Onto Innovation Inc. (NYSE: ONTO) reported Q2 EPS of $0.42, $0.07 better than the analyst estimate of $0.35. Revenue for the quarter came in at $134.9 million versus the consensus estimate of $134.58 million.

2020 Second Quarter Highlights

• Revenue of $134.9 million.
• GAAP earnings of $0.15 per share were at the high end of guidance, while non-GAAP earnings of $0.42 were above the high end of guidance.
• Cash and marketable securities increased $20.1 million and ended the quarter at $312.1 million.
• Introduced a suite of three new metrology products: the Atlas® 5 OCD metrology system; the IMPULSE® 5 integrated metrology system which already includes proven in-die metrology capability and industry best performance to meet challenges at 7nm and below; and the revolutionary Aspect® optical metrology system for leading edge 3D-NAND.
• New Element™ FTIR technology was selected by a top three memory manufacturer expanding served available market (SAM) from wafer manufacturers to inline process control for advanced memory.
• JetStep® panel lithography backlog grows to a record $15 million for 2021 delivery of system orders for advanced packaging requirements for chiplets, or heterogeneous chip packages.

Michael Plisinski, chief executive officer of Onto Innovation commented, “The Onto Innovation team continues to execute extremely well in a very dynamic environment presented by our integration, the on-going risks from COVID-19, and the US-China trade relations. Within this environment we are driving improvements in our business operations resulting in stronger financial performance and global customer support.”

He continued, “Our product innovations are opening new opportunities of growth for the Company. In the advanced nodes market, we have announced several new products that expand our leadership position in the most challenging OCD applications once thought beyond the reach of optical metrology. In the secular growth market of advanced packaging, our Dragonfly inspection system’s performance continues to be the tool of choice for the most advanced packaging technologies targeting AI, 5G, and data center markets. Panel level packaging is increasing in importance to the industry and we were pleased to see JetStep lithography selected by new and existing customers for expansions in 2021 resulting in a record backlog for our JetStep panel lithography system.”

Plisinski concluded, “We are confident that with our first-half achievements in 2020, and our strong balance sheet, we are well positioned to continue our support of customers and investments in the new technologies required for their future innovations in 2021 and beyond.”

GUIDANCE:

Onto Innovation Inc. sees Q3 2020 EPS of $0.28-$0.40, versus the consensus of $0.38. Onto Innovation Inc. sees Q3 2020 revenue of $122-132 million, versus the consensus of $136.96 million.

• The Company is currently anticipating revenue for the third quarter 2020 to be in the range of $122 to $132 million. This guidance also assumes that the safety protocols in place continue to limit the impact of COVID-19 on our factories and our suppliers. Within this revenue range the Company is expecting GAAP net income per diluted share to be in the range of $0.04 to $0.16 and non-GAAP net income per diluted share to be in the range of $0.28 to $0.40.

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