VECO Veeco Instruments Inc DE

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 Year
GAAP 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 Year
Non-GAAP Results		Q4 '24				Q4 '23				2024				2023
Operating 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 million
• GAAP diluted earnings per share are expected in the range of $0.11 to $0.22
• Non-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) 500-8798	apappone@veeco.com
Media:	Brenden Wright	(410) 984-2610	bwright@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				2023
Net 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-GAAP
Numerator:
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-GAAP
Numerator:
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, 2023
GAAP 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-GAAP
Numerator:
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-GAAP
Numerator:
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, 2023
GAAP 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-GAAP
Net 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-GAAP
Numerator:
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.