Onto Innovation(ONTO)2024-11-01 00:13Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached 67 million [5][15] - EPS for Q3 increased 2% sequentially to 161 million, which is 64% of total revenue, though it saw a slight decline from Q2 [15] - Advanced nodes revenue was 49 million, up 5% from Q2, accounting for 19% of total revenue [15] Market Data and Key Metrics Changes - The power devices market set a quarterly record, driven by metrology and inspection process control systems, despite muted end demand [9] - Advanced packaging was highlighted as a significant market for metrology, with expectations for increased volume in logic packaging [7][13] Company Strategy and Development Direction - The company is expanding its core inspection technology through acquisitions, including Lumina Instruments and the lithography business from Kulicke and Soffa, which are expected to enhance product capabilities and generate additional revenue [10][12] - The focus on yield improvements in power semiconductors is expected to sustain record revenue levels into the next year [9][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth moving into the first half of next year, driven by demand in DRAM and gate-all-around expansions [24][25] - The company anticipates another solid year of growth in 2025, supported by new product launches and strong market demand [21][22] Other Important Information - The company ended Q3 with cash and short-term investments of 308 million, marking five consecutive quarters of decline [18][64] - The fourth quarter revenue guidance is projected between 267 million, with gross margins expected to be between 54% and 55% [66] Q&A Session Summary Question: What is the timing for TSMC's expansion? - Management is highly confident in revenue growth driven by DRAM capacity expansions and gate-all-around opportunities [24][25] Question: What caused the $10 million lithography delay? - The delay was customer-driven based on their needs, and the reschedule is still under discussion [26] Question: How does the company view the HBM capacity additions? - There is some conservatism in HBM expansion, but management expects an increase in capacity to support new logic coming on board [37][39] Question: What is the outlook for power semiconductors? - The focus on yield improvements is driving strong inspection revenues, despite downturns in the auto market [40][44] Question: What is the expected revenue from China and Korea? - The company expects to maintain sales from China in the 10% to 15% range and anticipates growth in Korea driven by DRAM [77][78]