Onto Innovation Inc. (ONTO) stock plummeted 7.34% in the after-hours trading session at the price of $86.00 after publishing its earnings report for the three months ended on 30th September 2021.
ONTO is a leader in process control that connects global scale with an extended portfolio of leading-edge technologies. These technologies include 3D metrology spanning chip, un-patterned wafer quality, macro defect inspection of packages and wafers, factory analytics, overlay metrology, and lithography for semiconductor packaging.
ONTO Reported Third Quarter 2021 Earnings Report
On 4th November 2021, ONTO published its financial results for the third quarter ended 30th September 2021, and provided business updates.
Financial Highlights
ONTO calculated total revenue of $200.6 million for the three months ended on 30th September 2021. A year-over-year surge of 59% from the third quarter of the previous year. Inspection revenue grew 21% compared to the second quarter. Record software revenue increased 28% from the second quarter of 2021. For the third quarter of 2021, net income totaled $36.4 million, or per share of $0.73 (diluted). Net income was $35.1 million, or per diluted share of $0.71, for the second quarter ended 30th June 2021.
ONTO reported year-over-year growth of 55% in the gross margin from 54%. GAAP operating margin raised to 21% in the three months ended 30th September 2021. For the third quarter of 2021, operating cash flow was roughly $126.3 million. The company calculated an operating income of $43.1 million for the third quarter of 2021. It represents a rise of $7.2 million from $35.9 million in the second quarter ended 30th June 2021.
ONTO calculated operating expenses of approximately $66.2 million for the third quarter of 2021. It is a drop of $3.3 million from $69.5 million in the prior quarter of 2021. On 25th September 2021, total cash and marketable securities grew to $461.6 million, a $50.7 million gain from the second quarter of 2021. For the third quarter ended 30th September 2021, working capital raised to $58.4 million from the second quarter.
ONTO Financial Outlook 2021
For the fiscal year ending 1st January 2022, ONTO anticipated revenue to range from $210 million to $220 million. GAAP EPS has expected to be from $0.75 to $0.89 in the fourth quarter of 2021.
