Onto Innovation(ONTO) - 2024 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 2024 reached $229 million, driven by customer capacity expansions for high-performance computing (HPC) and high bandwidth memory (HBM) supporting AI market growth[6] - Revenue from specialty and advanced packaging customers set a quarterly record of $161 million[6] - Revenue for the three months ended March 30, 2024, was $228.846 million, a 15% increase from $199.165 million for the same period in 2023[27] Profitability Metrics - GAAP gross margin was 52%, while non-GAAP gross margin also stood at 52%[8] - GAAP operating income was $43 million, with GAAP net income of $47 million, reflecting a significant increase compared to previous quarters[6] - Non-GAAP operating income was $57 million, and non-GAAP net income was $58 million, indicating strong operational performance[6] - Gross profit increased to $118.285 million, compared to $104.975 million in the prior year, resulting in a gross margin of 52%[29] - Operating income rose to $42.738 million, up from $29.035 million, reflecting a significant improvement in operational efficiency[27] - Net income for the period was $46.853 million, compared to $29.068 million in the previous year, marking a 61% increase[27] - Non-GAAP net income was reported at $58.452 million, up from $45.047 million, with non-GAAP net income per diluted share increasing to $1.18 from $0.92[32] Cash Flow and Expenses - Cash from operations amounted to $57 million, representing 25% of total revenue[6] - Operating expenses totaled $75.547 million, slightly down from $75.940 million, indicating effective cost management[30] - The company maintained an operating margin of 25% for both GAAP and non-GAAP measures[30] - Interest income increased significantly to $7.361 million from $3.448 million, reflecting improved financial performance[27] Future Outlook - The company expects Q2 2024 revenue to be in the range of $230 to $240 million, with GAAP diluted earnings per share projected between $0.88 and $1.00[11] - The company anticipates a stronger demand for advanced memory and new chiplet architectures, setting the stage for a robust 2025[5] - Future guidance estimates GAAP net income per diluted share between $0.88 and $1.00 for the next quarter[34] Product Development - Shipments of the Dragonfly® G3 inspection system increased over 30% compared to the prior quarter, highlighting strong demand in AI packaging[6] - New capabilities for the Dragonfly G3 inspection system enable 100% wafer inspection for critical sub-surface defects, enhancing product offerings[6] - The company continues to invest in research and development, with R&D expenses at $26.554 million, slightly down from $27.242 million[27]