Onto Innovation Inc. (ONTO) Bundle
An Overview of Onto Innovation Inc. (ONTO)
General Summary of Onto Innovation Inc.
Onto Innovation Inc. (NASDAQ: ONTO) was formed through the merger of Nanometrics Incorporated and Rudolph Technologies in 2020. The company specializes in providing advanced process control solutions for the semiconductor and microelectronics industries. Its product portfolio includes systems for optical metrology, defect inspection, lithography, and data analysis, which are crucial for enhancing manufacturing yields and improving time to market for high-performance devices.
As of 2024, Onto Innovation reports significant revenue growth, with total sales reaching approximately $723.4 million for the nine months ended September 28, 2024, compared to $597.0 million for the same period in 2023, marking a year-over-year increase of 21.2%.
| Product Category | Revenue (2024) | Percentage of Total Revenue |
|---|---|---|
| Systems and Software | $622.4 million | 86% |
| Parts | $56.9 million | 8% |
| Services | $44.1 million | 6% |
Company's Financial Performance in the Latest Financial Reports
In the fiscal quarter ended September 28, 2024, Onto Innovation achieved a record-breaking revenue of $252.2 million, a 21.7% increase compared to $207.2 million in the same quarter of 2023. The revenue growth was driven primarily by increased sales to NAND and DRAM customers in advanced nodes applications.
The gross profit for the September 2024 quarter was $136.4 million, resulting in a gross profit margin of 54.1%, up from 51.6% in the September 2023 quarter. Operating income for the same period was $53.1 million, reflecting a strong operational performance.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $252.2 million | $207.2 million |
| Gross Profit | $136.4 million | $106.9 million |
| Net Income | $53.1 million | $35.9 million |
| Earnings Per Share (Diluted) | $1.07 | $0.73 |
For the nine months ended September 28, 2024, net income stood at $152.9 million, compared to $90.9 million for the same period in 2023. The company reported an increase in cash and cash equivalents, totaling $188.7 million at the end of the quarter, bolstered by $189.7 million generated from operating activities.
Introduction to Onto Innovation Inc. as a Leader in the Industry
Onto Innovation Inc. has established itself as a leader in the semiconductor manufacturing industry, focusing on innovative solutions that enhance process control and yield management. The company benefits from its advanced technology and strong customer relationships, particularly in key markets such as South Korea and Taiwan, where it generated significant revenue in 2024.
In South Korea, Onto Innovation reported revenue of $227.9 million for the nine months ended September 28, 2024, and $78.3 million for the quarter ended September 28, 2024. In Taiwan, revenue reached $209.0 million for the nine-month period, highlighting the company's robust presence in these critical markets.
| Geographical Region | Revenue (9 Months Ended September 28, 2024) |
|---|---|
| South Korea | $227.9 million |
| Taiwan | $209.0 million |
| China | $86.2 million |
| United States | $61.8 million |
With continuous investments in research and development, Onto Innovation is poised for sustained growth and innovation in the semiconductor industry, making it a compelling player to watch as it continues to deliver advanced solutions to its customers.
Mission Statement of Onto Innovation Inc. (ONTO)
Mission Statement of Onto Innovation Inc. (ONTO)
The mission statement of Onto Innovation Inc. (ONTO) emphasizes the company's commitment to delivering innovative process control solutions that enhance productivity and yield in the semiconductor manufacturing industry. This mission guides the company's long-term goals and strategic initiatives, ensuring alignment with the evolving needs of its customers.
Core Component 1: Innovation
Innovation is at the heart of Onto Innovation's mission. The company invests heavily in research and development to stay at the forefront of technology in the semiconductor sector. In the nine months ended September 28, 2024, Onto Innovation spent approximately $81.9 million on research and development, reflecting a commitment to advancing its technology offerings.
Core Component 2: Quality Products and Services
Onto Innovation prides itself on providing high-quality products and services. The company reported a gross profit of $136.4 million for the quarter ending September 28, 2024, which translates to a gross profit margin of 54.1%. This increase in profitability is attributed to enhanced product offerings and a favorable product mix.
| Period | Revenue ($ millions) | Gross Profit ($ millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | 252.2 | 136.4 | 54.1 |
| Q3 2023 | 207.2 | 106.9 | 51.6 |
Core Component 3: Customer Focus
Customer focus is a crucial aspect of Onto Innovation's mission. The company aims to provide solutions that meet the specific needs of its clients in the semiconductor industry. For the nine months ended September 28, 2024, revenue from systems and software, which account for 86% of total revenue, reached approximately $622.4 million, showcasing the company's ability to cater to its customer base effectively.
Furthermore, Onto Innovation's diverse revenue streams include parts sales and services, which contributed to a total revenue of $723.4 million for the same period.
Vision Statement of Onto Innovation Inc. (ONTO)
Vision Statement Overview
Onto Innovation Inc. (ONTO) focuses on providing innovative solutions in the semiconductor and electronics industries. The company's vision as of 2024 emphasizes advancing technology and enhancing productivity through cutting-edge metrology and inspection systems.
Commitment to Innovation
As part of its vision, Onto Innovation aims to lead in innovation by investing heavily in research and development. In 2024, the company reported research and development expenses of $28.3 million for the three months ended September 28, 2024, compared to $26.1 million in the same period of 2023. For the nine months, these expenses totaled $81.9 million versus $80.4 million in 2023 .
Enhancing Customer Success
Onto Innovation's vision includes a strong commitment to customer success, focusing on providing systems that enhance yield and reduce time to market. In 2024, the company's revenue was primarily driven by systems and software, accounting for 86% of total revenue at $217.1 million for the three months ended September 28, 2024. This reflects a significant increase from $169.3 million in the same period of the prior year.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Systems and Software | $217,135 | $169,346 | +28.2% |
| Parts | $19,995 | $20,100 | -0.5% |
| Services | $15,080 | $17,739 | -15.0% |
| Total Revenue | $252,210 | $207,185 | +21.7% |
Global Market Presence
Onto Innovation envisions expanding its global footprint. In Q3 2024, revenue from South Korea reached $77.0 million, and from Taiwan $78.3 million, demonstrating a solid market presence in key regions. The company continues to navigate challenges posed by export regulations affecting sales in China, yet it remains committed to providing innovative solutions in the semiconductor space.
Sustainability Initiatives
The company is also focused on sustainability, integrating eco-friendly practices in its operations. This aligns with its vision of being a responsible corporate citizen while driving technological advancements. Onto Innovation reported cash and cash equivalents of $188.7 million and marketable securities of $666.7 million as of September 28, 2024, indicating a strong financial position to support its sustainability initiatives.
Core Values of Onto Innovation Inc. (ONTO)
Integrity
The core value of integrity is fundamental to Onto Innovation Inc. (ONTO). It emphasizes honesty and transparency in all business dealings, fostering trust among employees, customers, and stakeholders.
In 2024, Onto demonstrated its commitment to integrity by adhering to stringent export regulations while applying for necessary licenses to maintain operations in China. This adherence helped mitigate potential revenue losses and showcased the company's ethical approach to compliance amid evolving regulations.
Innovation
Innovation is a cornerstone of Onto Innovation's operational philosophy. The company invests heavily in research and development, aiming to drive technological advancements in the semiconductor industry.
For the nine months ended September 28, 2024, Onto allocated $81.9 million to research and development, reflecting a commitment to fostering innovation in its product offerings. This investment is crucial for developing next-generation metrology and inspection solutions, enhancing product performance and reliability.
Customer Success
Customer success is central to Onto's mission, focusing on ensuring that clients achieve their desired outcomes using the company's products and services. This value is reflected in the company's robust support and service programs.
In 2024, Onto reported a significant revenue increase from its customer base, with total revenue rising to $723.4 million for the nine months ended September 28, 2024, a 21.2% increase year-over-year. This growth is attributed to enhanced customer engagement and tailored solutions that address specific client needs in the semiconductor sector.
Collaboration
Collaboration is vital for Onto Innovation, fostering teamwork across departments and partnerships with external stakeholders. This value enhances the development and delivery of comprehensive solutions in the semiconductor market.
In 2024, Onto actively engaged in partnerships that leverage collective expertise. For instance, collaborations with key players in the semiconductor supply chain have led to improved product offerings and customer solutions, further solidifying Onto's market position.
Excellence
Excellence drives Onto to achieve high standards in product development, service delivery, and operational efficiency. The company strives for continuous improvement in all aspects of its business.
As of September 28, 2024, Onto reported a gross profit margin of 54.1%, up from 51.6% in the previous year. This increase highlights the company's commitment to operational excellence and delivering high-quality products that meet industry demands.
| Core Value | Description | 2024 Commitment Examples |
|---|---|---|
| Integrity | Emphasizes honesty and transparency | Adherence to export regulations, application for licenses |
| Innovation | Focus on technological advancements | $81.9 million in R&D for new product development |
| Customer Success | Ensuring client outcomes with products | 21.2% revenue growth to $723.4 million |
| Collaboration | Fostering teamwork and partnerships | Engagement with semiconductor supply chain partners |
| Excellence | Achieving high standards | Gross profit margin increased to 54.1% |
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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.