Fourth Quarter Results
Onto Innovation Inc reported earnings of $1.06 per share for the fourth quarter of 2023. This figure represents a significant decrease of 32.5% compared to the previous year. Despite the decline, the company remains focused on navigating the challenges and seizing opportunities in the market.
Revenue Analysis
Total revenue amounted to $218.9 million, reflecting a year-over-year decrease of 13.6%. The decline in revenue can primarily be attributed to the reduction in advanced nodes business and decreased revenues from service components. However, the company experienced higher-than-expected demand for its Dragonfly inspection system, supporting memory and logic device packaging for artificial intelligence applications.
Business Segment Performance
While revenue from advanced nodes decreased by 30%, revenue from specialized devices and advanced packaging increased by 17%. Conversely, revenues from software and services saw a consistent decline of 8%.
Gross Profit Margin and Operational Performance
Gross profit, excluding GAAP considerations, decreased to $112.8 million from $137.3 million in the previous year, with a gross profit margin of 52%. The operational margin, excluding GAAP, stood at 26% compared to 30% in the previous year’s quarter.
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Financial Position
As of December 31, 2023, Onto Innovation Inc held $697.8 million in cash and cash equivalents, with total current liabilities amounting to $147.7 million. This demonstrates a healthy financial position, providing a solid foundation for future growth and investment initiatives.
Outlook for Q1 2024
For the first quarter of 2024, the company anticipates revenue in the range of $215-230 million. Earnings per share, excluding GAAP considerations, are expected to range from $1.00 to $1.20, with a gross profit margin forecasted at 51-53%.
Investment Opportunity with Onto Innovation
Onto Innovation continues to adapt to market dynamics while maintaining a focus on innovation and customer satisfaction. With a strong financial position and a commitment to delivering value to shareholders, Onto Innovation presents an attractive investment opportunity in the semiconductor industry.
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