Veeco(US:VECO)2022-05-09 20:31Financial 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]