Veeco Instruments (VECO) Q4 2023 earnings summary

Executive summary

• FY23 revenue was $666.4M vs. $646.1M; semiconductor revenue set a record, while non-GAAP operating income of $109.6M and diluted EPS of $1.69 rose 10% and 8% YoY.

• Adjusted net income rose to $98.3M from $89.6M; GAAP results included a $97.1M debt-refinancing loss.

Financial highlights

• Q4 revenue was $173.9M vs. $153.8M; GAAP net income was $21.6M vs. $128.9M, and adjusted net income was $29.8M vs. $21.9M.

• Q4 diluted EPS was $0.37 GAAP and $0.51 adjusted, vs. $2.00 and $0.38, respectively, in Q4’22.

• FY23 GAAP operating income was $69.9M and net loss was $30.4M, or $(0.56) per diluted share; adjusted operating income was $109.6M and adjusted EPS was $1.69.

Outlook and guidance

• FY24 revenue guidance is $680M–$740M; diluted EPS guidance is $1.10–$1.40 GAAP and $1.60–$1.90 non-GAAP.

• Q1’24 revenue guidance is $160M–$180M; gross margin guidance is 42%–43% GAAP and 43%–44% adjusted, with diluted EPS of $0.22–$0.33 GAAP and $0.36–$0.46 adjusted.

• NSA and IBD300 could receive initial HVM orders in 2025; several compound-semiconductor evaluation shipments are expected in 2024.