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 717.3million,an8666.4 million in 2023 [202]. - The Compound Semiconductor market saw a decline in sales by 11%, totaling 77.6millionin2024comparedto87.3 million in 2023 [203]. - Data Storage revenue increased by 12% to 98.9millionin2024,upfrom88.5 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 304.0million,withagrossmarginof4267.0 million in 2024, compared to 69.9millionin2023[202].−Netinterestincomefor2024was1.9 million, an increase from a net interest expense of 1.2millionin2023,primarilyduetoa2.3 million increase in interest income [213][214]. - The income tax benefit for 2024 was 4.9million,comparedtoanexpenseof2.0 million in 2023, driven by various tax benefits including 12.2millionrelatedtoassetimpairments[217].−Netcashprovidedbyoperatingactivitieswas63.8 million in 2024, compared to 61.7millionin2023,attributedtoanetincomeof73.7 million [220][221]. Expenses and Investments - Research and development expenses rose by 10% to 124.5millionin2024,maintainingaflatpercentageofrevenue[208].−Cashusedininvestingactivitieswas64.5 million in 2024, primarily due to capital expenditures and net investment activity [222]. - The company has 26.5millionoutstandingprincipalbalanceof3.50177.4 million as of December 31, 2024 [227]. Impairments and Charges - A non-cash impairment charge of 28.1millionwasrecordedin2024relatedtoSiCtechnologyacquiredfromEpiluvac[211].−Netotheroperatingincomein2024includeda21.2 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 650billionin2024,withlong−termgrowthdrivenbytrendssuchasAIandautomotiveelectrification[188].−ThecompanyanticipatesadeclineinrevenuefromtheChinamarketheadinginto2025duetomoderatedcustomerengagement[196].AssetManagementandFinancialReporting−Cashandcashequivalentstotaled145.6 million in 2024, down from 158.8millionin2023,whileshort−terminvestmentsincreasedto198.7 million from 146.7million[218].−Thefairvalueofthecompany′sfixed−incomesecuritieswasapproximately198.7 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].
Veeco(VECO)2025-02-14 19:11