Veeco Instruments (VECO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $176 million, up 9% year-over-year, driven by strong semiconductor demand and record laser annealing sales, with non-GAAP operating income of $28 million and non-GAAP EPS of $0.42, aligning with guidance.

• Semiconductor business showed strength, highlighted by record laser annealing revenue, follow-on LSA orders in advanced logic and DRAM, and ongoing evaluation system placements.

• Ongoing investments in core technologies, R&D, and evaluation programs are supporting long-term growth and expanding the served available market in laser, nanosecond annealing, and ion beam deposition.

• AI chip manufacturing, high-bandwidth memory (HBM), and advanced packaging are key growth drivers, with technologies qualified at leading customers.

• Net income for Q2 2024 was $14.9 million GAAP ($0.25 per diluted share), reversing a prior year loss.

Financial highlights

• Q2 2024 revenue was $176 million, up 9% year-over-year and 1% sequentially; semiconductor segment comprised 63% of revenue, data storage 19%, compound semi 10%, and scientific/other 8%.

• Gross margin was 43.7% non-GAAP and 42.9% GAAP, at the high end of guidance.

• Non-GAAP net income was $25.4 million (EPS $0.42); GAAP net income was $14.9 million (EPS $0.25).

• Cash and short-term investments ended at $305 million, up sequentially.

• Operating income for Q2 2024 was $16.7 million GAAP and $28 million non-GAAP.

Outlook and guidance

• Q3 2024 revenue expected between $170 million and $190 million, with gross margin guidance of 43%-44% and non-GAAP EPS of $0.39-$0.49.

• 2024 full-year revenue guidance narrowed to $690-$730 million, with non-GAAP EPS of $1.65-$1.85.

• Semiconductor revenue for the year expected to be up high single to low double digits year-over-year; compound semi expected flat to slightly down.

• Management anticipates continued long-term growth in wafer fab equipment spending, driven by AI, HPC, and automotive electrification.