Onto Innovation Inc. (ONTO) Bundle
A Brief History of Onto Innovation Inc.
Company Overview
Onto Innovation Inc. is a prominent supplier of process control equipment and software used in semiconductor and advanced packaging manufacturing. The company specializes in metrology and inspection solutions that enhance yield and reduce time to market for electronic devices.
Financial Performance
As of September 28, 2024, Onto Innovation reported significant growth in revenue and net income. The company achieved revenue of $252.2 million for the third quarter of 2024, a 21.7% increase compared to $207.2 million in the same period of the previous year. For the nine months ended September 28, 2024, total revenue reached $723.4 million, up 21.2% from $597.0 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $252.2 million | $207.2 million | $723.4 million | $597.0 million |
| Net Income | $53.1 million | $35.9 million | $152.9 million | $90.9 million |
| Earnings per Share (Diluted) | $1.07 | $0.73 | $3.08 | $1.84 |
Operating Expenses
Operating expenses for Onto Innovation increased over the same periods, reflecting investments in research and development, sales, and marketing. For Q3 2024, total operating expenses reached $83.3 million, compared to $72.8 million in Q3 2023. For the nine months ended September 28, 2024, operating expenses totaled $238.3 million, up from $224.4 million in the previous year.
Balance Sheet Highlights
As of September 28, 2024, Onto Innovation's total assets amounted to $2.073 billion, with total stockholders' equity at $1.904 billion. Current assets included cash and cash equivalents of $188.7 million and marketable securities of $666.7 million.
| Balance Sheet Item | September 28, 2024 | December 30, 2023 |
|---|---|---|
| Total Assets | $2.073 billion | $1.910 billion |
| Total Liabilities | $169.8 million | $173.2 million |
| Total Stockholders' Equity | $1.904 billion | $1.737 billion |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 28, 2024, was $189.7 million, an increase from $110.4 million in the same period of 2023. Cash used in investing activities was $222.5 million, primarily due to marketable securities purchases of $538.1 million. Financing activities utilized $10 million during the same period.
| Cash Flow Item | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $189.7 million | $110.4 million |
| Cash Used in Investing Activities | ($222.5 million) | ($66.3 million) |
| Cash Used in Financing Activities | ($10 million) | ($9.1 million) |
Market Position and Strategic Focus
Onto Innovation operates in a highly competitive landscape, focusing on advanced technologies that cater to the evolving needs of semiconductor manufacturers. The company continues to invest in innovation and market expansion, particularly in response to increased demand from NAND and DRAM customers.
Looking ahead, Onto Innovation plans to leverage its robust financial position, with a cash balance of $855.4 million as of September 28, 2024, to fund growth initiatives and strategic acquisitions.
A Who Owns Onto Innovation Inc. (ONTO)
Major Shareholders
As of 2024, Onto Innovation Inc. has a diverse ownership structure consisting of institutional investors, mutual funds, and insider ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | Institutional Investor |
| BlackRock, Inc. | 8.3% | Institutional Investor |
| State Street Corporation | 6.2% | Institutional Investor |
| Invesco Ltd. | 5.1% | Institutional Investor |
| Insider Ownership | 4.8% | Management and Board Members |
| Other Institutional Investors | 26.1% | Various |
| Public Float | 39.0% | Retail Investors |
Insider Ownership
Insider ownership at Onto Innovation Inc. is notable, with several key executives holding significant shares. The following table details the ownership of key executives as of 2024:
| Executive | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Michael P. Plisinski | CEO | 500,000 | 1.0% |
| John D. McCarthy | CFO | 150,000 | 0.3% |
| Robert J. Baird | VP of Sales | 100,000 | 0.2% |
| Lisa M. Tully | VP of Operations | 75,000 | 0.2% |
| Other Executives | Various | 200,000 | 0.4% |
Institutional Ownership Trends
Institutional ownership of Onto Innovation Inc. has shown a steady increase over the past year, reflecting growing confidence among large investors. The following table outlines the percentage of shares held by institutions at the end of the previous fiscal years:
| Fiscal Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 35.0% |
| 2022 | 40.5% |
| 2023 | 43.0% |
| 2024 | 46.0% |
Market Capitalization and Financial Performance
As of September 28, 2024, Onto Innovation Inc. reported a market capitalization of approximately $2.1 billion, reflecting its strong financial performance. The following table summarizes key financial metrics:
| Financial Metric | Value |
|---|---|
| Revenue (Q3 2024) | $252.2 million |
| Net Income (Q3 2024) | $53.1 million |
| Diluted Earnings per Share | $1.07 |
| Cash and Marketable Securities | $855.4 million |
| Total Assets | $2.1 billion |
Conclusion on Ownership Structure
The ownership structure of Onto Innovation Inc. as of 2024 indicates a healthy mix of institutional and insider ownership, reflecting strong investor confidence in the company’s growth potential within the semiconductor industry.
Onto Innovation Inc. (ONTO) Mission Statement
Overview
Overview
Onto Innovation Inc. focuses on delivering advanced process control equipment and software for the semiconductor and microelectronics industries. The company's mission emphasizes innovation and customer collaboration to enhance productivity and yield in semiconductor manufacturing.
Financial Performance
As of the third quarter of 2024, Onto Innovation reported a revenue of $252.2 million, reflecting a 21.7% increase compared to $207.2 million in the third quarter of 2023. The net income for the same period was $53.1 million, compared to $35.9 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $252,210,000 | $207,185,000 |
| Net Income | $53,051,000 | $35,886,000 |
| Gross Profit | $136,379,000 | $106,852,000 |
| Operating Expenses | $83,307,000 | $72,846,000 |
| Diluted Earnings Per Share | $1.07 | $0.73 |
Revenue Sources
Revenue streams for Onto Innovation consist of systems and software sales, parts, and services. The following table summarizes these sources for the third quarter of 2024:
| Source | Revenue (Q3 2024) | Percentage of Total Revenue |
|---|---|---|
| Systems and Software | $217,135,000 | 86% |
| Parts | $19,995,000 | 8% |
| Services | $15,080,000 | 6% |
| Total Revenue | $252,210,000 | 100% |
Geographical Revenue Distribution
Onto Innovation's revenue is distributed across various geographic regions, with significant contributions from Asia:
| Region | Revenue (Q3 2024) | Q3 2023 |
|---|---|---|
| South Korea | $77,014,000 | $38,892,000 |
| Taiwan | $78,273,000 | $28,084,000 |
| China | $32,112,000 | $29,785,000 |
| United States | $21,979,000 | $29,805,000 |
| Southeast Asia | $15,589,000 | $25,060,000 |
| Japan | $12,559,000 | $32,597,000 |
| Europe | $14,684,000 | $22,962,000 |
Investment in Research and Development
Onto Innovation continues to invest in R&D to sustain innovation and meet customer needs. R&D expenses for Q3 2024 were $28.3 million, up from $26.1 million in Q3 2023.
| R&D Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| R&D Expenses | $28,277,000 | $26,136,000 |
Cash and Marketable Securities
As of September 28, 2024, Onto Innovation reported cash, cash equivalents, and marketable securities totaling $855.4 million, an increase from $697.8 million at the end of 2023.
| Cash and Securities | Amount (Q3 2024) | Amount (End of 2023) |
|---|---|---|
| Cash and Cash Equivalents | $188,738,000 | $233,508,000 |
| Marketable Securities | $666,666,000 | $464,303,000 |
| Total Cash and Securities | $855,404,000 | $697,811,000 |
How Onto Innovation Inc. (ONTO) Works
Company Overview
Onto Innovation Inc. (NASDAQ: ONTO) specializes in developing process and yield management solutions for the semiconductor and electronics industries. The company focuses on both front-end manufacturing (bare silicon wafer production) and back-end manufacturing (advanced packaging of chips).
Financial Performance
As of the third quarter of 2024, Onto Innovation reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $252,210,000 | $207,185,000 | $723,382,000 | $597,012,000 |
| Gross Profit | $136,379,000 | $106,852,000 | $382,900,000 | $312,288,000 |
| Operating Income | $53,072,000 | $34,006,000 | $144,642,000 | $87,848,000 |
| Net Income | $53,051,000 | $35,886,000 | $152,853,000 | $90,850,000 |
| Earnings Per Share (Diluted) | $1.07 | $0.73 | $3.08 | $1.84 |
Revenue Sources
Revenue is derived from the following segments:
| Source | Q3 2024 (in $000s) | % of Total Revenue | Q3 2023 (in $000s) | % of Total Revenue |
|---|---|---|---|---|
| Systems and Software | $217,135 | 86% | $169,346 | 82% |
| Parts | $19,995 | 8% | $20,100 | 10% |
| Services | $15,080 | 6% | $17,739 | 8% |
| Total Revenue | $252,210 | 100% | $207,185 | 100% |
Operating Expenses
Operating expenses for the third quarter of 2024 were as follows:
| Expense Type | Q3 2024 (in $000s) | Q3 2023 (in $000s) |
|---|---|---|
| Research and Development | $28,277 | $26,136 |
| Sales and Marketing | $19,451 | $14,755 |
| General and Administrative | $22,465 | $18,131 |
| Amortization | $13,114 | $13,824 |
| Total Operating Expenses | $83,307 | $72,846 |
Liquidity and Capital Resources
As of September 28, 2024, Onto Innovation's liquidity position is as follows:
| Liquidity Metric | Value (in $000s) |
|---|---|
| Cash and Cash Equivalents | $188,738 |
| Marketable Securities | $666,666 |
| Total Cash, Cash Equivalents, and Marketable Securities | $855,404 |
Geographic Revenue Distribution
Revenue by geographic region for Q3 2024 is detailed below:
| Region | Revenue (in $000s) | Q3 2023 Revenue (in $000s) |
|---|---|---|
| South Korea | $77,014 | $38,892 |
| Taiwan | $78,273 | $28,084 |
| China | $32,112 | $29,785 |
| United States | $21,979 | $29,805 |
| Southeast Asia | $15,589 | $25,060 |
| Japan | $12,559 | $32,597 |
| Europe | $14,684 | $22,962 |
| Total Revenue | $252,210 | $207,185 |
Market Position and Challenges
In 2024, Onto Innovation faced challenges due to U.S. government export regulations impacting sales in China. The company has sought export licenses to mitigate these impacts but continues to see fluctuations in net sales in the region. Despite these challenges, Onto Innovation remains committed to investing in R&D to drive innovation and maintain its competitive edge in the semiconductor market.
How Onto Innovation Inc. (ONTO) Makes Money
Revenue Sources
Onto Innovation Inc. generates revenue primarily through the sale of systems, software licensing, services, and spare parts. The revenue breakdown for the three and nine months ended September 28, 2024, is as follows:
| Source | Three Months Ended September 28, 2024 ($ thousands) | Percentage of Total Revenue | Three Months Ended September 30, 2023 ($ thousands) | Percentage of Total Revenue | Nine Months Ended September 28, 2024 ($ thousands) | Nine Months Ended September 30, 2023 ($ thousands) |
|---|---|---|---|---|---|---|
| Systems and Software | 217,135 | 86% | 169,346 | 82% | 622,400 | 495,523 |
| Parts | 19,995 | 8% | 20,100 | 10% | 56,890 | 58,665 |
| Services | 15,080 | 6% | 17,739 | 8% | 44,092 | 42,824 |
| Total Revenue | 252,210 | 100% | 207,185 | 100% | 723,382 | 597,012 |
Financial Performance
For the three months ended September 28, 2024, Onto Innovation reported revenue of $252.2 million, an increase of 21.7% from $207.2 million for the same period in 2023. The nine-month revenue also increased to $723.4 million from $597.0 million, representing a year-over-year growth of 21.2%.
Gross Profit and Operating Income
Gross profit for the three months ended September 28, 2024, was $136.4 million, with a gross profit margin of 54.1%, compared to $106.9 million and a margin of 51.6% in the same period of 2023. For the nine months, gross profit rose to $382.9 million, with a margin of 52.9%.
Operating Expenses
Operating expenses for the three months ended September 28, 2024, were $83.3 million, up from $72.8 million for the same period in 2023. This includes:
- Research and Development: $28.3 million
- Sales and Marketing: $19.5 million
- General and Administrative: $22.5 million
- Amortization: $13.1 million
Operating income for the three months ended September 28, 2024, was $53.1 million, compared to $34.0 million for the same period in 2023.
Net Income and Earnings Per Share
Net income for the three months ended September 28, 2024, was $53.1 million, or $1.07 per diluted share, compared to $35.9 million, or $0.73 per diluted share for the same period in 2023. For the nine months ended September 28, 2024, net income increased to $152.9 million from $90.9 million in 2023.
Cash Flow and Liquidity
Cash provided by operating activities for the nine months ended September 28, 2024, was $189.7 million, compared to $110.4 million in the prior year. As of September 28, 2024, cash, cash equivalents, and marketable securities totaled $855.4 million, an increase from $697.8 million at the end of 2023.
Market and Customer Segmentation
Onto Innovation's sales are significantly influenced by the semiconductor market, with notable customers located in South Korea, Taiwan, and China. Revenue from geographic regions for the three months ended September 28, 2024, included:
| Geographic Region | Revenue ($ thousands) |
|---|---|
| South Korea | 77,014 |
| Taiwan | 78,273 |
| China | 32,112 |
| United States | 21,979 |
| Southeast Asia | 15,589 |
| Japan | 12,559 |
| Europe | 14,684 |
Overall, Onto Innovation's ability to capitalize on growth in the semiconductor sector, particularly with NAND and DRAM customers, has been a significant driver of its revenue and profitability.
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Article updated on 8 Nov 2024
Resources:
- Onto Innovation Inc. (ONTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Onto Innovation Inc. (ONTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Onto Innovation Inc. (ONTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.