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Veeco Reports First Quarter 2025 Financial Results

1. Veeco's Q1 2025 revenue decreased to $167.3 million from $174.5 million. 2. GAAP net income fell to $11.9 million, significantly lower than last year. 3. Non-GAAP earnings per share decreased to $0.37, down from $0.45. 4. Company reported growth in Semiconductor business, driven by Advanced Packaging. 5. Guidance for Q2 2025 shows expected revenue between $135 million to $165 million.

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Why Bearish?

The decline in revenue and net income indicates potential struggles, similar to past earnings declines leading to stock price drops.

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The earnings decline alongside decreased guidance is significant for investor confidence and may lead to selling pressure.

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Immediate investor reactions to earnings results typically affect stock price quickly, evidenced by historical stock movements after earnings announcements.

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INTCAMDASML
May 07, 2025 16:05 ET  | Source: Veeco Instruments Inc. First Quarter 2025 Highlights: Revenue of $167.3 million, compared with $174.5 million in the same period last yearGAAP net income of $11.9 million, or $0.20 per diluted share, compared with $21.9 million, or $0.37 per diluted share in the same period last yearNon-GAAP net income of $22.2 million, or $0.37 per diluted share, compared with $26.4 million, or $0.45 per diluted share in the same period last year PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. U.S. Dollars in millions, except per share data         GAAP Results Q1 '25 Q1 '24Revenue $167.3  $174.5 Net income $11.9  $21.9 Diluted earnings per share $0.20  $0.37  Non-GAAP Results Q1 '25 Q1 '24Operating income $24.3  $29.4 Net income $22.2  $26.4 Diluted earnings per share $0.37  $0.45           “Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.” Guidance and Outlook The following guidance is provided for Veeco’s second quarter 2025: Revenue is expected in the range of $135 million to $165 millionGAAP diluted earnings (loss) per share are expected in the range of ($0.05) to $0.17Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32 Conference Call Information A conference call reviewing these results has been scheduled for today, May 7, 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, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) 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.comMedia: Javier Banos (516) 673-7328 jbanos@veeco.com        Veeco Instruments Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited)  Three months ended March 31,  2025    2024Net sales$167,292  $174,484 Cost of sales 98,825   99,065 Gross profit 68,467   75,419 Operating expenses, net:     Research and development 28,514   29,642 Selling, general, and administrative 25,028   24,700 Amortization of intangible assets 821   1,891 Other operating expense (income), net (44)  (2,859)Total operating expenses, net 54,319   53,374 Operating income 14,148   22,045 Interest income (expense), net 836   705 Income (loss) before income taxes 14,984   22,750 Income tax expense (benefit) 3,037   896 Net income$11,947  $21,854       Income per common share:     Basic$0.21  $0.39 Diluted$0.20  $0.37       Weighted average number of shares:     Basic 57,753   55,968 Diluted 60,234   60,764          Veeco Instruments Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands)  March 31,  December 31,  2025    2024 (unaudited)    Assets       Current assets:       Cash and cash equivalents$174,898  $145,595 Restricted cash 169   224 Short-term investments 178,395   198,719 Accounts receivable, net 114,368   96,834 Contract assets 33,586   37,109 Inventories 254,051   246,735 Prepaid expenses and other current assets 39,338   39,316 Total current assets 794,805   764,532 Property, plant and equipment, net 113,787   113,789 Operating lease right-of-use assets 25,991   26,503 Intangible assets, net 8,010   8,832 Goodwill 214,964   214,964 Deferred income taxes 118,567   120,191 Other assets 2,700   2,766 Total assets$1,278,824  $1,251,577         Liabilities and stockholders’ equity       Current liabilities:       Accounts payable$57,845  $43,519 Accrued expenses and other current liabilities 62,257   55,195 Contract liabilities 57,211   64,986 Income taxes payable 1,546   2,086 Current portion of long-term debt —   26,496 Total current liabilities 178,859   192,282 Deferred income taxes 663   689 Long-term debt 249,955   249,702 Long-term operating lease liabilities 33,694   34,318 Other liabilities 3,795   3,816 Total liabilities 466,966   480,807         Total stockholders’ equity 811,858   770,770 Total liabilities and stockholders’ equity$1,278,824  $1,251,577          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 (Q1 2025)(in thousands)(unaudited)       Non-GAAP Adjustments    Three months ended March 31, 2025    GAAP Share-BasedCompensation    Amortization    Other    Non-GAAPNet sales $167,292        $167,292 Gross profit  68,467  1,343       69,810 Gross margin  40.9%        41.7%Operating expenses  54,319  (7,865) (821) (99)  45,534 Operating income  14,148  9,208  821  99^  24,276 Net income  11,947  9,208  821  231^  22,207  _______________^   - See table below for additional details. Other Non-GAAP Adjustments (Q1 2025)(in thousands)(unaudited)   Three months ended March 31, 2025     Other$99 Subtotal 99 Non-cash interest expense 257 Non-GAAP tax adjustment * (125)Total Other$231  _______________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q1 2025)(in thousands, except per share amounts)(unaudited)  Three months ended March 31, 2025 GAAP Non-GAAPNumerator:       Net income$11,947  $22,207 Interest expense associated with 2025 and 2027 Convertible Senior Notes 253   273 Net income available to common shareholders$12,200  $22,480         Denominator:       Basic weighted average shares outstanding 57,753   57,753 Effect of potentially dilutive share-based awards 693   693 Dilutive effect of 2025 Convertible Senior Notes —   174 Dilutive effect of 2027 Convertible Senior Notes (1) 1,788   1,354 Diluted weighted average shares outstanding 60,234   59,974         Net income per common share:       Basic$0.21  $0.38 Diluted$0.20  $0.37  _______________(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 (Q1 2024)(in thousands)(unaudited)       Non-GAAP Adjustments    Three months ended March 31, 2024     GAAP     Share-basedCompensation    Amortization    Other    Non-GAAPNet sales $174,484        $174,484 Gross profit  75,419  1,730       77,149 Gross margin  43.2%        44.2%Operating expenses  53,374  (6,352) (1,891) 2,658   47,789 Operating income  22,045  8,082  1,891  (2,658)^ 29,360 Net income  21,854  8,082  1,891  (5,384)^ 26,443  _______________^   - See table below for additional details. Other Non-GAAP Adjustments (Q1 2024)(in thousands)(unaudited) Three months ended March 31, 2024  Changes in contingent consideration$(625)Sale of productive assets (2,033)Subtotal (2,658)Non-cash interest expense 296 Non-GAAP tax adjustment * (3,022)Total Other$(5,384) _______________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q1 2024)(in thousands, except per share amounts)(unaudited)  Three months ended March 31, 2024 GAAP Non-GAAPNumerator:       Net income$21,854  $26,443 Interest expense associated with 2025 and 2027 Convertible Senior Notes 514   466 Net income available to common shareholders$22,368  $26,909         Denominator:       Basic weighted average shares outstanding 55,968   55,968 Effect of potentially dilutive share-based awards 939   939 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 965   965 Diluted weighted average shares outstanding 60,764   60,330         Net income per common share:       Basic$0.39  $0.47 Diluted$0.37  $0.45  _______________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024)(in thousands)(unaudited)  Three months ended     Three months ended  March 31, 2025 March 31, 2024GAAP Net income$11,947  $21,854 Share-based compensation 9,208   8,082 Amortization 821   1,891 Sale of productive assets —   (2,033)Changes in contingent consideration —   (625)Interest (income) expense, net (836)  (705)Other 99   — Income tax expense (benefit) 3,037   896 Non-GAAP Operating income$24,276  $29,360          Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)(in millions, except per share amounts)(unaudited)           Non-GAAP Adjustments        Guidance for the three months ending         Share-based             June 30, 2025 GAAP Compensation Amortization    Other     Non-GAAPNet sales $135  - $165        $135  - $165 Gross profit  54  -  69  1  —  —   55  -  70 Gross margin  39% -  41%        40% -  42%Operating expenses  57  -  58  (9) (1) —   47  -  48 Operating income (loss)  (3) -  11  10  1  —   8  -  22 Net income (loss) $(3) - $10  10  1  (1) $7  - $20                        Income (loss) per diluted common share $(0.05) - $0.17        $0.12  - $0.32                             Income per Diluted Common Share (Q2 2025) (in millions, except per share amounts)(unaudited) Guidance for the three months ending June 30, 2025 GAAP Non-GAAPNumerator:                   Net income (loss) available to common shareholders $(3) - $10  $7  - $20                     Denominator:                   Basic weighted average shares outstanding  58     58   58     58 Effect of potentially dilutive share-based awards  —     1   1     1 Dilutive effect of 2027 Convertible Senior Notes (1)  —     2   —     1 Diluted weighted average shares outstanding  58     61   59     61                     Net income per common share:                   Income (loss) per diluted common share $(0.05) - $0.17  $0.12  - $0.32  _______________(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 (Q2 2025)(in millions)(unaudited) Guidance for the three months ending June 30, 2025                 GAAP Net income (loss) $(3) - $10 Share-based compensation  10  -  10 Amortization  1  -  1 Interest income, net  (1) -  (1)Income tax expense (benefit)  —  -  1 Non-GAAP Operating income $8  - $22             Note: Amounts may not calculate precisely due to rounding.

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