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 Onto Innovation’s business momentum and future growth; the benefit to customers 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 2021 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 length, severity and potential business impact of the COVID-19 pandemic, 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 and any potential impact as a result of the novel coronavirus situation. 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 26, 2020 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.
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 helps our customers solve their 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. Headquartered in Wilmington, Massachusetts, 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 INNOVATION INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) - (Unaudited) |
||||||||
|
||||||||
|
|
March 27, 2021 |
|
|
December 26, 2020 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
|
$ |
392,900 |
|
|
$ |
373,722 |
|
Accounts receivable, net |
|
|
141,876 |
|
|
|
149,251 |
|
Inventories |
|
|
200,896 |
|
|
|
191,217 |
|
Prepaid and other assets |
|
|
19,156 |
|
|
|
17,471 |
|
| Total current assets |
|
|
754,828 |
|
|
|
731,661 |
|
| Net property, plant and equipment |
|
|
87,679 |
|
|
|
87,950 |
|
| Intangibles, net |
|
|
632,101 |
|
|
|
624,989 |
|
| Other assets |
|
|
29,111 |
|
|
|
23,572 |
|
| Total assets |
|
$ |
1,503,719 |
|
|
$ |
1,468,172 |
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
74,547 |
|
|
$ |
77,258 |
|
| Other current liabilities |
|
|
51,865 |
|
|
|
42,833 |
|
| Total current liabilities |
|
|
126,412 |
|
|
|
120,091 |
|
| Other non-current liabilities |
|
|
84,995 |
|
|
|
83,335 |
|
| Total liabilities |
|
|
211,407 |
|
|
|
203,426 |
|
| Stockholders’ equity |
|
|
1,292,312 |
|
|
|
1,264,746 |
|
| Total liabilities and stockholders’ equity |
|
$ |
1,503,719 |
|
|
$ |
1,468,172 |
|
| ONTO INNOVATION INC. |
||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
| (In thousands, except per share amounts) - (Unaudited) |
||||||||||||
|
|
||||||||||||
|
|
|
Three Months Ended |
|
|||||||||
|
|
|
March 27, |
|
|
December 26, |
|
|
March 28, |
|
|||
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|||
| Revenue |
|
$ |
169,279 |
|
|
$ |
155,128 |
|
|
$ |
139,928 |
|
| Cost of revenue |
|
|
78,810 |
|
|
|
79,779 |
|
|
|
77,297 |
|
| Gross profit |
|
|
90,469 |
|
|
|
75,349 |
|
|
|
62,631 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
21,964 |
|
|
|
21,812 |
|
|
|
20,927 |
|
| Sales and marketing |
|
|
13,104 |
|
|
|
11,272 |
|
|
|
13,071 |
|
| General and administrative |
|
|
15,559 |
|
|
|
14,889 |
|
|
|
20,147 |
|
| Amortization |
|
|
12,357 |
|
|
|
12,665 |
|
|
|
13,732 |
|
| Total operating expenses |
|
|
62,984 |
|
|
|
60,638 |
|
|
|
67,877 |
|
| Operating income (loss) |
|
|
27,485 |
|
|
|
14,711 |
|
|
|
(5,246 |
) |
| Interest income, net |
|
|
361 |
|
|
|
459 |
|
|
|
1,210 |
|
| Other (expense) income, net |
|
|
(1,244 |
) |
|
|
(643 |
) |
|
|
32 |
|
| Income (loss) before income taxes |
|
|
26,602 |
|
|
|
14,527 |
|
|
|
(4,004 |
) |
| Provision (benefit) for income taxes |
|
|
2,489 |
|
|
|
(5,387 |
) |
|
|
400 |
|
| Net income (loss) |
|
$ |
24,113 |
|
|
$ |
19,914 |
|
|
$ |
(4,404 |
) |
| Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.49 |
|
|
$ |
0.41 |
|
|
$ |
(0.09 |
) |
| Diluted |
|
$ |
0.49 |
|
|
$ |
0.40 |
|
|
$ |
(0.09 |
) |
| Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
49,000 |
|
|
|
48,931 |
|
|
|
50,121 |
|
| Diluted |
|
|
49,572 |
|
|
|
49,326 |
|
|
|
50,121 |
|
| ONTO INNOVATION INC. |
|||||||||||
| NON-GAAP FINANCIAL SUMMARY |
|||||||||||
| (In thousands, except percentage and per share amounts) - (Unaudited) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
March 27, 2021 |
|
December 26, 2020 |
|
March 28, 2020 |
|
|||||
| Revenue |
$ |
169,279 |
|
$ |
155,128 |
|
$ |
139,928 |
|
||
| Gross profit |
$ |
91,029 |
|
$ |
83,958 |
|
$ |
72,533 |
|
||
| Gross margin as percentage of revenue |
|
54 |
% |
|
54 |
% |
|
52 |
% |
||
| Operating expenses |
$ |
49,155 |
|
$ |
46,325 |
|
$ |
49,601 |
|
||
| Operating income |
$ |
41,874 |
|
$ |
37,633 |
|
$ |
22,932 |
|
||
| Operating margin as a percentage of revenue |
|
25 |
% |
|
24 |
% |
|
16 |
% |
||
| Net income |
$ |
36,339 |
|
$ |
35,555 |
|
$ |
19,740 |
|
||
| Net income per diluted share |
$ |
0.73 |
|
$ |
0.72 |
|
$ |
0.39 |
|
||
| RECONCILIATION OF U.S. 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 |
|
|||||||||
|
|
March 27, 2021 |
|
December 26, 2020 |
|
March 28, 2020 |
|
|||||
| U.S. GAAP gross profit |
$ |
90,469 |
|
$ |
75,349 |
|
$ |
62,631 |
|
||
| Pre-tax non-GAAP items: |
|
|
|
|
|
|
|
|
|
||
| Merger related expenses |
|
254 |
|
|
505 |
|
|
9,902 |
|
||
| Restructuring expense |
|
306 |
|
|
8,104 |
|
|
— |
|
||
| Non-GAAP gross profit |
$ |
91,029 |
|
$ |
83,958 |
|
$ |
72,533 |
|
||
| U.S. GAAP gross margin as a percentage of revenue |
|
53 |
% |
|
49 |
% |
|
45 |
% |
||
| Non-GAAP gross margin as a percentage of revenue |
|
54 |
% |
|
54 |
% |
|
52 |
% |
||
| U.S. GAAP operating expenses |
$ |
62,984 |
|
$ |
60,638 |
|
$ |
67,877 |
|
||
| Pre-tax non-GAAP items: |
|
|
|
|
|
|
|
|
|
||
| Merger related expenses |
|
969 |
|
|
1,647 |
|
|
1,936 |
|
||
| Restructuring expense |
|
— |
|
|
— |
|
|
2,608 |
|
||
| Litigation expenses |
|
503 |
|
|
— |
|
|
— |
|
||
| Amortization of intangibles |
|
12,357 |
|
|
12,666 |
|
|
13,732 |
|
||
| Non-GAAP operating expenses |
|
49,155 |
|
|
46,325 |
|
|
49,601 |
|
||
| Non-GAAP operating income |
$ |
41,874 |
|
$ |
37,633 |
|
$ |
22,932 |
|
||
| GAAP operating margin as a percentage of revenue |
|
16 |
% |
|
9 |
% |
|
(4 |
%) |
||
| Non-GAAP operating margin as a percentage of revenue |
|
25 |
% |
|
24 |
% |
|
16 |
% |
||
| ONTO INNOVATION INC. |
|||||||||||
| RECONCILIATION OF U.S. GAAP NET INCOME TO |
|||||||||||
| NON-GAAP NET INCOME |
|||||||||||
| (In thousands, except share and per share data) - (Unaudited) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
March 27, 2021 |
|
December 26, 2020 |
|
March 28, 2020 |
|
|||||
| U.S. GAAP net income (loss) |
$ |
24,113 |
|
$ |
19,914 |
|
$ |
(4,404 |
) |
||
| Pre-tax non-GAAP items: |
|
|
|
|
|
|
|
|
|
||
| Merger related expenses |
|
1,223 |
|
|
2,152 |
|
|
11,838 |
|
||
| Restructuring expense |
|
306 |
|
|
8,104 |
|
|
2,608 |
|
||
| Litigation expense |
|
503 |
|
|
— |
|
|
— |
|
||
| Amortization of intangibles |
|
12,357 |
|
|
12,666 |
|
|
13,732 |
|
||
| Net tax provision adjustments |
|
(2,163 |
) |
|
(7,281 |
) |
|
(4,034 |
) |
||
| Non-GAAP net income |
$ |
36,339 |
|
$ |
35,555 |
|
$ |
19,740 |
|
||
| Non-GAAP net income per diluted share |
$ |
0.73 |
|
$ |
0.72 |
|
$ |
0.39 |
|
||
| ONTO INNOVATION INC |
||||||||
| SUPPLEMENTAL INFORMATION - RECONCILIATION OF SECOND QUARTER 2021 |
||||||||
| GAAP TO NON-GAAP GUIDANCE |
||||||||
|
|
||||||||
|
|
Low |
|
High |
|
||||
| Estimated GAAP net income per diluted share |
$ |
0.58 |
|
|
$ |
0.67 |
|
|
| Estimated pre-tax non-GAAP items: |
|
|
|
|
|
|
||
| Merger related expenses |
|
0.02 |
|
|
|
0.02 |
|
|
| Litigation expense |
|
0.01 |
|
|
|
0.01 |
|
|
| Amortization of intangibles |
|
0.25 |
|
|
|
0.25 |
|
|
| Net tax provision adjustments |
|
(0.10 |
) |
|
|
(0.10 |
) |
|
| Estimated non-GAAP net income per diluted share |
$ |
0.76 |
|
|
$ |
0.85 |
|
|
