
Number of key markets | item	4
Sale by end-market	$ 99,371	$ 158,574
United States
Revenue reporting by end-market and geographic region
Sale by end-market	32,315	23,754
China
Revenue reporting by end-market and geographic region
Sale by end-market	10,159	75,395
EMEA
Revenue reporting by end-market and geographic region
Sale by end-market	17,827	15,745
Rest Of World
Revenue reporting by end-market and geographic region
Sale by end-market	39,070	43,680
Advanced Packaging, MEMS & RF Filters
Revenue reporting by end-market and geographic region
Sale by end-market	23,127	27,153
LED Lighting, Display & Compound Semiconductor
Revenue reporting by end-market and geographic region
Sale by end-market	13,550	89,916
Front-End Semiconductor
Revenue reporting by end-market and geographic region
Sale by end-market	22,617	9,457
Scientific & Industrial
Revenue reporting by end-market and geographic region
Sale by end-market	$ 40,077	$ 32,048