Onto Innovation Inc. (NYSE: ONTO) reported Q4 EPS of $0.41, $0.02 better than the analyst estimate of $0.39. Revenue for the quarter came in at $120.56 million versus the consensus estimate of $117.52 million.

2019 Fourth Quarter and Full Year Highlights

• Successful completion of the merger between Nanometrics and Rudolph Technologies on October 25, 2019, creating a combined global semiconductor equipment leader with a broad portfolio spanning the semiconductor manufacturing value chain from bare silicon, to leading-edge fabs to advanced packaging
• Quarterly revenue of $120.6 million in 2019 fourth quarter, excludes approximately $10 million in shipments from Nanometrics that occurred in the fourth quarter prior to the merger and $1.7 million in deferred revenue eliminated in merger accounting
• Quarterly GAAP diluted EPS of ($0.41); Non-GAAP diluted EPS of $0.41, at the high end of guidance includes stock-based compensation expense
• Cash and marketable securities of $320 million, after the payment of $25 million in merger related expenses
• Adoption and the diversification of the Atlas® III+ metrology system in leading edge nodes continued with greater than 300% year-over-year growth in logic and foundry
• Dragonfly® systems adopted by 15 new customers year-over-year and expanded into both memory and logic/foundry markets in 2019

Michael Plisinski, chief executive officer of Onto Innovation commented, “This is an exciting time for the emergence of Onto Innovation. This new, yet highly experienced, semiconductor equipment supplier broadly serves the increasingly more complex semiconductor value chain. Onto Innovation customers count on our team to provide high quality solutions for advanced silicon, advanced logic and memory, and advanced packaging. As we prepare for potential growth in multiple markets, we are also making excellent progress with our integration. We continue to drive for operational efficiencies to reduce costs while improving how we support our customers. In addition to the exciting combination of talent and technology, we are discovering the ways our team can provide new and innovative solutions to our customers which we expect will open new doors for growth and increase shareholder value.”

GUIDANCE:

Onto Innovation Inc. sees Q1 2020 EPS of $0.23-$0.41, versus the consensus of $0.36.

The Company is currently anticipating revenue for the first quarter 2020 to be $136 million plus/minus 6%. This reflects our latest view of the evolving situation with the novel coronavirus in China. Within this revenue range the Company is expecting a GAAP net loss per diluted share to be in the range of ($0.22) to ($0.04) and non-GAAP net income per diluted share to be in the range of $0.23 to $0.41. Included in the GAAP net loss guidance are merger expenses related to the estimated impact of adjustments to the fair value of inventory stepped up in the merger that are anticipated to be sold in the quarter. The estimated earnings per share calculations for the first quarter are based on a projected weighted average diluted share of approximately 50.5 million shares as opposed to the 43.6 million shares used in the 2019 fourth quarter.

For earnings history and earnings-related data on Onto Innovation Inc. (ONTO) click here.