Onto Innovation Reports 2022 Fourth Quarter and Full Year Results

Source: Onto Innovation Inc.
ONTO-I

(Financial tables follow)


ONTO INNOVATION INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) - (Unaudited)

	December 31,		January 1,
	2022		2022
ASSETS
Current assets
Cash, cash equivalents and marketable securities	$	547,784	$	511,343
Accounts receivable, net		241,395		177,205
Inventories		324,282		243,108
Prepaid and other assets		21,411		16,433
Total current assets		1,134,872		948,089
Net property, plant and equipment		91,980		82,094
Goodwill and intangibles, net		538,008		593,092
Other assets		30,003		26,538
Total assets	$	1,794,863	$	1,649,813

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	103,362	$	96,387
Other current liabilities		57,196		58,139
Total current liabilities		160,558		154,526
Other non-current liabilities		37,879		69,232
Total liabilities		198,437		223,758
Stockholders’ equity		1,596,426		1,426,055
Total liabilities and stockholders’ equity	$	1,794,863	$	1,649,813


ONTO INNOVATION INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) - (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,			January 1,			December 31,			January 1,
	2022			2022			2022			2022
Revenue	$	253,270		$	225,644		$	1,005,183		$	788,899
Cost of revenue		116,048			101,841			465,962			359,813
Gross profit		137,222			123,803			539,221			429,086
Operating expenses:
Research and development		27,825			24,836			111,953			96,118
Sales and marketing		16,374			15,822			65,688			57,235
General and administrative		17,988			19,598			69,582			67,960
Amortization		13,823			13,692			55,284			51,366
Total operating expenses		76,010			73,948			302,507			272,679
Operating income		61,212			49,855			236,714			156,407
Interest income, net		2,457			264			5,011			1,163
Other income (expense), net		1,884			(64	)		(141	)		(1,888	)
Income before income taxes		65,553			50,055			241,584			155,682
Provision (benefit) for income taxes		(661	)		3,318			18,250			13,333
Net income	$	66,214		$	46,737		$	223,334		$	142,349
Earnings per share:
Basic	$	1.35		$	0.95		$	4.52		$	2.89
Diluted	$	1.34		$	0.94		$	4.49		$	2.86
Weighted average shares outstanding:
Basic		49,092			49,386			49,424			49,242
Diluted		49,401			49,847			49,764			49,728


ONTO INNOVATION INC. NON-GAAP FINANCIAL SUMMARY (In thousands, except percentage and per share amounts) - (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2022			January 1, 2022			December 31, 2022			January 1, 2022
Revenue	$	253,270		$	225,644		$	1,005,183		$	788,899
Gross profit	$	137,317		$	123,963		$	539,300		$	430,954
Gross margin as percentage of revenue		54	%		55	%		54	%		55	%
Operating expenses	$	61,235		$	54,927		$	237,606		$	211,482
Operating income	$	76,082		$	69,036		$	301,694		$	219,472
Operating margin as a percentage of revenue		30	%		31	%		30	%		28	%
Net income	$	77,544		$	61,218		$	274,667		$	192,169
Net income per diluted share	$	1.57		$	1.23		$	5.52		$	3.86


RECONCILIATION OF GAAP GROSS PROFIT, OPERATING EXPENSES AND OPERATING INCOME TO NON-GAAP GROSS PROFIT, OPERATING EXPENSES AND OPERATING INCOME (In thousands, except percentages) - (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2022			January 1, 2022			December 31, 2022			January 1, 2022
U.S. GAAP gross profit	$	137,222		$	123,803		$	539,221		$	429,086
Pre-tax non-GAAP items:
Merger and acquisition related expenses		95			160			79			428
Restructuring expenses		—			—			—			1,440
Non-GAAP gross profit		137,317			123,963			539,300			430,954
U.S. GAAP gross margin as a percentage of revenue		54	%		55	%		54	%		54	%
Non-GAAP gross margin as a percentage of revenue		54	%		55	%		54	%		55	%
U.S. GAAP operating expenses	$	76,010		$	73,948		$	302,507		$	272,679
Pre-tax non-GAAP items:
Merger and acquisition related expenses		347			4,624			5,682			8,268
Litigation expenses		605			705			3,935			1,563
Amortization of intangibles		13,823			13,692			55,284			51,366
Non-GAAP operating expenses		61,235			54,927			237,606			211,482
Non-GAAP operating income	$	76,082		$	69,036		$	301,694		$	219,472
GAAP operating margin as a percentage of revenue		24	%		22	%		24	%		20	%
Non-GAAP operating margin as a percentage of revenue		30	%		31	%		30	%		28	%


ONTO INNOVATION INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (In thousands, except share and per share data) - (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31, 2022			January 1, 2022			December 31, 2022			January 1, 2022
U.S. GAAP net income	$	66,214		$	46,737		$	223,334		$	142,349
Pre-tax non-GAAP items:
Merger and acquisition related expenses		442			4,784			5,761			8,696
Restructuring expenses		—			—			—			1,440
Litigation expenses		605			705			3,935			1,563
Amortization of intangibles		13,823			13,692			55,284			51,366
Net tax provision adjustments		(3,540	)		(4,700	)		(13,647	)		(13,245	)
Non-GAAP net income	$	77,544		$	61,218		$	274,667		$	192,169
Non-GAAP net income per diluted share	$	1.57		$	1.23		$	5.52		$	3.86


ONTO INNOVATION INC SUPPLEMENTAL INFORMATION - RECONCILIATION OF FIRST QUARTER 2023 GAAP TO NON-GAAP GUIDANCE

	Low			High
Estimated GAAP net income per diluted share	$	0.54		$	0.69
Estimated non-GAAP items:
Amortization of intangibles		0.28			0.28
Merger and acquisition related expenses		0.01			0.01
Litigation expenses		0.02			0.02
Restructuring expenses		0.03			0.03
Net tax provision adjustments		(0.08	)		(0.08	)
Estimated non-GAAP net income per diluted share	$	0.80		$	0.95