Onto Innovation Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Onto Innovation Inc. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

ONTO INNOVATION INC. (ONTO) filed a Annual Report (10-K) with the SEC on February 26, 2024. The filing is a 10-K annual report for Onto Innovation Inc. for the fiscal year ending December 30, 2023. The company's principal business address is 16 Jonspin Road, Wilmington, MA 01887. Onto Innovation Inc. was formerly known as Nanometrics Inc. before a name change on October 25, 2019. The report references various financial statement elements including 'Other Liabilities Current', 'Other Assets Noncurrent', and 'Corporate Debt Securities'. Customer concentration risk is noted, specifically mentioning Taiwan Semiconductor Manufacturing Company Limited in relation to Sales Revenue Net.

Why It Matters

For investors and stakeholders tracking ONTO INNOVATION INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Onto Innovation's financial health, operational risks, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The mention of customer concentration risk, particularly with a major player like Taiwan Semiconductor Manufacturing Company Limited, highlights potential dependencies and revenue stability concerns for the company.

Risk Assessment

Risk Level: medium — ONTO INNOVATION INC. shows moderate risk based on this filing. The company faces medium risk due to potential customer concentration, as evidenced by the specific mention of Taiwan Semiconductor Manufacturing Company Limited in relation to sales revenue, indicating a significant reliance on a few key clients.

Analyst Insight

Investors should closely examine the company's diversification strategies and customer relationship management to mitigate risks associated with customer concentration.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed Period of Report)
• 2024-02-26 — Filing Date (Filed as of Date)
• 3829 — Standard Industrial Classification (Measuring & Controlling Devices, NEC)

Key Players & Entities

• ONTO INNOVATION INC. (company) — Filer name
• 16 JONSPIN ROAD (location) — Business Address
• WILMINGTON (location) — Business Address City
• MA (location) — Business Address State
• 01887 (location) — Business Address ZIP
• NANOMETRICS INC (company) — Former Company Name
• Taiwan Semiconductor Manufacturing Company Limited (company) — Customer mentioned in relation to concentration risk

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risks due to a concentration of sales revenue from a limited number of customers, including Taiwan Semiconductor Manufacturing Company Limited.

Industry Context

Onto Innovation Inc. operates in the semiconductor industry, providing process control solutions. The 10-K filing is a standard requirement for publicly traded companies to disclose comprehensive financial and operational information.

Regulatory Implications

This filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports detailing their financial performance and business activities.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K to understand revenue trends, profitability, and balance sheet health.
2. Evaluate the identified risk factors, particularly customer concentration, and assess management's mitigation strategies.
3. Compare key financial metrics and disclosures with previous filings to identify significant changes and performance trajectories.

Year-Over-Year Comparison

This is the 2023 10-K filing. Specific comparisons to the prior year's filing (2022) are not detailed in the provided header information.

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value per share ONTO New York S

Filing Documents

• onto-20231230.htm (10-K) — 2834KB
• onto-ex10_6.htm (EX-10.6) — 68KB
• onto-ex10_7.htm (EX-10.7) — 63KB
• onto-ex21_1.htm (EX-21.1) — 23KB
• onto-ex23_1.htm (EX-23.1) — 6KB
• onto-ex31_1.htm (EX-31.1) — 17KB
• onto-ex31_2.htm (EX-31.2) — 17KB
• onto-ex32_1.htm (EX-32.1) — 10KB
• onto-ex32_2.htm (EX-32.2) — 10KB
• onto-ex97.htm (EX-97) — 56KB
• img167990672_0.jpg (GRAPHIC) — 352KB
• img210172367_0.jpg (GRAPHIC) — 8KB
• img211095888_0.jpg (GRAPHIC) — 8KB
• 0000950170-24-020150.txt (&nbsp;) — 12818KB
• onto-20231230.xsd (EX-101.SCH) — 1372KB
• onto-20231230_htm.xml (XML) — 2508KB

Risk Factors

Risk Factors 11 1B. Unresolved Staff Comments 28 1C. Cybersecurity 28 2.

Properties

Properties 30 3.

Legal Proceedings

Legal Proceedings 30 4. Mine Safety Disclosures 30 PART II 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31 6. [Reserved] 32 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 40 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 40 9A.

Controls and Procedures

Controls and Procedures 40 9B. Other Information 41 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 41 PART III 10. Directors, Executive Officers and Corporate Governance 42 11.

Executive Compensation

Executive Compensation 42 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 42 13. Certain Relationships and Related Transactions, and Director Independence 42 14. Principal Accountant Fees and Services 42 PART IV 15. Exhibits and Financial Statement Schedules 43

Signatures

Signatures Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report on Form 10-K (this "Form 10-K"), or incorporated by reference in this Form 10-K, of Onto Innovation Inc. (referred to in this Form 10-K, together with its consolidated subsidiaries, unless otherwise specified or suggested by the context, as the "Company," "Onto Innovation," "we," "our" or "us") may be considered "forward-looking statements" or may be based on "forward-looking statements," including, but not limited to, those concerning: our business momentum and future growth; technology development, product introduction and acceptance of our products and services; our manufacturing practices and ability to deliver both products and services consistent with our customers' demands and expectations and to strengthen our market position, including our ability to source components, materials, and equipment due to supply chain delays or shortages; our expectations of the semiconductor market outlook; future revenue, gross profits, research and development and engineering expenses, selling, general and administrative expenses, and cash requirements; the effects of political, economic, legal, and regulatory changes or conflicts on our global operations; the effects of natural disasters or public health emergencies on the global economy and on our customers, suppliers, employees, and business; our dependence on certain significant customers and anticipated trends and developments in and management plans for our business and the markets in which we operate; and our ability to be successful in managing our cost structure and cash expenditures and results of litigation.

Business

Item 1. Business. General Onto Innovation is a worldwide leader in the design, development, manufacture and support of metrology and inspection tools for the semiconductor industry, including process control tools that perform optical metrology on patterned and unpatterned wafers, wafer macro-defect inspection, including macro-inspection of both 2D and 3D wafer features, wafer substrate and panel substrate lithography systems, and process control analytical software. Our products are primarily used by silicon wafer manufacturers, semiconductor integrated circuit ("IC") fabricators, and advanced packaging manufacturers operating in the semiconductor market. Our products are also used for process control in a number of other specialty device manufacturing markets, including light emitting diodes ("LED"), vertical-cavity surface-emitting lasers ("VCSEL"), micro-electromechanical systems ("MEMS"), CMOS image sensors ("CIS"), silicon and compound semiconductor (SiC and GaN) power devices, analog devices, RF filters, data storage, and certain industrial and scientific applications. We provide process and yield management solutions used in bare silicon wafer production and wafer processing facilities, often referred to as "front-end" manufacturing, and advanced packaging of chips and test facilities, or "back-end" manufacturing, through a portfolio of standalone systems for optical metrology, macro-defect inspection, packaging lithography, as well as transparent and opaque thin film measurements. Our automated and integrated metrology systems measure critical dimensions, device structures, topography, shape, and various thin film compositions, including three-dimensional features and film thickness, as well as optical and material properties. Our primary areas of focus include products that provide critical yield-enhancing and actionable information, which is used by microelectronic device manufacturers to improve yield and time to market of their next-generation dev

View Full Filing

View this 10-K filing on SEC EDGAR