Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or
the “Company”) today announced financial results for the second
fiscal quarter of 2023.
Second Quarter Financial Highlights
- Expected revenue reduced by three lithography system shipments
that were delayed to add a customer-specific enhancement package,
resulting in $191 million quarterly revenue.
- GAAP gross margin and non-GAAP gross margin of 53%.
- GAAP operating income of $25 million and GAAP net income of $26
million.
- Non-GAAP operating income of $41 million and non-GAAP net
income of $39 million.
- GAAP diluted earnings per share of $0.53 and non-GAAP diluted
earnings per share of $0.79.
Second Quarter Business Highlights
- Inspection revenue for heterogeneous packaging of advanced
logic processors and high bandwidth memory (HBM) for AI
applications represented over $20 million in the quarter, with
significant revenue growth anticipated over the next several
quarters.
- Revenue from specialty and advanced packaging customers
increased more than 20% over the first quarter.
- Revenue from power customers grew over 35% from the first
quarter, which included systems and software from our inspection,
films, overlay, and OCD product lines.
- IMPULSE® V integrated metrology systems were accepted by two
customers, serving the memory and image sensor markets, delivering
the precision and stability required to keep pace with the latest
generation high speed CMP polishers.
Michael Plisinski, chief executive officer of Onto Innovation,
commented, “During the quarter we saw several positive affirmations
of our strategy. Our leading position among the top five customers
for inspection of heterogeneous packaging and HBM to support the
increasing AI end market resulted in solid demand in the quarter
and positioned Onto for further inspection growth throughout the
year. Demand for our solutions in power semiconductors continued to
grow, and we now have a backlog of orders for our recently
announced Element™ materials metrology and Atlas® OCD metrology
products specifically designed to support the power market.”
He continued, “Although our advanced node customers remain at
significantly reduced spending levels, we have several productive
engagements with their R&D teams, resulting in new tool of
record positions for our films metrology systems and integrated
metrology modules, which should contribute to broader growth when
production spending resumes.”
Onto Innovation Inc.
Key Quarterly Financial
Data
(In thousands, except per
share amounts)
US GAAP
July 1, 2023
April 1, 2023
July 2, 2022
Revenue
$
190,662
$
199,165
$
256,310
Gross profit margin
53
%
53
%
52
%
Operating income
$
24,807
$
29,035
$
57,451
Net income
$
25,896
$
29,068
$
51,575
Net income per diluted share
$
0.53
$
0.59
$
1.03
US NON-GAAP
July 1, 2023
April 1, 2023
July 2, 2022
Revenue
$
190,662
$
199,165
$
256,310
Gross profit margin
53
%
54
%
52
%
Operating income
$
40,565
$
48,895
$
73,096
Net income
$
38,754
$
45,047
$
64,001
Net income per diluted share
$
0.79
$
0.92
$
1.28
Outlook
For the third fiscal quarter ending September 30, 2023, the
Company is providing the following guidance:
- Revenue is expected to be $205 to $225 million.
- GAAP diluted earnings per share is expected to be in the range
of $0.59 to $0.79.
- Non-GAAP diluted earnings per share is expected to be in the
range of $0.85 to $1.05.
Webcast & Conference Call Details
Onto Innovation will host a conference call at 4:30 p.m. Eastern
Time today, August 10, 2023, to discuss its second quarter 2023
financial results and other matters in greater detail. To
participate in the call, please dial (888) 394-8218 or
International: +1 (646) 828-8193 and reference conference ID
9525867 at least five (5) minutes prior to the scheduled start
time. A live webcast will also be available at
www.ontoinnovation.com.
To listen to the live webcast, please go to the website at least
fifteen (15) minutes early to register, download and install any
necessary audio software. There will be a replay of the conference
call available for one year on the Company’s website at
www.ontoinnovation.com.
Discussion of Non-GAAP Financial Measures
The Company has provided in this release non-GAAP financial
measures, including non-GAAP operating income, non-GAAP net income,
non-GAAP diluted earnings per share and non-GAAP operating margin,
which exclude amortization of acquisition-related intangible
assets, certain acquisition-related expenses and benefits,
litigation expenses and restructuring costs. Non-GAAP operating
income, non-GAAP net income, non-GAAP diluted earnings per share
and non-GAAP operating margin can also exclude certain other gains
and losses that are either isolated or cannot be expected to occur
again with any predictability, tax provisions/benefits related to
the previous items, and significant discrete tax events. We exclude
the above items because they are outside of our normal operations
and/or, in certain cases, are difficult to forecast accurately for
future periods.
We utilize several different financial measures, both GAAP and
non-GAAP, in analyzing and assessing the overall performance of our
business, in making operating decisions, forecasting and planning
for future periods, and determining payments under compensation
programs. We consider the use of the non-GAAP measures to be
helpful in assessing the performance of the ongoing operation of
our business. We believe that disclosing non-GAAP financial
measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP,
allows for greater transparency in the review of our financial and
operational performance. We also believe that disclosing non-GAAP
financial measures provides useful information to investors and
others in understanding and evaluating our operating results and
future prospects in the same manner as management and in comparing
financial results across accounting periods and to those of peer
companies. More specifically, management adjusts for the excluded
items for the following reasons:
Amortization of purchased intangible assets: we do not acquire
businesses and assets on a predictable cycle. The amount of
purchase price allocated to the purchased intangible assets and the
term of amortization can vary significantly and are unique to each
acquisition or purchase. We believe that excluding amortization of
purchased intangible assets allows the users of our financial
statements to better review and understand the historic and current
results of our operations, and also facilitates comparisons to peer
companies.
Merger or acquisition related expenses and benefits: we incur
expenses or benefits with respect to certain items associated with
our mergers and acquisitions, such as transaction and integration
costs, change in control payments, adjustments to the fair value of
assets, etc. We exclude such expenses or benefits as they are
related to acquisitions and have no direct correlation to the
operation of our on-going business.
Restructuring charges: we incur restructuring and impairment
charges on individual or groups of employed assets, which arise
from unforeseen circumstances and/or often occur outside of the
ordinary course of our on-going business. Although these events are
reflected in our GAAP financials, these unique transactions may
limit the comparability of our on-going operations with prior and
future periods.
Significant litigation charges or benefits and legal costs: we
may incur charges or benefits as well as legal costs in connection
with litigation and other contingencies unrelated to our core
operations. We exclude these charges or benefits, when significant,
as well as legal costs associated with significant legal matters,
because we do not believe they are reflective of on-going business
and operating results.
Income tax expense: we estimate the tax effect of the items
identified to determine a non-GAAP annual effective tax rate
applied to the pretax amount in order to calculate the non-GAAP
provision for income taxes. We also adjust for items for which the
nature and/or tax jurisdiction requires the application of a
specific tax rate or treatment.
From time to time in the future, there may be other items
excluded if we believe that doing so is consistent with the goal of
providing useful information to investors and management.
There are limitations in using non-GAAP financial measures
because the non-GAAP financial measures are not prepared in
accordance with generally accepted accounting principles and may be
different from non-GAAP financial measures used by other companies.
The non-GAAP financial measures are limited in value because they
exclude certain items that may have a material impact on our
reported financial results. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP in the United States. Investors should
review the reconciliation of the non-GAAP financial measures to
their most directly comparable GAAP financial measures as provided
in the tables accompanying this press release.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
(the “Act”) which include, but are not limited to, statements
regarding Onto Innovation’s business momentum and future growth;
the benefit to customers and capabilities of Onto Innovation’s
products and customer service; Onto Innovation’s ability to both
deliver products and services consistent with our customers’
demands and expectations and strengthen its market position; Onto
Innovation’s expectations regarding the semiconductor market
outlook; Onto Innovation’s future quarterly and annual financial
outlook; as well as other matters that are not purely historical
data. Onto Innovation wishes to take advantage of the “safe harbor”
provided for by the Act and cautions that actual results may differ
materially from those projected as a result of various factors,
including risks and uncertainties, many of which are beyond Onto
Innovation’s control. Such factors include, but are not limited to,
the Company’s ability to leverage its resources to improve its
position in its core markets; its ability to weather difficult
economic environments; its ability to open new market opportunities
and target high-margin markets; the strength/weakness of the
back-end and/or front-end semiconductor market segments;
fluctuations in customer capital spending; the Company’s ability to
effectively manage its supply chain and adequately source
components from suppliers to meet customer demand; the effects of
political, economic, legal, and regulatory changes or conflicts on
the Company's global operations; its ability to adequately protect
its intellectual property rights and maintain data security; the
effects of natural disasters or public health emergencies, such as
the current COVID-19 pandemic, on the global economy and on the
Company’s customers, suppliers, employees, and business; its
ability to effectively maneuver global trade issues and changes in
trade and export regulations and license policies; the Company’s
ability to maintain relationships with its customers and manage
appropriate levels of inventory to meet customer demands; and the
Company’s ability to successfully integrate acquired businesses and
technologies. Additional information and considerations regarding
the risks faced by Onto Innovation are available in Onto
Innovation’s Form 10-K report for the year ended December 31, 2022,
and other filings with the Securities and Exchange Commission. As
the forward-looking statements are based on Onto Innovation’s
current expectations, the Company cannot guarantee any related
future results, levels of activity, performance, or achievements.
Onto Innovation does not assume any obligation to update the
forward-looking information contained in this press release, except
as required by law.
About Onto Innovation
Onto Innovation is a leader in process control, combining global
scale with an expanded portfolio of leading-edge technologies that
include: Un-patterned wafer quality; 3D metrology spanning chip
features from nanometer scale transistors to large die
interconnects; macro defect inspection of wafers and packages;
elemental layer composition; overlay metrology; factory analytics;
and lithography for advanced semiconductor packaging. Our breadth
of offerings across the entire semiconductor value chain combined
with our connected thinking approach results in a unique
perspective to help solve our customers’ most difficult yield,
device performance, quality, and reliability issues. Onto
Innovation strives to optimize customers’ critical path of progress
by making them smarter, faster and more efficient. With
headquarters and manufacturing in the U.S., Onto Innovation
supports customers with a worldwide sales and service organization.
Additional information can be found at www.ontoinnovation.com.
Source: Onto Innovation Inc. ONTO-I
(Financial tables follow)
ONTO INNOVATION INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands) -
(Unaudited)
July 1, 2023
December 31, 2022
ASSETS
Current assets
Cash, cash equivalents and marketable
securities
$
609,603
$
547,784
Accounts receivable, net
187,852
241,395
Inventories
352,073
324,282
Prepaid and other assets
33,517
21,411
Total current assets
1,183,045
1,134,872
Net property, plant and equipment
99,883
91,980
Goodwill and intangibles, net
510,359
538,008
Other assets
27,574
30,003
Total assets
$
1,820,861
$
1,794,863
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable and accrued
liabilities
$
85,567
$
103,362
Other current liabilities
51,370
57,196
Total current liabilities
136,937
160,558
Other non-current liabilities
27,210
37,879
Total liabilities
164,147
198,437
Stockholders’ equity
1,656,714
1,596,426
Total liabilities and stockholders’
equity
$
1,820,861
$
1,794,863
ONTO INNOVATION INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share amounts) - (Unaudited)
Three Months Ended
Six Months Ended
July 1, 2023
July 2, 2022
July 1, 2023
July 2, 2022
Revenue
$
190,662
$
256,310
$
389,827
$
497,660
Cost of revenue
90,201
124,183
184,391
234,510
Gross profit
100,461
132,127
205,436
263,150
Operating expenses:
Research and development
27,043
25,637
54,285
51,978
Sales and marketing
16,024
16,913
31,661
32,545
General and administrative
18,762
18,306
37,999
34,793
Amortization
13,825
13,820
27,649
27,639
Total operating expenses
75,654
74,676
151,594
146,955
Operating income
24,807
57,451
53,842
116,195
Interest income, net
4,758
661
8,206
1,038
Other expense, net
(1,710
)
(859
)
(1,991
)
(1,063
)
Income before income taxes
27,855
57,253
60,057
116,170
Provision for income taxes
1,959
5,678
5,093
11,265
Net income
$
25,896
$
51,575
$
54,964
$
104,905
Earnings per share:
Basic
$
0.53
$
1.04
$
1.12
$
2.12
Diluted
$
0.53
$
1.03
$
1.12
$
2.10
Weighted average shares outstanding:
Basic
48,976
49,617
48,865
49,525
Diluted
49,274
49,907
49,175
49,909
ONTO INNOVATION INC.
NON-GAAP FINANCIAL
SUMMARY
(In thousands, except
percentage and per share amounts) - (Unaudited)
Three Months Ended
Six Months Ended
July 1, 2023
July 2, 2022
July 1, 2023
July 2, 2022
Revenue
$
190,662
$
256,310
$
389,827
$
497,660
Gross profit
$
100,501
$
132,121
$
207,795
$
263,139
Gross margin as percentage of revenue
53
%
52
%
53
%
53
%
Operating expenses
$
59,936
$
59,026
$
118,335
$
115,780
Operating income
$
40,565
$
73,096
$
89,460
$
147,360
Operating margin as a percentage of
revenue
21
%
29
%
23
%
30
%
Net income
$
38,754
$
64,001
$
83,801
$
129,629
Net income per diluted share
$
0.79
$
1.28
$
1.70
$
2.60
RECONCILIATION OF GAAP GROSS
PROFIT,
OPERATING EXPENSES AND
OPERATING INCOME TO NON-GAAP
GROSS PROFIT, OPERATING
EXPENSES AND OPERATING INCOME
(In thousands, except
percentages) - (Unaudited)
Three Months Ended
Six Months Ended
July 1, 2023
July 2, 2022
July 1, 2023
July 2, 2022
U.S. GAAP gross profit
$
100,461
$
132,127
$
205,436
$
263,150
Pre-tax non-GAAP items:
Merger and acquisition related
expenses
40
(6
)
80
(11
)
Restructuring expenses
—
—
2,279
—
Non-GAAP gross profit
$
100,501
$
132,121
$
207,795
$
263,139
U.S. GAAP gross margin as a percentage of
revenue
53
%
52
%
53
%
53
%
Non-GAAP gross margin as a percentage of
revenue
53
%
52
%
53
%
53
%
U.S. GAAP operating expenses
$
75,654
$
74,676
$
151,594
$
146,955
Pre-tax non-GAAP items:
Merger and acquisition related
expenses
393
662
1,401
1,319
Restructuring expenses
1,192
—
3,226
Litigation expenses
308
1,169
983
2,218
Amortization of intangibles
13,825
13,820
27,649
27,639
Non-GAAP operating expenses
59,936
59,025
118,335
115,779
Non-GAAP operating income
$
40,565
$
73,096
$
89,460
$
147,360
GAAP operating margin as a percentage of
revenue
13
%
22
%
14
%
23
%
Non-GAAP operating margin as a percentage
of revenue
21
%
29
%
23
%
30
%
ONTO INNOVATION INC.
RECONCILIATION OF GAAP NET
INCOME TO
NON-GAAP NET INCOME
(In thousands, except share
and per share data) - (Unaudited)
Three Months Ended
Six Months Ended
July 1, 2023
July 2, 2022
July 1, 2023
July 2, 2022
U.S. GAAP net income
$
25,896
$
51,575
$
54,964
$
104,905
Pre-tax non-GAAP items:
Merger and acquisition related
expenses
434
656
1,482
1,308
Restructuring expenses
1,192
—
5,505
—
Litigation expenses
308
1,169
983
2,218
Amortization of intangibles
13,825
13,820
27,649
27,639
Net tax provision adjustments
(2,901
)
(3,219
)
(6,782
)
(6,441
)
Non-GAAP net income
$
38,754
$
64,001
$
83,801
$
129,629
Non-GAAP net income per diluted share
$
0.79
$
1.28
$
1.70
$
2.60
ONTO INNOVATION INC
SUPPLEMENTAL INFORMATION -
RECONCILIATION OF THIRD QUARTER 2023
GAAP TO NON-GAAP
GUIDANCE
Low
High
Estimated GAAP net income per diluted
share
$
0.59
$
0.79
Estimated non-GAAP items:
Amortization of intangibles
0.28
0.28
Merger and acquisition related
expenses
0.01
0.01
Litigation expenses
0.02
0.02
Net tax provision adjustments
(0.05
)
(0.05
)
Estimated non-GAAP net income per diluted share
$
0.85
$
1.05
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810929311/en/
Michael Sheaffer +1.978.253.6273
Mike.Sheaffer@OntoInnovation.com
Onto Innovation (NYSE:ONTO)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Onto Innovation (NYSE:ONTO)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024