Assets

3 Months Ended

Mar. 31, 2025

Note 3 — Assets

Investments

Short-term investments are generally classified as available-for-sale and reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income” in the Consolidated Balance Sheets. These securities may include U.S. treasuries, government agency securities, corporate debt, and commercial paper, all with maturities of greater than three months when

purchased. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary are included in “Other operating expense (income), net” in the Consolidated Statements of Operations.

Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. Veeco classifies certain assets based on the following fair value hierarchy:

Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and

Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Veeco has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts.

The following table presents the portion of Veeco’s assets that were measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024:


	Level 1		Level 2		Level 3		Total

	(in thousands)
March 31, 2025
Cash equivalents
Certificate of deposits and time deposits	$	67,362	$	—	$	—	$	67,362
Government agency securities		—		1,998		—		1,998
U.S. treasuries		9,974		—		—		9,974
Money market cash		21,866		—		—		21,866
Total	$	99,202	$	1,998	$	—	$	101,200
Short-term investments
U.S. treasuries	$	52,922	$	—	$	—	$	52,922
Government agency securities		—		44,036		—		44,036
Corporate debt		—		79,952		—		79,952
Commercial paper		—		1,485		—		1,485
Total	$	52,922	$	125,473	$	—	$	178,395

December 31, 2024
Cash equivalents
Certificate of deposits and time deposits	$	66,023	$	—	$	—	$	66,023
Money market cash		15,003		—		—		15,003
Total	$	81,026	$	—	$	—	$	81,026
Short-term investments
U.S. treasuries	$	84,032	$	—	$	—	$	84,032
Government agency securities		—		30,167		—		30,167
Corporate debt		—		83,051		—		83,051
Commercial paper		—		1,469		—		1,469
Total	$	84,032	$	114,687	$	—	$	198,719

There were no transfers between fair value measurement levels during the three months ended March 31, 2025.

At March 31, 2025 and December 31, 2024, the amortized cost and fair value of available-for-sale securities consist of:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value

	(in thousands)
March 31, 2025
U.S. treasuries	$	52,906	$	26	$	(10)	$	52,922
Government agency securities		44,067		8		(39)		44,036
Corporate debt		80,018		24		(90)		79,952
Commercial paper		1,485		—		—		1,485
Total	$	178,476	$	58	$	(139)	$	178,395

December 31, 2024
U.S. treasuries	$	84,008	$	45	$	(21)	$	84,032
Government agency securities		30,244		13		(90)		30,167
Corporate debt		83,209		17		(175)		83,051
Commercial paper		1,469		—		—		1,469
Total	$	198,930	$	75	$	(286)	$	198,719

Available-for-sale securities in a loss position at March 31, 2025 and December 31, 2024 consist of:


	Continuous Loss Position				Continuous Loss Position
	for Less than 12 Months				for 12 Months or More
			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses

		(in thousands)
March 31, 2025
U.S. treasuries	$	31,249	$	(10)	$	—	$	—
Government agency securities		38,128		(39)		—		—
Corporate debt		51,294		(90)		—		—
Total	$	120,671	$	(139)	$	—	$	—

December 31, 2024
U.S. treasuries	$	26,756	$	(21)	$	—	$	—
Government agency securities		20,062		(90)		—		—
Corporate debt		58,967		(175)		—		—
Total	$	105,785	$	(286)	$	—	$	—

The contractual maturities of securities classified as available-for-sale at March 31, 2025 were as follows:


	March 31, 2025
	Amortized		Estimated
	Cost		Fair Value

		(in thousands)
Due in one year or less	$	113,581	$	113,515
Due after one year through two years		64,895		64,880
Total	$	178,476	$	178,395

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were no realized gains or losses, or unrealized losses from declines in fair value that are other than temporary, for the three months ended March 31, 2025 and 2024.

Accounts Receivable

Accounts receivable is presented net of an allowance for doubtful accounts of $1.0 million at March 31, 2025 and December 31, 2024. The Company considers its current expectations of future economic conditions when estimating its allowance for doubtful accounts.

Inventories

Inventories at March 31, 2025 and December 31, 2024 consist of the following:


	March 31,		December 31,
	2025		2024

	(in thousands)
Materials	$	132,909	$	129,178
Work-in-process		87,726		88,361
Finished goods		6,950		3,016
Evaluation inventory		26,466		26,180
Total	$	254,051	$	246,735

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets primarily consist of supplier deposits, prepaid value-added tax, lease deposits, prepaid insurance, prepaid software and maintenance, and other receivables. The Company had deposits with its suppliers of $18.8 million and $18.7 million at March 31, 2025 and December 31, 2024, respectively.

Property, Plant, and Equipment

Property, plant, and equipment at March 31, 2025 and December 31, 2024 consist of the following:


	March 31,		December 31,
	2025		2024

	(in thousands)
Land	$	5,061	$	5,061
Building and improvements		61,527		61,504
Machinery and equipment ⁽¹⁾		194,117		190,810
Leasehold improvements		54,641		53,759
Gross property, plant, and equipment		315,346		311,134
Less: accumulated depreciation and amortization		201,559		197,345
Property, plant, and equipment, net	$	113,787	$	113,789

(1)	Machinery and equipment also includes software, furniture and fixtures

For the three months ended March 31, 2025 and 2024, depreciation expense was $4.2 million and $4.5 million, respectively.

Goodwill

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. There were no changes to goodwill during the three months ended March 31, 2025.

Intangible Assets

Intangible assets consist of purchased technology, customer relationships, patents, trademarks and tradenames, licenses, and backlog, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined.

The components of purchased intangible assets were as follows:


	March 31, 2025						December 31, 2024
			Accumulated						Accumulated
	Gross		Amortization				Gross		Amortization
	Carrying		and		Net		Carrying		and		Net
	Amount		Impairment		Amount		Amount		Impairment		Amount

	(in thousands)
Technology	$	355,928	$	354,446	$	1,482	$	355,928	$	354,066	$	1,862
Customer relationships		146,925		140,397		6,528		146,925		139,955		6,970
Trademarks and tradenames		30,910		30,910		—		30,910		30,910		—
Other		3,746		3,746		—		3,746		3,746		—
Total	$	537,509	$	529,499	$	8,010	$	537,509	$	528,677	$	8,832

Other intangible assets primarily consist of patents, licenses, and backlog.