VECO - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the Veeco Q1 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance.

As a reminder, this conference is being recorded. pleasure Anthony my Investor Head now Relations. is to Pappone, introduce of It you. Thank

You may begin.

Anthony Bencivenga

good afternoon, and you, Thank everyone.

encourage the to that, will non-GAAP press We CEO, our find turn and future our Today's on on forward-looking in any call expectations our including management's detail not or otherwise call Will expectations make made to call does and Veeco between Form forward-looking Executive end which Kiernan, report about website. statements Miller, me accompany revenues, you statements. are for Veeco's Financial you Joining non-GAAP With results. address the refer statements, the available extent Chief to future earnings, Officer; call can in these based actual reconciliation results to release the Unless subject uncertainties market over today's any conditions reflect are webcast To from to to future and noted, annual at or on and slide our differ filings. risks These the GAAP release in this that discusses current are made. management and those earnings earnings cause otherwise other Veeco the SEC will and date today is statements of are financial Chief risks materially future, XX-K events obligation on presentation. the circumstances presentation and of such our statements Officer. update results, the I discussed after the to William undertake to the John could this that Miller.

William Miller

systems. for high results our demand non-GAAP record EPS driven with started second line bottom for a end $XXX strong operating quarter, annealing Revenue the of income, you, year totaled and the towards Veeco top Semiconductor our by $X.XX. totaled million laser non-GAAP million, Thank revenue consecutive of $XX and guidance. Anthony. primarily the

As multitool technologies for in forward opportunities customer including to market the our I'd overview our business placed a around annealing announced today, driving X-nanometer future supporting to system process. served plans. looking earlier ramp their all and our order, a an annealing provide nanosecond laser like now of strategy. today, gate press available their release a investment We're expansion

Our our portfolio of footprint highlighted products applications. to is and continue technologies, expand by new traction, new to our we gaining

performance. device shrinking New architectures require annealing the and of increase solutions precision geometries advanced to

films technology deposition, to customers' recent leaders advanced LSA are systems systems by the gain working closely share our evidenced as Our continue of nodes and mask in In to most choice road maps. deposit industry to beam several with blank wins. defect-free production, their we're EUV enable for

growing to NA Looking serve for next-generation EUV ahead, we're demand well as lithography. high well as lithography positioned

to advanced used strong high packaging solutions for demand processing wet and we are memory. bandwidth for Our see continue applications,

During to growth memory years. the of foundry from semiconductor follow-on for our and quarter, business we and enabled memory strategy has logic leading shipped several orders Veeco's in advanced outperform FlexClean systems investing consecutive and X WFE customers. received

served available our from to nanosecond to over million laser of laser both of expect $XXX applications. with inclusive available investing and Moving new annealing market our served Beginning expand products. grow forward, we annealing $X to broad new in our we're market a to billion, technologies range spike annealing,

strategy market, been in and we're metals progress power long-term beam In a and we making resistance priority. in and has photonics. to to SAM in business our evaluation a our nanosecond equally customers. the follow-on memory receive semi LSA million expand to will for SAM applications range memory of $XXX semiconductor We're to towards are memory remain winning electronics our continue opportunities compound excited for deposition, Investment our additional see growth opportunities applications. for high-bandwidth advanced program front-end to And We grow on low focused and top are where critical. broad essential within logic annealing to

We and our have targeting later is executing. and deposition customers. X nanoseconds customers' progressing LSA leading annealing logic memory a memory an with X on and team system well, are highly Each focused year outstanding semiconductor ion We're in second to evaluation beam systems a also this nodes into evaluation in most customer now leading market. in new driving market. the need are evaluation at addition to for shipments Device opportunities annealing semiconductor of capabilities. to the scaling take largest the like X dive I'd our challenges compound deeper our advanced

opportunity most Due to substantial versus system offers only annealing can to today's the as industry time shallow and annealing This that and thermal solutions. a devices. dwell unique inflections a architecture, anneal laser tens results delivery laser to of and advanced nanometers Our in XD power enabling lower such of wafer, hundreds impact can new backside annealing into a logic nanosecond shorter achieve our to broaden budget adoption applications. technology and memory our

NSA improve opening changing by the device, material steps. and door several properties the Our of also system structure modification can to performance the

ahead, initial look to pleased XXXX. system's high-volume our orders As excited manufacturing we new also from potential see poll strong to for We're evaluate we in capabilities. from memory see logic customers customers

leader advanced growth front-end aerial deposition high-value XXX-millimeter key disk enabler drive Veeco density hard Turning level industry by the direct technology decades. beam applications. solving which in ion-beam semiconductor semiconductor is customers' a for ion wafer technology, our industry applicability challenges. over This manufacturing has now in to deposition is core driving in for the

are address continue resistance metals geometries deposition challenges. to shrink, low device to to performance device essential are scaling maintaining technologies traditional As and struggling

film compared bit DRAM, Refugium while are beam tungsten technology. to customer enables data, ion electrical beam critical. resistance the it our scaling through applications resistance traditional deposited of low tungsten to ability from deposition ion device. where thin its technologies properties, Based deposition films ideal superior and achieve making Our X Tier In are advanced incumbent for differentiates performance demonstrating this line lower on maintaining itself technology films

nodes. at metallization can For logic, integration ruthenium enable new schemes future

chip high-volume AI memory XXXX. most now profound advanced from Growth see the manufacturing Veeco process. to having intelligence we impact chips. I'd AI a in is manufacture higher-performance and product customers orders upon maps, to technologies the role plays ahead, like road leading-edge requiring of AI the touch on manufacturing artificial potential in Looking for

several to As we expect growing benefit we Veeco demand from chips. ahead, technologies look for AI

annealing turn over Our future these for deposition GPUs see our for to LSA Equally systems in for transistor solutions for as record formation HBM of a important, for our John IVD EUV blanks, each for mask DRAM. it applications. that, I'll update. beam and systems tool we production financial With nanosecond of and opportunities and

John Kiernan

Will. Thanks,

quarter. annealing continue be XX% Revenue came compound from our demand XX% in for million, strong contributed $XXX the $XX of million, storage In up record quarter prior first laser guidance at systems. market to scientific market, The semiconductor XX% range, to by flat semiconductor X% Sales lastly, total midpoint from the XX% revenue our increased data of revenue. made above up and totaling the for X%. and Semiconductor sequentially revenue other Turning customers Revenues driven the year-over-year to increased a the the prior to and year $XXX to revenue revenue. comprising sequentially. our million, XX% our from of and

XX% totaled The quarterly China, China South prior in in XX%, Pacific to node mature from quarter of during revenue region, from totaled totaled the XX% the increase line $XX Gross in turning an semiconductor to expenses percentage totaled semiconductor rate margin by excluding prior revenue QX, effective Revenue non-GAAP quarter to Switching totaled customers. revenue. United driven in Now XX%. by approximately with the from Tax XX%, of EMEA led for end quarter, from in quarter, Operating resulting high customers. tax an the million region. Asia was gears of by Revenue at by the XX%, quarterly line our our States guidance. followed million, expense results. X% with above the $X of the approximately guidance.

inventory $X accounts $XXX deposits in and the and a million. came million, on $XX days Customer $XX was on within ended the at $XX at We CapEx by with Cash million. approximately balance in And $XX investments operations quarter sheet to flow million $X liabilities and cash million, balance cash million Lastly, $X short-term million decline from capital million and Inventory million. EPS days working of XX of net accounts flow sequential of our $X.XX million included XXX highlights. increased to contract to by $X From to increased by was million. increased a the diluted and $XXX to to perspective, moving declined came million. shares. sheet million receivable $XX declined payable while $XXX million, income by $X

QX. $XX The and to $XXX guidance. on between visibility, million. turning $XXX and Now $XX non-GAAP XX between on now some between be million million XX%. $XX shares. -- color our million between $X.XX million, is $XX and $XXX between net expect revenue million million, EPS expected And XX% OpEx and to QX reiterating and beyond million with income our $XXX we between for Based outlook we gross XXXX margin are revenue diluted million QX current and and $X.XX additional

operator diluted full call now to year Thank share. turn With up to I'll to continue We $X.XX the that, EPS the between non-GAAP also target for over and you. per the $X.XX open Q&A.

Operator

this at first line Instructions] Shi with we'll the [Operator comes questions be gentlemen, of Charles and time, Company. Ladies & question from conducting our Needham

Yu Shi

the I for the dig execution want steady question, little Maybe a into results, good laser new the product. on Congrats another quarter. bit to first

guys morning. You put the release this press out

on You a have laser the replaces incremental already maybe may of is the opportunity of think canalization addressed and have maybe bit the top notes? of it new going another folks mind the little of on this good for a on one nanosecond, it I amount but best what Or the there? is the with you before, top

William Miller

give background. me let Charles, Yes, little a

been and system. logic around nanosecond pulled on an for qualified advanced future is nodes in third all the anneal with So have or gate most customers leading And have you X our for for their laser architectures. the evaluations many leading we we've years at Separately, our from logic working, of at customers NSA evaluation players all spike as X logic. know,

backside around, for also So NSA XD gate is but being and evaluated structures. distribution power all

mentioned that But you project. their NSA all to release, as cannibalizing get received during both around So get NSA we a and the LSA press quarter, of in X-nanometer potentially crux for regarding to customer LSA. question new the your for orders

followed stuff annealing transistor for multiple contact LSA the historically, anneals consisted an a of by So step.

are all are steps multiple evaluating follow-on they're step. of the considering moving replacing gate for a NSA anneal anneal and towards nanosecond LSA around, customers the one customers with As

being Although in decisions for applications XD say, around. have that And for opens like all customers, does and does not not opportunities gate NSA been company finalized around structures. that the appear all NSA distributions it backside in up gate with said, cannibalize our let's unique power

So not I it say would LSA. largely, does cannibalize

Yu Shi

get we this hopefully, firm But question. this OSA to you confirmation incremental asking opportunities. keep on a we'll Maybe Understood. it. Got being

LSA certain Secondly, you couple I'm ask were Still, the about the HPM. -- opportunity. I of to LSA the back on HBM? going is the guys want qualified? not was Is because quarters, so assertive HCM into more where standard for specifically, prepared bandwidth asking Based on a remarks, this going about versus your the you high memory. slightly did that say it DRAM

this? this want I Just overthinking the confirm, is Or to indeed am case.

William Miller

qualified been originally, logic the were And devices. the qualified stack level chip in customer peripheral the we've memory. with So now on for we one Charles, DRAM customer, I one of would first with the our DRAM high say, bandwidth logic the in

the peripheral having clarified logic steps So the step you, on memory we the stack. HBM device annealing went Is of that Charles? for adding the having to on all from --

Yu Shi

there? sounds also, yes, DDRX of peripheral DRAM I think to or right? manufacturing a want the only of second to the that's that trying or circuit But Is are, how definitely. really definitely, isn't it's one. or like application HBM is of advanced standard stuff? to much I'm the the it more trying the really DRAM limit clarify each standard applies just more DRAM, the that is what -- the it second the think I opportunity limited even insiders It to there? first DRAM only all But Is stack. to HPM, one, on base Yes, the part

William Miller

don't area clear crystal the I have that's So understanding.

I'm the not I yet. HBM standard to the to think exact affirmatively order, of DRAM answer the stack and similar, the but details peripheral are of first that in sure logic in very that

Yu Shi

I'll to has been very the Thanks. hop Thanks, helpful. queue. back Will. This

Operator

Rick Our comes of next with the line Oppenheimer. from question Schafer

Wei Mok

NSA Mok results Wei order is Congrats for on Rick. the the the on LSA This line and announcements.

my your considering XXXX. fair to you outlook, is, guys XXXX these incremental So say is to it question didn't orders that ship update start in

looking outlook do about that So I was how guys curious, into think you XXXX?

William Miller

Yes.

the of for year really this the impact on year -- end is our gave significant beginning doesn't view have one our system business, year, we next when if we guidance XXXX. So a timing this ship at of we for year, full

Wei Mok

My next is on Great. Okay. backlog. question

have million led I around think backlog in guys $XXX semi. you year entering the by

So look at mix LSA your the this year? is and mix the does of what between leading considering the this today? And edge of backlog, trailing how end

William Miller

Yes. I we and more there. strength where what the of sort laser we of you come would leading was trailing XXXX to in from prior XXXX, go if particularly saw our China, saw And the would XXXX, in into so the change beginning was from of node business edge. say we business a 'XX X/X the saw that typically that back annealing for and

with in that of balanced second engagements as throughout we pickup half of I with year expectation the the exit year we the and in see see could to leading probably this more and progress the XXXX would we sort a a think edge is, backlog. customers start

Wei Mok

maybe it. how NSA you is expect Considering may. LSA? on Got of next-generation from uplift to like if this pricing much one compared question, a And to It's I a LSA, technology last advanced do NSA. more compared and

William Miller

a the for for XX% expect the capabilities our and additional NSA higher estimate our ASPs do would value be there. We expectation. Yes. higher price XX% would I to

Operator

the Gus Northland Richard next question from of comes Capital. line Our with

Auguste Richard

on bit power market? of business, On semi your of tools and you evaluation us compound of can sort a give little in placements that update GaN

William Miller

is business as introducing to looking interested in materials X-inch manufacturers X-inch, power to is namely seeing what X.X Tier products. over electronics, What hard focusing silicon a some we to their you on customers Yes, and an from been silicon power gangs very silicon Gus. the seeing we're XX-inch, But in last years in carbide. to are have particularly of obviously, electronics our working or been We've leapfrog some so. X what wide -- we've transition know, the standard are but

to And system this so quarters. planning the are in evaluation we coming to a XXX-millimeter ship actually customer

XXX-millimeter. So we're to excited about that transition form factor

Auguste Richard

And there service are activity still then it business looking to your where start lagging more it's kind it. pick the kind to up in looks Or of side business starting you Got that like and your dry to bottoming flattish? starting just of hard see and can has been market? turn, is spares

William Miller

that's run very at out been in it, utilization. data reading run numbers bit Gus, at in weekly or a kind a of the And an clearly and say. maybe low and our our characterize nowhere when business I number customers would of kind kind clearly would been whatnot. as spares seen our a terms the going service monthly, have running here. it's at maybe we've levels but of of clearly, weeks, say I'd And month near of running of direction, rate of But X been uptick, maybe historical rate. very right low I look we storage in

Auguste Richard

That's was if ago, became me a And on And quarters you for mass utilize had that, any EUV additional going then was it. for helpful. it there? is customer a anything deposition, couple pellicles. Indian in color there one a that Any of if interest system? Got an was I the wondering to ever last

William Miller

and the the follow-on at we're coming -- would in a have I be us here we tools they're success, going order wouldn't surprised We're months, assuming pretty the have so. support it say, in customer. hard accelerate to year ship fully install actually, these prepared of that I And to shipment it another we to Yes. or pressuring and

Operator

with Our Steelhead Securities. Dave next of Duley the comes from question line

David Duley

the question earlier one die. die talked high-bandwidth to you're the architecture next looking think, itself. of both stack was I on, your slide you memory else's at And slides someone high-bandwidth logic in deck GPU about memory to the of the and with the I working logic-based that

of So on. working that kind true I was wondering is you're

a annealing base memory performance an And understand then the what logic sort also improvement kind gets and us So high bandwidth individual steps, tool help tool. of using both the if versus that's customer the flash die, the LSA then from X of case?

William Miller

to was really but of but picture, right of on I the the would say, have at I left-hand me say I just the that side the not of underneath moment, that don't about it front comment kind logic it GPU in cartoon, be would clear stack. the the was

of So we there's for cartoon, qualified those HBM in X were that. you the logic on And dies. now each blue die, see peripheral actually DRAM X

is X this imagine HBM a question? DRAM can your answer you and by time die. amount cartoon of opportunity would the the area the Does be of for So just that multiplied

David Duley

and follow leading where these from a foundry one Yes, annealing X or X then as of partially. similar up, couple gone the step space, a you've to And to logic customers. at

think think I opportunity and meaning in than performance process up there's this for you one in Do Logic pick steps you to Foundry elite seen that the in as well. multiple STACK? in repeat there's more end you've high

William Miller

sure attach very performance, the application Today, the does the is is just your can customers' hard address on customer but to that I BM group And are are potential qualified. our LSA, would to but... that, if tell actually love with stuff, but question would high say It working there back going you, tell we are did, previous speed have you it's is HBM. we My one device, performance also I and understanding I R&D And there that. possible. -- directly of to for I'm very not to attributable it's I opportunities, to

David Duley

recognize to these to to -- other other revenue that In far then where have things customers guys? words, And grow with to level interest you other started started increase progressing with HBM customer, customers? current are the business as you're other from I'm going the -- to start assuming your as expect Okay. would the

William Miller

doing pushing Dave, other a customer Yes, at we've with X customers second by really time, for the to system -- that we to are early target been demos to some the 'XX or evaluation an latest. and year-end

So the customer, like plan. expand we did part more that's that That's eval second try an in then customers. of kind just to place on is applications have and more and of internal memory to system. And definitely application window the we one logic goal win

Operator

the Our the with Benchmark comes line from of Company. question Mark next Miller

Mark Miller

orders. your on Congratulations

feeling year data Just wondering data year? When what Are feel is there? away we that you a applications? start your still for this outlook from storage will AI-type storage do growth

John Kiernan

Yes.

Maybe myself. the for thanks with of Mark. year. start combination data this is question, So for a our the Bill outlook and storage I'll for

So overall and spare business, and business to the confirmed our our for last customer, parts be into our we our good compared XX%. And from data systems year including in backlog flat to cetera. up service, ship dates et the visibility have to system we storage expect

of upside So pretty rate growth number definitely the there. as and quicker to would in the on And is kind customers within drive business long-term healthy rise than drive customers support growth exabyte -- to of CAGR And the a answer expect which the forecasting. largest And tight mid equipment mean with to on that I growth, bit of on our really think term, here our to bit are today, pretty they if question rates industry. of the for projecting range speaking it. I a be range X kind your healthy the XX% business. really one of would our industry the the AI of and critical data I long of we're kind a healthy AI the earlier that's which is generative industry second storage the on call say service do to impact if would discussed up picks on questions a been the we've

Operator

the closing the questions further no I'd are queue. remarks. like hand for back to call There to in management

William Miller

growth Thank Have the execute support I along Thank want their evening. strategy. our operator. to we you. great continued with thank for a and you, as team our customers shareholders Veeco

Operator

your Ladies and you for conclude teleconference. participation. gentlemen, this today's Thank does

may You time. your lines disconnect at this

Veeco Instruments (VECO) 7 May 242024 Q1 Earnings call transcript