The following is a summary of the Veeco Instruments Inc. (VECO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Veeco reported Q3 revenue of $185 million, highlighted by record revenues in the semiconductor business, increasing 26% year-over-year and 13% sequentially.

• Non-GAAP operating income was $31 million and non-GAAP EPS was $0.46.

• Gross margin reached approximately 44%.

Business Progress:

• Veeco's semiconductor business achieved record revenue, driven by significant orders for wet processing systems influenced by AI applications. Key customers include leading foundries, HBM manufacturers, and OSATs.

• The company introduced the new IBD300 system that enhances film properties and reduces resistivity for logic and memory applications.

• In advanced packaging lithography, increasing orders are driven by a surge in AI and mobile applications.

Opportunities:

• The semiconductor business is poised for further growth in 2025, with AI and high-performance computing driving demands.

• Expansion in the ion beam deposition for EUV mask blanks, as new material technologies permit continued device scaling.

• The advanced packaging market is expected to see sustained growth owing to the demands from AI and 3D packaging technologies.

Risks:

• The recent slowdown in the semiconductor market in China is expected to lead to a reduction in revenue from this region in 2025.

• Potential revenue decrease in the data storage market, anticipated to be around $60 million to $70 million in 2025 due to a lack of investment in capacity expansion from customers.

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