VECO - Earnings call transcript Q1 2021

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Anthony Bencivenga

Thank you and good afternoon everyone.

Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and John Kiernan, our Chief Financial Officer. Today's earnings release is available on the Veeco website. Please note that we have prepared a slide presentation to accompany today's webcast. We encourage you to follow along with the slides on veeco.com. recorded Instruments being material. is is call by and Veeco copyrighted This cannot without rebroadcast recorded express It or Veeco's be permission.

does market expectations Your recording. participation on the description to future circumstances statements market disclosures, discusses XX-Q X-K Factors otherwise report any expectations, on in statements. company's about date discussed those To our future conditions, about make made are reports the current extent and future and company's of undertake implies that this XX-K Analysis Form update products, consent the acceptance, and forward-looking Discussion to or shareholders sales earnings reflect Risk call materially Veeco made could and factors to the of of risks number as after or subject report to cause results call of releases. Form press the pandemic. future statements future, business actual not any a the Form reports events such management's statements in statements These annual the on including are to obligation forward-looking and such on from to result a our differ uncertainties including and are sections that the quarterly of and COVID-XX this and subsequent

call, to call financial on may our the With Information measures During website. measures turn measures. this performance Miller. non-GAAP management over available is address I including such GAAP regarding financial non-GAAP of reconciliation to Bill that, will

Bill Miller

dedication, vaccinated. We're the testament returning to more doing as Good which a quarter Veeco team's normal first joining are of call. resilience, delivered results people Anthony. the I hope Thanks and well. prospects and everyone excited is thank more afternoon to for work. you is operations about hard our strong

our we're in this mind. employees of health and safety cautiously the However, with and entering phase

our result begin minutes. get and detail in you to will have year discussing as for a our backlog results we'll more financial QX in million our update highlights, started, then and a letting revenue guidance and the I'd express of on turn of earnings with data our guidance. I'll know few by execution midpoint by we increasing position. John semiconductor like of of John confidence guidance. XXXX review my be this full markets, Before Revenue marked a of was driven QX it another solid for above to over quarter a just sales. and our storage by $XXX

and income Our gross non-GAAP leading to margin $X.XX. above $XX of operating of XX% we came million non-GAAP in diluted achieved EPS

$XX by and generated and flow semiconductor improvement. increased We're across is short-term operations This our the space. order seeing this momentum analysts cash equipment semiconductor million cash are in In in forecasting from a Several healthy broadly addition macro products. environment with our investments we $X consistent million. strong

compound automotive for drivers continued high-performance with find and wireless, demand storage. semiconductor the our align applications for graphics, growth XG and near-term markets. investments forecast we demonstrates annealing, additional in capacity and Sachs cloud our grow semiconductor semiconductor Goldman look our packaging large capacity. and further XX% the XG example to initiatives and For long-term market made laser proliferation equipment survey storage, and companies and Korea, fab in the XXXX data such in by well as we A clearly for recently the wafer than more mobile our when the growth investing the It's in up applications, another commitment and third time. memory, Taiwan with revised this of capacity initiatives in XXXX. and of And logic, forecasted US, of advanced XX% sources at customers computing RF, and datacenter devices to XXXX now AI, in These

and progress I'll shipping during healthy Veeco In dynamics, explain to this for our longer how made more growth. customers evaluation term market quarter systems. with we addition the positions engaging

market to market lithography market, beam specific Beginning Now, let's this annealing deposition blank we and serve EUV major our semiconductor for our advanced opportunities. mask production, systems product with three products for products advanced lines; our with ion for packaging. our logic, turn our laser

Our They're manufacturing by for annealing at advanced products evaluating as annealing manufacturers memory processes nodes the edge leading laser device enable most our computing. laser high-performance logic is a and well. system used customer their

nodes, logic nodes. including at win to both one new customers. and we're leading-edge recently, customer customer multiple And third customers application an their most applications, record production tool leading of at at of a evaluation shipped currently existing For these edge for a logic systems recent we next multiple advanced their

evaluations these to the course orders. receive multiple close year, over of tool hope next the As we

consumption product current Ion semiconductor mask is coupled to blanks to part to growth fact, is for future are also an We're plan, with evaluations we growth Veeco's further manufacturers Leading report summary, enabler I'm edge I'm important an facility. that this their during the excited lithography lithography. used underway allows annealing San laser EUV XXXX trend mass nodes received accelerating it as ongoing high-performance the beam our make shrink their their is chambers and device in construction geometries. make in engagement. production. lithography nodes manufacturing for Deposition well adoption quarter, forecasted is blank driving customer longer-term So two computing EUV ion fabs which And for order are demand for advanced our and of at in continue. with support for plan. an mass of of this EUV to to systems Jose at deposition Beam continued experiencing pleased And announce EUV new

such lithography In for advanced productivity. CPUs driving by are Veeco's control to and demand. Advanced as process and packaging along improve, incorporated to Moore's flexibility, High-performance techniques packaging recognized electronic customers processors our order as graphics law. high computing packaging to in to Packaging. our continue products are device have advanced customers superior wafer-level on shrinking for performance Moving fan-out nodes such addition

signs demand. promising we're improved of fact, In seeing

multi a business the product lines steady serve received filters equipment primarily we MOCVD a from our equipment and company. for for our a advanced continue -- the compound OSAT We quarter, tool for products amplifiers and order lithography we for and healthy large Photonics packaging wet the to see During processing RF power and applications. semiconductor with power RF market and two as

continue process per and Our and content our customers XG wet offers RF device. The processing strong to demands equipment drives Accordingly, in performance see frequency as add excellent of RF capacity. power demand customers for the more amplifier market. filter mobile we power

with fast These feedback wins devices our emerging solutions from Veeco and traction. and We evaluation results as are phosphide products and power nitride these RF management charging microLEDs. other and an Recent customer enable gallium to they early markets demo and arsenide XG encouraged position MOCVD by gain platforms. shipment grow stage

Our consistent multiple end is with storage. market third major and market years datacenter demand. been growing data This cloud for has

thin film at heads years Our capacity capacity to make by XXXX, keep head who additions drives. increasing this accelerating customers including After XXXX magnetic of additional in their multiple up time. with driven customers our require limited is into larger demand visibility

see prospects universities market and research and business. slowing, signs And showing about lastly, beginning signs potential largely However, This scientific to institutes. we driven of long-term other our the with confident data in our storage a recovery of sales market. feel to is of data no we're proliferation by

priorities. an Now our on XXXX update for

operations. I've the and to that remarkable Veeco dedication and strive of organization. resiliency maintain we a across all It's aspects Overall, seen put teamwork growth meet our objectives. in to succeed long-term short- our First, and throughout people position our

and we're on QX focus profitability we'll start off to Second, continue our with a great to results.

our annealing, fourth, with Third, near-term XG we to laser in solutions. we systems expect infrastructure. service data evaluation deliver our storage RF and make and growth to investments continue And

multi-tool that and growth. application And is making will material position win steps, these leading building a to to is Veeco. Veeco priorities with long-term orders the stronger a goal committed difference Veeco to Our additional four team for

Now to John. I'll hand over it

John Kiernan

Bill press GAAP and good and everyone. presentation. refer in Thanks or to results earnings our the the to end results release financial I'll at encourage be discussing non-GAAP the afternoon to reconciliation of you

Turning to Slide X.

revenue was came minute. I'll at for a quarter applications. up scientific our up systems semiconductor for which revenue sold million driven the total $XX revenue represented $XX revenue $XX driven Semiconductor revenue, lithography up our And range. revenue products. million million of for a RF applications. XX% growth million highlighted, end and Systems of of $XX and made XX% million total total revenue. Compound exhibited in annealing sold storage revenue guidance which year with year-on-year revenue $XXX our made underpinning variety of and full which Bill of total, and XX% XX% was wet in was of other and All was growth processing made was Data by markets the at As by laser revenue update top projections the our our

our States was made less XX% Looking made quarter. EMEA Asia United Pacific at of excluding XX%. made than Rest up finally of region; our for XX%. XX%. quarterly And of China World X% China region revenue the up The revenue total was by revenue. up

XX% count for quarterly Operating net toward our quarter of expense our at to EPS million shares. or guidance. income Tax the share end turning XX.X% results. and were came margin a the with million million $X.XX in $XX.X revenue. non-GAAP XX was top Gross Now was $XXX,XXX at diluted was in approximately on $XX.X quarter which the expenses of coming for of

in quarter the a increase cash the and accounts year a $XX the balance days. million convertible capital support short-term million. increasing came of with on $XX million balance million, to our $XXX perspective, sheet $XXX increase notes. in $XXX investments XX highlights. days. increased systems. volume XX to XXX. million increased Long-term to debt ended value working and planned and We half $X drove second was million to Days $XXX in recorded sequential million representing $XX at at in This cash to Inventory with to moving to Now DPOs in DSOs approximately payable the of of increased inventory the Accounts of investments million. the From sheet a flow receivable carrying of evaluation

significant Jose yet million our during was San CapEx the spending quarter Our project. $X reflect expansion does on and not any

to turning guidance. Now our

revenue non-GAAP XX%. expected million million margin between gross between is $XXX to For QX, and with be $XXX and XX%

As a and quarter-to-quarter are variations. do number expect a reminder factors by margins we gross of influenced

a of between share. for QX to XX loss $X.XX between EPS Non-GAAP non-GAAP expected million be and share. between is $XX per EPS and be EPS diluted of to and diluted expect upon expected million. to count. be $X.XX $X.XX We Diluted non-GAAP earnings share is $XX based $X.XX per is GAAP QX OpEx million

section For reference, the share table presentation effect we've provide the count. detail on in notes of the on earnings a the diluted of convertible backup included to

$XXX between expected increasing year million. previous the of of XXXX guidance of Now half midpoint, XX% million for our second corresponds to At $XXX of the we're to an update growth and full XX%. year beyond this the from view year-on-year QX. in a revenue With growth revenue our range up

expect year I will from happy As diluted a increase is of per the with $X.XX take we Bill year-on-year questions. between guidance previous $X.XX non-GAAP and be to and a for result that And up share, your XX%. XX% EPS which be to our

Operator

go Thank you. we And Instructions] of to will Schafer Oppenheimer. first [Operator Rick

Wei Mok

me is behalf speaking on Schafer. Wei of ask question. This Mok Hi. letting Rick Thanks for

congratulations So guide. quarter the on and

announcements the in So of lot higher been seems chain spending there's sense of been area. it foundry semiconductor the you an recently ramp with if capacity. urgency supply like There's increased constrained a on

velocity? wondering can order you Are shift landscape. seeing talk demand pull-ins any was any I you if about guys in the So

Bill Miller

the for question, Thanks Wei. Yes.

we application a won of record kind customers. trends We laser really you've application all with makers. with step. one those And tool from our uptick a seen And announced process step are we of a we're annealing with customers. pull-in that seeing Last announced market the quarter, Historically, winning been in we've two now with of seeing an second aligned just one the that macro third we opportunities.

customer. customer. system to And really up a to shipped ongoing and the logic us have positive so that an gives But quite our also evaluation we And with third memory that's to it's DRAM XXXX evaluation numbers. take a an note confidence important recently we

seeing in positive to more going the systems. EUV There's that clearly, for So of engagement is more announcements a semiconductor lot we're adopted, which our space. broadly blank mask EUV be is deposition

increasing ASML for out XXXX and beyond. their into see can You scanners capacities

of Between per And continues scanners do four increase as to for to guess So one XX ASML our I us. we there's about to business output a see their systems that year. as systems. XX per solid two

with kind two us litho that bit wet a equipment. and four of to market So higher. then advanced packaging, we processing maybe range, finally but puts would in little that And that in the serve tick-up

been shipped has seeing to This to quarter and number there. see of demand in this We a demand large seeing we -- steady pull a a continued business. seeing are up. We OSAT systems modest we're starting some But pick growth. are

in the laser we blanks annealing, packaging the seeing trends. space, advanced areas where generally in So semiconductor lithography we those mask participate three are macro EUV and

Wei Mok

Great. Thanks for color. Appreciate it. the

us to So so we -- have EUV expect a as you know And us your many for placed expected can you for a tools, your of but bit been a on can win? design my little far tools how to is time a eval to delivered of bit -- provided customers? what tool frame when on follow-up, the I little a customer the update a give when gets summary

Bill Miller

Yes. That's timely question. a really

planned in have have ship evaluation And really investments investing are in field planning are We're support. large XXxX-service We the have rest here, making year. four the -- we to win. this of six XX we throughout in systems to and to field Today, XXXX. the are we

one these. of discuss. packaging. Most Veeco really two core MOCVD we're really are laser those one particularly of technology, in is in these XX are to post-installation. not core And five two So evals we're a technology over and supporting And microLED, advanced lasting ready are semi X-inch tools, a power annealing; in year

may mostly those few be half signed I will we'll would overly that would there to but of be think expect late the off that this So be year, not in XXXX. significant. be a first I seeing

Wei Mok

Great. Thank you.

Bill Miller

Thank you, Wei.

Operator

Patrick our Stifel. Ho to from We'll move next question of

Patrick Ho

outlook. on Bill advanced much the you're for first packaging you and Thank congrats in nice a in the quarter strength you probably and of terms seeing very market.

that this took orders OSAT mentioned You large the quarter.

As to little concentrated you OSATs? you the and the a next do look heavily more between quarters, both going couple be Or still for being of that chipmakers see is broad-based OSATs? demand towards this

Bill Miller

the expanding foundries Patrick. broadening. question IDMs is to are and customer well solid We see base opportunity a the interest as OSATs. That's as we seeing What the do

Patrick Ho

a as Great. John. That's And helpful. for maybe follow-up question

become terms and are just the from support. management semi you I even guys and different of think, undergoing. capacity you mentioned businesses more more It's In previously. your Bill that XX-X OpEx a of you lot as bigger other management a player, Obviously,

color with If end out in you make how provide could a of demand to side more that's the semiconductor the to little terms on keep on of you investments bit support pace the quote, much there. especially

John Kiernan

the for thanks question. And Patrick. Sure

a see quarter in we're for at So we are come OpEx giving a $XX million, bit. over in for did upping or our for guide QX OpEx of guide just We that same here XX% revenue range. two And quarter similar one.

OpEx and we to support our continue And to down. gross percentage but COGS margin we're also forecast. these expenses of spending as we investing also results. our investment included So the revenue get in expect costs the revenue in to we that And go well Patrick, service as in area your support expect to evals infrastructure and as do and opportunities, those increase business a the our into growth in support as increases will come that's of that point current to OpEx

the So well. we're investing same there in time at as

same currently in from gross we're QX year. gross So, QX bit a we the for margin a perspective, of guiding expect the margins growth half range experienced in margin second gross in little as and the of

Patrick Ho

Great. very much. Thank you

John Kiernan

you. Thank Okay.

Bill Miller

Patrick. you, Thank

Operator

Brian we'll from to And our go Goldman Sachs. Lee, question next

Unidentified Analyst

just I've for got on for supply a here you Brian Lee. [indiscernible] one guys around Hi. chain. quick

what semi chain subcomponents? you process there in your update the supply looks or whether any on your like? to raw exposure respect materials general with us for mitigation there So tightness large, can to at And

Bill Miller

have Asia at say to few or back is really to components right we But say completed chain chain. continuity beginning the for not hundred three pretty a resource supply of pandemic, couple holding of quarters our metal ago. did Yes. of out well. US would up fabricated I I the was that a would now a it's now. right supply constraint And the

we are it of chain aggressively, very the to obviously through on manage issues. top are but We supply able

Unidentified Analyst

Thanks. if that out with to, line does new qualify respect time you like? inventory have Okay. And suppliers or do what look Great. build to

Bill Miller

was built speaking print machine I parts. specific of, those the parts are For to

And article so really It to change. take first doesn't long a a is the process. time process

would we For semi But a particular was becoming a of process customer. critical a experienced be larger qualified controlled yet. It OEM with have component longer that that a application. not

Unidentified Analyst

it. Got

very Thank much for Okay. you the color.

Bill Miller

Thank you.

Operator

we'll And next question Barclays. to O'Malley move on of our from Tom

Tom O'Malley

centers Good evening, questions My question data a guys. really for really storage around Thanks business. and taking my results. congratulations nice on the

to some that the can about in around the March come middle about strong the months about prepared remarks lead-time that you of a Why happened? of bit it better? visibility what time guided this March -- a more guys like the anything You of the nine in had for March? year, frame. after around strength but visibility came-in lot talked talk With in the year there, talk saw in just maybe And you rest then that but your looks

Bill Miller

take John at in. that, can fill a Tom. Maybe I'll shot

John Kiernan

systems $X in the market want of you Bill, a bit terms expectations. of around we was moving I backlog more in million, the within increase or So And an compared were quarterly just based Yeah. detail. number the shipped QX in the just the is excess And expecting our say we impact QX. are the QX, or upon expecting talk revenue position do in as right? were more maybe -- in that would two just one March some expectations, of of ship. trend. what ASPs shipments, to then these our But our little to to within We about could

Bill Miller

based and -- was that our year has changed for on when position Yeah. Well, nothing XXXX backlog obviously that we guidance gave there. the of strong

here have to storage data year strong So in XXXX. a we expect

Tom O'Malley

One, got what quarter? you guidance? revenue of for here. two-part what Thanks you a quarter? the June Great. you for midpoint guys. expectations just are led to could can headed plan get of describe have any in different us into the June That's four lot through to kind And helpful. you Do A that question your walk March the segments

John Kiernan

Sure.

guide the cover we let of specifically, quarter data it, guide, an the fairly QX by me in the and increase we a I'll compared -- include And that, cover our see in So QX. QX semiconductor. more market other expectation by in it see what flat Then our compounds is market at midpoint your we see as here. any our compound start down storage, we to to with semi our storage data question sales our and would where significant markets. QX in flat don't in in LED numbers on from for

Tom O'Malley

Thanks results. guys. again, Nice

John Kiernan

Thank you.

Bill Miller

Tom. Thanks,

Operator

on we'll go of And next from to question our Northland. Gus Richard

Gus Richard

Thanks taking questions. Yes. the for

perpendicular quick need? the HAMR. about on Just the according when intensity talk tools to Etch advance much you side. Ion Depth or number real equipment go the Can your your from passes of you of more data how does Beam and storage Each generation, to customers

Bill Miller

We've have at our from XX% we're amount annually. continuing store seen -- data to factors. grow seen customers of And two benefiting the

increasing factor is the increasing. the And the produced First, form size overall or be significantly. is of produced the being drives number heads to required of

year. significantly. to then particular to expected to, that And magnetic recording likewise increase energy-assisted so just alluded the XX% is the an head increases per the recording, by from heads. in And And at industry as about XX% as X% is growth move to of that complexity they as to looking you X%

is forecast X% XX%. number what of head that the about to is I because And equipment grow through needs at to mean go to passes so

their support X% So you XX%, of take those if market. the to

Gus Richard

Got it.

XX% the Is being for on continues saying XX% drive. have just are what to heads the you things think assuming effectively it? bits a growth all and drive is intensity So flat and way -- that more drives about forward you're equal going per to

Bill Miller

XX% work I'll or Yes year. just XX% me, mean that per patterns buying don't customers that XX% is. the I add capital -- to equipment to excuse for X%

over move But so bit. XX% to calculus, little a around good that of many could longer time, a that's generally, And over a XX%. years period

Gus Richard

do ones side, Obviously, first? it's GaN Micromini-LED, health there's That through got there. complete sort RF. walk the then a of later Yes, And monitors, cyclical. of it. those markets Got on on? the just see GaN makes which lot emerging applications opportunity which sense. And compound you Power, of coming ones LIDAR, displays, it. Could semi you

Bill Miller

Yes.

two handsets. filters So seeing demand lines. are product semi, where amplifiers, generally and driven in we for One processing, and in wet RF is from compound XG by we customers significant really RF have power adoption

that's and So business. exiting our is the in low that MOCVD obviously is LED business the And like. One now. with We've at And restructured after two the go-to-market levels, nitride. clearly we business commodity space, happening gallium products.

in reactor. innovative power X-inchs. tuned single-wafer And a seeing RF GaN and applications. electronics, the for have applications, really is power What that microLED is We we're silicon-based now particularly at growth

to customers are And are X-inch that choosing X-inch doing from format. that are customers So Veeco. those moving

horizon year I year. And three-plus So that's out a out the could is a mentioned, microLED three, still be us. for the next driver opportunity two then this like of think about that nice on into you but growth years plus to were in opportunities would longer-term say if I like farther that

Gus Richard

Okay. And is phosphide in arsenide the interest what X-X?

Bill Miller

Yes. think. I

batch shipped it's LED. the phosphide an this We evaluation but well further for applications So as tools. micro an red still company. opportunity as that's just microLED such But out, Illumina Photonics, with as we go-to-market indium recently certainly product. system lasers, And that's VCSELs, in tuned with for for

Gus Richard

question. it. type in just it. housekeeping of how off I'm Could eval Got -- right -- each for of eval are And you Got sorry, the then the the on now? the list tools many tool

Bill Miller

Sure.

rest ship this we we're the are in or installation; planned XX the planning, total of evaluation stages of already four year. that So six of various to field are under have a

of are memory. those and for of half laser XX, And logic annealing so those

most well nodes two their memory logic as as but applications. advanced and The third DRAM customers customer, the next other

as I two One as as well microLED. mentioned We planning X-inch systems. have also in evaluation power, we're power

that's So X.

later core to And and year. that the we're semi-market That's in one Veeco two have is technology a this developing We ship subset planning a packaging. of for semi. advanced

Gus Richard

then it, no real I'll And spares in it’s along. and guys it. got Got leave helpful. the you quarter Yeah, and service

John Kiernan

and quarter Spares the service a in here. Okay. second give me

Bill Miller

million. I was believe $XX it

John Kiernan

$XX million. Yes,

Gus Richard

Great. much. so Thanks

Bill Miller

Thanks Gus.

Operator

And to Mark question Company. our we'll go next Benchmark Miller, from

Mark Miller

EMR on to transition heads. I'm etch and EMR drive HAMR industry is supplied quarter. just heads. type we data require you for the less your and next HAMR tools does Congrats of heads? to film more Does tools? means your The what in the equipment? just of How transition over just as deposition thin that couple And to that and years, disk for Veeco wondering starting I'm wondering of both transition tools the their storage terms of the

Bill Miller

that's overall Mark, XX% Veeco's overall positive through Veeco it's very transition. say due technology for question. equipment And and about HAMR the transition requires timely to be now. to MAMR to or because that a passes it's complex, heads more right positive. would become Yeah, technology more that's positive, I to as that it we're what the a X% figuring very That's

Mark Miller

for depth? opportunity or for an etch More

Bill Miller

and It's it probably check but probably I'd but that, depth, obviously more back have to go that. towards more

Mark Miller

months. terms I growth XX projecting in mean, to opportunities your next XX the over of

will it be do a be terms a to mix or In I or Or you up, mix the this of the expect to seeing mix the as tools higher you'll year. to you year margins -- improve believe similar? Are second guide somewhat is you similar mix half of into the XXXX? goes of selling, on did it in higher

John Kiernan

the taking year annealing. for growth packaging semi earlier guide well. in we of So for the expectations and Mark side advanced the as from mentioned our up second Bill in half particularly are the the seeing year, second coming of pickup is a And laser and our half

was data storage what as in coming we year. expect year second coming from the included also guide well of the second in in of QX previous was see in and we the half and half the revenue Now our -- increased growth that

Mark Miller

is How correct? laser terms used were then margins? in terms litho to would that advanced and rank beam tools highest of It followed Or of be by are contribution? similar you in margin the they tools tool packaging anneal, ion and all your

John Kiernan

that much really detail products without Yeah. could down. here the I would too say into bogged going get we about

would look at if that -- average. think couple I are within a the I points down components the up percentage company we market say from by gross of the margins and these

Mark Miller

Yes. running year. for will year? I'm increase? for next I think, for we next around look sorry they million What How the were like you're much for taxes year, question. additional $X will Taxes told this

John Kiernan

don't given think would NOLs. we I for have still we've the And I outlook Yes. year. that next say, taxes, for

don't a our from So cash with shielded a we change as substantive at to we, still taxes, NOLs. cash this are perspective, point, see

Mark Miller

Thank you.

Bill Miller

Thanks, Mark.

Operator

hear Duley next [Operator Instructions] David We'll from Steelhead. of

David Duley

Yes, off sorry, I'm moments my phone couple dropped there. of for a

backlog mentioned point So much you're give grew? so backlog? color the a it confident if understand any asking a entering question had so us Or you the how of you a Could I'm already I can sort reference apologize, you your or answered. backlog you second of understand we is, quarter. But strong that about help us there, why what size the

John Kiernan

Sure.

the year the year And year that, strength with that, about, talked backlog was just trend I Bill entered did is we backlog with data say that we entered to in in against and gone I at executing storage our place. we contributor biggest And We So, data still been we the thanks, semiconductor. by say in has the report followed -- or backlog. the Dave. backlog. backlog. would would quarterly that storage trend positive and We're as the and away providing from last of the and year. We've bookings that saw mentioned end

David Duley

to you us it tell And was? remind could not just I what us you're what guess, was, the backlog going

John Kiernan

with which we backlog entered increase Sure. year we We over yes, so backlog. entered -- XXXX the was in we million XXXX $XXX ended a in the so -- $XXX million, of where

David Duley

QX. your in And on the I'm based that sequentially was just up assuming, commentary backlog

Bill Miller

into that. can You read

David Duley

LSA Thanks. Okay. goes, far nodes. And all business as as thank update the the on you advanced for just, the

is? I that's Asia, talk think, that about nodes is the In in fact business what nodes. a big chunk business trailing in trailing seeing Could of of is that mostly think. I because edge you're throughout China, the most edge business you where

Bill Miller

a Is question? laser-annealing this

John Kiernan

Yes.

Bill Miller

Yes, laser-annealing -- or

John Kiernan

Yes.

Bill Miller

of say or XX% actually ratio. XX% it's color if is to or staying business I I know can that about plus you Yes, XX% right leading edge customers. edge is the at say, would now And I John? logic would And the minus, to any that at don't more that add the trailing node. in

John Kiernan

Bill. right, No, I think that's

I trend. that think number currently over in quarters. trailing that's what we quarters, don't a we've the last trailing of see And seen change

Bill Miller

we've seen leading would application that at is edge by nodes, the that I winning the say nodes. growth really steps edge leading the

David Duley

related Okay. as, tools. lot of having for a product China? licenses somewhat have just this you shipping restrictions What A waiting been on a And in area? backlog to people have are of topic are and you unshipped seeing as far any is,

John Kiernan

Sure.

So, revenue we're I customer that percentage coming of about we're that so compliance in selling we've from And say those now, China were our is where seen would of us is What XX% the terms at rules. both the our a And the same it's business saw that, as overall as products of in total for time China stabilized, percentage exiting China business Dave end to We of period has export subject a LED of declining. broad in and we the or base. an business into revenue. XXXX. pretty

some that licenses, of some doesn't. And requires export

base customer license don't. Some requires others and export

have extent guidance in don't our and And are put that we to those expectations. backlog or us, in this licenses. don't for see this we our licenses the export export in current include business that So, required that range. We

David Duley

the continue -- Have not on topic. China to to make you been have of I'm to -- case, I'll I'm if shipments held you've kind that And if is of of what kind curious, because be seen eventually might export and elaborate flow if just of the could this you size because restrictions? that's able just what's back wondering, been a of through kind particular positive. that

John Kiernan

Right.

an to like able if an example, ship the talking And about company get any as increase were licenses So, like in to. SMIC, if if SMIC export obtained we see licenses customer we've example, export not a a specifically we in what that's SMIC, business to you're an to referring as company to a you're could China. like

Bill Miller

requirements subsequent It's have kind into those noting backlog. booked our from the that, we probably also government, not came that of worth to POs since

a of operation backlog much not there's So, either. risk of

David Duley

Thanks. Okay.

Bill Miller

Dave. Thanks,

Operator

additional the And conference to this the there to for in the any queue now questions time. further closing presenters I'd or at back are remarks. turn no like

Bill Miller

and operator joining call for you, Thank today. our thanks

I I We great our support, shareholders about customers', updating everyone their continued forward Veeco growth a want for at strategy. the with are conferences. to XXXX do execute look our upcoming excited Have as entire and to we team thank evening. along

Operator

everyone participation. thank conclude We'd again, And your for to like does that the call.

disconnect. now may You

Veeco Instruments (VECO) 5 May 212021 Q1 Earnings call transcript