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Dec 26, 2020

Onto Innovation Q4 2020 Earnings Report

Reported fourth quarter and full year results for 2020.

Key Takeaways

Onto Innovation reported Q4 2020 revenue of $155.1 million, a 23% increase compared to the third quarter. GAAP net income was $19.9 million, or $0.40 per diluted share, while non-GAAP net income was $35.6 million, or $0.72 per diluted share. The company's cash and marketable securities increased by $33 million during the quarter.

Quarterly revenue increased 23% compared to the third quarter and exceeded management’s guidance.

Revenue from RF customers supporting the 5G ramp increased 100% over the third quarter.

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.

Total Revenue
$155M
Previous year: $121M
+28.7%
EPS
$0.72
Previous year: $0.41
+75.6%
Gross profit margin
49%
Previous year: 33%
+48.5%
Non-GAAP gross margin
54%
Previous year: 51%
+5.9%
Gross Profit
$75.3M
Previous year: $39.6M
+90.3%
Cash and Equivalents
$374M
Previous year: $320M
+16.7%
Free Cash Flow
$32.7M
Previous year: $22.4M
+45.8%
Total Assets
$1.47B
Previous year: $1.45B
+1.4%

Onto Innovation

Onto Innovation

Forward Guidance

The Company is currently anticipating revenue for the first quarter 2021 to be in the range of $155 million to $169 million. 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.

Positive Outlook

  • Revenue for the first quarter 2021 to be in the range of $155 million to $169 million.
  • GAAP net income per diluted share to be in the range of $0.35 to $0.49.
  • Non-GAAP net income per diluted share to be in the range of $0.62 to $0.76.

Challenges Ahead

  • 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.