10-Q 1 onto-10q_20220702.htm 10-Q onto-10q_20220702.htm
0000704532 --12-31 2022 Q2 false http://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrent 0000704532 2022-01-02 2022-07-02 xbrli:shares 0000704532 2022-07-19 iso4217:USD 0000704532 2022-04-03 2022-07-02 0000704532 2021-03-28 2021-06-26 0000704532 2020-12-27 2021-06-26 iso4217:USD xbrli:shares 0000704532 2022-07-02 0000704532 2022-01-02 0000704532 2022-01-01 0000704532 2020-12-26 0000704532 2021-06-26 0000704532 us-gaap:CommonStockMember 2022-01-01 0000704532 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 0000704532 us-gaap:RetainedEarningsMember 2022-01-01 0000704532 us-gaap:RetainedEarningsMember 2022-01-02 2022-04-02 0000704532 2022-01-02 2022-04-02 0000704532 us-gaap:AdditionalPaidInCapitalMember 2022-01-02 2022-04-02 0000704532 us-gaap:CommonStockMember 2022-01-02 2022-04-02 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-02 2022-04-02 0000704532 us-gaap:CommonStockMember 2022-04-02 0000704532 us-gaap:AdditionalPaidInCapitalMember 2022-04-02 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-02 0000704532 us-gaap:RetainedEarningsMember 2022-04-02 0000704532 2022-04-02 0000704532 us-gaap:RetainedEarningsMember 2022-04-03 2022-07-02 0000704532 us-gaap:AdditionalPaidInCapitalMember 2022-04-03 2022-07-02 0000704532 us-gaap:CommonStockMember 2022-04-03 2022-07-02 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-03 2022-07-02 0000704532 us-gaap:CommonStockMember 2022-07-02 0000704532 us-gaap:AdditionalPaidInCapitalMember 2022-07-02 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-02 0000704532 us-gaap:RetainedEarningsMember 2022-07-02 0000704532 us-gaap:CommonStockMember 2020-12-26 0000704532 us-gaap:AdditionalPaidInCapitalMember 2020-12-26 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-26 0000704532 us-gaap:RetainedEarningsMember 2020-12-26 0000704532 us-gaap:RetainedEarningsMember 2020-12-27 2021-03-27 0000704532 2020-12-27 2021-03-27 0000704532 us-gaap:AdditionalPaidInCapitalMember 2020-12-27 2021-03-27 0000704532 us-gaap:CommonStockMember 2020-12-27 2021-03-27 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-27 2021-03-27 0000704532 us-gaap:CommonStockMember 2021-03-27 0000704532 us-gaap:AdditionalPaidInCapitalMember 2021-03-27 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-27 0000704532 us-gaap:RetainedEarningsMember 2021-03-27 0000704532 2021-03-27 0000704532 us-gaap:RetainedEarningsMember 2021-03-28 2021-06-26 0000704532 us-gaap:AdditionalPaidInCapitalMember 2021-03-28 2021-06-26 0000704532 us-gaap:CommonStockMember 2021-03-28 2021-06-26 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-28 2021-06-26 0000704532 us-gaap:CommonStockMember 2021-06-26 0000704532 us-gaap:AdditionalPaidInCapitalMember 2021-06-26 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-26 0000704532 us-gaap:RetainedEarningsMember 2021-06-26 0000704532 onto:InspectrologyLLCMember 2020-12-27 2021-03-27 0000704532 onto:InspectrologyLLCMember 2022-01-01 0000704532 onto:InspectrologyLLCMember srt:MaximumMember 2022-01-02 2022-07-02 0000704532 onto:InspectrologyLLCMember 2022-07-02 0000704532 onto:InspectrologyLLCMember srt:MinimumMember 2022-01-02 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-07-02 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-07-02 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2022-01-01 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AssetBackedSecuritiesMember 2022-01-01 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2022-01-01 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-01-01 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2022-01-01 0000704532 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 0000704532 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 0000704532 us-gaap:USTreasuryAndGovernmentMember 2022-07-02 0000704532 us-gaap:AssetBackedSecuritiesMember 2022-07-02 0000704532 us-gaap:CertificatesOfDepositMember 2022-07-02 0000704532 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-07-02 0000704532 us-gaap:CorporateDebtSecuritiesMember 2022-07-02 0000704532 us-gaap:USTreasuryAndGovernmentMember 2022-01-01 0000704532 us-gaap:AssetBackedSecuritiesMember 2022-01-01 0000704532 us-gaap:CertificatesOfDepositMember 2022-01-01 0000704532 us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2022-01-01 0000704532 us-gaap:CorporateDebtSecuritiesMember 2022-01-01 0000704532 us-gaap:DevelopedTechnologyRightsMember 2022-07-02 0000704532 us-gaap:CustomerRelationshipsMember 2022-07-02 0000704532 us-gaap:TrademarksAndTradeNamesMember 2022-07-02 0000704532 us-gaap:DevelopedTechnologyRightsMember 2022-01-01 0000704532 us-gaap:CustomerRelationshipsMember 2022-01-01 0000704532 us-gaap:TrademarksAndTradeNamesMember 2022-01-01 0000704532 us-gaap:MachineryAndEquipmentMember 2022-07-02 0000704532 us-gaap:MachineryAndEquipmentMember 2022-01-01 0000704532 us-gaap:LandAndBuildingMember 2022-07-02 0000704532 us-gaap:LandAndBuildingMember 2022-01-01 0000704532 onto:ComputerEquipmentAndSoftwareMember 2022-07-02 0000704532 onto:ComputerEquipmentAndSoftwareMember 2022-01-01 0000704532 us-gaap:LeaseholdImprovementsMember 2022-07-02 0000704532 us-gaap:LeaseholdImprovementsMember 2022-01-01 0000704532 us-gaap:FurnitureAndFixturesMember 2022-07-02 0000704532 us-gaap:FurnitureAndFixturesMember 2022-01-01 0000704532 srt:MinimumMember 2022-01-02 2022-07-02 0000704532 srt:MaximumMember 2022-01-02 2022-07-02 xbrli:pure 0000704532 us-gaap:TransferredAtPointInTimeMember 2022-04-03 2022-07-02 0000704532 us-gaap:TransferredAtPointInTimeMember 2021-03-28 2021-06-26 0000704532 us-gaap:TransferredAtPointInTimeMember 2022-01-02 2022-07-02 0000704532 us-gaap:TransferredAtPointInTimeMember 2020-12-27 2021-06-26 0000704532 us-gaap:TransferredOverTimeMember 2022-04-03 2022-07-02 0000704532 us-gaap:TransferredOverTimeMember 2021-03-28 2021-06-26 0000704532 us-gaap:TransferredOverTimeMember 2022-01-02 2022-07-02 0000704532 us-gaap:TransferredOverTimeMember 2020-12-27 2021-06-26 0000704532 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 0000704532 us-gaap:RestrictedStockUnitsRSUMember 2022-01-02 2022-07-02 0000704532 us-gaap:RestrictedStockUnitsRSUMember 2022-04-02 0000704532 us-gaap:RestrictedStockUnitsRSUMember 2022-07-02 0000704532 onto:RestrictedStockUnitsServiceBasedRSUsMember 2022-07-02 0000704532 onto:PerformanceRestrictedStockUnitsMember 2022-07-02 0000704532 onto:PerformanceRestrictedStockUnitsMember 2022-01-01 0000704532 us-gaap:RestrictedStockUnitsRSUMember 2021-01-02 2022-01-01 0000704532 us-gaap:AccumulatedTranslationAdjustmentMember 2022-01-01 0000704532 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-01-01 0000704532 us-gaap:AccumulatedTranslationAdjustmentMember 2022-01-02 2022-07-02 0000704532 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-01-02 2022-07-02 0000704532 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-02 2022-07-02 0000704532 us-gaap:AccumulatedTranslationAdjustmentMember 2022-07-02 0000704532 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-07-02 onto:Segment 0000704532 onto:SystemsAndSoftwareRevenueMember 2022-04-03 2022-07-02 0000704532 onto:PartsRevenueMember 2022-04-03 2022-07-02 0000704532 onto:ServiceRevenueMember 2022-04-03 2022-07-02 0000704532 onto:SystemsAndSoftwareRevenueMember 2021-03-28 2021-06-26 0000704532 onto:PartsRevenueMember 2021-03-28 2021-06-26 0000704532 onto:ServiceRevenueMember 2021-03-28 2021-06-26 0000704532 onto:SystemsAndSoftwareRevenueMember 2022-01-02 2022-07-02 0000704532 onto:PartsRevenueMember 2022-01-02 2022-07-02 0000704532 onto:ServiceRevenueMember 2022-01-02 2022-07-02 0000704532 onto:SystemsAndSoftwareRevenueMember 2020-12-27 2021-06-26 0000704532 onto:PartsRevenueMember 2020-12-27 2021-06-26 0000704532 onto:ServiceRevenueMember 2020-12-27 2021-06-26 0000704532 onto:SystemsAndSoftwareRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-04-03 2022-07-02 0000704532 onto:PartsRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-04-03 2022-07-02 0000704532 onto:ServiceRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-04-03 2022-07-02 0000704532 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-04-03 2022-07-02 0000704532 onto:SystemsAndSoftwareRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-03-28 2021-06-26 0000704532 onto:PartsRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-03-28 2021-06-26 0000704532 onto:ServiceRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-03-28 2021-06-26 0000704532 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2021-03-28 2021-06-26 0000704532 onto:SystemsAndSoftwareRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:PartsRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:ServiceRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:SystemsAndSoftwareRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 onto:PartsRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 onto:ServiceRevenueMember us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 country:CN 2022-04-03 2022-07-02 0000704532 country:CN 2021-03-28 2021-06-26 0000704532 country:CN 2022-01-02 2022-07-02 0000704532 country:CN 2020-12-27 2021-06-26 0000704532 country:KR 2022-04-03 2022-07-02 0000704532 country:KR 2021-03-28 2021-06-26 0000704532 country:KR 2022-01-02 2022-07-02 0000704532 country:KR 2020-12-27 2021-06-26 0000704532 country:TW 2022-04-03 2022-07-02 0000704532 country:TW 2021-03-28 2021-06-26 0000704532 country:TW 2022-01-02 2022-07-02 0000704532 country:TW 2020-12-27 2021-06-26 0000704532 country:US 2022-04-03 2022-07-02 0000704532 country:US 2021-03-28 2021-06-26 0000704532 country:US 2022-01-02 2022-07-02 0000704532 country:US 2020-12-27 2021-06-26 0000704532 srt:EuropeMember 2022-04-03 2022-07-02 0000704532 srt:EuropeMember 2021-03-28 2021-06-26 0000704532 srt:EuropeMember 2022-01-02 2022-07-02 0000704532 srt:EuropeMember 2020-12-27 2021-06-26 0000704532 onto:SoutheastAsiaMember 2022-04-03 2022-07-02 0000704532 onto:SoutheastAsiaMember 2021-03-28 2021-06-26 0000704532 onto:SoutheastAsiaMember 2022-01-02 2022-07-02 0000704532 onto:SoutheastAsiaMember 2020-12-27 2021-06-26 0000704532 country:JP 2022-04-03 2022-07-02 0000704532 country:JP 2021-03-28 2021-06-26 0000704532 country:JP 2022-01-02 2022-07-02 0000704532 country:JP 2020-12-27 2021-06-26 0000704532 onto:SKHynixIncMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:SKHynixIncMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 onto:TaiwanSemiconductorManufacturingCompanyLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:TaiwanSemiconductorManufacturingCompanyLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 onto:SamsungSemiconductorMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-02 2022-07-02 0000704532 onto:SamsungSemiconductorMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-12-27 2021-06-26 0000704532 srt:MaximumMember 2020-11-30

 

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July 2, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to

Commission File No. 001-39110

 

ONTO INNOVATION INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

94-2276314

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

16 Jonspin Road, Wilmington, Massachusetts 01887

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (978) 253-6200

 

Securities registered pursuant to Section 12(b) of the Act

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, $0.001 par value per share

ONTO

New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No 

The number of outstanding shares of the Registrant’s Common Stock on July 19, 2022 was 49,680,837.

 

 


 

Table of Contents

 

TABLE OF CONTENTS

 

Item No.

 

Page

 

PART I    FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (unaudited)

1

 

Condensed Consolidated Statements of Operations for the three and six months ended July 2, 2022 and June 26, 2021

1

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 2, 2022 and June 26, 2021

2

 

Condensed Consolidated Balance Sheets at July 2, 2022 and January 1, 2022

3

 

Condensed Consolidated Statements of Cash Flows for the six months ended July 2, 2022 and June 26, 2021

4

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended July 2, 2022 and June 26, 2021

5

 

Notes to Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

23

Item 4.

Controls and Procedures

23

 

 

 

 

PART II    OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

23

Item 1A.

Risk Factors

23

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 3.

Defaults Upon Senior Securities

40

Item 4.

Mine Safety Disclosures

40

Item 5.

Other Information

40

Item 6.

Exhibits

40

 

Signatures

 


 

Table of Contents

 

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 2,

 

 

June 26,

 

 

July 2,

 

 

June 26,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

256,310

 

 

$

193,387

 

 

$

497,660

 

 

$

362,666

 

Cost of revenue

 

 

124,183

 

 

 

87,931

 

 

 

234,510

 

 

 

166,741

 

Gross profit

 

 

132,127

 

 

 

105,456

 

 

 

263,150

 

 

 

195,925

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

25,637

 

 

 

25,507

 

 

 

51,978

 

 

 

47,471

 

Sales and marketing

 

 

16,913

 

 

 

15,429

 

 

 

32,545

 

 

 

28,533

 

General and administrative

 

 

18,306

 

 

 

16,255

 

 

 

34,793

 

 

 

31,814

 

Amortization

 

 

13,820

 

 

 

12,324

 

 

 

27,639

 

 

 

24,681

 

Total operating expenses

 

 

74,676

 

 

 

69,515

 

 

 

146,955

 

 

 

132,499

 

Operating income

 

 

57,451

 

 

 

35,941

 

 

 

116,195

 

 

 

63,426

 

Interest income, net

 

 

661

 

 

 

304

 

 

 

1,038

 

 

 

665

 

Other expense, net

 

 

(859

)

 

 

(289

)

 

 

(1,063

)

 

 

(1,533

)

Income before provision for income taxes

 

 

57,253

 

 

 

35,956

 

 

 

116,170

 

 

 

62,558

 

Provision for income taxes

 

 

5,678

 

 

 

905

 

 

 

11,265

 

 

 

3,394

 

Net income

 

$

51,575

 

 

$

35,051

 

 

$

104,905

 

 

$

59,164

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.04

 

 

$

0.71

 

 

$

2.12

 

 

$

1.20

 

Diluted

 

$

1.03

 

 

$

0.71

 

 

$

2.10

 

 

$

1.19

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

49,617

 

 

 

49,193

 

 

 

49,525

 

 

 

49,105

 

Diluted

 

 

49,907

 

 

 

49,701

 

 

 

49,909

 

 

 

49,645

 

 

The accompanying notes are an integral part of these financial statements.

1


 

Table of Contents

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 2,

 

 

June 26,

 

 

July 2,

 

 

June 26,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

51,575

 

 

$

35,051

 

 

$

104,905

 

 

$

59,164

 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in net unrealized gains (losses) on

     available-for-sale marketable securities

 

 

552

 

 

 

(567

)

 

 

(2,449

)

 

 

(698

)

Change in currency translation adjustments

 

 

(5,934

)

 

 

537

 

 

 

(9,546

)

 

 

(1,362

)

Total other comprehensive loss, net of tax

 

 

(5,382

)

 

 

(30

)

 

 

(11,995

)

 

 

(2,060

)

Total comprehensive income

 

$

46,193

 

 

$

35,021

 

 

$

92,910

 

 

$

57,104

 

 

The accompanying notes are an integral part of these financial statements.

 


2


 

Table of Contents

 

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

July 2,

2022

 

 

January 1,

2022

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

180,175

 

 

$

169,602

 

Marketable securities

 

 

364,825

 

 

 

341,741

 

Accounts receivable, less allowance of $1,439 and $1,303

 

 

234,731

 

 

 

177,205

 

Inventories, net

 

 

280,613

 

 

 

243,108

 

Prepaid expenses and other current assets

 

 

25,287

 

 

 

16,433

 

Total current assets

 

 

1,085,631

 

 

 

948,089

 

Property, plant and equipment, net

 

 

82,986

 

 

 

82,094

 

Goodwill

 

 

315,811

 

 

 

315,811

 

Identifiable intangible assets, net

 

 

249,742

 

 

 

277,281

 

Deferred income taxes

 

 

4,461

 

 

 

4,822

 

Other assets

 

 

22,829

 

 

 

21,716

 

Total assets

 

$

1,761,460

 

 

$

1,649,813

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

72,248

 

 

$

53,345

 

Accrued liabilities

 

 

38,957

 

 

 

43,042

 

Deferred revenue

 

 

32,121

 

 

 

29,979

 

Other current liabilities

 

 

33,341

 

 

 

28,160

 

Total current liabilities

 

 

176,667

 

 

 

154,526

 

Deferred income taxes

 

 

25,422

 

 

 

40,281

 

Other non-current liabilities

 

 

31,428

 

 

 

28,951

 

Total liabilities

 

 

233,517

 

 

 

223,758

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

50

 

 

 

49

 

Additional paid-in capital

 

 

1,265,156

 

 

 

1,256,179

 

Accumulated other comprehensive (loss) income

 

 

(10,679

)

 

 

1,316

 

Retained earnings

 

 

273,416

 

 

 

168,511

 

Total stockholders’ equity

 

 

1,527,943

 

 

 

1,426,055

 

Total liabilities and stockholders’ equity

 

$

1,761,460

 

 

$

1,649,813

 

 

The accompanying notes are an integral part of these financial statements.

 


3


 

Table of Contents

 

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Six Months Ended

 

 

 

July 2,

 

 

June 26,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

104,905

 

 

$

59,164

 

Adjustments to reconcile net income to net cash and cash equivalents provided by

operating activities:

 

 

 

 

 

 

 

 

Amortization of intangibles

 

 

27,639

 

 

 

24,681

 

Depreciation

 

 

4,666

 

 

 

7,484

 

Share-based compensation

 

 

12,815

 

 

 

10,997

 

Acquired inventory step-up amortization

 

 

 

 

 

252

 

Provision for inventory valuation

 

 

4,494

 

 

 

3,706

 

Deferred income taxes

 

 

(13,962

)

 

 

 

Other, net

 

 

2,415

 

 

 

1,892

 

Changes in operating assets and liabilities, net of effects of business acquired

 

 

(87,584

)

 

 

(31,748

)

Net cash and cash equivalents provided by operating activities

 

 

55,388

 

 

 

76,428

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of marketable securities

 

 

(174,730

)

 

 

(142,072

)

Proceeds from maturities and sales of marketable securities

 

 

148,426

 

 

 

102,027

 

Purchase of business, net of cash acquired

 

 

 

 

 

(26,795

)

Purchases of property, plant and equipment

 

 

(6,902

)

 

 

(9,558

)

Net cash and cash equivalents used in investing activities

 

 

(33,206

)

 

 

(76,398

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Tax payments related to shares withheld for share-based compensation plans

 

 

(8,337

)

 

 

(6,499

)

Payment of contingent consideration for acquired business

 

 

(2,287

)

 

 

 

Issuance of shares through share-based compensation plans

 

 

4,499

 

 

 

3,215

 

Net cash and cash equivalents used in financing activities

 

 

(6,125

)

 

 

(3,284

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(5,484

)

 

 

752

 

Net increase (decrease) in cash and cash equivalents

 

 

10,573

 

 

 

(2,502

)

Cash and cash equivalents at beginning of period

 

 

169,602

 

 

 

136,720

 

Cash and cash equivalents at end of period

 

$

180,175

 

 

$

134,218

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Income taxes paid (net of refunds)

 

$

32,945

 

 

$

4,980

 

 

The accompanying notes are an integral part of these financial statements.

 


4


 

Table of Contents

 

ONTO INNOVATION INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

Common Stock

 

 

Additional Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at January 1, 2022

 

 

49,300

 

 

$

49

 

 

$

1,256,179

 

 

$

1,316

 

 

$

168,511

 

 

$

1,426,055

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53,330

 

 

 

53,330

 

Share-based compensation

 

 

 

 

 

 

 

 

4,832

 

 

 

 

 

 

 

 

 

4,832

 

Issuance of shares through share-based

   compensation plans

 

 

184

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

6

 

Share-based compensation plan

    withholdings

 

 

(46

)

 

 

 

 

 

(5,289

)

 

 

 

 

 

 

 

 

(5,289

)

Currency translation

 

 

 

 

 

 

 

 

 

 

 

(3,612

)

 

 

 

 

 

(3,612

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(3,001

)

 

 

 

 

 

(3,001

)

Balance at April 2, 2022

 

 

49,438

 

 

$

49

 

 

$

1,255,728

 

 

$

(5,297

)

 

$

221,841

 

 

$

1,472,321

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,575

 

 

 

51,575

 

Share-based compensation

 

 

 

 

 

 

 

 

7,983

 

 

 

 

 

 

 

 

 

7,983

 

Issuance of shares through share-based

   compensation plans, net

 

 

219

 

 

 

1

 

 

 

4,493

 

 

 

 

 

 

 

 

 

4,494

 

Share-based compensation plan

    withholdings

 

 

(53

)

 

 

 

 

 

(3,048

)

 

 

 

 

 

 

 

 

(3,048

)

Currency translation

 

 

 

 

 

 

 

 

 

 

 

(5,934

)

 

 

 

 

 

(5,934

)

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

552

 

 

 

 

 

 

552

 

Balance at July 2, 2022

 

 

49,604

 

 

$

50

 

 

$

1,265,156

 

 

$

(10,679

)

 

$

273,416

 

 

$

1,527,943

 

 

 

 

 

Common Stock

 

 

Additional Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Earnings

 

 

Total

 

Balance at December 26, 2020

 

 

48,758

 

 

$

49

 

 

$

1,233,967

 

 

$

4,568

 

 

$

26,162

 

 

$

1,264,746

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,113

 

 

 

24,113

 

Share-based compensation

 

 

 

 

 

 

 

 

4,890

 

 

 

 

 

 

 

 

 

4,890

 

Issuance of shares through share-based

   compensation plans

 

 

240

 

 

 

 

 

 

3,085

 

 

 

 

 

 

 

 

 

3,085

 

Share-based compensation plan

    withholdings

 

 

(41

)

 

 

 

 

 

(2,492

)

 

 

 

 

 

 

 

 

(2,492

)

Currency translation

 

 

 

 

 

 

 

 

 

 

 

(1,899

)

 

 

 

 

 

(1,899

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(131

)

 

 

 

 

 

(131

)

Balance at March 27, 2021

 

 

48,957

 

 

$

49

 

 

$

1,239,450

 

 

$

2,538

 

 

$

50,275

 

 

$

1,292,312

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,051

 

 

 

35,051

 

Share-based compensation

 

 

 

 

 

 

 

 

6,107

 

 

 

 

 

 

 

 

 

6,107

 

Issuance of shares through share-based

   compensation plans, net

 

 

288

 

 

 

 

 

 

130

 

 

 

 

 

 

 

 

 

130

 

Share-based compensation plan

    withholdings

 

 

(56

)

 

 

 

 

 

(4,007

)

 

 

 

 

 

 

 

 

(4,007

)

Currency translation