VEECO INSTRUMENTS INC Q3 FY2024 earnings call

Bill's Remarks - Semiconductor business had record revenue, up 26% YOY and 13% sequentially, with leading-edge customer shipments. Veeco is market leader in laser annealing and ion beam deposition for EUV mask blanks. Advanced packaging wet processing is a growth driver. - Discussed evaluation programs for capturing large opportunities, with potential follow-on business of $30-60M per application. ### John's Remarks - Revenue at $185M, above guidance midpoint. Semiconductor 67% of revenue. Gross margin 44%, OpEx $50M. Net income $28M, EPS $0.46. Balance sheet and cash flow details provided. 2024 revenue narrowed to $700M-$720M, EPS $1.68-$1.78.

Revenue for the quarter was $185 million. Semiconductor business delivered record revenue, comprising 67% of total revenue. Compound semiconductor market revenue was $16 million, totaling 8% of revenue. Data storage revenue was $33 million, comprising 18% of revenue. Scientific and other made up 7% of revenue.

Q4 2024 - Revenue expected $165M-$185M. Semiconductor to decline from Q3 record. Data storage to decline in Q4. Scientific to increase. Gross margin 43%-44%, OpEx $48M-$51M, net income $21M-$27M, EPS $0.35-$0.45. ### 2025 - China semiconductor revenue expected to decline. Outside China, AI and high-performance computing drive growth. Compound semi: GaN power has opportunities, SiC power demand slow. Data storage revenue expected to decline $60M-$70M.

• China semiconductor revenue moderation. - Data storage revenue expected to decline $60M-$70M in 2025. - SiC power demand slow due to EV adoption slowdown.

Q: Recently ASML's forecast was below expectations, any impact?

A: Veeco's 2024 outlook flat, 2025 expected 3-5 system range with new application wins.

Q: China revenue expected to decline, what's normal?

A: China revenue strong in 2024, recent engagements moderated, expected to normalize to previous rates.

Q: Directional color for 2025 segments?

A: Semiconductor growth driven by AI, compound semi has GaN and SiC opportunities, data storage to decline.

Q: Split of $50M wet processing orders?

A: Split among leading foundries, HBM manufacturers, OSATs, with strong 2025 visibility.

Q: China revenue decline percentage and timing?

A: Nuanced, expected to normalize to previous rates over time, previously China ran 20%+ of business.

Q: Evaluation systems contribution in 2025?

A: Laser annealing and ion beam deposition evaluations ongoing, potential follow-on orders late 2025/2026.