Core Insights - FARO Technologies and Creaform have announced the formation of two new business units: FARO CREAFORM and FARO INSIGHT, aimed at enhancing metrology and reality capture solutions for various industries [2][4]. Group 1: FARO CREAFORM - FARO CREAFORM combines FARO's 3D Measurement business and Creaform's metrology solutions, focusing on delivering rigorous dimensional measurement solutions to improve manufacturing and maintenance outcomes [2][6]. - Under the leadership of Fanny Truchon, FARO CREAFORM aims to enhance the mobility and usability of metrology, providing a superior experience and a single point of contact for customers [3][4]. - The unit is positioned to become a leader in portable metrology, empowering industries to transition from hindsight to foresight [4]. Group 2: FARO INSIGHT - FARO INSIGHT will focus on reality capture solutions, enabling teams to transform physical data into actionable insights for construction, public safety, and geospatial applications [2][5]. - Led by Dietmar Wennemer, FARO INSIGHT aims to digitize the world, providing hardware and software solutions that reduce ambiguity in tracking progress and documenting changes [5][8]. - The unit supports digital-twin workflows and aims to enhance data management and sharing capabilities across various sectors [3][5]. Group 3: Company Background - FARO has over 40 years of experience in 3D measurement and reality capture, while Creaform has been a pioneer in handheld metrology since 2002, serving diverse industries such as automotive and aerospace [6][7]. - Both business units are part of AMETEK, Inc., which has annual sales exceeding $7.0 billion, indicating a strong financial backing for their growth and innovation strategies [7][8].

Core Viewpoint - ONTO Innovation (NYSE:ONTO) has been identified as a new long idea by Hedgeye, with a potential upside of 25% [1] Group 1: Company Performance - ONTO Innovation's stock rose by 7% following its inclusion as a long idea by Hedgeye [1] - The company is viewed as a potential recovery story, transitioning from a major underperformer to an outperformer in the upcoming year [1] Group 2: Analyst Insights - Hedgeye analyst Felix suggests that ONTO could represent significant growth potential in the metrology sector [1]

Financial Data and Key Metrics Changes - Nova achieved record revenue of $220 million in Q2 2025, reflecting a 3% increase sequentially and a 40% increase year over year [14][4] - Blended gross margins were 58% on a GAAP basis and 60% on a non-GAAP basis, exceeding the target range of 57% to 60% [15][16] - Earnings per share were $2.14 on a GAAP basis and $2.20 on a non-GAAP basis, marking the seventh consecutive quarter of record performance [16][19] Business Line Data and Key Metrics Changes - The chemical metrology division and service business contributed to record revenue, with service revenue growing 7% sequentially and 31% year over year [11][4] - Product revenue distribution was approximately 75% from logic and foundry and 25% from memory, indicating a well-balanced market reach [15] Market Data and Key Metrics Changes - Nova is well positioned in the memory market, particularly in DRAM and high bandwidth memory, with significant market share gains [10][41] - The company expects nominal revenue from China to be moderately higher year over year, despite a forecasted decrease in percentage terms due to higher investments in advanced nodes [42] Company Strategy and Development Direction - Nova's strategy focuses on capitalizing on technological transitions and improvements in yield and productivity, particularly in advanced packaging and metrology [5][6] - The company aims to achieve $500 million in cumulative Gate All Around revenue by 2026, with strong demand and stability anticipated in the second half of the year [23][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on emerging opportunities, supported by a resilient and diversified business model [6][12] - The impact of newly implemented tariffs on gross margins is now estimated to be closer to 20 basis points, a more favorable outcome than initially anticipated [19] Other Important Information - Nova's service business has shown consistent growth, marking ten consecutive quarters of revenue increase [11] - The company continues to invest in expanding its portfolio to align with customer expectations and technology inflections [12] Q&A Session Summary Question: How did aggregate all around sales appear in June and what trajectory is expected for the second half? - Management indicated strong positioning across all four Gate All Around customers and expressed excitement about the opportunity, expecting stability in the second half [23] Question: What drove the strong gross margins in June? - The strong gross margins were attributed to a favorable product mix rather than solely the chemical metrology business, with marginal impact from tariffs [25] Question: Can you discuss the momentum in the Centronics business? - Management is optimistic about the integration of Sintronics and its potential for growth, with encouraging signs of adoption from multiple customers [30] Question: How is the competitive landscape in dimensional metrology? - Management noted strong momentum in integrated metrology and market share gains in standalone OCD, maintaining leadership in the segment [47] Question: What is the outlook for Ellipson and Matrion revenue contribution? - Both systems are on track for adoption by advanced node manufacturers, with expectations for growth as they become process tools of record [50]