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Veeco Reports Fourth Quarter and Fiscal Year 2024 Financial Results

1. Q4 2024 revenue increased to $182.1 million, up from $173.9 million. 2. GAAP net income decreased to $15.0 million, down from $21.6 million year-over-year. 3. Fiscal year revenue grew to $717.3 million, up from $666.4 million in 2023. 4. The semiconductor business achieved 4 consecutive years of outperforming WFE growth. 5. Guidance for Q1 2025 suggests revenue between $155 million to $175 million.

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Why Neutral?

Despite revenue growth, net income decline and mixed guidance could offset investor sentiment.

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The quarterly results and guidance are significant for immediate investor response.

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Immediate effects from quarterly results are likely, but long-term outlook remains stable.

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February 12, 2025 16:05 ET  | Source: Veeco Instruments Inc. Fourth Quarter 2024 Highlights: Revenue of $182.1 million, compared with $173.9 million in the same period last yearGAAP net income of $15.0 million, or $0.26 per diluted share, compared with $21.6 million, or $0.37 per diluted share in the same period last yearNon-GAAP net income of $24.2 million, or $0.41 per diluted share, compared with $29.8 million, or $0.51 per diluted share in the same period last year Fiscal Year 2024 Highlights: Revenue of $717.3 million, compared with $666.4 million in the same period last yearGAAP net income of $73.7 million, or $1.23 per diluted share, compared with GAAP net loss of $30.4 million or $0.56 loss per diluted share in the same period last yearNon-GAAP net income of $104.3 million, or $1.74 per diluted share, compared with $98.3 million, or $1.69 per diluted share in the same period last year PLAINVIEW, N.Y., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 31, 2024. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.  U.S. Dollars in millions, except per share data                  4th Quarter Full YearGAAP Results Q4 '24 Q4 '23 2024 2023 Revenue $182.1  $173.9  $717.3  $666.4 Net income (loss) $15.0  $21.6  $73.7  $(30.4)Diluted earnings (loss) per share $0.26  $0.37  $1.23  $(0.56)   4th Quarter Full YearNon-GAAP Results Q4 '24 Q4 '23 2024 2023Operating income $27.4  $32.1  $116.1  $109.6 Net income $24.2  $29.8  $104.3  $98.3 Diluted earnings per share $0.41  $0.51  $1.74  $1.69                   “Veeco had a successful year in 2024, highlighted by our Semiconductor business outperforming WFE growth for the 4th consecutive year,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “We achieved several strategic milestones, grew the top-line and delivered solid profitability, all while continuing to allocate capital toward our largest growth opportunities. Looking ahead, our solutions in Laser Annealing, Ion Beam Deposition, and Advanced Packaging are well-positioned to take advantage of growth in leading edge investment in the coming years.” Guidance and Outlook The following guidance is provided for Veeco’s first quarter 2025: Revenue is expected in the range of $155 million to $175 millionGAAP diluted earnings per share are expected in the range of $0.11 to $0.22Non-GAAP diluted earnings per share are expected in the range of $0.26 to $0.36 Conference Call Information A conference call reviewing these results has been scheduled for today, February 12, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call. About Veeco Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, chemical vapor deposition (CVD), metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com. Forward-looking Statements This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. -financial tables attached-     Veeco Contacts:       Investors:Anthony Pappone(516) 500-8798apappone@veeco.com Media:Brenden Wright(410) 984-2610bwright@veeco.com       Veeco Instruments Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited)               Three months ended December 31, Year ended December 31,  2024 2023 2024 2023Net sales $182,131  $173,924  $717,301  $666,435 Cost of sales  108,146   95,269   413,296   381,376 Gross profit  73,985   78,655   304,005   285,059 Operating expenses, net:            Research and development  30,953   29,091   124,507   112,853 Selling, general, and administrative  25,077   23,493   99,663   92,756 Amortization of intangible assets  1,580   2,123   6,983   8,481 Asset impairment  28,131   —   28,131   — Other operating expense (income), net  (15,635)  (235)  (22,260)  1,029 Total operating expenses, net  70,106   54,472   237,024   215,119 Operating income  3,879   24,183   66,981   69,940 Interest income (expense), net  476   —   1,853   (1,187)Other income (expense), net  —   —   —   (97,091)Income (loss) before income taxes  4,355   24,183   68,834   (28,338)Income tax expense (benefit)  (10,610)  2,546   (4,880)  2,030 Net income (loss) $14,965  $21,637  $73,714  $(30,368)             Income (loss) per common share:            Basic $0.26  $0.39  $1.31  $(0.56)Diluted $0.26  $0.37  $1.23  $(0.56)             Weighted average number of shares:            Basic  56,536   55,537   56,426   53,769 Diluted  60,499   59,821   61,596   53,769                    Veeco Instruments Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands)           December 31, December 31,  2024 2023  (unaudited)    Assets        Current assets:        Cash and cash equivalents $145,595  $158,781 Restricted cash  224   339 Short-term investments  198,719   146,664 Accounts receivable, net  96,834   103,018 Contract assets  37,109   24,370 Inventories  246,735   237,635 Prepaid expenses and other current assets  39,316   35,471 Total current assets  764,532   706,278 Property, plant and equipment, net  113,789   118,459 Operating lease right-of-use assets  26,503   24,377 Intangible assets, net  8,832   43,945 Goodwill  214,964   214,964 Deferred income taxes  120,191   117,901 Other assets  2,766   3,117 Total assets $1,251,577  $1,229,041          Liabilities and stockholders’ equity        Current liabilities:        Accounts payable $43,519  $42,383 Accrued expenses and other current liabilities  55,195   57,624 Contract liabilities  64,986   118,026 Income taxes payable  2,086   — Current portion of long-term debt  26,496   — Total current liabilities  192,282   218,033 Deferred income taxes  689   6,552 Long-term debt  249,702   274,941 Long-term operating lease liabilities  34,318   31,529 Other liabilities  3,816   25,544 Total liabilities  480,807   556,599          Total stockholders’ equity  770,770   672,442 Total liabilities and stockholders’ equity $1,251,577  $1,229,041           Note on Reconciliation Tables The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.  Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2024)(in thousands)(unaudited)                   Non-GAAP Adjustments         Share-Based        Three months ended December 31, 2024 GAAP Compensation Amortization Other Non-GAAP Net sales $182,131       $182,131 Gross profit  73,985 1,523       75,508 Gross margin  40.6%       41.5%Operating expenses  70,106 (7,582) (1,580) (12,876)  48,068 Operating income  3,879 9,105  1,580  12,876 ^ 27,440 Net income  14,965 9,105  1,580  (1,443)^ 24,207  ____________________________^   - See table below for additional details.  Other Non-GAAP Adjustments (Q4 2024)(in thousands)(unaudited)   Three months ended December 31, 2024  Asset impairment$28,131 Changes in contingent consideration (16,466)Other 1,211 Subtotal 12,876 Non-cash interest expense 322 Tax benefits associated with asset impairments (12,239)Non-GAAP tax adjustment * (2,402)Total Other$(1,443) ____________________________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.  Net Income per Common Share (Q4 2024)(in thousands, except per share amounts)(unaudited)           Three months ended December 31, 2024  GAAP Non-GAAPNumerator:        Net income $14,965  $24,207 Interest expense associated with 2025 and 2027 Convertible Senior Notes  513   466 Net income available to common shareholders $15,478  $24,673          Denominator:        Basic weighted average shares outstanding  56,536   56,536 Effect of potentially dilutive share-based awards  1,070   1,070 Dilutive effect of 2025 Convertible Senior Notes  1,104   1,104 Dilutive effect of 2027 Convertible Senior Notes(1)  1,789   1,354 Diluted weighted average shares outstanding  60,499   60,064          Net income per common share:        Basic $0.26  $0.43 Diluted $0.26  $0.41  ____________________________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.  Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2023)(in thousands)(unaudited)                   Non-GAAP Adjustments         Share-based       Three months ended December 31, 2023  GAAP Compensation Amortization Other Non-GAAP Net sales $173,924       $173,924 Gross profit  78,655 334       78,989 Gross margin  45.2%       45.4%Operating expenses  54,472 (5,845) (2,123) 363   46,867 Operating income  24,183 6,179  2,123  (363)^ 32,122 Net income  21,637 6,179  2,123  (116)^ 29,823  ____________________________^   - See table below for additional details.  Other Non-GAAP Adjustments (Q4 2023)(in thousands)(unaudited)   Three months ended December 31, 2023  Changes in contingent consideration$(465)Other 102 Subtotal (363)Non-cash interest expense 294 Non-GAAP tax adjustment * (47)Total Other$(116) ____________________________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.  Net Income per Common Share (Q4 2023)(in thousands, except per share amounts)(unaudited)           Three months ended December 31, 2023  GAAP Non-GAAPNumerator:        Net income $21,637  $29,823 Interest expense associated with 2025 and 2027 Convertible Senior Notes  511   466 Net income available to common shareholders $22,148  $30,289          Denominator:        Basic weighted average shares outstanding  55,537   55,537 Effect of potentially dilutive share-based awards  1,391   1,391 Dilutive effect of 2025 Convertible Senior Notes  1,104   1,104 Dilutive effect of 2027 Convertible Senior Notes(1)  1,789   1,355 Diluted weighted average shares outstanding  59,821   59,387          Net income per common share:        Basic $0.39  $0.54 Diluted $0.37  $0.51  ____________________________(1)   - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.  Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q4 2024 and 2023)(in thousands)(unaudited)         Three months ended Three months ended  December 31, 2024 December 31, 2023GAAP Net income $14,965  $21,637 Share-based compensation  9,105   6,179 Amortization  1,580   2,123 Asset impairment  28,131   — Changes in contingent consideration  (16,466)  (465)Transition expenses related to San Jose expansion project  —   57 Acquisition related  —   45 Interest (income) expense, net  (476)  — Other  1,211   — Income tax expense (benefit)  (10,610)  2,546 Non-GAAP Operating income $27,440  $32,122            Reconciliation of GAAP to Non-GAAP Financial Data (FY 2024)(in thousands)(unaudited)                   Non-GAAP Adjustments         Share-based       For the year ended December 31, 2024  GAAP Compensation Amortization Other Non-GAAP Net sales $717,301       $717,301 Gross profit  304,005 6,263    162   310,430 Gross margin  42.4%       43.3%Operating expenses  237,024 (29,616) (6,983) (6,067)  194,358 Operating income  66,981 35,879  6,983  6,229 ^ 116,072 Net income (loss)  73,714 35,879  6,983  (12,233)^ 104,343  ____________________________^   - See table below for additional details.  Other Non-GAAP Adjustments (FY 2024)(in thousands)(unaudited)   For the year ended December 31, 2024  Asset impairment$28,131 Changes in contingent consideration (21,242)Sale of productive assets (2,033)Other 1,373 Subtotal 6,229 Non-cash interest expense 1,257 Tax benefits associated with asset impairments (12,239)Non-GAAP tax adjustment * (7,480)Total Other$(12,233) ____________________________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.  Net Income per Common Share (FY 2024)(in thousands, except per share amounts)(unaudited)           Year ended December 31, 2024  GAAP Non-GAAPNumerator:        Net income $73,714  $104,343 Interest expense associated with convertible notes  2,054   1,865 Net income available to common shareholders $75,768  $106,208          Denominator:        Basic weighted average shares outstanding  56,426   56,426 Effect of potentially dilutive share-based awards  1,010   1,010 Dilutive effect of 2025 Convertible Senior Notes  1,104   1,104 Dilutive effect of 2027 Convertible Senior Notes(1)  1,788   1,354 Dilutive effect of 2029 Convertible Senior Notes  1,268   1,268 Diluted weighted average shares outstanding  61,596   61,162          Net income per common share:        Basic $1.31  $1.85 Diluted $1.23  $1.74  ____________________________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.  Reconciliation of GAAP to Non-GAAP Financial Data (FY 2023)(in thousands)(unaudited)                   Non-GAAP Adjustments         Share-based       For the year ended December 31, 2023  GAAP Compensation Amortization Other Non-GAAP Net sales $666,435        $666,435 Gross profit  285,059  4,913    232   290,204 Gross margin  42.8 %       43.5%Operating expenses  215,119  (23,645) (8,481) (2,363)  180,630 Operating income  69,940  28,558  8,481  2,595 ^ 109,574 Net income (loss)  (30,368) 28,558  8,481  91,668 ^ 98,339  ____________________________^   - See table below for additional details.  Other Non-GAAP Adjustments (FY 2023)(in thousands)(unaudited)   For the year ended December 31, 2023  Acquisition related$1,056 Changes in contingent consideration 701 Transition expenses related to San Jose expansion project 838 Subtotal 2,595 Non-cash interest expense 1,118 Other (income) expense, net 97,091 Non-GAAP tax adjustment * (9,136)Total Other$91,668  ____________________________*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.  Net Income per Common Share (FY 2023)(in thousands, except per share amounts)(unaudited)          Year ended December 31, 2023  GAAP Non-GAAPNumerator:       Net income (loss) $(30,368) $98,339 Interest expense associated with convertible notes  —   4,768 Net income (loss) available to common shareholders $(30,368) $103,107         Denominator:       Basic weighted average shares outstanding  53,769   53,769 Effect of potentially dilutive share-based awards  —   850 Dilutive effect of 2023 Convertible Senior Notes  —   21 Dilutive effect of 2025 Convertible Senior Notes  —   2,786 Dilutive effect of 2027 Convertible Senior Notes(1)  —   3,417 Diluted weighted average shares outstanding  53,769   60,843         Net income per common share:       Basic $(0.56) $1.83 Diluted $(0.56) $1.69  ____________________________(1) - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.  Reconciliation of GAAP Net Income to Non-GAAP Operating Income (FY 2024 and 2023)(in thousands)(unaudited)         Year ended Year ended  December 31, 2024 December 31, 2023GAAP Net income (loss) $73,714  $(30,368)Share-based compensation  35,879   28,558 Amortization  6,983   8,481 Asset impairment  28,131   — Acquisition related  —   1,056 Changes in contingent consideration  (21,242)  701 Transition expenses related to San Jose expansion project  —   838 Sales of productive assets  (2,033)  — Interest (income) expense, net  (1,853)  1,187 Other  1,373   97,091 Income tax expense (benefit)  (4,880)  2,030 Non-GAAP Operating income (loss) $116,072  $109,574            Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025)(in millions, except per share amounts)(unaudited)                                 Non-GAAP Adjustments        Guidance for the three months ending         Share-based            March 31, 2025 GAAP Compensation Amortization Other Non-GAAPNet sales $155  - $175        $155  - $175 Gross profit  63  -  72  2  —  —   65  -  74 Gross margin  41% -  41%        42% -  42%Operating expenses  56  -  58  (8) (1) —   47  -  49 Operating income  7  -  14  10  1  —   18  -  25 Net income $7  - $13  10  1  (2) $16  - $22                        Income per diluted common share $0.11  - $0.22        $0.26  - $0.36                              Income per Diluted Common Share (Q1 2025)(in millions, except per share amounts)(unaudited)                     Guidance for the three months ending March 31, 2025 GAAP Non-GAAPNumerator:                    Net income available to common shareholders $7  - $13  $16  - $22                      Denominator:                    Basic weighted average shares outstanding  58     58   58     58 Effect of potentially dilutive share-based awards  1     1   1     1 Dilutive effect of 2027 Convertible Senior Notes(1)  —     2   1     1 Diluted weighted average shares outstanding  59     61   60     60                      Net income per common share:                    Income per diluted common share $0.11  - $0.22  $0.26  - $0.36  ____________________________(1)    - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.  Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025)(in millions)(unaudited)           Guidance for the three months ending March 31, 2025          GAAP Net income $7  - $13 Share-based compensation  10  -  10 Amortization  1  -  1 Income tax expense  —  -  1 Non-GAAP Operating income $18  - $25  Note: Amounts may not calculate precisely due to rounding.

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