Veeco: Fiscal 2Q21 Financial Results

(in $ million)	2Q20	2Q21	6 mo. 20	6 mo. 21
Revenue	98.6	146.3	203.1	280.1
*Growth*		48%		*38%*
Net income (loss)	(8.3)	6.3	(8.9)	8.8

Veeco Instruments Inc. announced financial results for its second quarter ended June 30, 2021

2FQ21 Highlights:
• Revenue of $146.3 million, compared with $98.6 million in the same period last year
• GAAP net income of $6.3 million, or $0.12 per diluted share, compared with a loss of $8.3 million, or $0.17 loss per diluted share in the same period last year
• Non-GAAP net income of $17.9 million, or $0.35 per diluted share, compared with $5.5 million, or $0.11 per diluted share in the same period last year

“Veeco delivered solid performance in the second quarter with revenue and EPS at the high end of our guidance range,” commented William J. Miller, Ph.D., CEO. “Sales were driven primarily by shipments to our semiconductor and data storage customers. We are on track to deliver exceptional growth in 2021 and our evaluation systems in the field are performing well giving us confidence in our longer term growth plan. In addition, progress on our new manufacturing facility, supporting the semiconductor market, is on schedule and will enable us to meet future demand with increased manufacturing capacity.”

Guidance for 3FQ21:
• Revenue between $135 million and $155 million
• GAAP diluted earnings per share in the range of $0.02 to $0.20
• Non-GAAP diluted earnings per share in the range of $0.25 to $0.44

Comments

Etch and deposition performance enabling the data storage and MEMS markets is the third major market of the company and the increased global revenue from 1Q21 was largely driven this data storage, which grew 27% in the quarter.

Data storage has been growing for multiple years, consistent with increasing amounts of data storage and server enterprise nearline and surveillance applications. HDD exabyte capacity shipped with a new record last quarter. This corresponds to an increase in the number of heads shipped and since firm's customers seek to improve their aerial density to enable a larger capacity drives, head complexity is also increasing. These tailwinds have been creating a robust market environment for company's customers who are adding capacity to keep up with increasing demand. After several years of capacity additions, including in 2021, data storage order rate has slowed in the first half and the firm believes 2022 will likely be a period of equipment digestion. However, with the amount of data generated showing no signs of slowing, the company is confident about the long-term prospects of its data storage business. If there is a decline, given firm's traction in semiconductor and compound semiconductor applications, it sees multiple paths to growth at the company level.