Fourth Quarter 2018 Highlights:
Veeco Instruments Inc. (Nasdaq: VECO) today announced financial
results for its fourth quarter and fiscal year ended December 31,
2018. 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 '18 |
|
Q4 '17 |
|
2018 |
|
|
2017 |
|
Revenue |
|
$ |
99.0 |
|
|
$ |
139.7 |
|
|
$ |
542.1 |
|
|
$ |
475.7 |
|
Net income (loss) |
|
$ |
(144.7 |
) |
|
$ |
(8.5 |
) |
|
$ |
(407.1 |
) |
|
$ |
(51.4 |
) |
Diluted earnings (loss)
per share |
|
$ |
(3.11 |
) |
|
$ |
(0.18 |
) |
|
$ |
(8.63 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Quarter |
|
Full Year |
Non-GAAP Results |
|
Q4 '18 |
|
Q4 '17 |
|
2018 |
|
2017 |
Net income (loss) |
|
$ |
(7.5 |
) |
|
$ |
6.0 |
|
$ |
14.2 |
|
$ |
16.8 |
Operating income
(loss) |
|
$ |
(6.9 |
) |
|
$ |
7.3 |
|
$ |
23.2 |
|
$ |
23.2 |
Diluted earnings (loss)
per share |
|
$ |
(0.16 |
) |
|
$ |
0.13 |
|
$ |
0.30 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on a reduction in Veeco’s stock price during
the fourth quarter, the Company recorded a goodwill impairment
charge of $123 million for GAAP results. This is a non-cash
charge and does not affect liquidity, day to day operations or
Non-GAAP results of the company.
"Commoditization of the MOCVD market for LEDs in
China has reduced our revenue significantly, and is reflected in
our fourth quarter results,” commented William J. Miller, Ph.D.,
Chief Executive Officer. “However, we are excited about our
future as we see order activity in leading edge, Front-End
Semiconductor and exciting growth opportunities in Compound
Semiconductor and Advanced Packaging.”
Guidance and
Outlook
The following guidance is provided for Veeco’s
first quarter 2019:
- Revenue is expected in the range of $85 million to $105
million
- Non-GAAP operating income (loss) is expected in the range of
($12) million to ($3) million
- GAAP earnings (loss) per share are expected in the range of
($0.59) to ($0.39)
- Non-GAAP earnings (loss) per share are expected in the range of
($0.30) to ($0.10)
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, 2019 starting at 5:00pm ET. To
join the call, dial 1-800-239-9838 (toll free) or 1-929-477-0448
and use passcode 8815152. 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 beginning at 8:00pm ET this
evening. We will post an accompanying slide
presentation to our website prior to the beginning of the
call.
New Accounting
Standard
The Company adopted the new accounting standard,
ASC 606, related to revenue recognition, effective January 1, 2018.
The prior periods presented here have been recast to reflect the
adoption of this new standard.
About Veeco
Veeco (NASDAQ: VECO) is a leading manufacturer of
innovative semiconductor process equipment. Our proven MOCVD,
lithography, laser annealing, ion beam and single wafer etch &
clean technologies play an integral role in producing LEDs for
solid-state lighting and displays, and in the fabrication of
advanced semiconductor devices. With equipment designed to maximize
performance, yield and cost of ownership, Veeco holds technology
leadership positions in all these served markets. To learn more
about Veeco's innovative equipment and services, visit
www.veeco.com.
Forward-looking
Statements
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, 2017 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-
Veeco Contacts:
Investors: Anthony Bencivenga 516-677-0200 x1272
abencivenga@veeco.com
Media:David Pinto 408-325-6157dpinto@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, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Net sales |
|
$ |
98,972 |
|
|
$ |
139,661 |
|
|
$ |
542,082 |
|
|
$ |
475,686 |
|
|
Cost of sales |
|
|
63,713 |
|
|
|
84,309 |
|
|
|
348,363 |
|
|
|
299,458 |
|
|
Gross profit |
|
|
35,259 |
|
|
|
55,352 |
|
|
|
193,719 |
|
|
|
176,228 |
|
|
Operating expenses,
net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
24,962 |
|
|
|
24,318 |
|
|
|
97,755 |
|
|
|
81,987 |
|
|
Selling,
general, and administrative |
|
|
21,218 |
|
|
|
28,675 |
|
|
|
92,060 |
|
|
|
100,250 |
|
|
Amortization of intangible assets |
|
|
4,249 |
|
|
|
13,753 |
|
|
|
32,351 |
|
|
|
35,475 |
|
|
Restructuring |
|
|
887 |
|
|
|
2,246 |
|
|
|
8,556 |
|
|
|
11,851 |
|
|
Acquisition costs |
|
|
53 |
|
|
|
1,510 |
|
|
|
2,959 |
|
|
|
17,786 |
|
|
Asset
impairment |
|
|
122,829 |
|
|
|
— |
|
|
|
375,172 |
|
|
|
1,139 |
|
|
Other,
net |
|
|
42 |
|
|
|
(165 |
) |
|
|
368 |
|
|
|
(392 |
) |
|
Total operating
expenses, net |
|
|
174,240 |
|
|
|
70,337 |
|
|
|
609,221 |
|
|
|
248,096 |
|
|
Operating income
(loss) |
|
|
(138,981 |
) |
|
|
(14,985 |
) |
|
|
(415,502 |
) |
|
|
(71,868 |
) |
|
Interest
expense, net |
|
|
(4,485 |
) |
|
|
(4,753 |
) |
|
|
(18,332 |
) |
|
|
(17,122 |
) |
|
Income (loss) before
income taxes |
|
|
(143,466 |
) |
|
|
(19,738 |
) |
|
|
(433,834 |
) |
|
|
(88,990 |
) |
|
Income
tax expense (benefit) |
|
|
1,208 |
|
|
|
(11,259 |
) |
|
|
(26,746 |
) |
|
|
(37,594 |
) |
|
Net income (loss) |
|
$ |
(144,674 |
) |
|
$ |
(8,479 |
) |
|
$ |
(407,088 |
) |
|
$ |
(51,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(3.11 |
) |
|
$ |
(0.18 |
) |
|
$ |
(8.63 |
) |
|
$ |
(1.16 |
) |
|
Diluted |
|
$ |
(3.11 |
) |
|
$ |
(0.18 |
) |
|
$ |
(8.63 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
46,551 |
|
|
|
47,037 |
|
|
|
47,151 |
|
|
|
44,174 |
|
|
Diluted |
|
|
46,551 |
|
|
|
47,037 |
|
|
|
47,151 |
|
|
|
44,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries Condensed Consolidated Balance
Sheets(in thousands)
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2018 |
|
2017 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
212,273 |
|
$ |
279,736 |
Restricted cash |
|
|
809 |
|
|
847 |
Short-term investments |
|
|
48,189 |
|
|
47,780 |
Accounts
receivable, net |
|
|
66,808 |
|
|
98,866 |
Contract
assets |
|
|
10,397 |
|
|
160 |
Inventories |
|
|
156,311 |
|
|
120,266 |
Deferred
cost of sales |
|
|
3,072 |
|
|
15,994 |
Prepaid
expenses and other current assets |
|
|
22,221 |
|
|
33,437 |
Total
current assets |
|
|
520,080 |
|
|
597,086 |
Property, plant and
equipment, net |
|
|
80,284 |
|
|
85,058 |
Intangible assets,
net |
|
|
85,149 |
|
|
369,843 |
Goodwill |
|
|
184,302 |
|
|
307,131 |
Deferred income
taxes |
|
|
1,869 |
|
|
3,047 |
Other assets |
|
|
29,132 |
|
|
25,310 |
Total assets |
|
$ |
900,816 |
|
$ |
1,387,475 |
|
|
|
|
|
|
|
Liabilities and stockholders’
equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
39,611 |
|
$ |
50,318 |
Accrued
expenses and other current liabilities |
|
|
46,450 |
|
|
58,068 |
Customer
deposits and deferred revenue |
|
|
72,736 |
|
|
112,032 |
Income
taxes payable |
|
|
1,256 |
|
|
3,846 |
Total
current liabilities |
|
|
160,053 |
|
|
224,264 |
Deferred income
taxes |
|
|
5,690 |
|
|
36,845 |
Long-term debt |
|
|
287,392 |
|
|
275,630 |
Other liabilities |
|
|
9,906 |
|
|
10,643 |
Total liabilities |
|
|
463,041 |
|
|
547,382 |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
437,775 |
|
|
840,093 |
|
|
|
|
|
|
|
Total liabilities and stockholders’
equity |
|
$ |
900,816 |
|
$ |
1,387,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2018 |
|
GAAP |
|
Compensation |
|
Amortization |
|
Other |
|
Non-GAAP |
Net sales |
|
$ |
98,972 |
|
|
|
|
|
|
|
|
$ |
98,972 |
|
Gross profit |
|
|
35,259 |
|
|
282 |
|
|
|
|
134 |
|
|
|
35,675 |
|
Gross margin |
|
|
35.6 |
% |
|
|
|
|
|
|
|
|
36.0 |
% |
Research and
development |
|
|
24,962 |
|
|
(883 |
) |
|
|
|
|
|
|
24,079 |
|
Selling, general, and
administrative and Other, net |
|
|
21,260 |
|
|
(2,024 |
) |
|
|
|
(723 |
) |
|
|
18,513 |
|
Net income (loss) |
|
|
(144,674 |
) |
|
3,353 |
|
|
4,249 |
|
129,532 |
|
|
|
(7,540 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(3.11 |
) |
|
|
|
|
|
|
|
$ |
(0.16 |
) |
Diluted |
|
|
(3.11 |
) |
|
|
|
|
|
|
|
|
(0.16 |
) |
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
46,551 |
|
|
|
|
|
|
|
|
|
46,551 |
|
Diluted |
|
|
46,551 |
|
|
|
|
|
|
|
|
|
46,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
SubsidiariesOther Non-GAAP
Adjustments(in thousands) (unaudited)
|
|
|
Three months ended December 31,
2018 |
|
|
Restructuring |
|
722 |
Acquisition
related |
|
53 |
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
70 |
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
190 |
Accelerated
depreciation |
|
597 |
Asset impairment |
|
122,829 |
Non-cash interest
expense |
|
3,023 |
Non-GAAP tax adjustment
* |
|
2,048 |
Total
Other |
|
129,532 |
___________________________* - 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, incremental
transaction-related compensation, 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
SubsidiariesReconciliation of
GAAP to Non-GAAP Financial Data(in thousands,
except per share amounts)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based |
|
|
|
|
|
|
|
Three months ended December 31,
2017 |
|
|
GAAP |
|
Compensation |
|
Amortization |
|
Other |
|
Non-GAAP |
|
Net sales |
|
$ |
139,661 |
|
|
|
|
|
|
|
|
$ |
139,661 |
|
Gross profit |
|
|
55,352 |
|
|
607 |
|
|
|
|
537 |
|
|
|
56,496 |
|
Gross margin |
|
|
39.6 |
% |
|
|
|
|
|
|
|
|
40.5 |
% |
Research and
development |
|
|
24,318 |
|
|
(971 |
) |
|
|
|
|
|
|
23,347 |
|
Selling, general, and
administrative and Other, net |
|
|
28,510 |
|
|
(2,668 |
) |
|
|
|
(196 |
) |
|
|
25,646 |
|
Net income (loss) |
|
|
(8,479 |
) |
|
4,220 |
|
|
13,753 |
|
(3,460 |
) |
|
|
6,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
$ |
0.13 |
|
Diluted |
|
|
(0.18 |
) |
|
|
|
|
|
|
|
|
0.13 |
|
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
47,037 |
|
|
|
|
|
|
|
|
|
47,109 |
|
Diluted |
|
|
47,037 |
|
|
|
|
|
|
|
|
|
47,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
SubsidiariesOther Non-GAAP
Adjustments(in thousands) (unaudited)
|
|
|
Three months ended December 31,
2017 |
|
|
Restructuring |
|
2,073 |
|
Acquisition
related |
|
1,510 |
|
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
440 |
|
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
293 |
|
Non-cash interest
expense |
|
2,805 |
|
Non-GAAP tax adjustment
* |
|
(10,581 |
) |
Total
Other |
|
(3,460 |
) |
___________________________* - The ‘with or without’ method
is utilized to determine the income tax effect of all Non-GAAP
adjustments, as well as the exclusion of certain tax benefits
attributed to the change in U.S. tax laws. |
|
|
|
|
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, incremental
transaction-related compensation, 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
SubsidiariesReconciliation of
GAAP Net Income (loss) to Non-GAAP Operating Income
(loss)(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Three months
ended |
|
|
December 31,
2018 |
|
December 31,
2017 |
GAAP Net income
(loss) |
|
$ |
(144,674 |
) |
|
$ |
(8,479 |
) |
Share-based
compensation |
|
|
3,353 |
|
|
|
4,220 |
|
Amortization |
|
|
4,249 |
|
|
|
13,753 |
|
Restructuring |
|
|
722 |
|
|
|
2,073 |
|
Acquisition
related |
|
|
53 |
|
|
|
1,510 |
|
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
|
70 |
|
|
|
440 |
|
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
|
190 |
|
|
|
293 |
|
Accelerated
depreciation |
|
|
597 |
|
|
|
— |
|
Asset impairment |
|
|
122,829 |
|
|
|
— |
|
Interest (income)
expense |
|
|
4,485 |
|
|
|
4,753 |
|
Income tax expense
(benefit) |
|
|
1,208 |
|
|
|
(11,259 |
) |
Non-GAAP Operating
income (loss) |
|
$ |
(6,918 |
) |
|
$ |
7,304 |
|
|
|
|
|
|
|
|
|
|
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, incremental
transaction-related compensation, 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
SubsidiariesReconciliation 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,
2018 |
|
|
GAAP |
|
Compensation |
|
Amortization |
|
Other |
|
Non-GAAP |
|
Net sales |
|
$ |
542,082 |
|
|
|
|
|
|
|
|
$ |
542,082 |
|
Gross profit |
|
|
193,719 |
|
|
1,885 |
|
|
|
|
2,849 |
|
|
|
198,453 |
|
Gross margin |
|
|
35.7 |
% |
|
|
|
|
|
|
|
|
36.6 |
% |
Research and
development |
|
|
97,755 |
|
|
(3,611 |
) |
|
|
|
|
|
|
94,144 |
|
Selling, general, and
administrative and Other |
|
|
92,428 |
|
|
(9,417 |
) |
|
|
|
(1,863 |
) |
|
|
81,148 |
|
Net income (loss) |
|
|
(407,088 |
) |
|
16,074 |
|
|
32,351 |
|
372,862 |
|
|
|
14,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(8.63 |
) |
|
|
|
|
|
|
|
$ |
0.30 |
|
Diluted |
|
|
(8.63 |
) |
|
|
|
|
|
|
|
|
0.30 |
|
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
47,151 |
|
|
|
|
|
|
|
|
|
47,171 |
|
Diluted |
|
|
47,151 |
|
|
|
|
|
|
|
|
|
47,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
SubsidiariesOther Non-GAAP
Adjustments(in thousands)(unaudited)
|
|
|
For the year ended December 31,
2018 |
|
|
Restructuring |
|
7,395 |
|
Acquisition
related |
|
2,959 |
|
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
2,516 |
|
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
1,011 |
|
Accelerated
depreciation |
|
1,184 |
|
Asset impairment |
|
375,172 |
|
Non-cash interest
expense |
|
11,762 |
|
Non-GAAP tax adjustment
* |
|
(29,137 |
) |
Total
Other |
|
372,862 |
|
___________________________* - 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 incremental transaction-related
compensation.
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
SubsidiariesReconciliation 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,
2017 |
|
|
GAAP |
|
Compensation |
|
Amortization |
|
Other |
|
Non-GAAP |
|
Net sales |
|
$ |
475,686 |
|
|
|
|
|
|
|
|
$ |
475,686 |
|
Gross profit |
|
|
176,228 |
|
|
2,505 |
|
|
|
|
10,075 |
|
|
|
188,808 |
|
Gross margin |
|
|
37.0 |
% |
|
|
|
|
|
|
|
|
39.7 |
% |
Research and
development |
|
|
81,987 |
|
|
(2,957 |
) |
|
|
|
|
|
|
79,030 |
|
Selling, general, and
administrative and Other |
|
|
99,858 |
|
|
(12,851 |
) |
|
|
|
(466 |
) |
|
|
86,541 |
|
Net income (loss) |
|
|
(51,396 |
) |
|
24,396 |
|
|
35,475 |
|
8,368 |
|
|
|
16,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
$ |
0.38 |
|
Diluted |
|
|
(1.16 |
) |
|
|
|
|
|
|
|
|
0.38 |
|
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,174 |
|
|
|
|
|
|
|
|
|
44,247 |
|
Diluted |
|
|
44,174 |
|
|
|
|
|
|
|
|
|
44,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
SubsidiariesOther Non-GAAP
Adjustments(in thousands)(unaudited)
|
|
|
For the year ended December 31,
2017 |
|
|
Restructuring |
|
9,971 |
|
Acquisition
related |
|
13,583 |
|
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
9,664 |
|
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
695 |
|
Accelerated
depreciation |
|
180 |
|
Asset impairment |
|
1,139 |
|
Non-cash interest
expense |
|
10,446 |
|
Non-GAAP tax adjustment
* |
|
(37,310 |
) |
Total
Other |
|
8,368 |
|
__________________________* The 'with or without' method is
utilized to determine the income tax effect of all Non-GAAP
adjustments, as well as the exclusion of certain tax benefits
attributed to the change in U.S. tax laws and the release of FIN48
reserves. |
|
|
|
|
|
|
|
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 incremental transaction-related
compensation.
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
SubsidiariesReconciliation of
GAAP Net Income (loss) to Non-GAAP Operating Income
(loss)(in thousands)(unaudited)
|
|
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
|
December 31,
2018 |
|
December 31,
2017 |
GAAP Net income
(loss) |
|
$ |
(407,088 |
) |
|
$ |
(51,396 |
) |
Share-based
compensation |
|
|
16,074 |
|
|
|
24,396 |
|
Amortization |
|
|
32,351 |
|
|
|
35,475 |
|
Restructuring |
|
|
7,395 |
|
|
|
9,971 |
|
Acquisition
related |
|
|
2,959 |
|
|
|
13,583 |
|
Release of inventory
fair value step-up associated with the Ultratech purchase
accounting |
|
|
2,516 |
|
|
|
9,664 |
|
Depreciation of
PP&E fair value step-up associated with the Ultratech purchase
accounting |
|
|
1,011 |
|
|
|
695 |
|
Accelerated
depreciation |
|
|
1,184 |
|
|
|
180 |
|
Asset impairment |
|
|
375,172 |
|
|
|
1,139 |
|
Interest (income)
expense |
|
|
18,332 |
|
|
|
17,122 |
|
Income tax expense
(benefit) |
|
|
(26,746 |
) |
|
|
(37,594 |
) |
Non-GAAP Operating
income (loss) |
|
$ |
23,160 |
|
|
$ |
23,235 |
|
|
|
|
|
|
|
|
|
|
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 incremental transaction-related
compensation.
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
SubsidiariesReconciliation of
GAAP to Non-GAAP Financial Data(in millions,
except per share amounts)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based |
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for the three months ending
March 31, 2019 |
|
GAAP |
|
Compensation |
|
Amortization |
|
Other |
|
Non-GAAP |
Net sales |
|
$ |
85 |
|
|
- |
|
$ |
105 |
|
|
|
|
|
|
|
|
$ |
85 |
|
|
- |
|
$ |
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
28 |
|
|
- |
|
|
37 |
|
|
1 |
|
— |
|
— |
|
|
29 |
|
|
- |
|
|
38 |
|
Gross
margin |
|
|
33 |
% |
|
- |
|
|
35 |
% |
|
|
|
|
|
|
|
|
34 |
% |
|
- |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(28 |
) |
|
- |
|
$ |
(19 |
) |
|
4 |
|
4 |
|
6 |
|
$ |
(14 |
) |
|
- |
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
diluted common share |
|
$ |
(0.59 |
) |
|
- |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
$ |
(0.30 |
) |
|
- |
|
$ |
(0.10 |
) |
Weighted
average number of shares |
|
|
47 |
|
|
|
|
|
47 |
|
|
|
|
|
|
|
|
|
47 |
|
|
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
SubsidiariesReconciliation of
GAAP Net Income (loss) to Non-GAAP Operating Income
(Loss)(in millions) (unaudited)
|
|
|
|
|
|
|
|
|
Guidance for the three months ending March 31,
2019 |
|
|
|
|
|
|
|
|
GAAP Net income
(loss) |
|
$ |
(28 |
) |
|
- |
|
$ |
(19 |
) |
Share-based
compensation |
|
|
4 |
|
|
- |
|
|
4 |
|
Amortization |
|
|
4 |
|
|
- |
|
|
4 |
|
Restructuring |
|
|
2 |
|
|
- |
|
|
2 |
|
Interest expense,
net |
|
|
4 |
|
|
- |
|
|
4 |
|
Income tax expense
(benefit) |
|
|
1 |
|
|
- |
|
|
1 |
|
Other |
|
|
1 |
|
|
- |
|
|
1 |
|
Non-GAAP Operating
income (loss) |
|
$ |
(12 |
) |
|
- |
|
$ |
(3 |
) |
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, incremental transaction-related compensation,
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.
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Veeco Instruments Inc DE (NASDAQ:VECO)
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From May 2023 to May 2024