Onto Innovation(ONTO) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2024 reached $252 million, a 21.7% increase from $207.2 million in Q3 2023[2] - Operating income for Q3 2024 was $53 million (GAAP) and $70 million (non-GAAP), compared to $34 million (GAAP) in Q3 2023[2][5] - Net income for Q3 2024 was $53 million (GAAP) and $66 million (non-GAAP), reflecting significant growth from $35.9 million (GAAP) in Q3 2023[2][5] - Revenue for the three months ended September 28, 2024, was $252,210 thousand, representing a 21.7% increase from $207,185 thousand for the same period in 2023[15] - Operating income for the three months ended September 28, 2024, was $53,072 thousand, an increase of 56.1% from $34,006 thousand in the same period last year[15] - Net income for the three months ended September 28, 2024, was $53,051 thousand, compared to $35,886 thousand for the same period in 2023, reflecting a 47.6% increase[15] Earnings and Margins - GAAP gross margin was 54%, while non-GAAP gross margin was 55%, both showing improvement from previous quarters[2] - Gross profit for the three months ended September 28, 2024, was $136,379 thousand, up from $106,852 thousand, resulting in a gross margin of 54% compared to 52% in the prior year[15][16] - The company reported a gross margin as a percentage of revenue of 55% for the three months ended September 28, 2024, compared to 52% for the same period in 2023[16] - Operating margin as a percentage of revenue for the three months ended September 28, 2024, was 21%, up from 16% in the same period last year[17] Earnings Per Share - Diluted earnings per share were $1.07 (GAAP) and $1.34 (non-GAAP), nearing the high end of the guidance range[2][5] - Non-GAAP net income for the three months ended September 28, 2024, was $66,386 thousand, up from $47,613 thousand, with non-GAAP net income per diluted share increasing to $1.34 from $0.96[16][18] - Estimated GAAP net income per diluted share for the fourth quarter of 2024 is projected to be between $1.04 and $1.19[19] Future Outlook - For Q4 2024, the company expects revenue between $253 million and $267 million, with GAAP diluted EPS guidance of $1.04 to $1.19[7] - Non-GAAP diluted EPS for Q4 2024 is projected to be in the range of $1.33 to $1.48[7] Operational Highlights - Record cash from operations amounted to $67 million, representing 27% of total revenue[2] - Revenue from advanced nodes customers grew over 30% sequentially, indicating strong demand in this segment[3] - The Packaging Applications Center of Excellence (PACE) was officially opened to support 2.5D and 3D packaging architectures[3] - Total operating expenses for the three months ended September 28, 2024, were $83,307 thousand, compared to $72,846 thousand in the same period last year, marking a 14.2% increase[15] - The company plans to continue investing in research and development, with R&D expenses for the three months ended September 28, 2024, totaling $28,277 thousand, compared to $26,136 thousand in the prior year[15]