EX-99.1 2 a13-23867_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

NEWS

 

Veeco Instruments Inc., 1 Terminal Drive, Plainview, NY 11803 Tel. 516-677-0200 Fax. 516-677-0380

 

FOR IMMEDIATE RELEASE

Financial Contact: Debra Wasser, SVP Investor Relations & Corporate Communications, 516-677-0200 x1472

Media Contact:  Jeffrey Pina, Senior Director Marcom, 516-677-0200 x1222

 

VEECO REPORTS THIRD QUARTER 2013 FINANCIAL RESULTS

AND ANNOUNCES CONFERENCE CALL

 

Plainview, NY, November 8, 2013 — Veeco Instruments Inc. (Nasdaq: VECO) announced its financial results for the third quarter ended September 30, 2013.  Veeco reports its results on a U.S. generally accepted accounting principles (“GAAP”) basis, and also provides results excluding certain items.  Please refer to the attached table for details of the reconciliation between GAAP operating results and Non-GAAP operating results.  All results presented herein are for Veeco’s “Continuing Operations.”

 

GAAP Results ($M except per share data)

 

 

 

Q3 ‘13

 

Q3 ‘12

 

Revenues

 

$

99.3

 

$

132.7

 

Net (loss) income

 

$

(6.0

)

$

7.7

 

Per share (loss) income

 

$

(0.16

)

$

0.20

 

 

Non-GAAP Results ($M except per share data)

 

 

 

Q3 ‘13

 

Q3 ‘12

 

Adjusted EBITA

 

$

(5.1

)

$

14.2

 

Net (loss) income

 

$

(3.0

)

$

11.7

 

Per share (loss) income

 

$

(0.08

)

$

0.30

 

 

Third Quarter 2013 Results

 

“Veeco’s third quarter 2013 results were impacted by persistent overcapacity and weak business conditions in our MOCVD and Data Storage businesses,” said John R. Peeler, Veeco’s Chairman and Chief Executive Officer.  “Third quarter revenue was $99 million, and we lost $5 million on an adjusted EBITA basis and non-GAAP loss per share was ($0.08).  In addition to low volumes, our gross margins remain under pressure from intense pricing pressure in MOCVD.”  Third quarter LED & Solar revenues were $75 million: $68 million in MOCVD and $7 million in MBE.  Data Storage revenues were $24 million.

 

Peeler continued, “Veeco’s third quarter bookings increased to $92 million, compared to $85 million in the prior quarter.  MOCVD bookings increased 28% sequentially to $67 million.  We are pleased to be winning the most important deals, but we have not yet seen a recovery in MOCVD demand. Production orders for MBE and Data Storage systems also remain elusive, and bookings in those businesses were weak, at $7 million and $18 million, respectively.”

 

“While business conditions have remained challenging throughout 2013, we remain positive about long-term trends in LED lighting and our new opportunity in flexible OLED encapsulation for mobile phones,” added Peeler. “Our strong R&D capability, technology leadership position, world class sales and support organization, flexible manufacturing approach and solid balance sheet provide a strong foundation for the future.”

 


 

November 11, 2013 Conference Call Information

 

A conference call reviewing these results has been scheduled for 5:00pm ET on Monday, November 11th at 1-888-233-7976 (toll free) or 1-913-981-4900 using passcode 8358383.  The call will also be webcast live on the Veeco website at www.veeco.com.  A replay of the call will be available beginning at 8:00pm ET that evening through midnight on November 25, 2013 at 888-203-1112 or 719-457-0820, using passcode 8358383, or on the Veeco website.  We will post an accompanying slide presentation to our website prior to the beginning of the call.

 

About Veeco

 

Veeco’s process equipment solutions enable the manufacture of LEDs, flexible OLEDs, power electronics, hard drives, MEMS and wireless chips.  We are the market leader in MOCVD, MBE, Ion Beam and other advanced thin film process technologies.  Our high performance systems drive innovation in energy efficiency, consumer electronics and network storage and allow our customers to maximize productivity and achieve lower cost of ownership.  For information on our company, products and worldwide service and support, please visit www.veeco.com.

 

To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2012 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases.  Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

 

-financial tables attached-

 

2


 

Veeco Instruments Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30, 

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

99,324

 

$

132,715

 

$

 258,540

 

$

409,171

 

Cost of sales

 

69,016

 

82,831

 

171,040

 

232,765

 

Gross profit

 

30,308

 

49,884

 

87,500

 

176,406

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (income):

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

19,650

 

13,892

 

59,077

 

54,558

 

Research and development

 

18,993

 

25,775

 

60,600

 

72,991

 

Amortization

 

855

 

1,477

 

2,566

 

3,877

 

Restructuring

 

1,240

 

2,014

 

1,771

 

2,077

 

Other, net

 

(493

)

(737

)

(141

)

(626

)

Total operating expenses

 

40,245

 

42,421

 

123,873

 

132,877

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(9,937

)

7,463

 

(36,373

)

43,529

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

(192

)

(176

)

(620

)

(708

)

(Loss) income from continuing operations before income taxes

 

(9,745

)

7,639

 

(35,753

)

44,237

 

Income tax (benefit) provision

 

(3,719

)

(59

)

(15,575

)

9,066

 

(Loss) income from continuing operations

 

(6,026

)

7,698

 

(20,178

)

35,171

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

Income from discontinued operations before income taxes

 

—

 

5,396

 

—

 

6,534

 

Income tax provision

 

—

 

1,341

 

—

 

1,722

 

Income from discontinued operations, net of tax

 

—

 

4,055

 

—

 

4,812

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(6,026

)

$

11,753

 

$

 (20,178

)

$

39,983

 

 

 

 

 

 

 

 

 

 

 

(Loss) income per common share:

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.16

)

$

0.20

 

$

(0.52

)

$

 0.92

 

Discontinued operations

 

—

 

0.10

 

—

 

0.12

 

(Loss) income

 

$

(0.16

)

$

0.30

 

$

 (0.52

)

$

1.04

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.16

)

$

0.20

 

$

 (0.52

)

$

0.90

 

Discontinued operations

 

—

 

0.10

 

—

 

0.13

 

(Loss) income

 

$

(0.16

)

$

0.30

 

$

 (0.52

)

$

1.03

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

38,841

 

38,577

 

38,774

 

38,402

 

Diluted

 

38,841

 

39,169

 

38,774

 

39,006

 

 

3


 

Veeco Instruments Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

September 30,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

247,666

 

$

384,557

 

Short-term investments

 

322,488

 

192,234

 

Restricted cash

 

2,850

 

2,017

 

Accounts receivable, net

 

37,769

 

63,169

 

Inventories, net

 

57,585

 

59,807

 

Prepaid expenses and other current assets

 

36,864

 

32,155

 

Deferred income taxes, current

 

10,545

 

10,545

 

Total current assets

 

715,767

 

744,484

 

 

 

 

 

 

 

Property, plant and equipment at cost, net

 

95,698

 

98,302

 

Goodwill

 

55,828

 

55,828

 

Deferred income taxes

 

6,072

 

935

 

Intangible assets, net

 

18,407

 

20,974

 

Other assets, net

 

17,341

 

16,781

 

Total assets

 

$

909,113

 

$

937,304

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

28,334

 

$

26,087

 

Accrued expenses and other current liabilities

 

60,283

 

74,260

 

Deferred revenue

 

8,032

 

9,380

 

Income taxes payable

 

974

 

2,292

 

Current portion of long-term debt

 

285

 

268

 

Total current liabilities

 

97,908

 

112,287

 

 

 

 

 

 

 

Deferred income taxes

 

7,110

 

7,137

 

Long-term debt

 

1,922

 

2,138

 

Other liabilities

 

4,894

 

4,530

 

Total liabilities

 

111,834

 

126,092

 

 

 

 

 

 

 

Equity

 

797,279

 

811,212

 

 

 

 

 

 

 

Total liabilities and equity

 

$

909,113

 

$

937,304

 

 

4


 

Veeco Instruments Inc. and Subsidiaries

Reconciliation of GAAP to non-GAAP results

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(9,937

)

$

7,463

 

$

(36,373

)

$

43,529

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

855

 

1,477

 

2,566

 

3,877

 

Equity-based compensation

 

2,763

 

3,265

 

9,055

 

10,409

 

Restructuring

 

1,240

 

2,014

 

1,771

 

2,077

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings from continuing operations before interest, income taxes and amortization excluding certain items (“Adjusted EBITA”)

 

$

(5,079

)

$

14,219

 

$

(22,981

)

$

59,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net (Loss) Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations (GAAP basis)

 

$

(6,026

)

$

7,698

 

$

(20,178

)

$

35,171

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

855

 

1,477

 

2,566

 

3,877

 

Equity-based compensation

 

2,763

 

3,265

 

9,055

 

10,409

 

Restructuring

 

1,240

 

2,014

 

1,771

 

2,077

 

Income tax effect of non-GAAP adjustments

 

(1,822

)(1)

(2,772

)(1)

(4,936

)(1)

(6,400

)(1)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net (loss) income

 

$

(2,990

)

$

11,682

 

$

(11,722

)

$

45,134

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP (loss) earnings per diluted share excluding certain items (“Non-GAAP EPS”)

 

$

(0.08

)

$

0.30

 

$

(0.30

)

$

1.16

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

38,841

 

39,169

 

38,774

 

39,006

 

 

(1) The Company utilized the with and without method to determine the income tax effect of non-GAAP adjustments.

 

NOTE - This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States (“GAAP”), and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on adjusted EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes adjusted EBITA reports baseline performance and thus provides useful information.

 

5


 

Veeco Instruments Inc. and Subsidiaries

Segment Bookings, Revenues, and Reconciliation

of Operating (Loss) Income to Adjusted (Loss) EBITA

(In thousands)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

LED & Solar

 

 

 

 

 

 

 

 

 

Bookings

 

$

73,517

 

$

67,842

 

$

174,321

 

$

229,766

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

75,001

 

$

98,905

 

$

193,241

 

$

281,257

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(4,063

)

$

5,733

 

$

(15,674

)

$

28,922

 

Amortization

 

531

 

1,154

 

1,595

 

2,878

 

Equity-based compensation

 

1,016

 

1,914

 

3,042

 

4,016

 

Restructuring

 

793

 

660

 

1,216

 

718

 

Adjusted (loss) EBITA

 

$

(1,723

)

$

9,461

 

$

(9,821

)

$

36,534

 

 

 

 

 

 

 

 

 

 

Data Storage

 

 

 

 

 

 

 

 

 

Bookings

 

$

17,966

 

$

15,850

 

$

72,340

 

$

69,858

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

24,323

 

$

33,810

 

$

65,299

 

$

127,914

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

925

 

$

1,896

 

$

(136

)

$

21,453

 

Amortization

 

324

 

323

 

971

 

999

 

Equity-based compensation

 

439

 

763

 

1,057

 

1,614

 

Restructuring

 

447

 

1,296

 

497

 

1,301

 

Adjusted EBITA

 

$

2,135

 

$

4,278

 

$

2,389

 

$

25,367

 

 

 

 

 

 

 

 

 

 

Unallocated Corporate

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(6,607

)

$

10

 

$

(19,943

)

$

(6,138

)

Interest income, net

 

(192

)

$

(176

)

(620

)

$

(708

)

Equity-based compensation

 

1,308

 

588

 

4,956

 

4,779

 

Restructuring

 

—

 

58

 

58

 

58

 

Adjusted (loss) EBITA

 

$

(5,491

)

$

480

 

$

(15,549

)

$

(2,009

)

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

Bookings

 

$

91,483

 

$

83,692

 

$

246,661

 

$

299,624

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

99,324

 

$

132,715

 

$

258,540

 

$

409,171

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(9,745

)

$

7,639

 

$

(35,753

)

$

44,237

 

Interest income, net

 

(192

)

(176

)

(620

)

(708

)

Amortization

 

855

 

1,477

 

2,566

 

3,877

 

Equity-based compensation

 

2,763

 

3,265

 

9,055

 

10,409

 

Restructuring

 

1,240

 

2,014

 

1,771

 

2,077

 

Adjusted (loss) EBITA

 

$

(5,079

)

$

14,219

 

$

(22,981

)

$

59,892

 

 

6