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Veeco(VECO) - 2024 Q1 - Earnings Call Transcript
VECOVeeco(VECO)2024-05-08 02:26
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Financial Data and Key Metrics Changes - Revenue for Q1 2024 totaled 174million,up14174 million, up 14% year-over-year and flat sequentially [6][17] - Non-GAAP operating income was 29 million, with non-GAAP EPS at 0.45[6][17]−Grossmarginwasapproximately440.45 [6][17] - Gross margin was approximately 44%, exceeding guidance [17] - Net income was approximately 26 million, with diluted EPS of 0.45on60millionshares[17][19]BusinessLineDataandKeyMetricsChanges−Semiconductorrevenuereachedarecord0.45 on 60 million shares [17][19] Business Line Data and Key Metrics Changes - Semiconductor revenue reached a record 120 million, up 29% year-over-year and 5% sequentially, comprising 69% of total revenue [17] - Revenue from the compound semiconductor market increased to 21million,accountingfor1221 million, accounting for 12% of total revenue [17] - Data storage revenue contributed 10%, while scientific and other segments made up 9% [17] Market Data and Key Metrics Changes - Revenue from the Asia-Pacific region (excluding China) increased to 42%, up from 34% in the prior quarter [18] - Revenue from China remained at 37%, driven by mature node semiconductor customers [18] - Revenue from the United States was 16%, with EMEA contributing 5% [18] Company Strategy and Development Direction - The company is focused on expanding its served available market (SAM) for laser annealing from 600 million to over 1billion[9]−Investmentinadvancedlogicandmemoryhasallowedthesemiconductorbusinesstooutperformwaferfabricationequipment(WFE)growthforthreeconsecutiveyears[8]−Thecompanyistargetingnewapplicationsinthecompoundsemiconductormarket,particularlyinpowerelectronicsandphotonics[10]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedconfidenceinthedemandforEUVlithographyandnext−generationhighNAlithography[8]−Thecompanyanticipatesinitialhigh−volumemanufacturingordersfromlogiccustomersin2025[12]−Managementreiteratedthe2024revenueoutlookbetween1 billion [9] - Investment in advanced logic and memory has allowed the semiconductor business to outperform wafer fabrication equipment (WFE) growth for three consecutive years [8] - The company is targeting new applications in the compound semiconductor market, particularly in power electronics and photonics [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for EUV lithography and next-generation high NA lithography [8] - The company anticipates initial high-volume manufacturing orders from logic customers in 2025 [12] - Management reiterated the 2024 revenue outlook between 680 million and 740million,withdilutednon−GAAPEPStargetedbetween740 million, with diluted non-GAAP EPS targeted between 1.60 and 1.90pershare[20]OtherImportantInformation−Thecompanyendedthequarterwithcashandshort−terminvestmentsof1.90 per share [20] Other Important Information - The company ended the quarter with cash and short-term investments of 297 million, a decline of 9millionsequentially[19]−Cashflowfromoperationswas9 million sequentially [19] - Cash flow from operations was 9 million, with capital expenditures at $6 million [19] Q&A Session Summary Question: Clarification on the nanosecond anneal product and its relationship with laser anneal - Management clarified that nanosecond anneal (NSA) does not cannibalize laser spike anneal (LSA) but opens unique opportunities for applications like backside power distributions and 3D structures [24][26] Question: HBM opportunity and qualification status - Management confirmed that LSA is now qualified for high bandwidth memory (HBM) applications, expanding from logic chip qualification [28] Question: Backlog and leading-edge vs trailing-edge mix - Management indicated that the current backlog is more weighted towards trailing nodes, but expects a shift towards leading-edge engagements in the second half of 2024 [37] Question: Pricing uplift for NSA compared to LSA - Management expects a pricing uplift of 10% to 15% for NSA due to its additional capabilities [39] Question: Update on compound semiconductor business and GaN power - Management reported a transition from 6-inch to 8-inch wafers, with plans to ship a 300-millimeter evaluation system to a Tier 1 customer [42] Question: Data storage outlook and AI impact - Management expects the data storage business to be flat to up 10% compared to last year, with long-term growth driven by generative AI projected at a 20% CAGR [61][62]