Veeco(US:VECO)2022-11-07 21:31Financial Performance - Net sales for Q3 2022 were $171.9 million, a 14% increase from $150.2 million in Q3 2021[150] - Gross profit for Q3 2022 was $69.9 million, an 11% increase from $63.2 million in Q3 2021, resulting in a gross margin of 41%[150] - Operating income increased by 7% to $17.6 million compared to $16.4 million in the same quarter last year[150] - Net income for Q3 2022 was $15.0 million, a significant increase of 67% from $9.0 million in Q3 2021[150] - For the nine months ended September 30, 2022, net sales increased by 14% to $492.3 million compared to $430.3 million in the prior year[164] - Net income for the nine months ended September 30, 2022, was $38.0 million, compared to $17.8 million for the same period in 2021, reflecting a year-over-year increase of 113.5%[178] Market Performance - Semiconductor market sales grew to $100.4 million, representing 59% of total sales, up 32% from $76.3 million in the prior year[151] - Sales in the Data Storage market decreased by 29% to $27.7 million from $39.3 million in the prior year[151] - Revenue from the Scientific & Other market increased by 38% to $15.7 million compared to $11.4 million in Q3 2021[151] - Semiconductor sales grew by 52% to $275.5 million, while Data Storage sales declined by 46% to $70.8 million[166] Expenses and Costs - Research and development expenses rose by 16% to $77.2 million, driven by personnel-related costs to support new initiatives[168] - Selling, general, and administrative expenses increased by 7% to $68.0 million, but as a percentage of revenue, these expenses decreased compared to the prior year[169] - Net interest expense decreased significantly by 62% to $7.8 million, primarily due to changes in amortization of debt discounts[172] - Income tax expense for the nine months ended September 30, 2022, was $1.1 million, slightly up from $1.0 million in the prior year[174] Cash Flow and Capital - Cash and cash equivalents increased to $169.1 million as of September 30, 2022, from $119.7 million as of December 31, 2021, representing a growth of approximately 41.4%[176] - Net cash provided by operating activities was $75.4 million for the nine months ended September 30, 2022, up from $50.6 million in 2021, indicating a growth of 48.9%[179] - Capital expenditures for the nine months ended September 30, 2022, were $21.8 million, a decrease from $31.5 million in 2021, showing a reduction of 30.9%[180] - Cash used in financing activities was $4.9 million for the nine months ended September 30, 2022, compared to $1.6 million in 2021, indicating an increase of 215.4%[181] Supply Chain and Market Outlook - The company expects supply shortages and related challenges to persist throughout the remainder of 2022 and into 2023[139] - The company is actively managing supply chain disruptions and inflationary pressures by increasing purchase commitments and re-sourcing components[134] - The company anticipates continued year-to-year variations in future sales distribution across markets and geographies due to global business conditions[166] Geographic Sales Distribution - Approximately 68% of net sales for the nine months ended September 30, 2022, were from customers outside the United States[133] - Approximately 69% of total net sales for the three months ended September 30, 2022, were from customers located outside the United States, compared to 67% in the same period of 2021[189] - The Rest of APAC region sales included $79.1 million from Taiwan, $34.8 million from Singapore, and $27.6 million from Japan for the nine months ended September 30, 2022[166] Investment and Debt - The investment portfolio had a fair value of approximately $101.9 million as of September 30, 2022, with a potential decrease of $0.6 million in value for a 100 basis point increase in interest rates[186] - The company has access to a $150.0 million revolving credit facility, with an option to request an additional $75.0 million, expiring in December 2026[183] - The company has $20.2 million of 2.70% convertible senior notes maturing on January 15, 2023, and $132.5 million of 3.50% convertible senior notes maturing on January 15, 2025[182]