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Press Release: Onto Innovation Reports 2020 Fourth Quarter and Full Year Results

· 02/04/2021 16:05
-- As of December 26, 2020, cash and marketable securities increased $53.5 million for the year, net of $52 million of stock repurchases in 2020, and ended at $373.7 million. -- Working capital increased $32.1 million from the 2020 third quarter and ended the year at $611.6 million. -- Accounts receivable totaled $149.3 million as of the end of the year and inventory ended the year at $191.2 million.-- Fourth quarter 2020 non-GAAP net income was $35.6 million, or $0.72 per diluted share, and was above the high end of previous guidance, compared to non-GAAP net income of $19.6 million, or $0.40 per diluted share in the third quarter 2020. For the full year, non-GAAP net income was $95.7 million, or $1.93 per diluted share compared to $41.8 million, or $1.39 per diluted share in the prior period. -- Non-GAAP results exclude merger-related expenses, restructuring costs and the amortization of intangible assets as detailed in the accompanying tables.-- Fourth quarter revenue totaled $155.1 million, an increase of 23% compared with $126.5 million for the third quarter of 2020. For the full year, revenue totaled $556.5 million compared to $305.9 million in the prior year. -- Gross profit margin was 49% of revenue in the fourth quarter of 2020, compared to 54% in the third quarter of 2020. Fourth quarter gross margin was negatively impacted by an inventory reserve for a discontinued product line. For the full year 2020, gross profit margin was 50% compared to 44% in the prior year. -- Operating expenses for the fourth quarter of 2020 totaled $60.6 million, an increase of $1.0 million compared to $59.6 million in the third quarter of 2020. For the full year, operating expenses were $251.8 million compared to $140.1 million in the prior year. -- The income tax provision was a benefit of $5.4 million for the fourth quarter of 2020 compared to $836 thousand of expense in the 2020 third quarter. The fourth quarter benefit was primarily due to the conclusion of an IRS audit covering the years 2016 to 2018 and a net operating loss carryback claim to tax years with higher statutory tax rates. -- GAAP net income for the fourth quarter of 2020 was $19.9 million, or $0.40 per diluted share, compared with $8.1 million, or $0.16 per diluted share, for the 2020 third quarter. For the full year, net income was $31.0 million, or $0.63 per diluted share compared to net income of $1.9 million, or $0.06 per diluted share in the prior year.Onto Innovation Inc. Key Financial Data for the Quarters Ended December 26, 2020, September 26, 2020, and December 31, 2019 (in thousands, except per share amounts) US GAAP -------------------------------------------------------------------- December 2020 September 2020 December 2019* -------------- -------------- -------------- Revenue $ 155,128 $ 126,492 $ 120,558 Gross profit margin 49% 54% 33% Operating income (loss) $ 14,711 $ 9,282 $ (23,359) Net income (loss) $ 19,914 $ 8,091 $ (17,752) Net income (loss) per diluted share $ 0.40 $ 0.16 $ (0.41) US NON-GAAP -------------------------------------------------------------------- December 2020 September 2020 December 2019* -------------- -------------- -------------- Revenue $ 155,128 $ 126,492 $ 120,558 Gross profit margin 54% 54% 51% Operating income $ 37,633 $ 23,786 $ 20,241 Net income $ 35,555 $ 19,602 $ 18,065 Net income per diluted share $ 0.72 $ 0.40 $ 0.41-- Quarterly revenue of $155.1 million increased 23% compared to $126.5 million in the 2020 third quarter and exceeded management's guidance. -- Revenue from RF customers supporting the 5G ramp increased 100% over the third quarter. -- Aspect(R) metrology system accepted by a top three supplier of 3D NAND, displacing the incumbent metrology tool in the fourth quarter. -- Penetrated a leading DRAM customer with first IMPULSE(R) integrated metrology systems gaining significant market share and becoming process tool of record to support significant ramp in 2021. -- Achieved annualized merger cost synergies of $24 million driving improved combined company results. -- Technology synergies enabled the introduction of the new Iris(TM) films system resulting in multiple orders delivered to a top three semiconductor manufacturer. -- New product introductions in metrology and inspection expected to increase 2021 TAM and SAM by over 20%. -- Entered long-term operating model with fourth quarter Non-GAAP operating margin of 24%. -- Cash and marketable securities increased $33 million in the fourth quarter and cash from operations was 21% of revenue in the quarter.WILMINGTON, Mass--(BUSINESS WIRE)--February 04, 2021--

Onto Innovation Reports 2020 Fourth Quarter and Full Year Results

Metrology Systems for Advanced Nodes Contribute to 23% Quarterly Growth

Operating Income Increased 58% Over the Third Quarter

Onto Innovation Inc. (NYSE: ONTO) today announced financial results for the fourth quarter and full year results for 2020.

2020 Fourth Quarter and Full Year Highlights

The following and subsequent financial tables, as well as commentary and comparisons to 2019 in this release, include the results of Rudolph Technologies, Inc. through October 25, 2019, and the results of Onto Innovation from October 26, 2019 through December 31, 2019.

*The results for December 2019 include the results of Rudolph Technologies, Inc. through October 25, 2019 and Onto Innovation from October 26 to December 31, 2019.

Michael Plisinski, chief executive officer of Onto Innovation commented, "The extraordinary challenges of integrating two similar sized companies while simultaneously operating under the constraints of a global pandemic underscored the strength of the Onto Innovation team. Together, we released six new products and expanded our growth opportunities in new markets for advanced packaging and image sensors as well as in the advanced nodes for logic, DRAM, and 3D-NAND. The strong revenue growth in the fourth quarter was a combination of market strength in memory and RF communications in support of the initial 5G handset ramp as well as the acceptance of several of our new product releases."

Plisinski concluded, "In addition to expanding our market opportunities, we are deepening our customer partnerships across the value chain by working collaboratively on identifying future challenges and potential solutions. This is expanding our view of the horizon and illuminating exciting possibilities for our team. Our guidance for the first quarter reflects our confidence for what is ahead. Secular demand for 5G enabled handsets and base stations continues to increase. High performance computing engines for AI and data center applications also remain strong and are driving demand for DRAM. The electronics industry is profoundly changing the world in which we live. We are excited to do our part to ensure it's a better planet. Our activities began as we developed our first corporate responsibility report and created our corporate environmental goals. This year gave us many examples of how critical this is for our society and the environment and we look forward to contributing to this effort."

Fourth Quarter 2020 and Full Year GAAP Financial Results

Fourth Quarter 2020 and Full Year Non-GAAP Financial Results

Balance Sheet

Outlook

The Company is currently anticipating revenue for the first quarter 2021 to be in the range of $155 million to $169 million. This guidance assumes that the safety protocols in place continue to limit the impact of COVID-19 on our factories and our suppliers. The upper end of this guidance is predicated on the approval of the Company's application for a license to deliver an ordered product that was recently restricted from shipping to China. Within this revenue range the Company is expecting GAAP net income per diluted share to be in the range of $0.35 to $0.49 and non-GAAP net income per diluted share to be in the range of $0.62 to $0.76.

Webcast & Conference Call Details

Onto Innovation will host a conference call at 4:30 p.m. Eastern Time today, February 4, 2021, to discuss its fourth quarter and full year 2020 financial results in greater detail. To participate in the call, please dial (800) 437-2398 or International: +1 (929) 477-0577 and reference conference ID 109830 at least five (5) minutes prior to the scheduled start time. A live webcast will also be available at www.ontoinnovation.com.

To listen to the live webcast, please go to the website at least fifteen (15) minutes early to register, download and install any necessary audio software. There will be a replay of the conference call available from 7:30 p.m. ET on February 4 until 7:30 p.m. ET on February 11, 2021. To access the replay, please dial (888) 203-1112 and conference ID 109830 at any time during that period. A replay will also be available at www.ontoinnovation.com.

Discussion of Non-GAAP Financial Measures

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February 04, 2021 16:05 ET (21:05 GMT)