Veeco 2Q16 Financial Results Better than Expected

Second Quarter 2016 Results Summary:

  • Revenues of US $75.3 million
  • GAAP net loss per share of $0.82, includes a pre-tax charge of ~$16 million associated with the restructuring plans
  • Non-GAAP net loss per share of $0.19
  • Non-GAAP adjusted EBITDA of negative $2.8 million

Veeco Instruments Inc. (NASDAQ: VECO) today announced financial results for its second fiscal quarter ended June 30, 2016. 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.

Veeco Instruments Inc. and Subsidiaries

Press Release Summary - Financial Results

U.S. dollars in millions, except per share data

GAAP Results      Q2 '16   Q2 '15
Revenue         $ 75.3   $ 131.4
Net income (loss)      $(32.1)    $ (8.4)
Diluted earnings (loss) per share  $(0.82)  $(0.21)
Non-GAAP Results       Q2 '16    Q2 '15
Net income (loss)       $ (7.6)   $  8.4
Adjusted EBITDA      $ (2.8)   $ 12.8
Diluted earnings (loss) per share     $(0.19)  $ 0.2

"Veeco closed out a difficult first half of 2016 delivering second quarter results which were in line with our expectations and underscore our focus on operational execution," commented John R. Peeler, Chairman and Chief Executive Officer.

"As previously communicated, we have taken decisive steps aimed at improving our through-cycle profitability by reducing fixed costs and streamlining our operations. This plan will enable us to lower our quarterly adjusted EBITDA breakeven level to between $75 and $80 million in revenue, without compromising our ability to capitalize on growth opportunities. Looking ahead, we see positive indications that should lead to a pick-up in demand for our Metal Organic Chemical Vapor Deposition ("MOCVD") equipment over the near term," Mr. Peeler concluded.

The restructuring plan involves the consolidation of three manufacturing operations and streamlining of field and administrative functions. The plan is expected to be substantially completed by the end of 2016 and to result in annualized savings of approximately $20 millionstarting in the first quarter of 2017. As a result of these actions, the company recorded a pre-tax charge of approximately $16 million in the second quarter.

Guidance and Outlook

The following guidance is provided for Veeco's third quarter 2016:

·         Revenue is expected to be in the range of $70 million to $85 million

·         GAAP Net Income (loss) is expected to be in the range of ($24) million to ($18) million and earnings (loss) per share is expected to be in the range of ($0.62) to ($0.46)

·         Non-GAAP Net Income (loss) is expected to be in the range of ($10) million to ($4) million and earnings (loss) per share is expected to be in the range of ($0.26) to ($0.10)

·         Adjusted EBITDA (loss) is expected to be in the range of ($6) million to breakeven

Please refer to the tables at the end of this press release for further details.

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