Veeco Reports Fourth Quarter and Fiscal Year 2016 Financial Results
PLAINVIEW, NY -- (Marketwired) -- 02/16/17 --
Veeco Instruments Inc. (NASDAQ: VECO)
Fourth Quarter 2016 Highlights
- Revenues of $93.6 million
- GAAP net loss per share of $0.13 and Non-GAAP earnings per share of $0.09
- Non-GAAP adjusted EBITDA of $6.2 million
Full Year 2016 Highlights
- Revenues of $332.5 million
- GAAP net loss per share of $3.11 and Non-GAAP net loss per share of $0.29
- Non-GAAP adjusted EBITDA of $4.2 million
Veeco Instruments Inc. (NASDAQ: VECO) announced financial results for its fourth quarter and fiscal year ended December 31, 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.
----------------------------------------------------------------------------
U.S. Dollars in millions, except per share data
----------------------------------------------------------------------------
4th Quarter Full Year
--------------------------------------------
GAAP Results Q4 '16 Q4 '15 2016 2015
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Revenue $93.6 $106.5 $332.5 $477.0
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Net income (loss) ($5.0) ($9.8) ($122.2) ($32.0)
----------------------------------------------------------------------------
Diluted earnings (loss) per
share ($0.13) ($0.25) ($3.11) ($0.80)
----------------------------------------------------------------------------
4th Quarter Full Year
--------------------------------------------
Non-GAAP Results Q4 '16 Q4 '15 2016 2015
----------------------------------------------------------------------------
Net income (loss) $3.8 $0.6 ($11.3) $22.1
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Adjusted EBITDA $6.2 $4.4 $4.2 $41.7
----------------------------------------------------------------------------
Diluted earnings (loss) per
share $0.09 $0.01 ($0.29) $0.54
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"Veeco's fourth quarter financial results marked a strong finish to a challenging year. Revenues increased by 9% and adjusted EBITDA more than doubled sequentially over the prior quarter. We improved gross margins for the third consecutive year, delivering on our objective to achieve gross margins of 40% or better. Our performance demonstrates solid operational execution and underscores our focus on improving through-cycle profitability," commented John R. Peeler, Chairman and Chief Executive Officer.
"Entering 2017, we are seeing healthy LED industry dynamics and positive business momentum. We closed an exclusive, multi-year agreement with OSRAM Opto Semiconductors GmbH to supply Metal Organic Chemical Vapor Deposition ("MOCVD") and Precision Surface Processing ("PSP") systems for their new high volume LED production facility in Kulim. We made significant progress in growing our Advanced Packaging business, increasing sales into the Advanced Packaging, MEMS & RF markets by ~10% year over year. In addition, our recently announced agreement to acquire Ultratech will establish Veeco as a leading equipment supplier to the Advanced Packaging industry. We are excited by this proposed combination, which is expected to increase our scale, diversify our revenue and provide a stable platform to drive long-term shareholder value. The transaction is subject to regulatory clearance and approval by Ultratech's stockholders and is expected to close in the second quarter," Mr. Peeler concluded.
Guidance and Outlook
The following guidance is provided for Veeco's first quarter 2017:
- Revenue is expected to be in the range of $85 million to $100 million
- Adjusted EBITDA is expected to be in the range of $5 million to $11 million
- GAAP earnings (loss) per share are expected to be in the range of ($0.28) to ($0.12) and includes a pre-tax interest expense estimated to be ~$4 million associated with the 2023 Convertible Notes
- Non-GAAP earnings per share are expected to be in the range of $0.00 to $0.16 and includes a pre-tax interest expense estimated to be ~$2 million associated with the 2023 Convertible Notes
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 16, 2017 starting at 5:00pm ET. To join the call, dial 877-741-4245 (toll free) or 719-325-4942 and use passcode 2499397. The call will also be webcast live on the Veeco 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's process equipment solutions enable the manufacture of LEDs, displays, power electronics, compound semiconductors, hard disk drives, semiconductors, MEMS and wireless chips. We are the leader in MOCVD, MBE, Ion Beam, Wet Etch single wafer processing and other advanced thin film process technologies. Our high performance systems drive innovation in energy efficiency, consumer electronics and network storage and allow our customers to maximize productivity and achieve lower cost of ownership. For information on our company, products and worldwide service and support, please visit www.veeco.com.
Additional Information and Where to Find It
In connection with the proposed acquisition of Ultratech ("Ultratech") by Veeco ("Veeco") pursuant to the terms of an Agreement and Plan of Merger by and among Ultratech, Veeco and Merger Sub, Veeco will file with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 (the "Form S-4") that will contain a proxy statement of Ultratech and a prospectus of Veeco, which proxy statement/prospectus will be mailed or otherwise disseminated to Ultratech's stockholders when it becomes available. Investors are urged to read the proxy statement/prospectus (including all amendments and supplements) because they will contain important information. Investors may obtain free copies of the proxy statement/prospectus when it becomes available, as well as other filings containing information about Veeco and Ultratech, without charge, at the SEC's Internet site (http://www.sec.gov). Copies of these documents may also be obtained for free from the companies' web sites at www.Veeco.com or www.Ultratech.com.
Participants in Solicitation
Veeco, Ultratech and their respective officers and directors may be deemed to be participants in the solicitation of proxies from the stockholders of Ultratech in connection with the proposed transaction. Information about Veeco's executive officers and directors is set forth in its Annual Report on Form 10-K, which was filed with the SEC on February 25, 2016 and its proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on March 22, 2016. Information about Ultratech's executive officers and directors is set forth in its Annual Report on Form 10-K, which was filed with the SEC on February 26, 2016, Amendment No. 1 to its Annual Report on Form 10-K, which was filed with the SEC on April 22, 2016, and the proxy statements for its 2016 annual meeting of stockholders, which were filed with the SEC on June 10, 2016 and June 13, 2016. Investors may obtain more detailed information regarding the direct and indirect interests of the Veeco, Ultratech and their respective executive officers and directors in the acquisition by reading the preliminary and definitive proxy statement/prospectus regarding the transaction, which will be filed with the SEC.
Forward-Looking Statements
This written communication also contains forward-looking statements that involve risks and uncertainties concerning Veeco's proposed acquisition of Ultratech, Ultratech's and Veeco's expected financial performance, as well as Ultratech's and Veeco's strategic and operational plans. Actual events or results may differ materially from those described in this written communication due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, the possibility that Ultratech may be unable to obtain required stockholder approval or that other conditions to closing the transaction may not be satisfied, such that the transaction will not close or that the closing may be delayed; the reaction of customers to the transaction; general economic conditions; the transaction may involve unexpected costs, liabilities or delays; risks that the transaction disrupts current plans and operations of the parties to the transaction; the ability to recognize the benefits of the transaction; the amount of the costs, fees, expenses and charges related to the transaction and the actual terms of any financings that will be obtained for the transaction; the outcome of any legal proceedings related to the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the transaction agreement. In addition, please refer to the documents that Veeco and Ultratech file with the SEC on Forms 10-K, 10-Q and 8-K. The filings by Veeco and Ultratech identify and address other important factors that could cause its financial and operational results to differ materially from those contained in the forward-looking statements set forth in this written communication.
All forward-looking statements speak only as of the date of this written communication nor, in the case of any document incorporated by reference, the date of that document. Neither Veeco nor Ultratech is under any duty to update any of the forward-looking statements after the date of this written communication to conform to actual results.
-financial tables attached-
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended For the year ended
December 31, December 31,
------------------------ ------------------------
2016 2015 2016 2015
----------- ----------- ----------- -----------
Net sales $ 93,609 $ 106,543 $ 332,451 $ 477,038
Cost of sales 57,601 67,757 199,593 299,797
----------- ----------- ----------- -----------
Gross profit 36,008 38,786 132,858 177,241
----------- ----------- ----------- -----------
Operating expenses, net:
Research and
development 17,471 20,639 81,016 78,543
Selling, general, and
administrative 19,412 21,036 77,642 90,188
Amortization of
intangible assets 3,434 5,802 19,219 27,634
Restructuring 1,646 1,170 5,640 4,679
Asset impairment (142) - 69,520 126
Other, net (660) 98 223 (697)
Total operating
expenses, net 41,161 48,745 253,260 200,473
Operating income (loss) (5,153) (9,959) (120,402) (23,232)
Interest income, net 245 145 958 586
Income (loss) before
income taxes (4,908) (9,814) (119,444) (22,646)
Income tax expense 90 (26) 2,766 9,332
Net income (loss) $ (4,998) $ (9,788) $ (122,210) $ (31,978)
----------- ----------- ----------- -----------
Income (loss) per common
share:
Basic $ (0.13) $ (0.25) $ (3.11) $ (0.80)
Diluted $ (0.13) $ (0.25) $ (3.11) $ (0.80)
Weighted average number
of shares:
Basic 39,267 39,794 39,340 39,742
Diluted 39,267 39,794 39,340 39,742
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2016 2015
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 277,444 $ 269,232
Short-term investments 66,787 116,050
Accounts receivable, net 58,020 49,524
Inventories 77,063 77,469
Deferred cost of sales 6,160 2,100
Prepaid expenses and other current assets 16,034 22,760
Assets held for sale - 5,000
Total current assets 501,508 542,135
Property, plant and equipment, net 60,646 79,590
Intangible assets, net 58,378 131,674
Goodwill 114,908 114,908
Deferred income taxes 2,045 1,384
Other assets 21,047 21,098
------------- -------------
Total assets $ 758,532 $ 890,789
============= =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 22,607 $ 30,074
Accrued expenses and other current liabilities 33,201 49,393
Customer deposits and deferred revenue 85,022 76,216
Income taxes payable 2,311 6,208
Current portion of long-term debt 368 340
------------- -------------
Total current liabilities 143,509 162,231
Deferred income taxes 13,199 11,211
Long-term debt 826 1,193
Other liabilities 6,403 1,539
------------- -------------
Total liabilities 163,937 176,174
Total stockholders' equity 594,595 714,615
------------- -------------
Total liabilities and stockholders' equity $ 758,532 $ 890,789
------------- -------------
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 Share-based
December 31, 2016 GAAP Compensation 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
------------------
Asset impairment (142)
Restructuring 1,646
Acquisition
related 44
Accelerated
depreciation 362
ALD 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 adjusted EBITDA, 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 Share-based
December 31, 2015 GAAP Compensation Amortization Other Non-GAAP
------------------ ---------- ------------- ------------ -------- ----------
Net sales $ 106,543 $ 106,543
Gross profit 38,786 393 39,179
Gross margin 36.4% 36.8%
Research and
development 20,639 (1,292) 19,347
Selling, general,
and
administrative
and Other 21,134 (2,277) (188) 18,669
Net income (loss) (9,788) 3,962 5,802 598 574
Income (loss) per
common share:
Basic $ (0.25) $ 0.01
Diluted (0.25) 0.01
Weighted average
number of shares:
Basic 39,794 40,644
Diluted 39,794 40,731
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
Three months ended
December 31, 2015
------------------
Restructuring 1,170
Acquisition
related 188
Non-GAAP tax
adjustment * (760)
----------
Total Other 598
* - 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 adjusted EBITDA, 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 Adjusted EBITDA
(in thousands)
(unaudited)
Three months ended
December 31,
-------------------------
2016 2015
------------ ------------
GAAP Net income (loss) $ (4,998) $ (9,788)
Share-based compensation 3,579 3,962
Amortization 3,434 5,802
Asset impairment (142) -
Restructuring 1,646 1,170
Acquisition related 44 188
Accelerated depreciation 362 -
ALD liquidation (429) -
Interest income (245) (145)
Depreciation 2,845 3,282
Income tax expense (benefit) 90 (26)
-------------------------
Adjusted EBITDA $ 6,186 $ 4,445
=========================
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 adjusted EBITDA, 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 Share-based
December 31, 2016 GAAP Compensation 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
------------------
Asset impairment 69,520
Restructuring 5,640
Acquisition
related 232
Accelerated
depreciation 716
Pension
termination 1,305
ALD 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 adjusted EBITDA, 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 Share-based
December 31, 2015 GAAP Compensation Amortization Other Non-GAAP
------------------ ---------- ------------- ------------ -------- ----------
Net sales $ 477,038 $ 477,038
Gross profit 177,241 2,495 1,311 181,047
Gross margin 37.2% 38.0%
Research and
development 78,543 (4,031) 74,512
Selling, general,
and
administrative
and Other 89,491 (11,474) (958) 77,059
Net income (loss) (31,978) 18,000 27,634 8,408 22,064
Income (loss) per
common share:
Basic $ (0.80) $ 0.54
Diluted (0.80) 0.54
Weighted average
number of shares:
Basic 39,742 40,759
Diluted 39,742 40,905
Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)
For the year ended
December 31, 2015
------------------
Restructuring 4,679
Acquisition
related - PSP
inventory fair
value step-up 1,311
Acquisition
related 563
Asset Impairment 126
One-time legal
settlement 395
Non-GAAP tax
adjustment * 1,334
----------
Total Other 8,408
* - 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 adjusted EBITDA, 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 Adjusted EBITDA
(in thousands)
(unaudited)
For the year ended
December 31,
-------------------------
2016 2015
------------ ------------
GAAP Net income (loss) $ (122,210) $ (31,978)
Share-based compensation 15,713 18,000
Amortization 19,219 27,634
Asset impairment 69,520 126
Restructuring 5,640 4,679
Acquisition related - PSP inventory fair value
step-up - 1,311
Acquisition related 232 563
One-time legal settlement - 395
Accelerated depreciation 716 -
ALD liquidation (429) -
Pension termination 1,305 -
Interest income (958) (586)
Depreciation 12,714 12,216
Income tax expense (benefit) 2,766 9,332
-------------------------
Adjusted EBITDA $ 4,228 $ 41,692
=========================
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 adjusted EBITDA, 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 Share-
three months based
ended March 31, Compensa- Amortiza-
2017 GAAP tion tion Other Non-GAAP
---------------- ----------------- --------- --------- ----- ---------------
Net sales $ 85 - $ 100 $ 85 - $ 100
Gross profit 32 - 39 1 - 0 33 - 40
Gross margin 37% - 39% 38% - 40%
Net income
(loss) $ (11) - $ (5) 4 3 4 $ 0 - $ 6
Income (loss)
per diluted
common share $(0.28) - $(0.12) $0.00 - $0.16
Weighted
average
number of
shares 39 39 40 40
Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Adjusted EBITDA
(in millions)
(unaudited)
Guidance for the
three months
ended March 31,
2017
----------------
GAAP Net income
(loss) $ (11) - $ (5)
Share-based
compensation 4 - 4
Amortization 3 - 3
Restructuring 2 - 2
Acquisition
related expense 2 - 2
Interest
(income)
expense 4 - 4
Depreciation 3 - 3
Income tax
expense
(benefit) * (2) - (2)
---------------
Adjusted EBITDA $ 5 - $ 11
===============
Note: Amounts may not calculate precisely due to rounding.
* - 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 adjusted EBITDA, 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 Contacts:Investors: Shanye Hudson 516-677-0200 x1272 [email protected]:Jeffrey Pina 516-677-0200 x1222 [email protected]
Source: Veeco Instruments Inc.