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Veeco Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Source: Nasdaq GlobeNewswire / 12 Feb 2025 15:05:00 America/Chicago
Fourth Quarter 2024 Highlights:
- Revenue of $182.1 million, compared with $173.9 million in the same period last year
- GAAP net income of $15.0 million, or $0.26 per diluted share, compared with $21.6 million, or $0.37 per diluted share in the same period last year
- Non-GAAP net income of $24.2 million, or $0.41 per diluted share, compared with $29.8 million, or $0.51 per diluted share in the same period last year
Fiscal Year 2024 Highlights:
- Revenue of $717.3 million, compared with $666.4 million in the same period last year
- GAAP net income of $73.7 million, or $1.23 per diluted share, compared with GAAP net loss of $30.4 million or $0.56 loss per diluted share in the same period last year
- Non-GAAP net income of $104.3 million, or $1.74 per diluted share, compared with $98.3 million, or $1.69 per diluted share in the same period last year
PLAINVIEW, N.Y., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 31, 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 4th Quarter Full Year GAAP Results Q4 '24 Q4 '23 2024 2023 Revenue $ 182.1 $ 173.9 $ 717.3 $ 666.4 Net income (loss) $ 15.0 $ 21.6 $ 73.7 $ (30.4 ) Diluted earnings (loss) per share $ 0.26 $ 0.37 $ 1.23 $ (0.56 ) 4th Quarter Full Year Non-GAAP Results Q4 '24 Q4 '23 2024 2023 Operating income $ 27.4 $ 32.1 $ 116.1 $ 109.6 Net income $ 24.2 $ 29.8 $ 104.3 $ 98.3 Diluted earnings per share $ 0.41 $ 0.51 $ 1.74 $ 1.69 “Veeco had a successful year in 2024, highlighted by our Semiconductor business outperforming WFE growth for the 4th consecutive year,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “We achieved several strategic milestones, grew the top-line and delivered solid profitability, all while continuing to allocate capital toward our largest growth opportunities. Looking ahead, our solutions in Laser Annealing, Ion Beam Deposition, and Advanced Packaging are well-positioned to take advantage of growth in leading edge investment in the coming years.”
Guidance and Outlook
The following guidance is provided for Veeco’s first quarter 2025:
- Revenue is expected in the range of $155 million to $175 million
- GAAP diluted earnings per share are expected in the range of $0.11 to $0.22
- Non-GAAP diluted earnings per share are expected in the range of $0.26 to $0.36
Conference Call Information
A conference call reviewing these results has been scheduled for today, February 12, 2025 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) 500-8798 apappone@veeco.com Media: Brenden Wright (410) 984-2610 bwright@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, 2024 2023 2024 2023 Net sales $ 182,131 $ 173,924 $ 717,301 $ 666,435 Cost of sales 108,146 95,269 413,296 381,376 Gross profit 73,985 78,655 304,005 285,059 Operating expenses, net: Research and development 30,953 29,091 124,507 112,853 Selling, general, and administrative 25,077 23,493 99,663 92,756 Amortization of intangible assets 1,580 2,123 6,983 8,481 Asset impairment 28,131 — 28,131 — Other operating expense (income), net (15,635 ) (235 ) (22,260 ) 1,029 Total operating expenses, net 70,106 54,472 237,024 215,119 Operating income 3,879 24,183 66,981 69,940 Interest income (expense), net 476 — 1,853 (1,187 ) Other income (expense), net — — — (97,091 ) Income (loss) before income taxes 4,355 24,183 68,834 (28,338 ) Income tax expense (benefit) (10,610 ) 2,546 (4,880 ) 2,030 Net income (loss) $ 14,965 $ 21,637 $ 73,714 $ (30,368 ) Income (loss) per common share: Basic $ 0.26 $ 0.39 $ 1.31 $ (0.56 ) Diluted $ 0.26 $ 0.37 $ 1.23 $ (0.56 ) Weighted average number of shares: Basic 56,536 55,537 56,426 53,769 Diluted 60,499 59,821 61,596 53,769 Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)December 31, December 31, 2024 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 145,595 $ 158,781 Restricted cash 224 339 Short-term investments 198,719 146,664 Accounts receivable, net 96,834 103,018 Contract assets 37,109 24,370 Inventories 246,735 237,635 Prepaid expenses and other current assets 39,316 35,471 Total current assets 764,532 706,278 Property, plant and equipment, net 113,789 118,459 Operating lease right-of-use assets 26,503 24,377 Intangible assets, net 8,832 43,945 Goodwill 214,964 214,964 Deferred income taxes 120,191 117,901 Other assets 2,766 3,117 Total assets $ 1,251,577 $ 1,229,041 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 43,519 $ 42,383 Accrued expenses and other current liabilities 55,195 57,624 Contract liabilities 64,986 118,026 Income taxes payable 2,086 — Current portion of long-term debt 26,496 — Total current liabilities 192,282 218,033 Deferred income taxes 689 6,552 Long-term debt 249,702 274,941 Long-term operating lease liabilities 34,318 31,529 Other liabilities 3,816 25,544 Total liabilities 480,807 556,599 Total stockholders’ equity 770,770 672,442 Total liabilities and stockholders’ equity $ 1,251,577 $ 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 (Q4 2024)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-Based Three months ended December 31, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 182,131 $ 182,131 Gross profit 73,985 1,523 75,508 Gross margin 40.6 % 41.5 % Operating expenses 70,106 (7,582 ) (1,580 ) (12,876 ) 48,068 Operating income 3,879 9,105 1,580 12,876 ^ 27,440 Net income 14,965 9,105 1,580 (1,443 ) ^ 24,207 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (Q4 2024)
(in thousands)
(unaudited)Three months ended December 31, 2024 Asset impairment $ 28,131 Changes in contingent consideration (16,466 ) Other 1,211 Subtotal 12,876 Non-cash interest expense 322 Tax benefits associated with asset impairments (12,239 ) Non-GAAP tax adjustment * (2,402 ) Total Other $ (1,443 ) ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (Q4 2024)
(in thousands, except per share amounts)
(unaudited)Three months ended December 31, 2024 GAAP Non-GAAP Numerator: Net income $ 14,965 $ 24,207 Interest expense associated with 2025 and 2027 Convertible Senior Notes 513 466 Net income available to common shareholders $ 15,478 $ 24,673 Denominator: Basic weighted average shares outstanding 56,536 56,536 Effect of potentially dilutive share-based awards 1,070 1,070 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes(1) 1,789 1,354 Diluted weighted average shares outstanding 60,499 60,064 Net income per common share: Basic $ 0.26 $ 0.43 Diluted $ 0.26 $ 0.41 ____________________________
(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 (Q4 2023)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-based Three months ended December 31, 2023 GAAP Compensation Amortization Other Non-GAAP Net sales $ 173,924 $ 173,924 Gross profit 78,655 334 78,989 Gross margin 45.2 % 45.4 % Operating expenses 54,472 (5,845 ) (2,123 ) 363 46,867 Operating income 24,183 6,179 2,123 (363 ) ^ 32,122 Net income 21,637 6,179 2,123 (116 ) ^ 29,823 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (Q4 2023)
(in thousands)
(unaudited)Three months ended December 31, 2023 Changes in contingent consideration $ (465 ) Other 102 Subtotal (363 ) Non-cash interest expense 294 Non-GAAP tax adjustment * (47 ) Total Other $ (116 ) ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (Q4 2023)
(in thousands, except per share amounts)
(unaudited)Three months ended December 31, 2023 GAAP Non-GAAP Numerator: Net income $ 21,637 $ 29,823 Interest expense associated with 2025 and 2027 Convertible Senior Notes 511 466 Net income available to common shareholders $ 22,148 $ 30,289 Denominator: Basic weighted average shares outstanding 55,537 55,537 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 59,821 59,387 Net income per common share: Basic $ 0.39 $ 0.54 Diluted $ 0.37 $ 0.51 ____________________________
(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 and 2023)
(in thousands)
(unaudited)Three months ended Three months ended December 31, 2024 December 31, 2023 GAAP Net income $ 14,965 $ 21,637 Share-based compensation 9,105 6,179 Amortization 1,580 2,123 Asset impairment 28,131 — Changes in contingent consideration (16,466 ) (465 ) Transition expenses related to San Jose expansion project — 57 Acquisition related — 45 Interest (income) expense, net (476 ) — Other 1,211 — Income tax expense (benefit) (10,610 ) 2,546 Non-GAAP Operating income $ 27,440 $ 32,122 Reconciliation of GAAP to Non-GAAP Financial Data (FY 2024)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-based For the year ended December 31, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $ 717,301 $ 717,301 Gross profit 304,005 6,263 162 310,430 Gross margin 42.4 % 43.3 % Operating expenses 237,024 (29,616 ) (6,983 ) (6,067 ) 194,358 Operating income 66,981 35,879 6,983 6,229 ^ 116,072 Net income (loss) 73,714 35,879 6,983 (12,233 ) ^ 104,343 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (FY 2024)
(in thousands)
(unaudited)For the year ended December 31, 2024 Asset impairment $ 28,131 Changes in contingent consideration (21,242 ) Sale of productive assets (2,033 ) Other 1,373 Subtotal 6,229 Non-cash interest expense 1,257 Tax benefits associated with asset impairments (12,239 ) Non-GAAP tax adjustment * (7,480 ) Total Other $ (12,233 ) ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (FY 2024)
(in thousands, except per share amounts)
(unaudited)Year ended December 31, 2024 GAAP Non-GAAP Numerator: Net income $ 73,714 $ 104,343 Interest expense associated with convertible notes 2,054 1,865 Net income available to common shareholders $ 75,768 $ 106,208 Denominator: Basic weighted average shares outstanding 56,426 56,426 Effect of potentially dilutive share-based awards 1,010 1,010 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 1,268 1,268 Diluted weighted average shares outstanding 61,596 61,162 Net income per common share: Basic $ 1.31 $ 1.85 Diluted $ 1.23 $ 1.74 ____________________________
(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 (FY 2023)
(in thousands)
(unaudited)Non-GAAP Adjustments Share-based For the year ended December 31, 2023 GAAP Compensation Amortization Other Non-GAAP Net sales $ 666,435 $ 666,435 Gross profit 285,059 4,913 232 290,204 Gross margin 42.8 % 43.5 % Operating expenses 215,119 (23,645 ) (8,481 ) (2,363 ) 180,630 Operating income 69,940 28,558 8,481 2,595 ^ 109,574 Net income (loss) (30,368 ) 28,558 8,481 91,668 ^ 98,339 ____________________________
^ - See table below for additional details.Other Non-GAAP Adjustments (FY 2023)
(in thousands)
(unaudited)For the year ended December 31, 2023 Acquisition related $ 1,056 Changes in contingent consideration 701 Transition expenses related to San Jose expansion project 838 Subtotal 2,595 Non-cash interest expense 1,118 Other (income) expense, net 97,091 Non-GAAP tax adjustment * (9,136 ) Total Other $ 91,668 ____________________________
* - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.Net Income per Common Share (FY 2023)
(in thousands, except per share amounts)
(unaudited)Year ended December 31, 2023 GAAP Non-GAAP Numerator: Net income (loss) $ (30,368 ) $ 98,339 Interest expense associated with convertible notes — 4,768 Net income (loss) available to common shareholders $ (30,368 ) $ 103,107 Denominator: Basic weighted average shares outstanding 53,769 53,769 Effect of potentially dilutive share-based awards — 850 Dilutive effect of 2023 Convertible Senior Notes — 21 Dilutive effect of 2025 Convertible Senior Notes — 2,786 Dilutive effect of 2027 Convertible Senior Notes(1) — 3,417 Diluted weighted average shares outstanding 53,769 60,843 Net income per common share: Basic $ (0.56 ) $ 1.83 Diluted $ (0.56 ) $ 1.69 ____________________________
(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 (FY 2024 and 2023)
(in thousands)
(unaudited)Year ended Year ended December 31, 2024 December 31, 2023 GAAP Net income (loss) $ 73,714 $ (30,368 ) Share-based compensation 35,879 28,558 Amortization 6,983 8,481 Asset impairment 28,131 — Acquisition related — 1,056 Changes in contingent consideration (21,242 ) 701 Transition expenses related to San Jose expansion project — 838 Sales of productive assets (2,033 ) — Interest (income) expense, net (1,853 ) 1,187 Other 1,373 97,091 Income tax expense (benefit) (4,880 ) 2,030 Non-GAAP Operating income (loss) $ 116,072 $ 109,574 Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025)
(in millions, except per share amounts)
(unaudited)Non-GAAP Adjustments Guidance for the three months ending Share-based March 31, 2025 GAAP Compensation Amortization Other Non-GAAP Net sales $ 155 - $ 175 $ 155 - $ 175 Gross profit 63 - 72 2 — — 65 - 74 Gross margin 41 % - 41 % 42 % - 42 % Operating expenses 56 - 58 (8 ) (1 ) — 47 - 49 Operating income 7 - 14 10 1 — 18 - 25 Net income $ 7 - $ 13 10 1 (2 ) $ 16 - $ 22 Income per diluted common share $ 0.11 - $ 0.22 $ 0.26 - $ 0.36 Income per Diluted Common Share (Q1 2025)
(in millions, except per share amounts)
(unaudited)Guidance for the three months ending March 31, 2025 GAAP Non-GAAP Numerator: Net income available to common shareholders $ 7 - $ 13 $ 16 - $ 22 Denominator: Basic weighted average shares outstanding 58 58 58 58 Effect of potentially dilutive share-based awards 1 1 1 1 Dilutive effect of 2027 Convertible Senior Notes(1) — 2 1 1 Diluted weighted average shares outstanding 59 61 60 60 Net income per common share: Income per diluted common share $ 0.11 - $ 0.22 $ 0.26 - $ 0.36 ____________________________
(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 (Q1 2025)
(in millions)
(unaudited)Guidance for the three months ending March 31, 2025 GAAP Net income $ 7 - $ 13 Share-based compensation 10 - 10 Amortization 1 - 1 Income tax expense — - 1 Non-GAAP Operating income $ 18 - $ 25 Note: Amounts may not calculate precisely due to rounding.
