In This Article:
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Full Year Revenue: $717 million, an 8% increase from the prior year.
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Semiconductor Business Revenue: $467 million, up 13% year-over-year, comprising 65% of total revenue.
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Non-GAAP Operating Income: $116 million, a 6% increase from the prior year.
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Non-GAAP EPS: $1.74, an increase from the prior year.
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Q4 Revenue: $182 million, a 5% year-over-year increase.
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Q4 Non-GAAP Operating Income: $27 million.
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Q4 Non-GAAP EPS: $0.41.
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Gross Margin (Full Year): 43.3%, consistent with the prior year.
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Operating Expenses (Full Year): $194 million, an 8% increase driven by R&D investment.
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Net Income (Full Year): $104 million with a tax expense of $15 million.
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Order Backlog: Approximately $410 million, down $80 million from the prior year.
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Cash and Short-term Investments: $345 million at the end of the quarter.
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Cash Flow from Operations (Full Year): $64 million.
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Q1 2025 Revenue Outlook: Expected between $155 million and $175 million.
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Q1 2025 Gross Margin Outlook: Approximately 42%.
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Q1 2025 Net Income Outlook: Between $16 million and $22 million.
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Q1 2025 Diluted EPS Outlook: Between $0.26 and $0.36.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Veeco Instruments Inc (NASDAQ:VECO) achieved record revenue in its semiconductor business, growing 13% year-over-year.
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The company successfully shipped an LSA system for high-volume production of 2-nanometer gate all around logic chips.
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Veeco's advanced packaging business is expected to double in 2025, driven by wet processing and lithography.
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The company is a market leader in laser annealing and ion beam deposition technologies, critical for leading-edge semiconductor manufacturing.
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Veeco's non-GAAP operating income grew 6% to $116 million, with diluted non-GAAP EPS increasing to $1.74.
Negative Points
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Revenue from the compound semiconductor segment declined, representing only 11% of total revenue.
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The order backlog decreased by approximately $80 million, primarily due to a decline in the data storage business.
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Gross margin for the fourth quarter was below guidance at 41.5%, impacted by product mix and evaluation program spending.
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China's revenue is expected to decline in 2025, with a significant drop anticipated in the second half of the year.
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The company faces headwinds in the data storage market, with expectations of a $60 million to $70 million decline in revenue for 2025.
Q & A Highlights
Q: Can you provide more details on the expected decline in China revenue for Q1 2025? A: John Kiernan, CFO, stated that Veeco expects China revenue in the first half of 2025 to be about 25% to 30% of total revenue, down from 36% in 2024. This decline is slightly more weighted to Q1 than Q2.