Veeco Instruments Inc. (NASDAQ:VECO) Q4 2018 Earnings Conference Call Transcript

Feb 11, 2019 • 05:00 pm ET


Veeco Instruments Inc. (NASDAQ:VECO) Q4 2018 Earnings Conference Call Transcript


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Good day everyone and welcome to the Veeco Instruments Q4 and Fiscal Year 2018 Earnings Conference Call. As a reminder, today's call is being recorded.

And at this time, I'd like to turn the floor over to Anthony Bencivenga, Investor Relations. Please go ahead.

Anthony Bencivenga

Thank you and good afternoon, everyone. Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and Sam Maheshwari, our Chief Operating Officer and Chief Financial Officer. Today's earnings release is available on the Veeco website. Please note that we have prepared a slide presentation to accompany today's webcast. We encourage you to follow along with the slides on

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 recording 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 make 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 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 will turn the call over to Bill, for his opening remarks.

William J. Miller

Thank you, Anthony. Good afternoon, everyone and thank you for joining the call. Veeco executed according to plan in Q4 and non-GAAP results were inline with guidance provided. Q4 bookings were $112 million in the quarter led by front-end semiconductor market and our backlog has grown to $288 million.

Revenue for the quarter was $99 million. We've been communicating for some time that the commodity portion of the LED business, which includes the sale of our MOCVD systems to the China LED market has been under pricing pressure and is becoming a smaller portion of our business. This trend continued in Q4. Non-GAAP gross margin was 36% and our non-GAAP operating income and non-GAAP EPS came in at a loss of $6.9 million and a loss of $0.16 respectively.

We ended the quarter with $261 million in cash and short-term investments. On our last earnings call, Sam indicated the possibility of a goodwill impairment charge in Q4. After performing the analysis, it became clear that charge was required. We recorded $123 million non-cash charge, which Sam will describe in more detail.

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