Q4 2024 Veeco Instruments Inc Earnings Call Transcript
Key Points
- Veeco Instruments Inc (VECO) achieved record revenue in its semiconductor business, growing 13% year-over-year.
- The company successfully shipped an LSA system for high-volume production of 2-nanometer gate all around logic chips.
- Veeco's advanced packaging business is expected to double in 2025, driven by wet processing and lithography.
- The company is a market leader in laser annealing and ion beam deposition technologies, critical for leading-edge semiconductor manufacturing.
- Veeco's non-GAAP operating income grew 6% to $116 million, with diluted non-GAAP EPS increasing to $1.74.
- Revenue from the compound semiconductor segment declined, representing only 11% of total revenue.
- The order backlog decreased by approximately $80 million, primarily due to a decline in the data storage business.
- Gross margin for the fourth quarter was below guidance at 41.5%, impacted by product mix and evaluation program spending.
- China's revenue is expected to decline in 2025, with a significant drop anticipated in the second half of the year.
- The company faces headwinds in the data storage market, with expectations of a $60 million to $70 million decline in revenue for 2025.
Ladies and gentlemen, greetings, and welcome to the Veeco Fourth Quarter and Full Year 2024 Earnings Conference Call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anthony Pappone, Head of Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and John Kiernan, our Chief Financial Officer. Today's earnings release and slide presentation to accompany today's webcast is available on the Veeco website.
To the extent that this call discusses expectations for future revenues, future earnings, market conditions or otherwise make statements about the future, these forward-looking statements are based on management's current expectations and are subject to the risks and uncertainties that could cause actual results to differ materially from the statements made. These risks are discussed in detail in our Form 10
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