Veeco Reports Fourth Quarter and Fiscal Year 2020 Financial Results
Veeco Instruments announced its financial results for Q4 2020, showcasing revenues of $138.9 million, up from $113.2 million a year earlier. The company reported a GAAP net loss of $0.1 million ($(0.00) per diluted share) compared to a loss of $32.9 million in Q4 2019. Non-GAAP net income reached $15.0 million ($0.30 per diluted share), up from $5.4 million in the same period last year. For Q1 2021, guidance indicates revenue between $115 million to $135 million and Non-GAAP EPS of $0.12 to $0.30.
- Revenue increased to $138.9 million in Q4 2020 from $113.2 million in Q4 2019.
- Non-GAAP net income improved to $15.0 million ($0.30 per diluted share) compared to $5.4 million ($0.11 per diluted share) in Q4 2019.
- Strong customer engagements and a healthy backlog entering 2021.
- GAAP net loss of $0.1 million in Q4 2020 versus a loss of $32.9 million in the same quarter last year.
- Projected GAAP diluted EPS shows potential loss range of $(0.09) to $0.09 for Q1 2021.
Fourth Quarter 2020 Highlights:
- Revenues of
$138.9 million , compared with$113.2 million in the same period last year - GAAP net loss of
$0.1 million , or$(0.00) per diluted share, compared with a loss of$32.9 million , or$0.69 loss per diluted share in the same period last year - Non-GAAP net income of
$15.0 million , or$0.30 per diluted share, compared with$5.4 million , or$0.11 per diluted share in the same period last year
PLAINVIEW, N.Y., Feb. 11, 2021 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 31, 2020. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.
| U.S. Dollars in millions, except per share data | ||||||||||||||||
| 4th Quarter | Full Year | |||||||||||||||
| GAAP Results | Q4 '20 | Q4 '19 | 2020 | 2019 | ||||||||||||
| Revenue | $ | 138.9 | $ | 113.2 | $ | 454.2 | $ | 419.3 | ||||||||
| Net income (loss) | $ | (0.1 | ) | $ | (32.9 | ) | $ | (8.4 | ) | $ | (78.7 | ) | ||||
| Diluted earnings (loss) per share | $ | (0.00 | ) | $ | (0.69 | ) | $ | (0.17 | ) | $ | (1.66 | ) | ||||
| 4th Quarter | Full Year | ||||||||||||
| Non-GAAP Results | Q4 '20 | Q4 '19 | 2020 | 2019 | |||||||||
| Net income (loss) | $ | 15.0 | $ | 5.4 | $ | 42.3 | $ | (1.3 | ) | ||||
| Operating income (loss) | $ | 17.6 | $ | 7.4 | $ | 52.5 | $ | 5.1 | |||||
| Diluted earnings (loss) per share | $ | 0.30 | $ | 0.11 | $ | 0.86 | $ | (0.03 | ) | ||||
“Our year-over-year financial performance dramatically improved in 2020 and we are proud to conclude this remarkable year of transformation by delivering solid fourth quarter results. These fourth quarter results were driven primarily by system sales in support of semiconductor advanced-node manufacturing, as well as compound semiconductor system sales for 5G RF applications,” commented William J. Miller, Ph.D., Chief Executive Officer.
“We enter 2021 with healthy backlog, strong customer engagements and overall positive momentum. We look forward to executing our near-term growth strategy driven in large part by our Laser Annealing, 5G RF and Data Storage applications.”
Guidance and Outlook
The following guidance is provided for Veeco’s first quarter 2021:
- Revenue is expected in the range of
$115 million to$135 million - GAAP diluted earnings (loss) per share are expected in the range of
$(0.09) t o$0.09 - Non-GAAP diluted earnings per share are expected in the range of
$0.12 t o$0.30
Please refer to the tables at the end of this press release for further details.
Conference Call Information
A conference call reviewing these results has been scheduled for today, February 11, 2021 starting at 5:00pm ET. To join the call, dial 1-866-248-8441 (toll free) or 1-929-477-0577 and use passcode 7940308. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.
About Veeco
Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our proven ion beam, laser annealing, lithography, MOCVD, and single wafer etch & clean technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.
Forward-looking Statements
This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, the impact of the COVID-19 pandemic, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; the effects of regional or global health epidemics, including the effects of the COVID-19 pandemic on the Company’s operations and on those of our customers and suppliers; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
| Veeco Contacts: | |||
| Investors: | Anthony Bencivenga | (516) 252-1438 | abencivenga@veeco.com |
| Media: | Kevin Long | (516) 714-3978 | klong@veeco.com |
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net sales | $ | 138,946 | $ | 113,202 | $ | 454,163 | $ | 419,349 | ||||||||
| Cost of sales | 82,101 | 68,232 | 259,863 | 261,155 | ||||||||||||
| Gross profit | 56,845 | 44,970 | 194,300 | 158,194 | ||||||||||||
| Operating expenses, net: | ||||||||||||||||
| Research and development | 21,417 | 21,655 | 78,994 | 90,557 | ||||||||||||
| Selling, general, and administrative | 20,710 | 19,128 | 76,251 | 79,749 | ||||||||||||
| Amortization of intangible assets | 3,831 | 4,312 | 15,333 | 17,085 | ||||||||||||
| Restructuring | — | 2,529 | 1,097 | 6,403 | ||||||||||||
| Asset impairment | — | 4,020 | 281 | 4,020 | ||||||||||||
| Other operating expense (income), net | 281 | 190 | (221 | ) | (42 | ) | ||||||||||
| Total operating expenses, net | 46,239 | 51,834 | 171,735 | 197,772 | ||||||||||||
| Operating income (loss) | 10,606 | (6,864 | ) | 22,565 | (39,578 | ) | ||||||||||
| Interest expense, net | (6,516 | ) | (4,663 | ) | (23,188 | ) | (17,405 | ) | ||||||||
| Other income (expense), net | (4,794 | ) | (20,973 | ) | (7,841 | ) | (20,973 | ) | ||||||||
| Income (loss) before income taxes | (704 | ) | (32,500 | ) | (8,464 | ) | (77,956 | ) | ||||||||
| Income tax expense (benefit) | (602 | ) | 371 | (73 | ) | 777 | ||||||||||
| Net income (loss) | $ | (102 | ) | $ | (32,871 | ) | $ | (8,391 | ) | $ | (78,733 | ) | ||||
| Income (loss) per common share: | ||||||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.69 | ) | $ | (0.17 | ) | $ | (1.66 | ) | ||||
| Diluted | $ | (0.00 | ) | $ | (0.69 | ) | $ | (0.17 | ) | $ | (1.66 | ) | ||||
| Weighted average number of shares: | ||||||||||||||||
| Basic | 48,340 | 47,519 | 48,362 | 47,482 | ||||||||||||
| Diluted | 48,340 | 47,519 | 48,362 | 47,482 | ||||||||||||
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
| December 31, | December 31, | |||||
| 2020 | 2019 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 129,625 | $ | 129,294 | ||
| Restricted cash | 658 | 657 | ||||
| Short-term investments | 189,771 | 115,252 | ||||
| Accounts receivable, net | 79,991 | 45,666 | ||||
| Contract assets | 21,246 | 25,351 | ||||
| Inventories | 145,906 | 133,067 | ||||
| Deferred cost of sales | 433 | 445 | ||||
| Prepaid expenses and other current assets | 19,301 | 14,966 | ||||
| Assets held for sale | — | 11,180 | ||||
| Total current assets | 586,931 | 475,878 | ||||
| Property, plant and equipment, net | 65,271 | 75,711 | ||||
| Operating lease right-of-use assets | 10,275 | 14,453 | ||||
| Intangible assets, net | 46,185 | 61,518 | ||||
| Goodwill | 181,943 | 181,943 | ||||
| Deferred income taxes | 1,440 | 1,549 | ||||
| Other assets | 6,019 | 7,036 | ||||
| Total assets | $ | 898,064 | $ | 818,088 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 33,656 | $ | 21,281 | ||
| Accrued expenses and other current liabilities | 44,876 | 41,243 | ||||
| Customer deposits and deferred revenue | 67,235 | 54,870 | ||||
| Income taxes payable | 914 | 830 | ||||
| Total current liabilities | 146,681 | 118,224 | ||||
| Deferred income taxes | 5,240 | 5,648 | ||||
| Long-term debt | 321,115 | 300,068 | ||||
| Operating lease long-term liabilities | 6,305 | 10,300 | ||||
| Other liabilities | 10,349 | 9,336 | ||||
| Total liabilities | 489,690 | 443,576 | ||||
| Total stockholders’ equity | 408,374 | 374,512 | ||||
| Total liabilities and stockholders’ equity | $ | 898,064 | $ | 818,088 | ||
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share amounts)
(unaudited)
| Non-GAAP Adjustments | |||||||||||||||||
| Share-Based | |||||||||||||||||
| Three months ended December 31, 2020 | GAAP | Compensation | Amortization | Other | Non-GAAP | ||||||||||||
| Net sales | $ | 138,946 | $ | 138,946 | |||||||||||||
| Gross profit | 56,845 | 486 | 20 | 57,351 | |||||||||||||
| Gross margin | 40.9 | % | 41.3 | % | |||||||||||||
| Operating expenses | 46,239 | (2,656 | ) | (3,831 | ) | (41 | ) | 39,711 | |||||||||
| Operating income (loss) | 10,606 | 3,142 | 3,831 | 61 | ^ | 17,640 | |||||||||||
| Net income (loss) | (102 | ) | 3,142 | 3,831 | 8,085 | ^ | 14,956 | ||||||||||
| Income (loss) per common share: | |||||||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.31 | ||||||||||||
| Diluted | (0.00 | ) | 0.30 | ||||||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 48,340 | 48,340 | |||||||||||||||
| Diluted | 48,340 | 49,663 | |||||||||||||||
| ^ - See table below for additional details. | |||||||||||||||||
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
| Three months ended December 31, 2020 | ||||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | $ | 61 | ||
| Subtotal | 61 | |||
| Non-cash interest expense | 3,511 | |||
| Loss on extinguishment of debt | 4,794 | |||
| Non-GAAP tax adjustment * | (281 | ) | ||
| Total Other | $ | 8,085 | ||
| * - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. | ||||
These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share amounts)
(unaudited)
| Non-GAAP Adjustments | |||||||||||||||||
| Share-based | |||||||||||||||||
| Three months ended December 31, 2019 | GAAP | Compensation | Amortization | Other | Non-GAAP | ||||||||||||
| Net sales | $ | 113,202 | $ | 113,202 | |||||||||||||
| Gross profit | 44,970 | 455 | 29 | 45,454 | |||||||||||||
| Gross margin | 39.7 | % | 40.2 | % | |||||||||||||
| Operating expenses | 51,834 | (3,287 | ) | (4,312 | ) | (6,213 | ) | 38,022 | |||||||||
| Operating income (loss) | (6,864 | ) | 3,742 | 4,312 | 6,242 | ^ | 7,432 | ||||||||||
| Net income (loss) | (32,871 | ) | 3,742 | 4,312 | 30,262 | ^ | 5,445 | ||||||||||
| Income (loss) per common share: | |||||||||||||||||
| Basic | $ | (0.69 | ) | $ | 0.11 | ||||||||||||
| Diluted | (0.69 | ) | 0.11 | ||||||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 47,519 | 47,519 | |||||||||||||||
| Diluted | 47,519 | 48,404 | |||||||||||||||
| ^ - See table below for additional details. | |||||||||||||||||
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
| Three months ended December 31, 2019 | ||||
| Restructuring | $ | 2,132 | ||
| Asset impairment | 4,020 | |||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | 90 | |||
| Subtotal | 6,242 | |||
| Non-cash interest expense | 3,257 | |||
| Impairment of equity investments | 20,973 | |||
| Non-GAAP tax adjustment * | (210 | ) | ||
| Total Other | $ | 30,262 | ||
| * - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. | ||||
These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (loss)
(in thousands)
(unaudited)
| Three months ended | Three months ended | |||||||
| December 31, 2020 | December 31, 2019 | |||||||
| GAAP Net income (loss) | $ | (102 | ) | $ | (32,871 | ) | ||
| Share-based compensation | 3,142 | 3,742 | ||||||
| Amortization | 3,831 | 4,312 | ||||||
| Restructuring | — | 2,132 | ||||||
| Asset impairment | — | 4,020 | ||||||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | 61 | 90 | ||||||
| Interest (income) expense, net | 6,516 | 4,663 | ||||||
| Impairment of equity investments | — | 20,973 | ||||||
| Loss on extinguishment of debt | 4,794 | — | ||||||
| Income tax expense (benefit) | (602 | ) | 371 | |||||
| Non-GAAP Operating income (loss) | $ | 17,640 | $ | 7,432 | ||||
This table includes financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share amounts)
(unaudited)
| Non-GAAP Adjustments | |||||||||||||||||
| Share-based | |||||||||||||||||
| For the year ended December 31, 2020 | GAAP | Compensation | Amortization | Other | Non-GAAP | ||||||||||||
| Net sales | $ | 454,163 | $ | 454,163 | |||||||||||||
| Gross profit | 194,300 | 1,870 | 348 | 196,518 | |||||||||||||
| Gross margin | 42.8 | % | 43.3 | % | |||||||||||||
| Operating expenses | 171,735 | (10,833 | ) | (15,333 | ) | (1,530 | ) | 144,039 | |||||||||
| Operating income (loss) | 22,565 | 12,703 | 15,333 | 1,878 | ^ | 52,479 | |||||||||||
| Net income (loss) | (8,391 | ) | 12,703 | 15,333 | 22,684 | ^ | 42,329 | ||||||||||
| Income (loss) per common share: | |||||||||||||||||
| Basic | $ | (0.17 | ) | $ | 0.88 | ||||||||||||
| Diluted | (0.17 | ) | 0.86 | ||||||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 48,362 | 48,362 | |||||||||||||||
| Diluted | 48,362 | 49,309 | |||||||||||||||
| ^ - See table below for additional details. | |||||||||||||||||
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
| For the year ended December 31, 2020 | ||||
| Restructuring | $ | 1,097 | ||
| Asset impairment | 281 | |||
| Release of inventory fair value step-up associated with the Ultratech purchase accounting | 273 | |||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | 227 | |||
| Subtotal | 1,878 | |||
| Non-cash interest expense | 13,792 | |||
| Loss on extinguishment of debt | 7,841 | |||
| Non-GAAP tax adjustment * | (827 | ) | ||
| Total Other | $ | 22,684 | ||
| * - The 'with or without' method is utilized to determine the income tax effect of all non-GAAP adjustments. | ||||
These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors' operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating Income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share amounts)
(unaudited)
| Non-GAAP Adjustments | |||||||||||||||||
| Share-based | |||||||||||||||||
| For the year ended December 31, 2019 | GAAP | Compensation | Amortization | Other | Non-GAAP | ||||||||||||
| Net sales | $ | 419,349 | $ | 419,349 | |||||||||||||
| Gross profit | 158,194 | 1,903 | 1,453 | 161,550 | |||||||||||||
| Gross margin | 37.7 | % | 38.5 | % | |||||||||||||
| Operating expenses | 197,772 | (13,367 | ) | (17,085 | ) | (10,841 | ) | 156,479 | |||||||||
| Operating income (loss) | (39,578 | ) | 15,270 | 17,085 | 12,294 | ^ | 5,071 | ||||||||||
| Net income (loss) | (78,733 | ) | 15,270 | 17,085 | 45,102 | ^ | (1,276 | ) | |||||||||
| Income (loss) per common share: | |||||||||||||||||
| Basic | $ | (1.66 | ) | $ | (0.03 | ) | |||||||||||
| Diluted | (1.66 | ) | (0.03 | ) | |||||||||||||
| Weighted average number of shares: | |||||||||||||||||
| Basic | 47,482 | 47,482 | |||||||||||||||
| Diluted | 47,482 | 47,482 | |||||||||||||||
| ^ - See table below for additional details. | |||||||||||||||||
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
| For the year ended December 31, 2019 | ||||
| Restructuring | $ | 6,006 | ||
| Asset impairment | 4,020 | |||
| Release of inventory fair value step-up associated with the Ultratech purchase accounting | 1,270 | |||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | 557 | |||
| Accelerated depreciation | 397 | |||
| Other | 44 | |||
| Subtotal | 12,294 | |||
| Non-cash interest expense | 12,676 | |||
| Impairment of equity investments | 20,973 | |||
| Non-GAAP tax adjustment * | (841 | ) | ||
| Total Other | $ | 45,102 | ||
| * - The 'with or without' method is utilized to determine the income tax effect of all Non-GAAP adjustments. | ||||
These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors' operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating Income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (loss)
(in thousands)
(unaudited)
| Year ended | Year ended | |||||||
| December 31, 2020 | December 31, 2019 | |||||||
| GAAP Net income (loss) | $ | (8,391 | ) | $ | (78,733 | ) | ||
| Share-based compensation | 12,703 | 15,270 | ||||||
| Amortization | 15,333 | 17,085 | ||||||
| Restructuring | 1,097 | 6,006 | ||||||
| Asset impairment | 281 | 4,020 | ||||||
| Release of inventory fair value step-up associated with the Ultratech purchase accounting | 273 | 1,270 | ||||||
| Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting | 227 | 557 | ||||||
| Accelerated depreciation | — | 397 | ||||||
| Other | — | 44 | ||||||
| Interest (income) expense, net | 23,188 | 17,405 | ||||||
| Impairment of equity investment | — | 20,973 | ||||||
| Loss on extinguishment of debt | 7,841 | — | ||||||
| Income tax expense (benefit) | (73 | ) | 777 | |||||
| Non-GAAP Operating income (loss) | $ | 52,479 | $ | 5,071 | ||||
This table includes financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in millions, except per share amounts)
(unaudited)
| Non-GAAP Adjustments | |||||||||||||||||||||||||||||
| Guidance for the three months ending | Share-based | ||||||||||||||||||||||||||||
| March 31, 2021 | GAAP | Compensation | Amortization | Other | Non-GAAP | ||||||||||||||||||||||||
| Net sales | $ | 115 | - | $ | 135 | $ | 115 | - | $ | 135 | |||||||||||||||||||
| Gross profit | 47 | - | 58 | — | — | — | 47 | - | 58 | ||||||||||||||||||||
| Gross margin | 40 | % | - | 42 | % | 40 | % | - | 42 | % | |||||||||||||||||||
| Operating expenses | 44 | - | 46 | (3 | ) | (4 | ) | — | 37 | - | 39 | ||||||||||||||||||
| Operating income (loss) | 3 | - | 12 | 3 | 4 | — | 10 | - | 19 | ||||||||||||||||||||
| Net income (loss) | $ | (4 | ) | - | $ | 5 | 3 | 4 | 3 | $ | 6 | - | $ | 15 | |||||||||||||||
| Income (loss) per diluted common share | $ | (0.09 | ) | - | $ | 0.09 | $ | 0.12 | - | $ | 0.30 | ||||||||||||||||||
| Weighted average number of shares (1) | 49 | 53 | 50 | 50 | |||||||||||||||||||||||||
| (1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, no incremental shares are added to the dilutive share count in periods in which the average stock price per share is below | |||||||||||||||||||||||||||||
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (Loss)
(in millions)
(unaudited)
| Guidance for the three months ending March 31, 2021 | |||||||||
| GAAP Net income (loss) | $ | (4 | ) | - | $ | 5 | |||
| Share-based compensation | 3 | - | 3 | ||||||
| Amortization | 4 | - | 4 | ||||||
| Interest expense, net | 7 | - | 7 | ||||||
| Non-GAAP Operating income (loss) | $ | 10 | - | $ | 19 | ||||
Note: Amounts may not calculate precisely due to rounding.
These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.
These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.
FAQ
What were Veeco's revenues for Q4 2020?
What is Veeco's guidance for Q1 2021?
What was the non-GAAP net income for Veeco in Q4 2020?
How did Veeco's Q4 2020 performance compare to Q4 2019?
What is the projected non-GAAP EPS for Veeco in Q1 2021?
