The following is a summary of the Onto Innovation Inc. (ONTO) Q3 2024 Earnings Call Transcript:
Financial Performance:
Onto Innovation reported Q3 revenue of $252 million, setting a new quarterly record for inspection revenue.
Gross margin improved to 54.5% and operating margin to 28%.
Record cash generation from operations was reported at $67 million.
Business Progress:
Onto Innovation is expanding core inspection technology with the acquisition of Lumina Instruments and Kulicke and Soffa's lithography business, expected to be accretive to earnings within 12 months and generate up to $100 million in annual revenue in the next three years.
The company sees growth in DRAM and NAND markets and expects to strengthen its position in AI packaging with new product introductions.
Opportunities:
The company is aligned with diverse end-market drivers, enhancing its portfolio of synergistic technologies to address opportunities for growth in 2025.
Risks:
Over $10 million in JetStep lithography pushouts affected Q4 outlook due to customer-driven delays in their capacity needs.
Revenue from high-bandwidth memory (HBM) applications remains uncertain, potentially impacting future expansions and orders.
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