Onto Revenue Hits Record as Chip Demand Accelerates
Backlog topped $1 billion for the first time as customers maintained multiyear investment plans.
Onto Innovation (ONTO), a semiconductor process-control equipment maker, posted record quarterly revenue of $343.1 million as sales climbed 35.3% from a year earlier.
Growth accelerated from 9.5% in the first quarter, while revenue rose nearly 18% sequentially from $291.9 million. The result exceeded the high end of Onto’s previous guidance by $13.1 million.
GAAP diluted earnings increased to $1.21 a share from 69 cents a year earlier and 67 cents in the prior quarter. Adjusted earnings rose to $1.93 a share from $1.25 a year earlier, while adjusted operating margin reached 30.0%, above the company’s previous guided range of 28.0% to 28.6%.
Advanced Nodes revenue increased 50% sequentially to a quarterly record, accelerating from 13% growth in the first quarter. Specialty Devices and Advanced Packaging revenue also reached an all-time high, driven by demand tied to 2.5D logic, high-bandwidth memory and silicon photonics.
The stronger sales mix carried through to profitability. GAAP gross margin expanded to 53.4% from 50.1% sequentially, while adjusted gross margin rose to 57.0% from 55.7%. GAAP operating margin widened to 18.5% from 11.5%.
Third-quarter revenue is expected to range from $380 million to $400 million, implying sequential growth of about 11% to 17%. Adjusted earnings guidance of $2.18 to $2.38 a share represents growth of roughly 13% to 23%, while the projected adjusted operating margin of 31.5% to 32.5% points to further expansion.
Cash and short-term investments rose to $1.88 billion after Onto issued $1.3 billion of 0% convertible notes. The company used about $205 million of the proceeds to repurchase roughly 0.8 million shares, leaving a larger cash position as backlog moved above $1 billion.