Veeco Investor Presentation - library.corporate-ir.netlibrary.corporate-ir.net/library/11/111/111487/items/302491/...– LED & Solar Process Equipment (MOCVD, MBE and Web Coaters)

Veeco Investor PresentationJuly 30, 2008

2 ©2008 Veeco Instruments Inc 073008 Investor Slides

Veeco Investment ThemesVeeco Investment Themes

Leading technology positions in our three businesses:– LED & Solar Process Equipment (MOCVD, MBE and Web Coaters)– Data Storage Process Equipment (Ion Beam and Slider)– Metrology (Auto AFM, Nano-Bio AFM, Optical)

Several high-growth market opportunities:– HB-LED– Solar– Nanotechnology - material science, life science and 3D in-fab

metrologyFocused on executing a financial turnaround:– Restructuring underway and having impact on 1st half ’08 results– Maximizing our diversified business model


2008 Focus: Improving Veeco’s Performance2008 Focus: Improving Veeco’s Performance

Increase Top-Line Growth

Align R&D to best growth opportunities– 40% increases in MOCVD and

MBE; Nano-Bio also up in 2008 New product launches to support ’08 growthStrengthen management team –Tomeo (Sales) and Munch (Metrology)Improve global field sales and service organization

Profit Improvement Activities

During Q4’07/Q1’08, made significant progressCompleted 7.5% RIF; annualized savings $12M (>50% focused on DS operations)Additional “Right-sizing” of data storage business:Consolidated corporate headquarters: $1.8M savings annuallyAdditional cost cutting in Metrology due to semi market downturn

Veeco on track to deliver 13% revenue growth and dramatic profit improvement in 2008


Q2 2008 Financials – Ahead of GuidanceQ2 2008 Financials – Ahead of Guidance($M except EPS)

*See reconciliation to GAAP at end of presentation

Q1 ’08

$109.3

$102.3

42%

$0.1

$5.3

$0.09

Q2 ’07

$112.5

$98.7

43%

($1.0)

$2.8

$0.05

Q2 ’08

$136.5

$114.4

42%

$6.2

$8.7

$0.16

Orders +21%

Revenues +16%

Gross Margin

Operating Income (Loss)

EBITA*

EPS (Non-GAAP)


$33

$52 $52$36$45

$33

Second Quarter 2008 Segment ResultsSecond Quarter 2008 Segment Results

LED & Solar

Process Equipment

Data Storage Process

Equipment LED & Solar

Process Equipment


Equipment

(39%) (32%)

(29%)

(38%) (38%)

(24%)

Q2 08 Revenues ($M)$114 Million

Q2 08 Bookings ($M)$137 Million

POSITIVE BOOK-TO-BILL IN LED & SOLAR AND DATA STORAGE

MetrologyMetrology


Q2 2008 Segment Performance Q2 2008 Segment Performance

$136.5

$32.7

$51.7

$52.1

Q2 08

$112.5

$34.8

$41.3

$36.4

Q2 07

+21%

-6%

+25%

+43%

∆

(4.1)

8.7

(1.2)

5.2

8.7

Q2 08

(3.0)

2.8+16%$98.8$114.4

Unallocated CorporateVeeco Total

0.4-16%$38.7$32.6Metrology

1.6+15%$32.0$36.7Data Storage

3.8+61%$28.0$45.1LED & Solar

Q2 07∆Q2 07Q2 08$m

RevenuesBookings EBITA*

*See reconciliation to GAAP at end of presentation

LED & Solar Process Equipment


Q2 LED & Solar HighlightsQ2 LED & Solar Highlights

$45M revenues up 61% vs. prior year and up 7% sequentiallyLargest Veeco segment at 39% revenueEBITA $8.7M – Record level$52M orders, up 43% vs. last year & 35% sequentially– Latest GEN tools gaining traction– Multi-million $ orders from 5 LED customers in Taiwan & China– Multi-unit order from Spectrolab for III-V multi-junction solar

cells– Building strong ’09 backlog

Completed purchase of Mill Lane Engineering– Expands product line to include web coaters for flexible PV

applications– Global Solar Energy key customer


LED & Solar Process EquipmentLED & Solar Process Equipment

MOCVD

Web Coaters

MBE Systems

MBE Sources

• K465 MOCVD GaN B/G LED

• E475 MOCVD AsP R/O/Y LED and III-V Concentrator Solar Cells

• High Throughput tool set, excellent yield

• FastFlex™ Web Coaters for flexible PV applications

• CIGS Deposition• Complete line of vacuum processing tools

• MBE systems for III-V materials

• Applications including Solar, LED, Wireless, & Broad R&D

•Thermal Deposition Sources

• CIGS & other


LED Market Highlights: Adoption Occurring in Broad-Based ApplicationsLED Market Highlights: Adoption Occurring in Broad-Based Applications

Laptop Backlighting: Apple & HP 13” – 15”Mobile devices/ cell phone flashAutomotive headlamps:– Audi R8 & Lexus 600h– Cadillac Escalade 1st SUV with a

full LED headlamp – Daytime running lights, stop

lightsEmerging Markets:– $269B for lighting China’s

national highways (DigiTimes) Big Screen TVs:– Samsung 40/52” & 70” LED TV


LED Market Highlights: Multi-Year Growth OpportunityLED Market Highlights: Multi-Year Growth Opportunity

Exceptional, multi-year growth opportunityVeeco is a leading supplier of MOCVD technology 20-30 companies worldwide currently investing in MOCVD equipmentKey markets Taiwan, Korea, China, Japan, NA and EuropeVeeco scaling up process support, service, investment in next-gen technology

Strategies Unlimited LED Growth Forecast

2,000

4,000

6,000

8,000

10,000

12,000

020122007 2008 2009 2010 2011

$M

other illumination signals automotive

signs & displays other mobile mobile phones

20% CAGR


Veeco’s High-Throughput MOCVD SystemsVeeco’s High-Throughput MOCVD Systems

TurboDisc K465 GaN modular platformHighest margin for B/G HB-LED manufacturersOnly automated, high capacity system Highest throughput & excellent yieldExtendable platform for long capital life

45 - 120% More Throughput

Highest margin for ROY HB-LED manufacturersAccurate process reproducibilityExcellent uniformity & repeatability Vacuum load-lock minimizes idle time Low maintenance

30 - 40% More Throughput

K SERIES E SERIES


Veeco’s PV OpportunityVeeco’s PV Opportunity

Crystalline Si Thin Film

Mono-Si16-18%

Poly-Si14-16%

a-Si5-10%

CIGS8-14%

CdTe8-12%

III-Vs35-40%

Si Wafer Glass, Stainless Steel, Plastic Ge WaferCIGS = copper, indium, gallium, selenide

(Cu, In, Ga, Se)

Web Coaters & Thermal Deposition Sources

MBE Systems

MOCVD Systems


Veeco’s Offering for Thin Film CIGS Veeco’s Offering for Thin Film CIGS

Sunlight

Window Layer - CdS

CIGS

Back Contact – Mo

Glass, Stainless, Plastic

TCO

Veeco

CIGS Thin Films Currently Deposited using Glass or Roll-to-Roll (Web) Systems

Veeco product line now includes Oxide, Metal and CIGS Deposition Processing capability using Web Coating systems

For CIGS layer, Veeco is leading manufacturer of thermal deposition sources providing a significant competitive advantage for CIGS web systems


WW Solar Cell Consumption (MW)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

MW

Other Thin Films

CIGS

Cadmium Telluride

Amorphous - Si

Other (i.e Ribbon)

Poly - Si

Mono-Si

2006-2010 CAGR% Total = 40.7%Cryst. Si = 37.1%Thin Film= 71.3%

WW Solar Market Growth ForecastsWW Solar Market Growth Forecasts

Thin Film

Crystalline Si

Source: Information Network, Photon Consulting


Thin Film Projected CostsThin Film Projected Costs

CIGS Thin Film costs are estimated to be lower than silicon by 2011


Why Veeco for Thin Films CIGS?Why Veeco for Thin Films CIGS?

We are thin film experts…CIGS complex thin film structure fits well in Veeco overall expertise and portfolio Veeco is already a leading provider of CIGS thermal source technologyOpportunity to combine other Veeco technologies – IBD, PVD, with Mill Lane expertiseEmerging customer base:– 20 thin film PV suppliers working on CIGS – early stage opportunity– Requires integrated process equipment solutions for mass production– Good opportunity for customer partnership and equipment innovation

Our estimate is that every 10MW capacity solar line requires $8-12M in MO, TCO and CIGS deposition equipmentOur “Sweet Spot” to integrate process and equipment

Data Storage Process Equipment


Q2 Data Storage HighlightsQ2 Data Storage Highlights

Revenue $37M; up 15% vs. last year and up 52% sequentially– Customer “pull-ins” of delivery dates tied to wafer size change

programs & increased capacity requirements

EBITA $5.2M – strong recovery from EBITA loss in Q1– Improved profitability on a lower cost basis after rationalization

initiatives

Orders $52M – highest level since early 2006 – 25% increase vs. prior year & up 27% sequentiallyWell-aligned to customer capacity & technology requirements


Advanced Dicing SystemAdvanced Lapping System

Physical Vapor Deposition Diamond-Like Carbon

Refocused Data Storage Process Equipment Product Line Refocused Data Storage Process Equipment Product Line

Ion Beam Etch and Deposition

IBE 420Si, IBE 350Si, IBE 350SeIBD-DS, IBD-LDD PVD-HR, PVD-1, PVDi DLC-X

Optium ASL 200 Optium ADS 160


Data Storage TrendsData Storage Trends

Growth rates for TFMH & drives have slowed from prior yearsCustomers trends:– Industry consolidation– CapEx management

Veeco strategy: right size business to improve profits & maintain customer alignment:– Exited two product lines– Consolidated R&D and

engineering sites

Hard Drive Growth Forecast

Source: IDC May 2008

Heads

Platters

0M

100M

200M

300M

400M

500M

600M

700M

800M

900M

199219931994199519961997199819992000200120022003200420052006200720082009201020112012

$0B

$5B

$10B

$15B

$20B

$25B

$30B

$35B

$40B

$45B

$50B

Units Revenue

7% CAGR

9% CAGR


CAPEX Drivers in a Maturing IndustryCAPEX Drivers in a Maturing Industry

Capacity8” wafer format: 50% increase in sliders/wafer…without investment in facility expansionRequires retooling in >50% of the process steps for comparable yields

TechnologyAreal density growth continues at 30-40% per year…drives tech spendingNew materials, new processes

Cost of OwnershipHDD manufacturing cost reduction driving lower cost-of-ownership tool sets and processesPVD for Alumina and Metals

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2005 2006 2007 2008 2009 2010

Year

Ado

ptio

n [%

]

-350

-250

-150

-50

50

150

250

350

450

550

GB

SI

PMR

Areal Density Trend

TMR

2nd and 3rd Generation PMR

Metrology


Q2 Metrology HighlightsQ2 Metrology Highlights

$33M revenues, down 16% from Q2 ’07 & down 10% sequentiallyReported EBITA loss of $1.5M$33M bookings, down 6% prior year but up 9% sequentiallyOnly business unit with significant exposure to semiconductor market. Trough level bookings & revenue– Market traction for new InSight Auto AFM slower than originally

anticipated

Nano-Bio & Optical instruments businesses also weak in ’08 due to sluggish overall research spendingCost cutting in Metrology to improve profitability in 2H ’08Mark Munch joined Feb. ’08 – new leadership to drive improvements…marketing, new product introductions, customer satisfaction, gross margins


Veeco MetrologyVeeco Metrology

Veeco is a leading provider of:– Auto AFMs for semiconductor, data storage applications, 3D

“nanoscale” metrology– Optical Metrology for broad industrial applications– Nano-Bio AFMs for scientific research; nanotech; life science

applications

Auto AFM STI Image SPM Polymer Image Optical Profiler Sensor Image


New Products Provide Growth OpportunityNew Products Provide Growth Opportunity

Innova SPM: New modes in Q1– Lower cost option for university

researchersHarmoniX SPM Mode

– Quantitative measurementsDektak 150 – High-performance research/ industrial

metrology stylus profiler– High repeatability, low noise, large

scanning rangeWyko NT9100: First Shipments Q1– “More affordable” table-top optical

profiler for optics, solar, biomedical, automotive

Wyko HD 9800: First Shipment Q1– New optical profiler for HDD

applications

Innova SPM

Wyko NT 9100


New InSight 3DAFM: Improved Performance Expands Our TAMNew InSight 3DAFM: Improved Performance Expands Our TAM

45nm node measurement capability…32nm roadmapIndustry highest AFM depth & CD throughput: 30 wph, 9 sites<1nm measurement uncertaintyProduction based metrology– Ease of use enhancements– Improved reliability

10x improvement in probe lifetimes – better CoOCustomer demos increasing in 2H ‘08

Outlook and Financial Model


2008 Performance Improvements2008 Performance Improvements

Goal is revenue growth > 10% to $450-455MOperating spending forecasted to decline as a percentage of sales (38% in ’07 to 35-36% ’08)Continued focus on gross margin improvements:– On track to achieve 42% gross margin in 2008 – Driving margin improvement independent of volume

• Better pricing• Global supply chain initiatives• Outsourcing

Cost containment focus so that spending does not get ahead of revenue growth…continued improvements in expense structure


Veeco’s 2008 Outlook: >10% Revenue GrowthVeeco’s 2008 Outlook: >10% Revenue Growth

$450-455M$440M$402MTOTAL

$135-140M$157-160M$150MMetrology

$145-150M$137-143M$136MData StorageProcess Equipment

$165-170M*$140-145M$116MLED & Solar Process Equipment

July 2008 Guidance

Feb 2008 Guidance

2007Revenue

* LED & Solar Guidance includes $10-15M for Mill Lane Acquisition

LED & SOLAR and DATA STORAGE Businesses Running Ahead of Original Revenue Guidance…Weakness in Semi and Research Hurting Metrology


Q3 ’08 GuidanceQ3 ’08 Guidance

Q3 ‘08 Revenues $113-$118 million

Q3 ‘08 Earnings ($0.12) – ($0.03) per share GAAP

Non-GAAP EPS $0.10 - $0.15[using 35% tax rate and excluding $3.7M charge related to mutually agreed termination of employment agreement for Veeco’s former CEO;$0.7M for Metrology restructuring; $0.4M purchase accounting adjustment to write up inventory to fair value (Mill Lane); amortization $3.1M.]

Q3 ‘08 Orders $113-$118 million


Gross Margin Improvement ModelGross Margin Improvement Model

5-7%11 - 14%5-7%7.6%2.7%3.8%EBITA (%)

35-36%32 - 34%35-36%34.1%37.6%34.1%Operating Expenses

42%45%42%41.7%40.3%37.9%TOTAL

45-46%50%45%43.8%44.1%39.3%Metrology

40-41%43%40%40.9%38.1%37.2%Process Equipment

Gross Margin

$450-455$135*$113-$118$114.4$402$106.8Revenue ($M)

2008 Forecast

Peak QuarterTargets

Q3’08 FQ2’082007 Full YearQ4 2007

*Peak Quarter Margins Require >$40M Metrology Revenues


Veeco Balance Sheet Veeco Balance Sheet

December 31, 2007June 30, 2008

$273.7$281.7Shareholder’s Equity

146.6146.4Long-Term Debt (including current portion)

529.3542.8Total Assets

66.166.5Fixed Assets

174.5178.6Working Capital

$117.1$109.6Cash and Investments

(in millions)


Veeco Investment ThemesVeeco Investment Themes

Leading technology positions in our three businesses:– LED & Solar Process Equipment (MOCVD, MBE and Web Coaters)– Data Storage Process Equipment (Ion Beam and Slider)– Metrology (Auto AFM, Nano-Bio AFM, Optical)

Several high-growth market opportunities:– HB-LED– Solar– Nanotechnology - material science, life science and 3D in-fab

metrologyFocused on executing a financial turnaround:– Restructuring underway and having impact on 1st half ’08 results– Maximizing our diversified business model


Safe Harbor StatementSafe Harbor Statement

To the extent that this presentation discusses expectations or otherwise make statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risk factors discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2007 and subsequent Quarterly Reports on Form 10-Q and current reports on Form 8-K. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

In addition, this presentation includes non-GAAP financial measures. For GAAP reconciliation, please refer to the reconciliation section in this presentation as well as Veeco’s financial press releases and 10-K and 10-Q filings available on www.veeco.com.


Back-Up and Reconciliation SlidesBack-Up and Reconciliation Slides


Q2 and 1H ’08 Reconciliation TableQ2 and 1H ’08 Reconciliation Table

NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.

1. During the first quarter of 2008, the Company recorded a restructuring charge of $2.9 million, consisting of $2.6 million of costs associated with the consolidation and relocation of the lease for our Corporate headquarters, and $0.3 million of personnel severance costs.

2. During the first quarter of 2008, the Company recorded a $0.3 million asset impairment charge related to fixed asset write-offs associated with the consolidation and relocation of our Corporate headquarters. 3. During the first quarter of 2007, the Company repurchased $56.0 million aggregate principal amount of its 4.125% convertible subordinated notes. As a result of these repurchases, the Company recorded a gain from the early

extinguishment of debt in the amount of $0.7 million.

(1)

(2)

(3)

June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007

Operating income (loss) $6,230 ($1,010) $6,382 $728Adjustments:Amortization expense 2,426 2,368 4,382 6,277Restructuring expense - 1,445 2,875 1,445 Asset impairment charge - - 285 - Earnings before interest, income taxes and amortization

excluding certain items ("EBITA") 8,656 2,803 13,924 8,450Interest expense, net 969 772 1,861 1,591Gain on extinguishment of debt - - - (738) Adjustment to exclude gain on extinguishment of debt - - - 738 Earnings excluding certain items before income taxes 7,687 2,031 12,063 6,859Income tax provision at 35% 2,690 711 4,222 2,401Noncontrolling interest, net of income tax provision at 35% (46) (149) (95) (233)Earnings excluding certain items $5,043 $1,469 $7,936 $4,691Earnings excluding certain items per diluted share $0.16 $0.05 $0.25 $0.15Diluted weighted average shares outstanding 31,590 31,263 31,435 31,278

Three months ended Six months ended


Q2 and Six Month Segment DataQ2 and Six Month Segment Data

June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007

LED & Solar Process EquipmentBookings 52.1$ 36.4$ 90.8$ 72.8$ Revenues 45.1 28.0 87.2 50.4 Operating income 7.8 2.8 15.8 2.3 Amortization expense 1.0 1.0 1.5 3.3 EBITA 8.8 3.8 17.3 5.6

Data Storage Process EquipmentBookings 51.7 41.3 92.3 73.6 Revenues 36.7 32.0 60.9 67.7 Operating income 4.3 0.7 1.7 2.1 Amortization expense 0.9 0.9 1.9 1.9 Restructuring expense - - 0.1 - EBITA 5.2 1.6 3.7 4.0

MetrologyBookings 32.7 34.8 62.7 72.0 Revenues 32.6 38.7 68.7 79.8 Operating (loss) income (1.6) (1.3) (0.4) 2.3 Amortization expense 0.4 0.3 0.8 0.7 Restructuring expense - 1.4 0.2 1.4 EBITA (1.2) 0.4 0.6 4.4

Unallocated CorporateOperating loss (4.2) (3.3) (10.8) (6.0) Amortization expense 0.1 0.2 0.2 0.4 Restructuring expense - 0.1 2.6 0.1 Asset impairment charge - - 0.3 - EBITA (4.1) (3.0) (7.7) (5.5)

TotalBookings 136.5 112.5 245.8 218.4 Revenues 114.4 98.7 216.8 197.9 Operating income (loss) 6.3 (1.1) 6.3 0.7 Amortization expense 2.4 2.4 4.4 6.3 Restructuring expense - 1.5 2.9 1.5 Asset impairment charge - - 0.3 - EBITA 8.7$ 2.8$ 13.9$ 8.5$

** Refer to footnotes on Reconciliation of operating income to earnings excluding certain items

Six months endedThree months ended

($Ms)


Q3 Guidance Reconciliation TableQ3 Guidance Reconciliation Table

NOTE - The above reconciliation is intended to present Veeco's operating results, excluding certain items and providing income taxes at a 35% statutory rate. This reconciliation is not in accordance with, or an alternative method for, generally accepted accounting principles in the United States, and may be different from similar measures presented by other companies. Management of the Company evaluates performance of its business units based on EBITA, which is the primary indicator used to plan and forecast future periods. The presentation of this financial measure facilitates meaningful comparison with prior periods, as management of the Company believes EBITA reports baseline performance and thus provides useful information.

1. During the third quarter of 2008, the Company plans to record a restructuring charge of $3.7 million associated with the termination of the employment agreement for our former CEO pursuant to the successful transition of the new CEO and a charge of $0.7 million for Metrology restructuring.

2. During the third quarter of 2008, the Company plans to record a purchase accounting adjustment of $0.4 million to Cost of Sales associated with the acquisition of Mill Lane Engineering.

LOW HIGH

Operating (loss) income ($2,000) $600

Amortization expense 3,100 3,100

Restructuring expense 4,400 4,400

Purchase accounting adjustment 400 400

Earnings before interest, income taxes and amortization 5,900 8,500and excluding certain items ("EBITA")

Interest expense, net 1,000 1,000

Earnings excluding certain items before income taxes 4,900 7,500

Income tax provision at 35% 1,715 2,625

Earnings excluding certain items $3,185 $4,875

Earnings excluding certain items per diluted share $0.10 $0.15

Diluted weighted average shares outstanding 31,800 31,800

Guidance for theThree months ended June 30, 2008

(1)

(2)

(1)

(2)

$ in 000 except EPS


2007 Quarterly Segment Data2007 Quarterly Segment Data

March 31, June 30, September 30, December 31,2007 2007 2007 2007

LED & Solar Process EquipmentBookings 36.4$ 36.4$ 48.7$ 42.5$ Revenues 22.4 28.0 31.8 33.7 Operating (loss) income (0.5) 2.8 2.7 4.7 Amortization expense 2.3 1.0 0.5 0.5 EBITA 1.8 3.8 3.2 5.2

Data Storage Process EquipmentBookings 32.3 41.3 32.2 35.8 Revenues 35.7 32.1 31.1 37.3 Operating income (loss) 1.4 0.6 (2.2) (6.4) Amortization expense 1.0 1.0 1.0 1.0 Restructuring expense - - 0.2 2.3 Asset impairment charge - - - 1.1 Inventory write-off - - - 4.8 EBITA 2.4 1.6 (1.0) 2.8

MetrologyBookings 37.2 34.8 37.4 36.6 Revenues 41.1 38.7 34.8 35.8 Operating income (loss) 3.6 (0.6) (0.8) (2.4) Amortization expense 0.4 0.3 0.4 0.3 Restructuring expense - 0.6 0.6 EBITA 4.0 0.3 (0.4) (1.5)

Unallocated CorporateOperating loss (2.8) (3.9) (3.9) (4.4) Amortization expense 0.2 0.1 0.1 0.2 Restructuring expense - 0.8 0.3 1.8 EBITA (2.6) (3.0) (3.5) (2.4)

TotalBookings 105.9 112.5 118.3 114.9 Revenues 99.2 98.8 97.7 106.8 Operating income (loss) 1.7 (1.1) (4.2) (8.5) Amortization expense 3.9 2.4 2.0 2.0 Restructuring expense - 1.5 0.5 4.7 Asset impairment charge - - - 1.1 Inventory write-off - - - 4.8 EBITA 5.6$ 2.8$ (1.7)$ 4.1$

Three months ended

Veeco Instruments Inc. and Subsidiaries Segment Revenues, Bookings, and Reconciliation

(In millions)(Unaudited)

of Operating (Loss) Income to EBITA


$63

$91 $92$61$87

$69

First Six Month 2008 Segment ResultsFirst Six Month 2008 Segment Results

LED & Solar

Process Equipment


Equipment

Metrology

LED & Solar

Process Equipment


Equipment

Metrology

(40%) (28%)

(32%)

(37%) (37%)

(26%)

Six Month 08 Revenues ($M)$217 Million

Six Month 08 Bookings ($M)$246 Million

POSITIVE BOOK-TO-BILL IN LED & SOLAR AND DATA STORAGE


$146

$164$142$136

$116

$150

Focus on Our Three Business SegmentsFocus on Our Three Business Segments

LED & Solar

Process Equipment


Equipment

Metrology

LED & Solar

Process Equipment


Equipment

Metrology

(29%)

(34%)

(37%)

(36%)(31%)

(33%)

2007 Revenues ($M)$402 Million

2007 Bookings ($M)$452 Million

Each Business Has Unique Growth and Profit Opportunities


TurboDisc K465 GaN Advantage TurboDisc K465 GaN Advantage

TurboDisc K465 GaN modular platformHighest margin for B/G HB-LED manufacturersOnly automated, high capacity system Highest throughput & excellent yieldExtendable platform for long capital life

45-120% More Throughput

9030Competitor B

13842Competitor A

20245TurboDisc K465 GaN

Wafers/Day

2” Wafer Capacity


TurboDisc E475 As/P Advantage TurboDisc E475 As/P Advantage

Production proven E475

Highest margin for ROY HB-LED manufacturers– 30-40% more

throughput than competition

Accurate process reproducibilityExcellent uniformity & repeatability Vacuum load-lock minimizes idle time Low maintenance

2,2112,9054” Wafer

8,01011,0382” Wafer

CompetitorVeeco

Wafers/month


III-V Solar Cells Provide Lowest Cost for Satellite Solar Cells & Terrestrial PVIII-V Solar Cells Provide Lowest Cost for Satellite Solar Cells & Terrestrial PV

E475 As/P TurboDisc MOCVD platformProvides high volume, low cost III-V solar cells 40.7% solar cell efficiency –highest in the world50% more throughput than the competition In-situ process controls for excellent repeatability and yieldsExcellent uniformity High purity epi layer films assures maximum solar cell performance

Documents

Veeco Investor Presentation - library.corporate-ir.netlibrary.corporate-ir.net/library/11/111/111487/items/302491/...– LED & Solar Process Equipment (MOCVD, MBE and Web Coaters)