Veeco Instruments Inc. (NASDAQ:VECO) Q4 2015 Earnings Conference Call - Final Transcript

Feb 22, 2016 • 05:00 pm ET

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Veeco Instruments Inc. (NASDAQ:VECO) Q4 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day and welcome to the Veeco Instruments Fourth Quarter 2015 Earnings Call.

[Operator Instructions]

At this time, I would like to turn the conference over to Ms. Shanye Hudson. Please go ahead, ma'am.

Executive
Shanye Hudson

Thank you, operator, and good afternoon everyone. Joining me on the call today are John Peeler, Veeco's Chairman and CEO, and Sam Maheshwari, our CFO.Today's earnings release is available on the Veeco website. Please note we've prepared a slide presentation to accompany today's Webcast. We encourage you to follow along with the slides on veeco.com. This call is being recorded by Veeco Instruments and is copyrighted material. It cannot be recorded or rebroadcast without Veeco's expressed permission. Your participation implies consent to our taping.

To the extent that this call discusses expectations about market conditions, market acceptance and future sales of the Company's products, future disclosures, future earnings 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 being made.

These factors are discussed in the Business Description and Management's Discussion and Analysis sections of the Company's report on Form 10-K and annual report to shareholders and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements, including those made on this call, to reflect future events or circumstances after the date of such statements.

During this call, management may address non-GAAP financial measures. Information regarding such non-GAAP financial measures, including reconciliation to GAAP measures of performance, is available on our website.

With that, I'll turn the call over to John for opening remarks.

Executive
John R. Peeler

Thanks, Shanye.

We ended 2015 on a positive note delivering solid fourth quarter financial performance. Bookings were $107 million, more than doubling sequentially. Revenue was also $107 million and towards the upper end of our guidance range. Gross margin came in ahead of our expectations at approximately 37%. We put our capital to work repurchasing 469,000 shares of common stock. And we ended the year with a solid cash balance of $385 million.

For the calendar year, we also performed well in a challenging business environment. We increased revenue by 21% to $477 million to fortify strong execution in our PSP business. We had targeted growing PSP by about 10% in 2015 and we achieved growth in excess of 20%, significantly exceeding our goals. We increased EBITDA by a factor of 15 [Phonetic] year-over-year, demonstrating our ongoing focus on operational execution and expense discipline.

Overall, I'm pleased with our performance and remain confident in our ability to execute against our strategic objectives.

With that, I'll turn the call over to Sam to discuss our Q4 results in a bit more detail.

Executive
Shubham Maheshwari

Thanks, John, and good afternoon everyone. Today, I will be discussing our non-GAAP financial performance. You can find a detailed reconciliation between GAAP and non-GAAP results in the press release and on