Veeco(VECO) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview Veeco's Q2 2025 financial results are presented, highlighting key performance metrics and CEO insights into market drivers Q2 2025 Financial Highlights Veeco reported its second quarter 2025 financial results, showing a decrease in revenue and net income compared to the same period last year, both on a GAAP and Non-GAAP basis Q2 2025 Financial Performance (U.S. Dollars in millions, except per share data) | U.S. Dollars in millions, except per share data | Q2 '25 | Q2 '24 | | :------------------------------------ | :----- | :----- | | GAAP Results | | | | Revenue | $166.1 | $175.9 | | Net income | $11.7 | $14.9 | | Diluted earnings per share | $0.20 | $0.25 | | Non-GAAP Results | | | | Operating income | $23.1 | $28.3 | | Net income | $21.5 | $25.4 | | Diluted earnings per share | $0.36 | $0.42 | CEO Commentary Veeco's CEO, Bill Miller, highlighted strong financial results for the quarter, attributing the performance to the rapid expansion of High-Performance Computing and AI technologies, specifically mentioning shipments for Advanced Packaging and EUV mask blanks - Veeco's strong financial results were fueled by the rapid expansion of High-Performance Computing and AI technologies[2] - Performance was driven by shipments of wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks[2] Third Quarter 2025 Guidance and Outlook Veeco provides its financial guidance for the third quarter of 2025, outlining projected revenue and earnings per share Q3 2025 Financial Guidance Veeco provided financial guidance for the third quarter of 2025, projecting revenue in a range of $150 million to $170 million, with corresponding GAAP and Non-GAAP diluted earnings per share Q3 2025 Financial Guidance Range | Metric | Q3 2025 Guidance Range | | :-------------------------- | :--------------------- | | Revenue | $150M - $170M | | GAAP diluted earnings per share | $0.04 - $0.22 | | Non-GAAP diluted earnings per share | $0.20 - $0.35 | About Veeco Veeco is an innovative manufacturer of semiconductor process equipment, providing technologies such as laser annealing, ion beam, MOCVD, single wafer etch & clean, and lithography, which are integral to the fabrication and packaging of advanced semiconductor devices - Veeco is an innovative manufacturer of semiconductor process equipment[5] - Key technologies include laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean, and lithography[5] - These technologies play an integral role in the fabrication and packaging of advanced semiconductor devices, with Veeco holding leading technology positions in its served markets[5] Forward-Looking Statements This section serves as a disclaimer, outlining that the press release contains forward-looking statements based on management's expectations, which are subject to various risks and uncertainties. Factors such as demand levels, global economic conditions, trade issues, supply chain dependencies, and the ability to develop new products could cause actual results to differ materially - Forward-looking statements are based on management's expectations, estimates, projections, and assumptions[6] - Statements are subject to risks and uncertainties and are not guarantees of future performance[6] - Factors that could cause actual results to differ include demand for products, global economic conditions, trade issues (e.g., U.S.-China disputes), dependency on third-party suppliers, timing of customer orders, and ability to develop new products[6] Condensed Consolidated Financial Statements This section presents Veeco's condensed consolidated statements of operations and balance sheets, detailing financial performance and position Condensed Consolidated Statements of Operations The Condensed Consolidated Statements of Operations show a year-over-year decline in net sales, gross profit, operating income, and net income for both the three and six months ended June 30, 2025, compared to 2024 Condensed Consolidated Statements of Operations (U.S. Dollars in thousands) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $166,104 | $175,879 | $333,396 | $350,363 | | Gross profit | $68,727 | $75,390 | $137,194 | $150,809 | | Operating income | $12,370 | $16,722 | $26,518 | $38,767 | | Net income | $11,733 | $14,944 | $23,680 | $36,798 | Condensed Consolidated Balance Sheets The Condensed Consolidated Balance Sheets indicate an increase in total assets and stockholders' equity, alongside a decrease in total liabilities, as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $188,902 | $145,595 | | Total current assets | $791,892 | $764,532 | | Total assets | $1,274,705 | $1,251,577 | | Total current liabilities | $155,238 | $192,282 | | Total liabilities | $418,509 | $480,807 | | Total stockholders' equity | $856,196 | $770,770 | Non-GAAP Financial Measures and Reconciliations This section defines Veeco's Non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents for various periods Explanation of Non-GAAP Financial Measures Non-GAAP financial measures are presented to adjust for certain items not calculated in accordance with GAAP, such as share-based compensation, restructuring charges, and acquisition-related costs. These measures aim to provide clearer comparisons of historical and competitive operating results and are used by management for evaluation and forecasting - Non-GAAP financial measures exclude items like share-based compensation, restructuring charges, non-cash asset impairments, and acquisition-related costs[14] - These measures facilitate meaningful comparisons to historical operating results, competitors' results, and analyst estimates[15] - Management uses Non-GAAP Operating income (loss) for incentive compensation and future period forecasting[15] Q2 2025 GAAP to Non-GAAP Reconciliation This section reconciles Veeco's GAAP financial data to Non-GAAP for Q2 2025, detailing adjustments primarily for share-based compensation and amortization to derive Non-GAAP gross profit, operating expenses, operating income, and net income Q2 2025 GAAP to Non-GAAP Reconciliation (U.S. Dollars in thousands) | Metric (in thousands) | GAAP | Non-GAAP Adjustments (Share-Based Compensation) | Non-GAAP Adjustments (Amortization) | Non-GAAP Adjustments (Other) | Non-GAAP | | :-------------------- | :------- | :---------------------------------------------- | :---------------------------------- | :--------------------------- | :------- | | Net sales | $166,104 | | | | $166,104 | | Gross profit | $68,727 | $1,991 | | | $70,718 | | Gross margin | 41.4 % | | | | 42.6 % | | Operating expenses | $56,357 | $(7,660) | $(821) | $(255) | $47,621 | | Operating income | $12,370 | $9,651 | $821 | $255 | $23,097 | | Net income | $11,733 | $9,651 | $821 | $(670) | $21,535 | Q2 2025 Other Non-GAAP Adjustments This sub-section details the specific components of 'Other Non-GAAP Adjustments' for Q2 2025, which include a subtotal of $255 thousand, non-cash interest expense of $292 thousand, other (income) expense, net of $653 thousand, and a non-GAAP tax adjustment of $(1,870) thousand Q2 2025 Other Non-GAAP Adjustments (U.S. Dollars in thousands) | Three months ended June 30, 2025 | Amount (in thousands) | | :------------------------------- | :-------------------- | | Other | $255 | | Subtotal | $255 | | Non-cash interest expense | $292 | | Other (income) expense, net | $653 | | Non-GAAP tax adjustment | $(1,870) | | Total Other | $(670) | Q2 2025 Net Income per Common Share Reconciliation This reconciliation details the calculation of GAAP and Non-GAAP diluted net income per common share for Q2 2025, showing the adjustments for interest expense on convertible senior notes and the impact of capped call transactions on diluted shares Q2 2025 Net Income per Common Share Reconciliation (U.S. Dollars in thousands, except per share amounts) | Metric (in thousands, except per share amounts) | GAAP | Non-GAAP | | :---------------------------------------------- | :----- | :------- | | Net income | $11,733 | $21,535 | | Interest expense associated with 2027 Convertible Senior Notes | $125 | $113 | | Net income available to common shareholders | $11,858 | $21,648 | | Diluted weighted average shares outstanding | 60,237 | 60,018 | | Net income per common share: | | | | Basic | $0.20 | $0.36 | | Diluted | $0.20 | $0.36 | Q2 2024 GAAP to Non-GAAP Reconciliation This section provides the reconciliation of Veeco's GAAP financial data to Non-GAAP for Q2 2024, outlining adjustments for share-based compensation, amortization, and other items to arrive at Non-GAAP gross profit, operating expenses, operating income, and net income Q2 2024 GAAP to Non-GAAP Reconciliation (U.S. Dollars in thousands) | Metric (in thousands) | GAAP | Non-GAAP Adjustments (Share-based Compensation) | Non-GAAP Adjustments (Amortization) | Non-GAAP Adjustments (Other) | Non-GAAP | | :-------------------- | :------- | :---------------------------------------------- | :---------------------------------- | :--------------------------- | :------- | | Net sales | $175,879 | | | | $175,879 | | Gross profit | $75,390 | $1,445 | | | $76,835 | | Gross margin | 42.9 % | | | | 43.7 % | | Operating expenses | $58,668 | $(7,788) | $(1,825) | $(494) | $48,561 | | Operating income | $16,722 | $9,233 | $1,825 | $494 | $28,274 | | Net income | $14,944 | $9,233 | $1,825 | $(570) | $25,432 | Q2 2024 Other Non-GAAP Adjustments This sub-section details the specific components of 'Other Non-GAAP Adjustments' for Q2 2024, including changes in contingent consideration of $494 thousand, non-cash interest expense of $316 thousand, and a non-GAAP tax adjustment of $(1,380) thousand Q2 2024 Other Non-GAAP Adjustments (U.S. Dollars in thousands) | Three months ended June 30, 2024 | Amount (in thousands) | | :------------------------------- | :-------------------- | | Changes in contingent consideration | $494 | | Subtotal | $494 | | Non-cash interest expense | $316 | | Non-GAAP tax adjustment | $(1,380) | | Total Other | $(570) | Q2 2024 Net Income per Common Share Reconciliation This reconciliation details the calculation of GAAP and Non-GAAP diluted net income per common share for Q2 2024, showing adjustments for interest expense on various convertible senior notes and the impact of capped call transactions on diluted shares Q2 2024 Net Income per Common Share Reconciliation (U.S. Dollars in thousands, except per share amounts) | Metric (in thousands, except per share amounts) | GAAP | Non-GAAP | | :---------------------------------------------- | :----- | :------- | | Net income | $14,944 | $25,432 | | Interest expense associated with 2025 and 2027 Convertible Senior Notes | $512 | $466 | | Net income available to common shareholders | $15,456 | $25,898 | | Diluted weighted average shares outstanding | 62,535 | 62,101 | | Net income per common share: | | | | Basic | $0.27 | $0.45 | | Diluted | $0.25 | $0.42 | Q2 2025 and 2024 GAAP Net Income to Non-GAAP Operating Income Reconciliation This section provides a direct reconciliation from GAAP Net income to Non-GAAP Operating income for both Q2 2025 and Q2 2024, detailing the impact of share-based compensation, amortization, and other adjustments Q2 2025 and 2024 GAAP Net Income to Non-GAAP Operating Income Reconciliation (U.S. Dollars in thousands) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | | GAAP Net income | $11,733 | $14,944 | | Share-based compensation | $9,651 | $9,233 | | Amortization | $821 | $1,825 | | Changes in contingent consideration | — | $494 | | Interest (income) expense, net | $(905) | $(349) | | Other | $908 | — | | Income tax expense (benefit) | $889 | $2,127 | | Non-GAAP Operating income | $23,097 | $28,274 | Q3 2025 Guidance GAAP to Non-GAAP Reconciliation This section reconciles the Q3 2025 financial guidance from GAAP to Non-GAAP, showing projected adjustments for share-based compensation and amortization across net sales, gross profit, operating expenses, operating income, net income, and diluted EPS Q3 2025 Guidance GAAP to Non-GAAP Reconciliation (U.S. Dollars in millions, except per share amounts) | Metric (in millions, except per share amounts) | GAAP Range ($) | Non-GAAP Adjustments (Share-based Compensation) | Non-GAAP Adjustments (Amortization) | Non-GAAP Adjustments (Other) | Non-GAAP Range ($) | | :--------------------------------------------- | :------------- | :---------------------------------------------- | :---------------------------------- | :--------------------------- | :----------------- | | Net sales | 150 - 170 | | | | 150 - 170 | | Gross profit | 59 - 70 | 2 | — | — | 61 - 72 | | Gross margin | 39% - 41% | | | | 40% - 42% | | Operating expenses | 57 - 58 | (8) | (1) | — | 48 - 49 | | Operating income | 2 - 12 | 10 | 1 | — | 13 - 24 | | Net income | 3 - 13 | 10 | 1 | (2) | 12 - 21 | | Income per diluted common share | 0.04 - 0.22 | | | | 0.20 - 0.35 | Q3 2025 Guidance GAAP Net Income to Non-GAAP Operating Income Reconciliation This sub-section provides a direct reconciliation from GAAP Net income to Non-GAAP Operating income for the Q3 2025 guidance, detailing projected adjustments for share-based compensation, amortization, and income tax expense (benefit) Q3 2025 Guidance GAAP Net Income to Non-GAAP Operating Income Reconciliation (U.S. Dollars in millions) | Metric (in millions) | Guidance for the three months ending September 30, 2025 | | :------------------------------ | :------------------------------------------------------ | | GAAP Net income | $3 - $13 | | Share-based compensation | $10 - $10 | | Amortization | $1 - $1 | | Income tax expense (benefit) | $(1) - $1 | | Non-GAAP Operating income | $13 - $24 | Veeco Contacts This section provides contact information for investor relations and media inquiries Veeco Contacts | Role | Name | Phone | Email | | :-------- | :-------------- | :------------- | :------------------ | | Investors | Anthony Pappone | (516) 500-8798 | apappone@veeco.com | | Media | Brenden Wright | (410) 984-2610 | bwright@veeco.com |