Financial Data and Key Metrics Changes - Veeco reported Q3 2023 revenue of $177 million, a 10% increase from Q2 2023, with non-GAAP EPS of $0.53, exceeding guidance [7][27] - Gross margin improved to approximately 44%, up from 43% in the previous quarter, driven by higher volume and a favorable product mix [29] - Net income for the quarter was $31 million, with a diluted share count of 59 million shares [30] Business Line Data and Key Metrics Changes - Semiconductor business revenue was $98 million, accounting for 56% of total revenue, while data storage revenue increased to $34 million, representing 19% of total revenue [27] - Revenue from the compound semiconductor market declined to 14% from the prior quarter [27] Market Data and Key Metrics Changes - Revenue from the United States increased to 33% of total revenue, up from 22% in the prior quarter, while revenue from Asia-Pacific declined to 29% from 36% [28] - Revenue from China decreased from 31% to 23% of total revenue, with expectations for an increase in Q4 [28] Company Strategy and Development Direction - The company is focused on expanding its laser annealing technology and has received significant orders for new applications, including automotive and EUV pellicle mask blank production [8][10] - Veeco is investing in GaN power and microLED markets, anticipating long-term growth opportunities [15] - The company aims to capitalize on the growing demand for data storage and AI chip manufacturing technologies [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the data storage industry remains challenging due to excess inventory, but long-term growth projections for exabyte growth are positive [52] - The company expects semiconductor business to outperform WFE and grow about 10% for the year [14] - Management expressed confidence in the potential for initial high-volume manufacturing orders for nanosecond annealing systems by late 2024 or 2025 [22] Other Important Information - The company ended the quarter with cash and short-term investments of $287 million, with accounts receivable declining to $122 million [31] - The projected annual effective tax rate was reduced from 14% to 11%, positively impacting net income [30] Q&A Session Summary Question: Context on NSA tool shipment and adoption - Management expressed excitement about the shipment of the first evaluation system to a Tier 1 logic customer, indicating it represents a significant milestone and a complementary technology to existing systems [44][45] Question: Timing for EUV pellicles and high-volume orders - Management clarified that pellicles are being introduced today, with expectations for production tools to be used for making pellicles over time [47] Question: Data storage segment outlook - Management indicated that the data storage industry is challenging but expects a long-term growth trajectory, with backlog extending into 2024 [51][53] Question: China market exposure and revenue expectations - Management noted strong current activity with customers in China, expecting a pickup in revenue in Q4 compared to Q3 [55][60] Question: High bandwidth memory opportunity - Management stated that the high bandwidth memory opportunity is significant, with potential incremental revenue from additional customers expected in mid-2025 [78][79]

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, 2023 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 ...

| --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------|------------------|-------|-------| | | | | | | | | | | | | | | | | Veeco Instruments | | | | | Q2 2023 Financial Results Conference Call - | August 7th, 2023 | | | | | | | | | | | | | | Q2 2023 Financial Results Conference Call Copyright © 2023 Veeco Instruments Inc. All Rights Reserved. 1 | | | | | --- ...

Veeco Instruments, Inc. (NASDAQ:VECO) Q2 2023 Earnings Conference Call August 7, 2023 5:00 PM ET Company Participants Anthony Pappone - Head of IR William Miller - CEO John Kiernan - CFO Conference Call Participants Tom O'Malley - Barclays Bank David Duley - Steelhead Securities Mark Miller - Benchmark Operator Greetings, and welcome to the Veeco Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Op ...

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 June 30, 2023 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 Incorporati ...

Financial Data and Key Metrics Changes - Revenue in Q1 2023 was $154 million, with non-GAAP operating income of $20 million and non-GAAP diluted EPS of $0.30, all exceeding the top end of guidance [9][27] - Gross margin was 41.5%, a slight decline from 42.3% in the previous quarter but above guidance [30] - Net income for the quarter was $17 million, with an effective tax rate of 15% [31] Business Line Data and Key Metrics Changes - Semiconductor products revenue increased by 20% year-over-year, contributing 60% of total revenue, primarily driven by laser annealing [9][27] - Compound semiconductor market revenue decreased to 14% from 16% in the prior quarter, with weak performance in wet processing due to smartphone market softness [28][18] - Data storage revenue increased to 14% from 11% in the prior quarter, with expectations for growth based on backlog orders [28][21] Market Data and Key Metrics Changes - Revenue from China accounted for 40% of total revenue in Q1, driven by LSA systems to trailing edge customers [29] - Asia Pacific region (excluding China) contributed 25%, the United States 20%, and EMEA 15% to total revenue [29] - The HDD industry is expected to see nearline hard disk drive exabyte shipments grow at approximately 25% CAGR over the next five years [21] Company Strategy and Development Direction - The company is focused on investing in semiconductor and compound semiconductor markets with differentiated solutions for long-term growth [10][11] - Key technologies include laser annealing, ion beam deposition for EUV, and advanced packaging lithography [12][14] - The company aims to outperform wafer fab equipment spend in 2023, particularly in the semiconductor sector [15][17] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in supply chain management and expects material lead times to improve in the second half of the year [10] - The company anticipates growth in LSA and EUV mask point product lines to offset weaknesses in advanced packaging lithography due to weak consumer demand [17] - Management remains cautious about the macroeconomic environment but is optimistic about the second half of 2023 based on backlog visibility [34] Other Important Information - The company ended the quarter with cash and short-term investments of $253 million, a decrease of $50 million due to acquisitions and debt payments [32] - The company is committed to improving corporate culture, transparency, diversity, and environmental responsibility [23][24] Q&A Session Summary Question: Areas of improvement in product lead times - Management noted that higher revenue was driven by additional semiconductor and data storage systems, with no structural changes observed [36][37] Question: Data storage guidance amid market softness - Management acknowledged softness in the data storage market but expects revenue growth in the second half based on confirmed backlog orders [39][40] Question: Market size for DRAM memory space - Management estimates the market size for DRAM applications at $25 million to $35 million per customer over 12 to 24 months, with shipments expected in Q2 [43][44] Question: Update on MOCVD and GaN market - Management indicated that the evaluation system for GaN is running, with expectations for meaningful gains in 2024 [46][47] Question: Market opportunity in silicon carbide - The silicon carbide device market is projected to grow from $2 billion to $6 billion by 2027, with the epitaxy equipment market expected to reach $0.5 billion [50][51]

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2023 | | | | | | | | | Financial Results | | | | | | | | | Conference Call | | | | | | | | | Veeco (Nasdaq: VECO) May 8, 2023 | Safe Harbor | --- ...

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 March 31, 2023 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 Incorporat ...

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, 2022 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 Incorporation o ...

Financial Data and Key Metrics Changes - Revenue for the full year 2022 was $646 million, representing an 11% growth over 2021, with semiconductor revenue growing 50% year on year [12][23] - Non-GAAP operating income increased 15% to $100 million, with diluted non-GAAP EPS at $1.57 [13][27] - Q4 2022 revenue was $154 million, with non-GAAP operating income of $24 million and diluted non-GAAP EPS of $0.38 [15][33] - Cash flow from operations for the full year was $108 million, a 60% increase over 2021 [13][29] Business Line Data and Key Metrics Changes - Semiconductor revenue was $369 million, accounting for 57% of total revenue, driven by strong performance in laser annealing systems [23] - Compound semiconductor revenue was $121 million, up 13% from 2021, making up 19% of total revenue [23] - Data storage revenue decreased by 48% to $88 million, representing 13% of total revenue [24] - Scientific and other revenue increased by 12% to $68 million, accounting for 11% of total revenue [24] Market Data and Key Metrics Changes - Asia Pacific region (excluding China) contributed 36% of total revenue, while the United States accounted for 31% [25] - China made up 19% of total revenue, with expectations for increased revenue from China in the first half of 2023 [26] - EMEA accounted for 14% of total revenue [25] Company Strategy and Development Direction - The acquisition of Epiluvac aims to accelerate entry into the high-growth silicon carbide epitaxy equipment market, driven by electric vehicle demand [7][17] - The company plans to leverage its manufacturing and global sales infrastructure to enhance growth prospects in the silicon carbide market [20][51] - Focus on maintaining profitability while navigating macroeconomic challenges and investing in R&D for product roadmaps [52] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2023, with a revenue outlook between $630 million and $670 million [39] - The semiconductor market is expected to remain flat to slightly up in 2023, outperforming overall wafer fab equipment spending [43] - Challenges in the compound semiconductor market are anticipated, but long-term growth potential remains strong [47] Other Important Information - The company ended 2022 with a backlog of $500 million, a $60 million increase from the previous year [29] - Gross margin for Q4 2022 was 42%, exceeding guidance due to a favorable product mix and lower manufacturing costs [32][84] - The company appointed a new Head of Investor Relations, Anthony Pappone, following the departure of Anthony Bencivenga [53] Q&A Session Summary Question: Changes in Q1 expectations and compound semiconductor weakness - Management confirmed that Q1 guidance remains at $130 million to $150 million, considering the increased backlog and strong bookings [56][57] - The compound semiconductor market is facing challenges primarily due to weakness in consumer markets [64] Question: Breakdown of strong bookings in Q4 - Record bookings were noted in the semiconductor segment, particularly in laser annealing and EUV mask blank systems [60][62] Question: Details on the Epiluvac acquisition - The acquisition includes a new 8-inch single wafer silicon carbide reactor, with plans for integration into Veeco's sales and service infrastructure [66][68] Question: Revenue expectations from silicon carbide CVD business - Management indicated that significant revenue from the silicon carbide market is not expected until 2024, with a focus on building demo tools and customer engagement [68][75] Question: Backlog composition and data storage outlook - More than half of the backlog is in semiconductor, with about 20% from data storage, indicating a positive outlook for data storage in 2023 [82] Question: Gross margin performance and expectations - Q4 gross margin exceeded expectations due to a favorable product mix and lower logistics costs, with guidance for 2023 gross margin similar to 2022 [84][85]