Veeco Reports Fourth Quarter and Fiscal Year 2017 Financial Results
February 12 2018 - 4:05PM
Fourth Quarter 2017 Highlights:
Veeco Instruments Inc. (Nasdaq:VECO) today announced financial
results for its fourth quarter and fiscal year ended December 31,
2017. 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 ‘17 |
Q4 ‘16 |
2017 |
2016 |
Revenue |
$143.4 |
$93.6 |
$484.8 |
$332.5 |
Net income (loss) |
($5.6) |
($5.0) |
($44.8) |
($122.2) |
Diluted earnings (loss) per share |
($0.12) |
($0.13) |
($1.01) |
($3.11) |
|
|
|
|
|
|
|
|
4th Quarter |
Full Year |
Non-GAAP Results |
Q4 ‘17 |
Q4 ‘16 |
2017 |
2016 |
Net income (loss) |
$9.1 |
$3.8 |
$23.4 |
($11.3) |
Operating income (loss) |
$10.5 |
$3.3 |
$31.3 |
($8.5) |
Diluted earnings (loss) per share |
$0.19 |
$0.09 |
$0.53 |
($0.29) |
"2017 was a transformational year for Veeco. We
diversified our revenue base through the acquisition of Ultratech,
completed a major manufacturing consolidation, and ended the year
with strong bookings and historically high backlog,” commented John
R. Peeler, Chairman and Chief Executive Officer. “Sales
growth in the fourth quarter was driven primarily by shipment of
our MOCVD and Laser Anneal systems, and we announced a large multi
tool order for our EPIK® 868 from Focus Lightings for the
production of high-volume light emitting diodes (LEDs).”
"Entering 2018, we expect to grow in all of our target
markets, and we are seeing particularly healthy demand
in Advanced Packaging, MEMS and RF Filter and Front-End
Semiconductor markets,” continued Mr. Peeler.
“Lastly, as we announced on February 8, 2018, I am pleased to
report that we have reached a mutually agreed settlement of the
pending patent disputes with AMEC and SGL Carbon, and all legal
actions related to this matter will be dismissed or withdrawn. We
are back to normal operations in our MOCVD business,” concluded Mr.
Peeler.
Guidance and Outlook
The following guidance is provided for Veeco’s
first quarter 2018:
- Revenue is expected in the range of
$140 million to $165 million
- Non-GAAP operating income is
expected in the range of $2 million to $10 million
- GAAP earnings (loss) per share are
expected in the range of ($0.50) to ($0.32)
- Non-GAAP earnings (loss) per share
are expected in the range of ($0.04) to $0.14
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 12, 2018 starting at 5:00pm ET.
To join the call, dial 1-800-239-9839 (toll free) or 1-323-794-2551
and use passcode 3939388. 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.
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, 2016 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: |
Media: |
Anthony Bencivenga
516-677-0200 x1272 |
David Pinto
408-325-6157 |
abencivenga@veeco.com |
dpinto@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, |
|
|
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
Net
sales |
$ |
143,432 |
|
$ |
93,609 |
|
$ |
484,756 |
|
$ |
332,451 |
|
|
Cost of
sales |
|
85,095 |
|
|
57,601 |
|
|
300,438 |
|
|
199,593 |
|
|
Gross
profit |
|
58,337 |
|
|
36,008 |
|
|
184,318 |
|
|
132,858 |
|
|
Operating expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
24,318 |
|
|
17,471 |
|
|
81,987 |
|
|
81,016 |
|
|
Selling,
general, and administrative |
|
28,675 |
|
|
19,412 |
|
|
100,250 |
|
|
77,642 |
|
|
Amortization of intangible assets |
|
13,753 |
|
|
3,434 |
|
|
35,475 |
|
|
19,219 |
|
|
Restructuring |
|
2,246 |
|
|
1,646 |
|
|
11,851 |
|
|
5,640 |
|
|
Acquisition costs |
|
1,510 |
|
|
— |
|
|
17,786 |
|
|
— |
|
|
Asset
impairment |
|
— |
|
|
(142 |
) |
|
1,139 |
|
|
69,520 |
|
|
Other,
net |
|
(165 |
) |
|
(660 |
) |
|
(392 |
) |
|
223 |
|
|
Total
operating expenses, net |
|
70,337 |
|
|
41,161 |
|
|
248,096 |
|
|
253,260 |
|
|
Operating income
(loss) |
|
(12,000 |
) |
|
(5,153 |
) |
|
(63,778 |
) |
|
(120,402 |
) |
|
Interest
income (expense), net |
|
(4,753 |
) |
|
245 |
|
|
(17,122 |
) |
|
958 |
|
|
Income (loss) before
income taxes |
|
(16,753 |
) |
|
(4,908 |
) |
|
(80,900 |
) |
|
(119,444 |
) |
|
Income
tax expense (benefit) |
|
(11,137 |
) |
|
90 |
|
|
(36,107 |
) |
|
2,766 |
|
|
Net income (loss) |
$ |
(5,616 |
) |
$ |
(4,998 |
) |
$ |
(44,793 |
) |
$ |
(122,210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share: |
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
$ |
(0.13 |
) |
$ |
(1.01 |
) |
$ |
(3.11 |
) |
|
Diluted |
$ |
(0.12 |
) |
$ |
(0.13 |
) |
$ |
(1.01 |
) |
$ |
(3.11 |
) |
|
|
|
|
|
|
|
Weighted average number
of shares: |
|
|
|
|
|
Basic |
|
47,037 |
|
|
39,267 |
|
|
44,174 |
|
|
39,340 |
|
|
Diluted |
|
47,037 |
|
|
39,267 |
|
|
44,174 |
|
|
39,340 |
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands) |
|
|
|
|
|
|
December 31, |
December 31, |
|
|
2017 |
|
2016 |
|
|
|
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
279,736 |
|
$ |
277,444 |
|
Restricted cash |
|
847 |
|
|
— |
|
Short-term investments |
|
47,780 |
|
|
66,787 |
|
Accounts
receivable, net |
|
98,866 |
|
|
58,020 |
|
Inventories |
|
120,266 |
|
|
77,063 |
|
Deferred
cost of sales |
|
16,060 |
|
|
6,160 |
|
Prepaid
expenses and other current assets |
|
33,437 |
|
|
16,034 |
|
Total
current assets |
|
596,992 |
|
|
501,508 |
|
Property, plant and equipment, net |
|
85,058 |
|
|
60,646 |
|
Intangible assets, net |
|
369,843 |
|
|
58,378 |
|
Goodwill |
|
307,131 |
|
|
114,908 |
|
Deferred
income taxes |
|
2,953 |
|
|
2,045 |
|
Other
assets |
|
25,310 |
|
|
21,047 |
|
Total assets |
$ |
1,387,287 |
|
$ |
758,532 |
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
50,318 |
|
$ |
22,607 |
|
Accrued
expenses and other current liabilities |
|
60,339 |
|
|
33,201 |
|
Customer
deposits and deferred revenue |
|
108,953 |
|
|
85,022 |
|
Income
taxes payable |
|
3,846 |
|
|
2,311 |
|
Current
portion of long-term debt |
|
— |
|
|
368 |
|
Total
current liabilities |
|
223,456 |
|
|
143,509 |
|
Deferred
income taxes |
|
36,845 |
|
|
13,199 |
|
Long-term debt |
|
275,630 |
|
|
826 |
|
Other
liabilities |
|
10,643 |
|
|
6,403 |
|
Total liabilities |
|
546,574 |
|
|
163,937 |
|
|
|
|
|
Total stockholders' equity |
|
840,713 |
|
|
594,595 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,387,287 |
|
$ |
758,532 |
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
|
Reconciliation of GAAP to Non-GAAP Financial
Data |
|
|
(in thousands, except per share amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
Three months ended December 31, 2017 |
|
GAAP |
|
Share-BasedCompensation |
|
Amortization |
|
Other |
|
Non-GAAP |
|
|
Net
sales |
|
$ |
|
143,432 |
|
|
|
|
|
|
|
|
|
$ |
143,432 |
|
|
|
Gross
profit |
|
|
|
58,337 |
|
607 |
|
|
|
|
537 |
|
|
|
59,481 |
|
|
|
Gross
margin |
|
|
|
40.7 |
% |
|
|
|
|
|
41.5 |
% |
|
|
Research
and development |
|
|
|
24,318 |
|
(971 |
) |
|
|
|
|
|
23,347 |
|
|
|
Selling,
general, and administrative and Other |
|
|
|
28,510 |
|
(2,668 |
) |
|
|
|
(196 |
) |
|
|
25,646 |
|
|
|
Net
income (loss) |
|
|
|
(5,616 |
) |
4,420 |
|
|
13,753 |
|
(3,460 |
) |
|
|
9,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
|
(0.12 |
) |
|
|
|
|
$ |
0.19 |
|
|
|
Diluted |
|
|
|
(0.12 |
) |
|
|
|
|
|
0.19 |
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
47,037 |
|
|
|
|
|
|
47,109 |
|
|
|
Diluted |
|
|
|
47,037 |
|
|
|
|
|
|
47,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
|
Other 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, 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
Subsidiaries |
|
|
Reconciliation of GAAP to Non-GAAP Financial
Data |
|
|
(in thousands, except per share amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
Three months ended December 31, 2016 |
|
GAAP |
|
Share-basedCompensation |
|
Amortization |
|
Other |
|
Non-GAAP |
|
|
Net
sales |
|
$ |
93,609 |
|
|
|
|
|
|
|
$ |
93,609 |
|
|
|
Gross
profit |
|
|
36,008 |
|
316 |
|
|
|
362 |
|
|
36,686 |
|
|
|
Gross
margin |
|
|
38.5 |
% |
|
|
|
|
|
39.2 |
% |
|
|
Research
and development |
|
|
17,471 |
|
(292 |
) |
|
|
|
|
17,179 |
|
|
|
Selling,
general, and administrative and Other |
|
|
18,752 |
|
(2,971 |
) |
|
|
(44 |
) |
|
15,737 |
|
|
|
Net
income (loss) |
|
|
(4,998 |
) |
3,579 |
|
3,434 |
|
1,740 |
|
|
3,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.13 |
) |
|
|
|
|
$ |
0.09 |
|
|
|
Diluted |
|
|
(0.13 |
) |
|
|
|
|
|
0.09 |
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
39,267 |
|
|
|
|
|
|
39,579 |
|
|
|
Diluted |
|
|
39,267 |
|
|
|
|
|
|
39,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
|
Other Non-GAAP Adjustments |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
Three months ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
|
|
|
|
|
1,646 |
|
|
|
Acquisition related |
|
|
|
|
|
|
|
44 |
|
|
|
Asset
impairment |
|
|
|
|
|
|
|
(142 |
) |
|
|
Accelerated depreciation |
|
|
|
|
|
|
|
362 |
|
|
|
Reclassification of cumulative translation gain from subsidiary
liquidation |
|
|
|
|
(429 |
) |
|
|
Non-GAAP
tax adjustment * |
|
|
|
|
|
|
|
259 |
|
|
|
Total
Other |
|
|
|
|
|
|
|
1,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* - 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
Subsidiaries |
|
|
Reconciliation of GAAP Net Income (loss) to
Non-GAAP Operating Income (loss) |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
Three months ended |
Three months ended |
|
|
|
|
|
|
December 31,
2017 |
|
December 31,
2016 |
|
|
|
GAAP Net
income (loss) |
|
|
|
$ |
(5,616 |
) |
$ |
(4,998 |
) |
|
|
Share-based compensation |
|
|
|
|
4,420 |
|
|
3,579 |
|
|
|
Amortization |
|
|
|
|
13,753 |
|
|
3,434 |
|
|
|
Restructuring |
|
|
|
|
2,073 |
|
|
1,646 |
|
|
|
Acquisition related |
|
|
|
|
1,510 |
|
|
44 |
|
|
|
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 |
|
|
- |
|
|
|
Asset
impairment |
|
|
|
|
- |
|
|
(142 |
) |
|
|
Accelerated depreciation |
|
|
|
|
- |
|
|
362 |
|
|
|
Reclassification of cumulative translation gain from subsidiary
liquidation |
|
|
- |
|
|
(429 |
) |
|
|
Interest
(income) expense |
|
|
|
|
4,753 |
|
|
(245 |
) |
|
|
Income
tax expense (benefit) |
|
|
|
|
(11,137 |
) |
|
90 |
|
|
|
Non-GAAP
Operating Income (loss) |
|
|
|
$ |
10,489 |
|
$ |
3,341 |
|
|
|
|
|
|
|
|
|
|
|
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
Subsidiaries |
|
|
Reconciliation of GAAP to Non-GAAP Financial
Data |
|
|
(in thousands, except per share amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
For the year ended December 31, 2017 |
|
GAAP |
|
Share-BasedCompensation |
|
|
Amortization |
|
Other |
|
|
Non-GAAP |
|
|
Net
sales |
|
$ |
484,756 |
|
|
|
|
|
|
|
|
|
$ |
484,756 |
|
|
|
Gross
profit |
|
|
184,318 |
|
2,505 |
|
|
|
|
10,075 |
|
|
|
196,898 |
|
|
|
Gross
margin |
|
|
38.0 |
% |
|
|
|
|
|
40.6 |
% |
|
|
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) |
|
|
(44,793 |
) |
24,396 |
|
|
35,475 |
|
8,368 |
|
|
|
23,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.01 |
) |
|
|
|
|
$ |
0.53 |
|
|
|
Diluted |
|
|
(1.01 |
) |
|
|
|
|
|
0.53 |
|
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,174 |
|
|
|
|
|
|
44,247 |
|
|
|
Diluted |
|
|
44,174 |
|
|
|
|
|
|
44,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
|
Other 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 |
|
|
|
Asset impairment |
|
|
|
|
1,139 |
|
|
|
Accelerated depreciation |
|
|
|
|
|
|
|
180 |
|
|
|
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
Subsidiaries |
|
|
Reconciliation of GAAP to Non-GAAP Financial
Data |
|
|
(in thousands, except per share amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
For the year ended December 31, 2016 |
|
GAAP |
|
Share-BasedCompensation |
|
|
Amortization |
|
Other |
|
|
Non-GAAP |
|
|
Net
sales |
|
$ |
332,451 |
|
|
|
|
|
|
|
|
|
$ |
332,451 |
|
|
|
Gross
profit |
|
|
132,858 |
|
1,956 |
|
|
|
|
716 |
|
|
|
135,530 |
|
|
|
Gross
margin |
|
|
40.0 |
% |
|
|
|
|
|
40.8 |
% |
|
|
Research
and development |
|
|
81,016 |
|
(3,324 |
) |
|
|
|
|
|
77,692 |
|
|
|
Selling,
general, and administrative and Other |
|
|
77,866 |
|
(10,433 |
) |
|
|
|
(1,537 |
) |
|
|
65,896 |
|
|
|
Net
income (loss) |
|
|
(122,210 |
) |
15,713 |
|
|
19,219 |
|
75,954 |
|
|
|
(11,324 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(3.11 |
) |
|
|
|
|
$ |
(0.29 |
) |
|
|
Diluted |
|
|
(3.11 |
) |
|
|
|
|
|
(0.29 |
) |
|
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
39,340 |
|
|
|
|
|
|
39,340 |
|
|
|
Diluted |
|
|
39,340 |
|
|
|
|
|
|
39,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
|
Other Non-GAAP Adjustments |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
For the year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
|
|
|
|
|
5,640 |
|
|
|
Acquisition related |
|
|
|
|
|
|
|
232 |
|
|
|
Asset impairment |
|
|
|
|
69,520 |
|
|
|
Accelerated depreciation |
|
716 |
|
|
|
Pension termination |
|
1,305 |
|
|
|
Reclassification of cumulative translation gain from subsidiary
liquidation |
|
|
|
|
(429 |
) |
|
|
Non-GAAP
tax adjustment * |
|
|
|
|
|
|
|
(1,030 |
) |
|
|
Total
Other |
|
|
|
|
|
|
|
75,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* - 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
Subsidiaries |
|
|
Reconciliation of GAAP Net Income (loss) to
Non-GAAP Operating Income (loss) |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
Year ended |
Year ended |
|
|
|
|
|
|
December 31, 2017 |
|
December 31, 2016 |
|
|
|
GAAP Net
income (loss) |
|
|
|
$ |
(44,793 |
) |
$ |
(122,210 |
) |
|
|
Share-based compensation |
|
|
|
|
24,396 |
|
|
15,713 |
|
|
|
Amortization |
|
|
|
|
35,475 |
|
|
19,219 |
|
|
|
Restructuring |
|
|
|
|
9,971 |
|
|
5,640 |
|
|
|
Acquisition related |
|
|
|
|
13,583 |
|
|
232 |
|
|
|
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 |
|
|
- |
|
|
|
Asset
impairment |
|
|
|
|
1,139 |
|
|
69,520 |
|
|
|
Accelerated depreciation |
|
|
|
|
180 |
|
|
716 |
|
|
|
Pension
termination |
|
|
|
|
- |
|
|
1,305 |
|
|
|
Reclassification of cumulative translation gain from subsidiary
liquidation |
|
|
- |
|
|
(429 |
) |
|
|
Interest
(income) expense |
|
|
|
|
17,122 |
|
|
(958 |
) |
|
|
Income
tax expense (benefit) |
|
|
|
|
(36,107 |
) |
|
2,766 |
|
|
|
Non-GAAP
Operating Income (loss) |
|
|
|
$ |
31,325 |
|
$ |
(8,486 |
) |
|
|
|
|
|
|
|
|
|
|
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
Subsidiaries |
|
Reconciliation of GAAP to Non-GAAP Financial
Data |
|
(in millions, except per share amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments |
|
|
|
|
|
Guidance for the three months ending March 31,
2018 |
|
GAAP |
|
Share-basedCompensation |
|
|
Amortization |
|
Other |
|
Non-GAAP |
|
Net sales |
|
|
$140 |
– |
$165 |
|
|
|
|
|
|
|
|
|
$140 |
– |
$165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
47 |
– |
58 |
|
|
1 |
|
|
— |
|
— |
|
|
48 |
– |
59 |
|
|
Gross margin |
|
33% |
– |
35% |
|
|
|
|
|
|
|
|
|
|
|
|
34% |
– |
36% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$(23) |
– |
$(15) |
|
4 |
|
|
13 |
|
4 |
|
$(2) |
– |
$6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per diluted common share |
$(0.50) |
– |
$(0.32) |
|
|
|
|
|
|
|
|
|
|
|
$(0.04) |
– |
$0.14 |
|
|
Weighted
average number of shares |
|
|
|
47 |
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
47 |
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Veeco Instruments Inc. and
Subsidiaries |
|
Reconciliation of GAAP Net Income (loss) to
Non-GAAP Operating Income (Loss) |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance for the three months ending March 31,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
$(23) |
– |
$(15) |
|
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
4 |
– |
4 |
|
|
Amortization |
|
|
|
|
|
|
|
|
|
|
|
|
13 |
– |
13 |
|
|
Restructuring |
|
|
|
|
|
|
|
|
|
|
1 |
– |
1 |
|
|
Acquisition related |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
– |
1 |
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
– |
5 |
|
|
Income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
– |
1 |
|
|
Non-GAAP Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2 |
– |
$10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Amounts may not calculate precisely due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
These
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. |
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Veeco Instruments Inc DE (NASDAQ:VECO)
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Veeco Instruments Inc DE (NASDAQ:VECO)
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