Veeco Reports First Quarter 2025 Financial Results

First Quarter 2025 Highlights:

Revenue of $167.3 million, compared with $174.5 million in the same period last year
GAAP net income of $11.9 million, or $0.20 per diluted share, compared with $21.9 million, or $0.37 per diluted share in the same period last year
Non-GAAP net income of $22.2 million, or $0.37 per diluted share, compared with $26.4 million, or $0.45 per diluted share in the same period last year

PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025. 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

GAAP Results	Q1 ’25		Q1 ’24
Revenue	$	167.3	$	174.5
Net income	$	11.9	$	21.9
Diluted earnings per share	$	0.20	$	0.37

Non-GAAP Results	Q1 ’25		Q1 ’24
Operating income	$	24.3	$	29.4
Net income	$	22.2	$	26.4
Diluted earnings per share	$	0.37	$	0.45

“Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.”

Guidance and Outlook

The following guidance is provided for Veeco’s second quarter 2025:

Revenue is expected in the range of $135 million to $165 million
GAAP diluted earnings (loss) per share are expected in the range of ($0.05) to $0.17
Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32

Conference Call Information

A conference call reviewing these results has been scheduled for today, May 7, 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, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) 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	[email protected]
Media:	Javier Banos	(516) 673-7328	[email protected]

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)

	Three months ended March 31,
	2025			2024
Net sales	$	167,292		$	174,484
Cost of sales		98,825			99,065
Gross profit		68,467			75,419
Operating expenses, net:
Research and development		28,514			29,642
Selling, general, and administrative		25,028			24,700
Amortization of intangible assets		821			1,891
Other operating expense (income), net		(44	)		(2,859	)
Total operating expenses, net		54,319			53,374
Operating income		14,148			22,045
Interest income (expense), net		836			705
Income (loss) before income taxes		14,984			22,750
Income tax expense (benefit)		3,037			896
Net income	$	11,947		$	21,854

Income per common share:
Basic	$	0.21		$	0.39
Diluted	$	0.20		$	0.37

Weighted average number of shares:
Basic		57,753			55,968
Diluted		60,234			60,764

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)

	March 31,		December 31,
	2025		2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	174,898	$	145,595
Restricted cash		169		224
Short-term investments		178,395		198,719
Accounts receivable, net		114,368		96,834
Contract assets		33,586		37,109
Inventories		254,051		246,735
Prepaid expenses and other current assets		39,338		39,316
Total current assets		794,805		764,532
Property, plant and equipment, net		113,787		113,789
Operating lease right-of-use assets		25,991		26,503
Intangible assets, net		8,010		8,832
Goodwill		214,964		214,964
Deferred income taxes		118,567		120,191
Other assets		2,700		2,766
Total assets	$	1,278,824	$	1,251,577

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	57,845	$	43,519
Accrued expenses and other current liabilities		62,257		55,195
Contract liabilities		57,211		64,986
Income taxes payable		1,546		2,086
Current portion of long-term debt		—		26,496
Total current liabilities		178,859		192,282
Deferred income taxes		663		689
Long-term debt		249,955		249,702
Long-term operating lease liabilities		33,694		34,318
Other liabilities		3,795		3,816
Total liabilities		466,966		480,807

Total stockholders’ equity		811,858		770,770
Total liabilities and stockholders’ equity	$	1,278,824	$	1,251,577

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 (Q1 2025) (in thousands) (unaudited)

				Non-GAAP Adjustments
Three months ended March 31, 2025	GAAP			Share-Based Compensation		Amortization		Other		Non-GAAP
Net sales	$	167,292								$	167,292
Gross profit		68,467		1,343							69,810
Gross margin		40.9	%								41.7	%
Operating expenses		54,319		(7,865	)	(821	)	(99	)		45,534
Operating income		14,148		9,208		821		99	^		24,276
Net income		11,947		9,208		821		231	^		22,207

_______________
^ – See table below for additional details.

Other Non-GAAP Adjustments (Q1 2025) (in thousands) (unaudited)

Three months ended March 31, 2025
Other	$	99
Subtotal		99
Non-cash interest expense		257
Non-GAAP tax adjustment *		(125	)
Total Other	$	231

_______________
* – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2025) (in thousands, except per share amounts) (unaudited)

	Three months ended March 31, 2025
	GAAP		Non-GAAP
Numerator:
Net income	$	11,947	$	22,207
Interest expense associated with 2025 and 2027 Convertible Senior Notes		253		273
Net income available to common shareholders	$	12,200	$	22,480

Denominator:
Basic weighted average shares outstanding		57,753		57,753
Effect of potentially dilutive share-based awards		693		693
Dilutive effect of 2025 Convertible Senior Notes		—		174
Dilutive effect of 2027 Convertible Senior Notes ⁽¹⁾		1,788		1,354
Diluted weighted average shares outstanding		60,234		59,974

Net income per common share:
Basic	$	0.21	$	0.38
Diluted	$	0.20	$	0.37

_______________
⁽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 (Q1 2024) (in thousands) (unaudited)

				Non-GAAP Adjustments
Three months ended March 31, 2024		GAAP		Share-based Compensation		Amortization		Other			Non-GAAP
Net sales	$	174,484									$	174,484
Gross profit		75,419		1,730								77,149
Gross margin		43.2	%									44.2	%
Operating expenses		53,374		(6,352	)	(1,891	)	2,658				47,789
Operating income		22,045		8,082		1,891		(2,658	)	^		29,360
Net income		21,854		8,082		1,891		(5,384	)	^		26,443

_______________
^ – See table below for additional details.

Other Non-GAAP Adjustments (Q1 2024) (in thousands) (unaudited)

Three months ended March 31, 2024
Changes in contingent consideration	$	(625	)
Sale of productive assets		(2,033	)
Subtotal		(2,658	)
Non-cash interest expense		296
Non-GAAP tax adjustment *		(3,022	)
Total Other	$	(5,384	)

_______________
* – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2024) (in thousands, except per share amounts) (unaudited)

	Three months ended March 31, 2024
	GAAP		Non-GAAP
Numerator:
Net income	$	21,854	$	26,443
Interest expense associated with 2025 and 2027 Convertible Senior Notes		514		466
Net income available to common shareholders	$	22,368	$	26,909

Denominator:
Basic weighted average shares outstanding		55,968		55,968
Effect of potentially dilutive share-based awards		939		939
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		965		965
Diluted weighted average shares outstanding		60,764		60,330

Net income per common share:
Basic	$	0.39	$	0.47
Diluted	$	0.37	$	0.45

_______________
(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 and 2024) (in thousands) (unaudited)

	Three months ended			Three months ended
	March 31, 2025			March 31, 2024
GAAP Net income	$	11,947		$	21,854
Share-based compensation		9,208			8,082
Amortization		821			1,891
Sale of productive assets		—			(2,033	)
Changes in contingent consideration		—			(625	)
Interest (income) expense, net		(836	)		(705	)
Other		99			—
Income tax expense (benefit)		3,037			896
Non-GAAP Operating income	$	24,276		$	29,360

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025) (in millions, except per share amounts) (unaudited)

								Non-GAAP Adjustments
Guidance for the three months ending								Share-based
June 30, 2025	GAAP							Compensation		Amortization		Other		Non-GAAP
Net sales	$	135		–	$	165								$	135		–	$	165
Gross profit		54		–		69		1		—		—			55		–		70
Gross margin		39	%	–		41	%								40	%	–		42	%
Operating expenses		57		–		58		(9	)	(1	)	—			47		–		48
Operating income (loss)		(3	)	–		11		10		1		—			8		–		22
Net income (loss)	$	(3	)	–	$	10		10		1		(1	)	$	7		–	$	20

Income (loss) per diluted common share	$	(0.05	)	–	$	0.17								$	0.12		–	$	0.32

Income per Diluted Common Share (Q2 2025) (in millions, except per share amounts) (unaudited)

Guidance for the three months ending June 30, 2025	GAAP						Non-GAAP
Numerator:
Net income (loss) available to common shareholders	$	(3	)	–	$	10	$	7	–	$	20

Denominator:
Basic weighted average shares outstanding		58				58		58			58
Effect of potentially dilutive share-based awards		—				1		1			1
Dilutive effect of 2027 Convertible Senior Notes ⁽¹⁾		—				2		—			1
Diluted weighted average shares outstanding		58				61		59			61

Net income per common share:
Income (loss) per diluted common share	$	(0.05	)	–	$	0.17	$	0.12	–	$	0.32

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025) (in millions) (unaudited)

Guidance for the three months ending June 30, 2025
GAAP Net income (loss)	$	(3	)	–	$	10
Share-based compensation		10		–		10
Amortization		1		–		1
Interest income, net		(1	)	–		(1	)
Income tax expense (benefit)		—		–		1
Non-GAAP Operating income	$	8		–	$	22

Note: Amounts may not calculate precisely due to rounding.