Veeco Instruments (VECO) 6 Aug 24 2024 Q2 Earnings call transcript

In the latest earnings call, Veeco, a leading provider of advanced semiconductor process equipment, highlighted its strong performance in the second quarter of 2024. The company reported revenue of $176 million, with non-GAAP operating income at $28 million and non-GAAP EPS of $0.42. These figures reflect a 9% year-over-year increase and a 1% sequential growth, underscoring Veeco's robust financial health and operational efficiency.

Strong Semiconductor Business

Veeco's semiconductor business, which accounted for 63% of the total revenue, showed a record laser annealing revenue, with new LSA orders in advanced logic and memory. The company's focus on new annealing capabilities, such as laser spike annealing and nanosecond annealing, has positioned Veeco well to cater to the demands of the semiconductor market, particularly in scaling challenges for high-performance chips.

Growth Opportunities and Investments

Looking ahead, Veeco is focused on expanding its business to new mask blank applications and investing in core technologies to expand its served available market. The company's strategic investments in laser annealing and ion beam deposition have enabled its semiconductor business to outperform WFE growth over the past three years. With a substantial opportunity to grow its SAM from $600 million to over $1 billion, Veeco is poised to capitalize on the growing demand for advanced annealing capabilities and ion beam deposition technologies.

Innovative Technologies and Market Expansion

Veeco's commitment to innovation is evident in its focus on nanosecond annealing and ion beam deposition for advanced semiconductor applications. The company's nanosecond annealing system, which offers lower thermal budget and shorter dwell time, is expected to broaden laser annealing adoption to new applications such as backside power delivery and 3D devices. Similarly, Veeco's ion beam deposition technology, which is critical for EUV mask blank production, is a key enabler in driving aerial density growth in the semiconductor industry.

Looking Ahead

Veeco's strategic investments in core technologies and its ability to adapt to the evolving demands of the semiconductor market have positioned the company for continued growth. The company's optimistic outlook, coupled with its focus on innovation and expansion, underscores its commitment to delivering value to its customers and shareholders. With a strong financial position and a clear growth strategy, Veeco is well-positioned to capitalize on the opportunities in the semiconductor market and beyond.