On August 8, 2024, Onto Innovation Inc (ONTO, Financial) released its 8-K filing for the second fiscal quarter of 2024. Onto Innovation Inc is engaged in the design, development, manufacture, and support of high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers. The company operates primarily in the United States, Southeast Asia, China, Japan, and Europe, with Taiwan and South Korea being the largest sources of total revenue.
Q2 2024 Financial Highlights
Onto Innovation Inc reported revenue of $242 million for Q2 2024, surpassing the high end of its guidance. This performance was driven by additional pilot line expansions for high-performance computing using gate-all-around transistor architecture and high bandwidth memory (HBM) supporting AI market growth. The company achieved a GAAP gross margin and non-GAAP gross margin of 53%.
GAAP operating income was $49 million, while GAAP net income stood at $53 million. On a non-GAAP basis, operating income was $65 million, and net income was $65 million. GAAP diluted earnings per share (EPS) were $1.07, and non-GAAP diluted EPS were $1.32, both exceeding guidance ranges.
Key Metrics and Financial Achievements
Onto Innovation Inc set a quarterly record with $164 million in revenue from specialty and advanced packaging customers, driven by AI packaging customers. The company also closed over $300 million in volume purchase agreements with two customers for their AI advanced packaging and gate-all-around investments through 2025.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Revenue | $242,327 | $228,846 | $190,662 |
| Gross Profit Margin | 53% | 52% | 53% |
| Operating Income | $48,833 | $42,738 | $24,807 |
| Net Income | $52,949 | $46,853 | $25,896 |
| Net Income per Diluted Share | $1.07 | $0.94 | $0.53 |
Business Highlights and Strategic Moves
Revenue from advanced nodes increased at multiple customers, led by the Atlas® and Iris™ systems for emerging gate-all-around devices. Onto Innovation also delivered the industry-first JetStep® X500 lithography tool, specifically designed for next-generation glass substrates for panel-level packaging.
Michael Plisinski, chief executive officer of Onto Innovation, commented, “The Onto Innovation team is working closely with technology leaders in advanced packaging and advanced nodes to drive yield improvements and enable smoother ramp times. As a result, we are seeing greater adoption of our metrology in packaging and new applications for the Dragonfly® platform leading to stronger sales. As we look forward, we expect continued strength in advanced packaging and the adoption of gate-all-around transistor architecture at several customers to lead our revenue growth in 2025.”
Income Statement and Balance Sheet Overview
Onto Innovation Inc reported a gross profit of $128 million for Q2 2024, with operating expenses totaling $79 million. The company’s net income before taxes was $57 million, with a provision for income taxes amounting to $4 million, resulting in a net income of $53 million.
On the balance sheet, Onto Innovation Inc reported total assets of $2.01 billion, with current assets amounting to $1.39 billion. The company’s total liabilities stood at $174 million, while stockholders' equity was $1.83 billion.
Cash Flow and Future Outlook
Onto Innovation Inc achieved a record cash flow from operations of $65 million, representing 27% of revenue. For the third fiscal quarter ending September 28, 2024, the company expects revenue to be in the range of $245 to $255 million. GAAP diluted EPS is projected to be between $0.98 and $1.08, while non-GAAP diluted EPS is expected to range from $1.25 to $1.35.
Onto Innovation Inc continues to demonstrate strong financial performance, driven by strategic investments in advanced packaging and AI technologies. The company’s ability to exceed revenue and earnings estimates highlights its robust market position and growth potential in the semiconductor industry.
Explore the complete 8-K earnings release (here) from Onto Innovation Inc for further details.
