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Financial Data and Key Metrics Changes - The company achieved revenue of $156 million in Q1 2022, driven by record semiconductor shipments, representing a 50% increase from Q1 2021 [10][33] - Non-GAAP operating income was $25 million, with non-GAAP EPS of $0.38 [10][37] - Cash flow from operations was $25 million, with cash and short-term investments totaling $232 million, an increase of $7 million from the previous quarter [10][39] Business Line Data and Key Metrics Changes - Semiconductor revenue accounted for 49% of total revenue, increasing 50% year-over-year, driven by laser annealing, advanced packaging lithography, and EUV mask blank systems [33][34] - The compound semiconductor market contributed 24% of revenue, also up 50% from Q1 2021, driven by RF photonics and power electronics applications [34] - Data storage market represented 14% of total revenue, while the scientific and other market made up 13% [34] Market Data and Key Metrics Changes - The Asia Pacific region (excluding China) accounted for 37% of revenue, the United States for 30%, China for 19%, and EMEA for 14% [35] - Wafer fab equipment spending is forecasted to remain strong at about $100 billion annually in both 2022 and 2023 [15] Company Strategy and Development Direction - The company aims for $800 million in annual revenue, focusing on growth markets such as high-performance computing, mobility, automotive transformation, and cloud technologies [14][29] - The company is committed to improving its environmental, social, and governance (ESG) goals, enhancing transparency, diversity, and environmental responsibility [11][29] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand despite supply chain challenges, maintaining full-year guidance for growth in 2022 [12][31] - The company expects Q2 revenue between $150 million and $170 million, with gross margins projected between 40% and 41% due to supply chain constraints [42][43] Other Important Information - The company is ramping up its new San Jose manufacturing facility, expected to be completed by Q3 2022 [30] - Long-term debt was recorded at $274 million, reflecting the adoption of ASU 2020-06, which changed the accounting for convertible notes [41] Q&A Session Summary Question: Semiconductor business and DRAM opportunities - Management confirmed progress in laser annealing for DRAM, with multiple applications being evaluated [50] Question: Supply chain issues and gross margin impact - Management indicated that lead times remain stretched, with an estimated 200 basis points impact on gross margins due to increased logistics and material costs [53] Question: Margin cadence for the rest of the year - Management expects Q2 to be the lowest gross margin quarter, with a target range of 42% to 44% for the year [57] Question: Supply constraints and component shortages - Management noted ongoing challenges with lead times and component shortages, particularly for older technology components [80][114] Question: Data storage market recovery - Management observed an increase in order discussions and expects order placements to improve over the next one to two quarters [112] Question: EUV mask blank applications - Management highlighted opportunities for Ion Beam deposition technology in front-end semiconductor applications [108] Question: Current lead times for tools - Management reported lead times of approximately nine months for tools [119]

Financial Performance - Net sales for the three months ended March 31, 2022, were $156.426 million, a 17% increase from $133.714 million in the same period of 2021[138] - Gross profit for the three months ended March 31, 2022, was $66.013 million, representing a 20% increase from $54.914 million in the prior year[138] - Operating income increased by 75% year-over-year to $16.517 million, compared to $9.415 million in the same period of 2021[138] - Net interest expense decreased to $2.8 million for the three months ended March 31, 2022, down from $6.6 million in the comparable prior year period, primarily due to reduced non-cash charges[146] - Cash and cash equivalents increased to $127.6 million as of March 31, 2022, compared to $119.7 million at December 31, 2021[151] - Net cash provided by operating activities was $24.8 million for the three months ended March 31, 2022, significantly up from $10.5 million in the prior year[153] - Capital expenditures increased to $10.9 million for the three months ended March 31, 2022, compared to $1.9 million in the prior year, primarily due to the build-out of a new facility[154] Market Performance - Semiconductor market sales grew by 50% year-over-year to $77.620 million, driven by laser annealing systems and lithography systems[139] - Compound Semiconductor market sales also increased by 50% year-over-year to $37.109 million, supported by shipments for RF devices and micro-LED applications[131] - Data Storage market sales declined by 47% year-over-year to $21.595 million, attributed to a slowdown in capacity additions by customers[132] - Future growth is anticipated in the Data Storage market, with optimism for 2023 despite a forecasted revenue decline in 2022[132] Operational Insights - The company expects continued revenue growth in 2022 despite ongoing supply chain challenges, supported by a strong backlog in semiconductor markets[135] - The company is proactively managing supply chain disruptions and inflationary cost pressures by increasing purchase commitments and re-sourcing components[122] - Approximately 70% of net sales for the three months ended March 31, 2022, were from customers located outside the United States[121] - Approximately 70% of net sales for the three months ended March 31, 2022, were to customers located outside the United States, up from 66% in the prior year[163] - A 10% change in foreign exchange rates would have an immaterial impact on consolidated results, as most sales outside the U.S. are denominated in U.S. dollars[165] Expense Management - Research and development expenses increased for the three months ended March 31, 2022, primarily due to personnel-related expenses, although expenses as a percentage of revenue decreased compared to the prior period[143] - Selling, general, and administrative expenses rose due to higher variable expenses associated with increased revenue, but remained flat as a percentage of revenue compared to the prior year[144]

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Commission file number 0-16244 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 VEECO INSTRUMENTS INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 11-2989601 (State or Other Jurisdiction of Incorporation o ...

Financial Data and Key Metrics Changes - Revenue for the full year 2021 was $583 million, representing a 28% increase over 2020, driven by semiconductor and data storage performance [14][20] - Non-GAAP operating income for 2021 was $87 million, a 65% increase from $52 million in 2020, with diluted non-GAAP EPS increasing 66% to $1.43 [32][14] - Cash flow from operations was $68 million, a 58% increase over 2020 [15] - Q4 2021 revenue was $153 million, exceeding guidance, with diluted non-GAAP EPS at $0.43 [16][17] Business Line Data and Key Metrics Changes - Semiconductor revenue for 2021 was $247 million, a 49% increase year-over-year, accounting for 43% of total revenue [20] - Data Storage revenue was $169 million, a 37% increase over the prior year, making up 29% of total revenue [23] - Compound semiconductor revenue was $107 million, flat from 2020, but underlying growth was noted after normalizing for one-time sales [21] - In Q4, semiconductor market contributed 43% of revenue, compound semiconductor market contributed 23%, and data storage market contributed 24% [25] Market Data and Key Metrics Changes - The United States accounted for 38% of total revenue in 2021, driven by data storage customers, while Asia Pacific (excluding China) made up 35% [24] - In Q4, the United States represented 37% of total revenue, Asia Pacific (excluding China) contributed 26%, and China accounted for 25% [27] Company Strategy and Development Direction - The company views 2021 as an inflection point, completing its transformation and focusing on growth strategies, including R&D projects in laser annealing and MOCVD for power electronics [10][12] - The company aims to expand its served available market through the adoption of laser annealing technology and is engaged with leading customers for advanced applications [49][51] - The company is committed to improving governance and corporate responsibility while enhancing service capabilities to support customer needs [13][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting significant growth in semiconductor and compound semiconductor markets, with a revenue outlook between $640 million and $680 million [45][41] - The company anticipates challenges from supply chain issues and inflation but expects to maintain gross margins around 42% to 44% [29][34] - Management noted that the data storage market is expected to decline in 2022 but anticipates recovery in 2023 as demand from cloud and data center applications increases [58][96] Other Important Information - The company ended 2021 with a backlog of $440 million, a 20% increase from 2020, with semiconductor backlog more than doubling [33] - The company has entered into a $150 million revolving credit facility to enhance financial flexibility [41] Q&A Session Summary Question: Can you expand on the repeat multi-systems orders? - Management indicated that laser annealing is expected to be the largest business in 2022, with nearly 50% growth anticipated [66] Question: What specific applications are driving MOCVD adoption? - Management noted traction in power electronics and multiple applications for the Lumina platform, including micro LED and edge-emitting lasers [70] Question: What is the outlook for gross margins? - Management expects gross margins to improve to 43% in 2022, despite ongoing supply chain challenges [76] Question: Are you seeing traction in advanced packaging processes? - Management confirmed opportunities in heterogeneous integration while also maintaining business in traditional packaging processes [80] Question: What is the expected revenue progression throughout 2022? - Management anticipates higher revenue in the second half of 2022 compared to the first half, with a year-on-year growth of 13% to 14% [91]

Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $150 million, representing a 34% year-on-year increase and a 3% sequential increase [23] - Non-GAAP gross margin was 42.6%, up 1 percentage point from the previous quarter [26] - Non-GAAP operating income was $24.3 million, a 14% sequential increase and a 72% increase year-on-year [26] - Non-GAAP EPS was $0.40 on a diluted share count of 51.7 million shares [26] - Year-to-date revenue growth was 37%, driven by a 67% increase in semiconductor sales [9] Business Line Data and Key Metrics Changes - Semiconductor revenue reached a record $76 million, accounting for 51% of total revenue, with a 42% sequential increase and a 127% year-on-year increase [23] - Data storage revenue was $39 million, making up 26% of revenue, reflecting a 6% year-on-year increase but a 25% sequential decline [24] - Compound semiconductor revenue was relatively flat at $23 million, representing 15% of revenue [24] - Scientific and other revenue was $11 million, accounting for 8% of total revenue [24] Market Data and Key Metrics Changes - The Asia-Pacific region (excluding China) accounted for 40% of total sales, driven by ion beam and laser annealing systems [25] - The United States contributed 33% of revenue, primarily from ion beam systems shipped to data storage customers [25] - China represented 18% of revenue, mainly from semiconductor systems [25] - EMEA accounted for 9% of total revenue [25] Company Strategy and Development Direction - The company is focused on transforming to leverage global megatrends, with a commitment to sustainability and improving operational transparency [10] - The semiconductor market is expected to grow at a CAGR of approximately 23%, significantly outpacing long-term wafer fab equipment growth [11] - Investments in evaluation systems and service infrastructure are aimed at supporting growth in 2022 and beyond [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from global supply chain disruptions but emphasized proactive measures to mitigate impacts [19] - The company expects to achieve over 25% revenue growth in 2021 and is on track to meet long-term financial targets [20] - For Q4, revenue is expected to be between $140 million and $160 million, with full-year revenue projected at approximately $580 million, a 28% year-on-year increase [30][32] Other Important Information - The company plans to adopt a new accounting standard for convertible debt in Q1 2022, which will affect non-GAAP EPS calculations [33] - The company is experiencing increased logistics costs, which had a 1 percentage point impact on gross margin in Q3 [85] Q&A Session Summary Question: Update on tools shipped and new wins - The company has shipped nine out of ten planned tools for the year, with positive feedback from customers on the tools deployed [38][41] Question: Semiconductor business performance - Record revenues were driven by all three segments: laser annealing, EUV tools, and advanced packaging [43][45] Question: Advanced packaging market applications - The market is broadening beyond mobile applications to include heterogeneous integration opportunities [50] Question: Supply chain management - The company has successfully mitigated supply chain challenges through close supplier collaboration and proactive inventory management [52][53] Question: Advanced packaging market size - The advanced packaging market is expected to grow over 20% in 2022, with the company anticipating an increase in market share [59] Question: Data storage market outlook - Revenue for data storage is expected to decline in 2022, but long-term prospects remain strong due to data proliferation [69]

MAKING A MATERIAL DIFFERENCE | --- | --- | --- | --- | |-------|-------------------|-------|-------| | | | | | | | | | | | | Q3 2021 | | | | | Financial Results | | | | | Conference Call | | | | Veeco | (Nasdaq: VECO) | | | | | November 2, 2021 | | | Safe Harbor This presentation contains "forward-looking statements", within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management's expectations, estimates, projections a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-16244 VEECO INSTRUMENTS INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 11-2989601 (State or Other Jurisdiction of Incorp ...

MAKING A MATERIAL DIFFERENCE Q2 2021 Financial Results Conference Call Veeco (Nasdaq: VECO) August 3, 2021 Safe Harbor This presentation contains "forward-looking statements", within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar ...