Piper Jaffray TMT Conference. 1 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

Transcription

1 Piper Jaffray TMT Conference 1 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc. March 11, 2015

2 Industry Leader in Thin Film Equipment TurboDisc EPIK 700 GaN MOCVD System > Highly differentiated process equipment and technologies that enable the manufacturing of high-tech electronic devices > Industry leader in MOCVD, MBE, IBD, IBE, Single-Wafer Wet Etch and other advanced thin film process technologies NEXUS IBE-420Si Ion Beam Etching System > Operations in 10 countries on four continents > Based in New York, with about 800 employees worldwide WaferStorm 3300 Single Wafer Wet Etch Processing System 2 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

3 2014: Solid Execution in a Transition Year Improved Financial Performance Revenue $392M, up 18% Bookings $510M, up 54% Achieved EBITDA Profitability Generated $42M in Cash from Operations Gross Margin up 3 Percentage Points Successful Cost Reduction and Site Consolidation Activities 3 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

4 2014: Solid Execution in a Transition Year New Product and Business Wins EPIK700 MOCVD Gained Traction in Multiple Regions Propel MOCVD Launched New Opportunity in GaN Power Data Storage Secured Sizeable Q4 Orders GENxplor MBE Gained Research Market Share PSP Acquisition New Trajectory for Revenue & Profit Growth 4 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

5 Fourth Quarter 2014 Highlights Orders up >80% sequentially to $196M Best Veeco Order Rate since 2011 Revenue grew 22% sequentially to $114M Increase in MOCVD and Data Storage Cash and Short Term Investments $392M Generated ~$50M Cash from Operations 5 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

6 MOCVD Revenue Expected to Grow in 2015 Backlighting trends remain positive; utilization rates recover after seasonal downtick >800M LED Lamps Shipped in 2014 Forecasted to grow 30% CAGR to nearly 4B by 2020 LED Lighting (unit) Penetration 5% in 2014 Forecasted to be >25% by 2020 Overall Market Trends Positive for Multi-Year MOCVD Growth 6 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc. Source: LED Inside

7 EPIK700 MOCVD: Pulling Ahead of the Competition > Highest productivity platform with up to 20% improved CoO compared to previous generations > Designed for best-in-class uniformity which provides greater wafer yield > Fastest to production with easy process transfer > Most efficient capital investment for maximum profitability > All betas accepted; quick process transfer of recipes in discussions for multi-unit orders with multiple customers Strategic Wins in 4 Key Geographic Regions 7 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

8 PSP: Great Fit to Support our Growth in 2015 & Beyond Increased Access to High Growth Markets Complimentary Differentiated Technology Synergistic Combination to Drive Growth & Profitability Strong Position in Advanced Packaging Extends Footprint in Compound Semi & MEMS Soak and Spray Technology enables Single Wafer Control with Low Cost of Batch Processing Highly Configurable Platform Serves Multiple Applications and Wafer Sizes Significant Overlap in Business Opportunities Working to Accelerate Growth for a Robust, Highly Profitable Business 8 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

9 Dry Wet Batch Single Wafer Wet Processing Gains Share in Advanced Packaging Dry Film / Resist Removal Today 2019 TSV Resist Removal & Clean Flux Removal & Clean UBM / RDL Etch Today 2019 Today 2019 Today 2019 Single Wafer Wet Wafer Thinning / Stress Relieve Today March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

10 Veeco s Outlook: A Better 2015 Drive Revenue Growth through Existing and New Market Opportunities LED, Power Electronics & Mobil Devices Focus on Differentiated Products & Lower Manufacturing Costs Targeting Gross Margins >40% Continued Bottom Line Improvement Expect EBITDA Profitability Every Quarter of 2015 Currently Forecasting Greater Than 30% Revenue Growth 10 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.

11 Safe Harbor To the extent that this presentation discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These items include the risk factors discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements. 11 March 2015 Investor Overview Copyright 2015 Veeco Instruments Inc.