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Veeco Reports Third Quarter 2024 Financial Results

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Veeco Instruments (NASDAQ: VECO) reported Q3 2024 financial results with revenue of $184.8 million, up from $177.4 million year-over-year. GAAP net income was $22.0 million ($0.36 per diluted share), compared to $24.6 million ($0.42 per diluted share) in Q3 2023. The Semiconductor business grew 26% year-over-year and 13% sequentially. For Q4 2024, Veeco expects revenue between $165-185 million, with GAAP EPS of $0.18-0.27 and non-GAAP EPS of $0.35-0.45.

Veeco Instruments (NASDAQ: VECO) ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato di 184,8 milioni di dollari, in aumento rispetto ai 177,4 milioni di dollari dell'anno precedente. L'utile netto GAAP è stato di 22,0 milioni di dollari (0,36 dollari per azione diluita), rispetto ai 24,6 milioni di dollari (0,42 dollari per azione diluita) nel terzo trimestre del 2023. Il business dei semiconduttori è cresciuto del 26% anno su anno e del 13% rispetto al trimestre precedente. Per il quarto trimestre del 2024, Veeco prevede un fatturato compreso tra 165 e 185 milioni di dollari, con un utile per azione GAAP di 0,18-0,27 dollari e un utile per azione non GAAP di 0,35-0,45 dollari.

Veeco Instruments (NASDAQ: VECO) informó los resultados financieros del tercer trimestre de 2024, con ingresos de 184,8 millones de dólares, en comparación con los 177,4 millones de dólares del año anterior. El ingreso neto GAAP fue de 22,0 millones de dólares (0,36 dólares por acción diluida), en comparación con 24,6 millones de dólares (0,42 dólares por acción diluida) en el tercer trimestre de 2023. El negocio de semiconductores creció un 26% interanual y un 13% secuencialmente. Para el cuarto trimestre de 2024, Veeco espera ingresos entre 165 y 185 millones de dólares, con un EPS GAAP de 0,18-0,27 dólares y un EPS no GAAP de 0,35-0,45 dólares.

Veeco Instruments (NASDAQ: VECO)는 2024년 3분기 재무 결과를 발표했으며, 수익은 1억8480만 달러로, 전년 동기 대비 1억7740만 달러에서 증가했습니다. GAAP 순이익은 2200만 달러(희석 주당 0.36 달러)였으며, 2023년 3분기의 2460만 달러(희석 주당 0.42 달러)와 비교됩니다. 반도체 사업부는 전년 대비 26%, 전분기 대비 13% 성장했습니다. 2024년 4분기에는 Veeco가 1억6500만에서 1억8500만 달러의 수익을 예상하고 있으며, GAAP 주당 순이익은 0.18-0.27달러, 비GAAP 주당 순이익은 0.35-0.45 달러로 예상하고 있습니다.

Veeco Instruments (NASDAQ: VECO) a publié ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 184,8 millions de dollars, en hausse par rapport à 177,4 millions de dollars l'année précédente. Le bénéfice net selon les normes GAAP était de 22,0 millions de dollars (0,36 dollar par action diluée), contre 24,6 millions de dollars (0,42 dollar par action diluée) au troisième trimestre 2023. L'activité semi-conducteurs a crû de 26 % d'une année sur l'autre et de 13 % par rapport au trimestre précédent. Pour le quatrième trimestre 2024, Veeco prévoit un chiffre d'affaires compris entre 165 et 185 millions de dollars, avec un BPA GAAP de 0,18-0,27 dollar et un BPA non-GAAP de 0,35-0,45 dollar.

Veeco Instruments (NASDAQ: VECO) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Umsatz von 184,8 Millionen Dollar, ein Anstieg gegenüber 177,4 Millionen Dollar im Vorjahr. Der GAAP-Reingewinn betrug 22,0 Millionen Dollar (0,36 Dollar pro verwässerter Aktie), im Vergleich zu 24,6 Millionen Dollar (0,42 Dollar pro verwässerter Aktie) im dritten Quartal 2023. Das Halbleitergeschäft wuchs um 26 % im Jahresvergleich und um 13 % im Quartalsvergleich. Für das vierte Quartal 2024 erwartet Veeco einen Umsatz zwischen 165 und 185 Millionen Dollar, mit einem GAAP-EPS von 0,18-0,27 Dollar und einem Nicht-GAAP-EPS von 0,35-0,45 Dollar.

Positive
  • Revenue increased 4.2% year-over-year to $184.8 million
  • Semiconductor business grew 26% year-over-year and 13% sequentially
  • Q3 results exceeded mid-point of guidance
Negative
  • GAAP net income decreased 10.6% year-over-year to $22.0 million
  • GAAP EPS declined from $0.42 to $0.36 year-over-year
  • Q4 guidance suggests potential sequential revenue decline

Insights

Veeco's Q3 results show a mixed performance with $184.8M revenue representing a 4.2% YoY growth, but declining profitability metrics. The Semiconductor segment's impressive 26% YoY growth and 13% sequential improvement demonstrates strong market positioning in leading-edge technologies. However, GAAP EPS declined to $0.36 from $0.42 YoY, while Non-GAAP EPS fell to $0.46 from $0.53.

Q4 guidance of $165M to $185M in revenue suggests potential sequential decline, though the wide range indicates market uncertainty. The company's ability to outperform WFE growth for 4 consecutive years and growing traction in industry inflections points to solid competitive positioning, despite near-term profitability pressures.

Third Quarter 2024 Highlights:

  • Revenue of $184.8 million, compared with $177.4 million in the same period last year
  • GAAP net income of $22.0 million, or $0.36 per diluted share, compared with $24.6 million, or $0.42 per diluted share in the same period last year
  • Non-GAAP net income of $28.3 million, or $0.46 per diluted share, compared with $31.0 million, or $0.53 per diluted share in the same period last year

PLAINVIEW, N.Y., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its third quarter ended September 30, 2024. 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
         
GAAP Results Q3 '24 Q3 '23
Revenue $184.8  $177.4 
Net income $22.0  $24.6 
Diluted earnings per share $0.36  $0.42 


Non-GAAP Results Q3 '24 Q3 '23
Operating income $31.0  $32.7 
Net income $28.3  $31.0 
Diluted earnings per share $0.46  $0.53 
         

“Veeco reported solid third quarter results above the mid-point of our guidance, led by record Semiconductor revenue,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “Our Semiconductor business grew 26% year-over-year and 13% sequentially, highlighted by an increase in shipments to leading-edge customers across several product lines. Our portfolio of enabling technologies is gaining traction for several industry inflections, contributing to our expectations for our Semiconductor business to outperform WFE growth for the 4th consecutive year.”

Guidance and Outlook

The following guidance is provided for Veeco’s fourth quarter 2024:

  • Revenue is expected in the range of $165 million to $185 million
  • GAAP diluted earnings per share are expected in the range of $0.18 to $0.27
  • Non-GAAP diluted earnings per share are expected in the range of $0.35 to $0.45

Conference Call Information

A conference call reviewing these results has been scheduled for today, November 6, 2024 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. 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 laser annealing, ion beam, chemical vapor deposition (CVD), metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography 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, 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; 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; the effects of regional or global health epidemics; 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.

-financial tables attached-

Veeco Contacts:
    
Investors:Anthony Pappone(516) 500-8798apappone@veeco.com
Media:Brenden Wright(410) 984-2610bwright@veeco.com
    


Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
            
 Three months ended September 30,  Nine months ended September 30,
 2024 2023 2024 2023
Net sales$184,807  $177,366  $535,170  $492,511 
Cost of sales 105,596   100,489   305,150   286,107 
Gross profit 79,211   76,877   230,020   206,404 
Operating expenses, net:           
Research and development 32,216   28,817   93,554   83,762 
Selling, general, and administrative 25,291   22,814   74,586   69,263 
Amortization of intangible assets 1,687   2,123   5,403   6,358 
Other operating expense (income), net (4,318)  860   (6,625)  1,264 
Total operating expenses, net 54,876   54,614   166,918   160,647 
Operating income 24,335   22,263   63,102   45,757 
Interest income (expense), net 323   247   1,377   (1,187)
Other income (expense), net          (97,091)
Income (loss) before income taxes 24,658   22,510   64,479   (52,521)
Income tax expense (benefit) 2,707   (2,064)  5,730   (516)
Net income (loss)$21,951  $24,574  $58,749  $(52,005)
            
Income (loss) per common share:           
Basic$0.39  $0.44  $1.04  $(0.98)
Diluted$0.36  $0.42  $0.97  $(0.98)
            
Weighted average number of shares:           
Basic 56,410   55,352   56,256   52,978 
Diluted 62,654   59,636   62,103   52,978 
                


Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
        
 September 30,  December 31,
 2024 2023
 (unaudited)    
Assets       
Current assets:       
Cash and cash equivalents$163,228  $158,781 
Restricted cash 258   339 
Short-term investments 157,534   146,664 
Accounts receivable, net 132,347   103,018 
Contract assets 30,795   24,370 
Inventories 242,123   237,635 
Prepaid expenses and other current assets 34,692   35,471 
Total current assets 760,977   706,278 
Property, plant and equipment, net 112,677   118,459 
Operating lease right-of-use assets 26,695   24,377 
Intangible assets, net 38,542   43,945 
Goodwill 214,964   214,964 
Deferred income taxes 115,777   117,901 
Other assets 3,240   3,117 
Total assets$1,272,872  $1,229,041 
        
Liabilities and stockholders’ equity       
Current liabilities:       
Accounts payable$50,049  $42,383 
Accrued expenses and other current liabilities 57,117   57,624 
Contract liabilities 80,468   118,026 
Income taxes payable 1,060    
Current portion of long-term debt 26,473    
Total current liabilities 215,167   218,033 
Deferred income taxes 6,383   6,552 
Long-term debt 249,402   274,941 
Long-term operating lease liabilities 34,421   31,529 
Other liabilities 20,980   25,544 
Total liabilities 526,353   556,599 
        
Total stockholders’ equity 746,519   672,442 
Total liabilities and stockholders’ equity$1,272,872  $1,229,041 
        

Note on Reconciliation Tables

The below 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.

                
Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2024)
(in thousands)
(unaudited)
                
      Non-GAAP Adjustments     
Three months ended September 30, 2024 GAAP Share-Based
Compensation
 Amortization Other Non-GAAP 
Net sales $184,807        $184,807  
Gross profit  79,211   1,565     162   80,938  
Gross margin  42.9 %       43.8 %
Operating expenses  54,876   (7,894)  (1,687)  4,644   49,939  
Operating income  24,335   9,459   1,687   (4,482)^ 30,999  
Net income  21,951   9,459   1,687   (4,836)^ 28,261  

_________________
^  - See table below for additional details.

Other Non-GAAP Adjustments (Q3 2024)
(in thousands)
(unaudited)
   
Three months ended September 30, 2024  
Changes in contingent consideration$(4,644)
Release of inventory fair value step-up associated with the Epiluvac purchase accounting 162 
Subtotal (4,482)
Non-cash interest expense 323 
Non-GAAP tax adjustment * (677)
Total Other$(4,836)

_________________
*  The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q3 2024)
(in thousands, except per share amounts)
(unaudited)
        
 Three months ended
September 30, 2024
 GAAP Non-GAAP
Numerator:       
Net income$21,951  $28,261 
Interest expense associated with 2025 and 2027 Convertible Senior Notes 515   466 
Net income available to common shareholders$22,466  $28,727 
        
Denominator:       
Basic weighted average shares outstanding 56,410   56,410 
Effect of potentially dilutive share-based awards 1,606   1,606 
Dilutive effect of 2025 Convertible Senior Notes 1,104   1,104 
Dilutive effect of 2027 Convertible Senior Notes (1) 1,788   1,354 
Dilutive effect of 2029 Convertible Senior Notes 1,746   1,746 
Diluted weighted average shares outstanding 62,654   62,220 
        
Net income per common share:       
Basic$0.39  $0.50 
Diluted$0.36  $0.46 

_________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2023)
(in thousands)
(unaudited)
                
      Non-GAAP Adjustments     
Three months ended September 30, 2023 GAAP
 Share-based
Compensation
 Amortization Other Non-GAAP 
Net sales $177,366        $177,366  
Gross profit  76,877   1,556       78,433  
Gross margin  43.3 %       44.2 %
Operating expenses  54,614   (5,864)  (2,123)  (911)  45,716  
Operating income  22,263   7,420   2,123   911 ^ 32,717  
Net income  24,574   7,420   2,123   (3,077)^ 31,040  

_________________
^  See table below for additional details.

Other Non-GAAP Adjustments (Q3 2023)
(in thousands)
(unaudited)
   
Three months ended September 30, 2023  
Changes in contingent consideration$818 
Acquisition related 93 
Subtotal 911 
Non-cash interest expense 311 
Non-GAAP tax adjustment * (4,299)
Total Other$(3,077)

_________________
*  - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q3 2023)
(in thousands, except per share amounts)
(unaudited)
        
 Three months ended
September 30, 2023
 GAAP Non-GAAP
Numerator:       
Net income$24,574  $31,040 
Interest expense associated with 2025 and 2027 Convertible Senior Notes 513   466 
Net income available to common shareholders$25,087  $31,506 
        
Denominator:       
Basic weighted average shares outstanding 55,352   55,352 
Effect of potentially dilutive share-based awards 1,391   1,391 
Dilutive effect of 2025 Convertible Senior Notes 1,104   1,104 
Dilutive effect of 2027 Convertible Senior Notes (1) 1,789   1,355 
Diluted weighted average shares outstanding 59,636   59,202 
        
Net income per common share:       
Basic$0.44  $0.56 
Diluted$0.42  $0.53 

_________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2024 and 2023)
(in thousands)
(unaudited)
      
 Three months ended  Three months ended
 September 30, 2024 September 30, 2023
GAAP Net income$21,951  $24,574 
Share-based compensation 9,459   7,420 
Amortization 1,687   2,123 
Changes in contingent consideration (4,644)  818 
Release of inventory fair value step-up associated with the Epiluvac purchase accounting 162    
Acquisition related    93 
Interest (income) expense, net (323)  (247)
Income tax expense 2,707   (2,064)
Non-GAAP Operating income$30,999  $32,717 
        


Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2024)
(in millions, except per share amounts)
(unaudited)
                   
        Non-GAAP Adjustments      
Guidance for the three months ending December 31, 2024 GAAP Share-based 
Compensation
 Amortization    Other     Non-GAAP
Net sales $165 -$185        $165 -$185 
Gross profit  70 - 79   2         72 - 81 
Gross margin  42% - 43%         43% - 44% 
Operating expenses  58 - 60   (8)  (2)     48 - 51 
Operating income  12 - 19   10   2      23 - 30 
Net income $10 -$16   10   2   (1) $21 -$27 
                   
Income per diluted common share $0.18 -$0.27        $0.35 -$0.45 
                       


Income per Diluted Common Share (Q4 2024)
(in millions, except per share amounts)
(unaudited)
                 
Guidance for the three months ending December 31, 2024 GAAP Non-GAAP
Numerator:                
Net income $10 -$16  $21 -$27 
Interest expense associated with convertible notes     1       
Net income available to common shareholders $10 -$17  $21 -$27 
                 
Denominator:                
Basic weighted average shares outstanding  56   56   56   56 
Effect of potentially dilutive share-based awards  2   2   1   1 
Dilutive effect of 2025 Convertible Senior Notes     1   1   1 
Dilutive effect of 2027 Convertible Senior Notes (1)  2   2   1   1 
Dilutive effect of 2029 Convertible Senior Notes  1   1   1   1 
Diluted weighted average shares outstanding  60   61   61   61 
                 
Net income per common share:                
Income per diluted common share $0.18 -$0.27  $0.35 -$0.45 

_________________
(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, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q4 2024)
(in millions)
(unaudited)
       
Guidance for the three months ending December 31, 2024         
GAAP Net income $10 -$16 
Share-based compensation  10 - 10 
Amortization  2 - 2 
Interest income, net  (1)- (1)
Income tax expense  3 - 4 
Non-GAAP Operating income $23 -$30 

Note: Amounts may not calculate precisely due to rounding.


FAQ

What was Veeco's (VECO) revenue in Q3 2024?

Veeco reported revenue of $184.8 million in Q3 2024, compared to $177.4 million in Q3 2023.

How much did Veeco's (VECO) Semiconductor business grow in Q3 2024?

Veeco's Semiconductor business grew 26% year-over-year and 13% sequentially in Q3 2024.

What is Veeco's (VECO) revenue guidance for Q4 2024?

Veeco expects Q4 2024 revenue to be in the range of $165 million to $185 million.

What was Veeco's (VECO) earnings per share in Q3 2024?

Veeco reported GAAP earnings of $0.36 per diluted share and non-GAAP earnings of $0.46 per diluted share in Q3 2024.

Veeco Instruments Inc

NASDAQ:VECO

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Semiconductor Equipment & Materials
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