PLAINVIEW, N.Y., April 16, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (NASDAQ: VECO) plans to release its first quarter 2025 financial results after the market closes on Wednesday, May 7, 2025. The company will host a conference call to review these results starting at 5:00 PM ET that day. To join the call, dial 1-877-407-8029 (toll free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of ...

Core Viewpoint - The Zacks Electronics - Manufacturing Machinery industry is currently facing challenging macroeconomic conditions and high inventory levels, but companies like Kulicke and Soffa Industries, Axcelis Technologies, and Veeco Instruments are benefiting from increased capital spending in high-performance computing, AI, and other advanced technologies [1][2]. Industry Overview - The industry comprises companies providing solutions for wafer processing, device packaging, and semiconductor manufacturing, including thin-film processing systems and advanced packaging lithography [3]. - There is a growing emphasis on contamination-free transportation and storage of materials, highlighting the importance of micro-contamination control products [4]. Trends Influencing the Industry - Miniaturization in semiconductor manufacturing is driving demand for advanced packaging and new device architectures, which enhances prospects for industry participants [5]. - The complexity of semiconductor manufacturing processes is increasing due to the demand for faster and more energy-efficient semiconductors, driven by cloud computing, IoT, and AI [7][8]. - Strong demand for NAND and DRAM, particularly in data centers and cloud segments, is a positive indicator for the industry [9]. Industry Performance and Valuation - The Zacks Electronics - Manufacturing Machinery industry ranks 234, placing it in the bottom 5% of over 250 Zacks industries, indicating bearish near-term prospects [10][11]. - The industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500, declining 47.2% over the past year compared to the S&P 500's growth of 6.7% [14]. - The current trailing 12-month EV/EBITDA ratio for the industry is 9.59X, significantly lower than the S&P 500's 15.82X and the sector's 14.68X [15]. Company Highlights - **Kulicke and Soffa Industries (KLIC)**: This company designs and manufactures capital equipment for semiconductor assembly. Its new Fluxless Thermo-Compression system is expected to enhance throughput and capture advanced logic customers. The consensus estimate for fiscal 2025 earnings is $1.49 per share, with shares down 35.4% year to date [16][17]. - **Axcelis Technologies (ACLS)**: Specializes in ion implantation and processing equipment, benefiting from strong demand in the silicon carbide market, particularly for EV applications. The consensus estimate for 2025 earnings is $2.55 per share, with shares down 32% year to date [18][19]. - **Veeco Instruments (VECO)**: Expected to benefit from improving demand for its laser annealing and wet processing systems. The consensus estimate for 2025 earnings is $1.35 per share, with shares down 28.2% year to date [19].

PLAINVIEW, N.Y., April 15, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (NASDAQ: VECO) is proud to announce that it has earned the exclusive Intel EPIC Supplier Award for 2025. This award recognizes the top performers in the Intel supply chain for their world-class commitment to continuous improvement and performance excellence over the past year. “Congratulations to Veeco on receiving the Intel EPIC Supplier Award, Intel’s highest supplier recognition,” said Frank Sanders, corporate vice president and g ...

PLAINVIEW, N.Y., April 15, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (NASDAQ:VECO) is proud to announce that it has earned the exclusive Intel EPIC Supplier Award for 2025. This award recognizes the top performers in the Intel supply chain for their world-class commitment to continuous improvement and performance excellence over the past year. "Congratulations to Veeco on receiving the Intel EPIC Supplier Award, Intel's highest supplier recognition," said Frank Sanders, corporate vice president and ge ...

Revenue and Sales Performance - Semiconductor revenue increased by 13% in 2024, accounting for 65% of total revenue, driven by the Laser Annealing business [191]. - Total net sales for 2024 reached $717.3 million, an 8% increase from $666.4 million in 2023 [202]. - The Compound Semiconductor market saw a decline in sales by 11%, totaling $77.6 million in 2024 compared to $87.3 million in 2023 [203]. - Data Storage revenue increased by 12% to $98.9 million in 2024, up from $88.5 million in 2023 [203]. - Approximately 77% of the company's total net sales in 2024 were generated from customers located outside the United States [243]. - Net sales denominated in currencies other than the U.S. dollar accounted for approximately 5% of total net sales in 2024 [243]. - A 10% change in foreign exchange rates would have an immaterial impact on the consolidated results of operations due to most sales outside the U.S. being denominated in U.S. dollars [244]. Financial Performance - Gross profit for 2024 was $304.0 million, with a gross margin of 42%, down from 43% in 2023 [202]. - Operating income decreased by 4% to $67.0 million in 2024, compared to $69.9 million in 2023 [202]. - Net interest income for 2024 was $1.9 million, an increase from a net interest expense of $1.2 million in 2023, primarily due to a $2.3 million increase in interest income [213][214]. - The income tax benefit for 2024 was $4.9 million, compared to an expense of $2.0 million in 2023, driven by various tax benefits including $12.2 million related to asset impairments [217]. - Net cash provided by operating activities was $63.8 million in 2024, compared to $61.7 million in 2023, attributed to a net income of $73.7 million [220][221]. Expenses and Investments - Research and development expenses rose by 10% to $124.5 million in 2024, maintaining a flat percentage of revenue [208]. - Cash used in investing activities was $64.5 million in 2024, primarily due to capital expenditures and net investment activity [222]. - The company has $26.5 million outstanding principal balance of 3.50% convertible senior notes maturing in January 2025 [225]. - Future purchase obligations for inventory and equipment totaled $177.4 million as of December 31, 2024 [227]. Impairments and Charges - A non-cash impairment charge of $28.1 million was recorded in 2024 related to SiC technology acquired from Epiluvac [211]. - Net other operating income in 2024 included a $21.2 million reduction in expected earn-out payments to Epiluvac's previous shareholders [212]. - Amortization expense decreased in 2024 compared to 2023 due to certain intangible assets becoming fully amortized [210]. Market Outlook and Trends - The Semiconductor industry is projected to grow to approximately $650 billion in 2024, with long-term growth driven by trends such as AI and automotive electrification [188]. - The company anticipates a decline in revenue from the China market heading into 2025 due to moderated customer engagement [196]. Asset Management and Financial Reporting - Cash and cash equivalents totaled $145.6 million in 2024, down from $158.8 million in 2023, while short-term investments increased to $198.7 million from $146.7 million [218]. - The fair value of the company's fixed-income securities was approximately $198.7 million as of December 31, 2024, with a potential decrease of $1.3 million for a 100 basis point increase in interest rates [238]. - The company centrally manages its investment portfolios, considering investment opportunities, risks, and overall financing strategies [238]. - Deferred income taxes reflect the net tax effect of temporary differences and are adjusted for changes in tax rates and laws [236]. - The company may enter into monthly forward derivative contracts to mitigate currency exchange risk, using these instruments solely for hedging purposes [242]. - The carrying values of long-lived assets are reviewed for impairment, with impairment recognized if the carrying amount exceeds fair value [235]. - The company evaluates the remaining useful lives of intangible assets and amortizes them accordingly if revisions are deemed appropriate [235].

Company Performance - Veeco Instruments reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, but down from $0.51 per share a year ago, representing an earnings surprise of 2.50% [1] - The company posted revenues of $182.13 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.61% and up from $173.92 million year-over-year [2] - Over the last four quarters, Veeco has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Veeco shares have declined approximately 11.6% since the beginning of the year, contrasting with the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $174 million, and for the current fiscal year, it is $1.71 on revenues of $729.5 million [7] Industry Context - The Electronics - Manufacturing Machinery industry, to which Veeco belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Veeco's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for 2024 totaled $717 million, an 8% increase from the prior year, driven by a 13% growth in the semiconductor business [10][23] - Non-GAAP operating income grew 6% to $116 million, and diluted non-GAAP EPS increased to $1.74 [9][28] - Q4 revenue was $182 million, a 5% year-over-year increase, with non-GAAP operating income of $27 million and non-GAAP EPS of $0.41 [11][34] Business Line Data and Key Metrics Changes - Semiconductor business revenue reached $467 million, up 13% year-over-year, comprising 65% of total revenue [23] - Compound semiconductor revenue declined to $78 million, representing 11% of revenue, while data storage revenue increased by 12% to $99 million, making up 14% of total revenue [24] - Scientific and other revenue was $74 million, a slight decline from the prior year, accounting for 10% of revenue [25] Market Data and Key Metrics Changes - China accounted for 36% of total revenue, up from the prior year, driven by semiconductor sales [25] - The Asia Pacific region (excluding China) made up 32% of revenue, while the United States contributed 23% and EMEA accounted for 9% [25] - Q4 revenue from China increased to 39%, reflecting growth in semiconductor sales [32] Company Strategy and Development Direction - The company is focused on expanding its served available market (SAM) by investing in core technologies to enable industry inflections, particularly in laser annealing and advanced packaging [17][20] - The strategy includes targeting high-growth areas such as AI and high-performance computing, with expectations for AI revenue to grow to over 20% of total revenue in 2025 [38][41] - The company anticipates significant growth in its laser annealing and ion beam deposition technologies, projecting SAM growth in these areas [18][19] Management's Comments on Operating Environment and Future Outlook - Management expects a decline in investment from mature node customers in China, while growth in AI and high-performance computing is driving leading-edge investments [38] - The company is optimistic about the potential for growth in the compound semiconductor market, particularly in solar and photonics, starting in late 2025 [39] - Management highlighted the importance of their enabling technologies for key inflections in the semiconductor industry, positioning the company for long-term growth [41] Other Important Information - The order backlog at the end of the year was approximately $410 million, down $80 million from the prior year, primarily due to the data storage business [26] - Gross margin for the full year was 43.3%, with expectations for a decrease to around 42% in 2025 due to product mix changes [27][126] - The company ended the quarter with cash and short-term investments of $345 million, a sequential increase of $24 million [35] Q&A Session Summary Question: What is the outlook for China revenue in Q1? - Management expects China revenue in the first half of 2025 to be about 25% to 30% of total revenue, down from 36% in 2024 [47] Question: Can you provide more details on advanced packaging growth? - Advanced packaging is expected to double in 2025, driven by wet processing and capacity expansions at leading foundries [50][51] Question: What is the status of the NSA evaluation program? - The NSA evaluation program is progressing well, with customers looking at multiple applications [65] Question: How is the company positioned in the high-bandwidth memory market? - The company is a production tool of record with one DRAM customer and is entering an evaluation agreement with a second customer [76][108] Question: What are the expectations for gross margins in 2025? - Gross margins are expected to be around 42% in 2025, down from 43% in 2024, primarily due to changes in product mix [126][130]

Veeco Instruments Q4 & FY 2024 Financial Results Conference Call February 12th, 2025 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 expressions are intend ...

Financial Performance - Revenue for Q4 2024 was $182.1 million, a 4.0% increase from $173.9 million in Q4 2023[2] - GAAP net income for Q4 2024 was $15.0 million, or $0.26 per diluted share, compared to $21.6 million, or $0.37 per diluted share in Q4 2023[2] - Non-GAAP net income for Q4 2024 was $24.2 million, or $0.41 per diluted share, down from $29.8 million, or $0.51 per diluted share in Q4 2023[2] - Full year 2024 revenue reached $717.3 million, up 7.6% from $666.4 million in 2023[2] - Full year GAAP net income was $73.7 million, or $1.23 per diluted share, compared to a net loss of $30.4 million, or $0.56 per diluted share in 2023[2] - Non-GAAP net income for the full year 2024 was $104.3 million, or $1.74 per diluted share, compared to $98.3 million, or $1.69 per diluted share in 2023[2] - The company reported a significant tax benefit associated with asset impairments totaling $12,239,000, which positively influenced the net income figures[31] - The diluted net income per common share for Q4 2024 was $0.41, up from $0.51 in Q4 2023, showcasing improved earnings despite the asset impairment[20] - The company recorded a total of $21,637,000 in net income for Q4 2023, which increased to $73,714,000 in FY 2024, demonstrating strong year-over-year growth[25][33] Future Projections - The company expects Q1 2025 revenue to be in the range of $155 million to $175 million[7] - GAAP diluted earnings per share for Q1 2025 are expected to be between $0.11 and $0.22[7] - Non-GAAP diluted earnings per share for Q1 2025 are projected to be between $0.26 and $0.36[7] - Net sales for the three months ending March 31, 2025, are projected to be between $155 million and $175 million[44] - Gross profit is expected to range from $63 million to $72 million, with a gross margin of approximately 41%[44] - Operating income is forecasted to be between $18 million and $25 million, with operating expenses estimated at $47 million to $49 million[44] - Net income is anticipated to be between $16 million and $22 million, resulting in income per diluted common share of $0.26 to $0.36[46] - Non-GAAP operating income is projected to be between $18 million and $25 million, after adjustments for share-based compensation and amortization[47] - The company expects to maintain a basic weighted average of 58 million shares outstanding, with diluted shares increasing to approximately 60 million[46] Operational Efficiency - The company's gross profit for FY 2024 was $304,005,000, with a gross margin of 42.4%, which improved to 43.3% after Non-GAAP adjustments[29] - Non-GAAP operating income for FY 2024 was reported at $116,072,000, compared to $109,574,000 for FY 2023, indicating a positive trend in operational efficiency[42] - The company is focused on growth opportunities in Laser Annealing, Ion Beam Deposition, and Advanced Packaging technologies[2] - Overall, the company is focused on maintaining strong financial performance while managing operating expenses effectively[44] Asset Management - The company experienced an asset impairment of $28,131,000 in Q4 2024, impacting overall financial results[27] - Non-cash interest expense for FY 2024 amounted to $1,257,000, contributing to the overall financial adjustments made in the reporting period[31] - Share-based compensation is estimated at $10 million for the period, contributing to the non-GAAP adjustments[47] - The effective conversion price for the 2027 Convertible Senior Notes is noted as $18.46 for non-GAAP calculations[46] - The company anticipates an income tax expense of $1 million in the upcoming quarter[47]

Core Insights - Veeco Instruments Inc. reported strong financial results for Q4 and fiscal year 2024, with revenue growth and improved profitability compared to the previous year [1][2][4] - The Semiconductor business has outperformed the wafer fabrication equipment (WFE) growth for four consecutive years, indicating a robust market position [1][2] - The company is well-positioned for future growth with its solutions in Laser Annealing, Ion Beam Deposition, and Advanced Packaging [1][2] Financial Performance - Q4 2024 revenue was $182.1 million, up from $173.9 million in Q4 2023, representing a 7.6% increase [2][4] - GAAP net income for Q4 2024 was $15.0 million, or $0.26 per diluted share, compared to $21.6 million, or $0.37 per diluted share in Q4 2023 [2][4] - Non-GAAP net income for Q4 2024 was $24.2 million, or $0.41 per diluted share, down from $29.8 million, or $0.51 per diluted share in Q4 2023 [2][4] - For the full year 2024, revenue reached $717.3 million, an increase from $666.4 million in 2023 [2][4] - GAAP net income for the full year 2024 was $73.7 million, or $1.23 per diluted share, compared to a net loss of $30.4 million, or $0.56 loss per diluted share in 2023 [2][4] - Non-GAAP net income for the full year 2024 was $104.3 million, or $1.74 per diluted share, compared to $98.3 million, or $1.69 per diluted share in 2023 [2][4] Guidance and Outlook - For Q1 2025, Veeco expects revenue in the range of $155 million to $175 million [5] - GAAP diluted earnings per share are anticipated to be between $0.11 and $0.22, while Non-GAAP diluted earnings per share are expected to range from $0.26 to $0.36 [5] Company Overview - Veeco Instruments Inc. is a manufacturer of semiconductor process equipment, focusing on technologies such as laser annealing, ion beam deposition, and chemical vapor deposition [7]