ONTO - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Onto Innovation Second Quarter Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mike Sheaffer, Investor Relations. Please go ahead, sir.

Mike Sheaffer

Thank you, Todd, and good afternoon, everyone. XXXX market financial closed. its shortly this issued the after Innovation second results quarter afternoon, Onto

at copy If of refer website the have release, where you not please to received the is the release of a copy www.ontoinnovation.com, posted. a Company's

the on Michael are Steven today Officer; Plisinski, Officer. Chief Financial call Executive and us Joining Chief Roth,

meaning of within expressed the statements plans, made Reform As the at information forward-looking not any Litigation future are Company's time. regulations, that Act implied, are XXXX. the based objectives, Safe whether of estimates, historical the the the particularly Private available currently judgment products, and matters Such I Securities regarding on being to need expected of case, always and best or this Harbor is remind of comments facts, performance you forecasts today Company's consist

Within Company the assumptions these believes range is a is of reasonable. be that wide to

presented as the Today's discussion does Exchange of our well for December a obligation results Securities so. statements uncertainties Risk financial results are do on statements be to materially. statements in it may that described subject any non-GAAP cautions that performance. otherwise guarantee to update specified. other a must are year actual report Innovation's and Onto impact Form the that the are currently ended forward-looking Commission. filings Onto cause these with no XX-K of these of not range to basis the Innovation's can Company future as recognized Innovation be XXXX, factors and Onto expressly Thus, unless will However, disclaims results vary that financial

detailed and Mike? today's release. can call to turn reconciliation I a will Plisinski. GAAP between a results in ahead and earnings Mike be the over go found As non-GAAP reminder,

Michael Plisinski

this Thank you, and our Mike. afternoon, you call thank everyone joining afternoon. for Good

XXXX. quarter initiatives highlights making two we the are progress Our for on second results key

is merged newly to company. operational efficiencies unlock The first initiative the across the

processes gross and and improvements These are in and in improving we've expenses. beginning efforts systems operating the through Over to business margin structure, nine implemented lower months, with show supply the last chain. financials our

initiative best is delivery volume closely second reduces in to team of scale further broader announced for competitors, to our our value working which excellent the has us four edge our platforms, enhanced By manufacturing customers, technology XX%. a optical we high metrology accelerate be capabilities of the solutions the beyond by engine to the the made our our the modeling quarter, Our leverage team for by and solution customer's very problems. was at with AI-diffract talent high pushing to comprehensive of and new new reach to solution This incredibly time leading optical maintaining and talented progress designs.

expanding team of a win end automotive, into for inspection supplier our medical mobile, and the image sensors market, leading the sensor with at competitive growing addition, In CMOS applications. high

Finally, broaden across packaging foundation both opportunities backlog with In initiatives, compelling providing our together made that semiconductor in financial strategic and very our summary, the we second quarter lithography, confidence value Dragonfly proposition. chain. JetStep and is the our progress the see which investments Onto pleased value growing increasing, and we're strengthen unique solution, provides in the across growth includes StepFAST panel Analytics and inspection which Discover level the

levels logic semiconductor manufacturers, some both the one top we logic and and two see than detail in did combining quarter the the some in Spending memory. provide in I'll advanced segment strong quarter, segment this revenue. Now Not for over five maintained our of from nodes. expected on the first and the second beginning memory another with quarter, XX% surprisingly, better with the total largest of was concentration

capability, creativity DRAM X developed and our precision, for accuracy devices. one latest greater high and of aware this to was productivity our XD-NAND, measurements only This to was suite sub memory alpha suite collaboration on metrology efforts customers the integrated and system extraordinary schedule metrology the due logic the required at to logic for the not features with new Our tools. employed TEM in preferred overcome deliver our released X-ray and for productivity quality channel throughput slower development optical generation based nanometer the competing limitations performance and embedded speeds generation XD-NAND proven will measurements with enables compelling, the solution spectrum metrology possible devices. it metrology ability is to industry holes includes new system that volume than our and leveraging IMPULSE on deliver safety application process make Atlas protocols higher COVID-XX our for for are control infrared development system, was that critical to the technology X lines, products. manufacturing to the word Aspect Prior teams, higher next high metrology, and Equally stable a X by and indie teams. Aspect The higher platform, and ratio next systems. measure aspect more

providing attach integrated an the grow process linear with business As tool, rate with one to more will revenue is a volume this at stream one so the system scale.

now contaminants our by wafer element design can The a materials, be manufacturer, rules. element leading-edge Finally, for top metrology technology semiconductor nanometer to XX market below yield, compositional broadens in significantly the front FTIR metrology from and which successful end manufacturers elements substrate three critical exotic to especially the silicon tool FTIR monitor adoption include final our fabrication. to uses element of

begin been positive in to fourth expand revenue we our to and engagements products customer mentioned, As quarter XXXX. expect continue and these the contributing to have into

OSAT primarily U.S. XX% of targeting chip the in ruling ruling May, in by of our Commerce declined Department This suppliers Our to Huawei. impacted customers. one as of specialty and packaging the quarter, estimated market result a an

by reliability As for and a metrology result replaced only in this costly enabled devices identifies mobile resume not to the last and issues. Underscoring volume the our but expect shipments Huawei, ensures XG is demand field for their more of as not the the replace also customers unit delayed inspection expansion plans demand Huawei. creating the specifications, were market, processes look vacated growing ruling, A also the capacity we but to from they strength advanced only potential that meeting design quarter. demand and demand, already

compared combination XD inspection, we Dragonfly market, solution on provides with for AI by complete XD most control metrology provide solution and helped first-half unique of product process capability revenue the the the yield, Clearfind XXXX. monitoring. our with first-half enhanced XX% and coupled a of analytics, our to the flexible reliability This inspection unique Our software excursion Discovery and XXXX, TrueADC of grow propel in

quarter, see growth third digit the for double we additional For Onto inspection.

range for and is devices center provide artificial to in XG data applications custom packages. design panel demand combined the intelligence designers that cost benefit drive integrated this communications and for devices The to or filled industry choice chiplets. a compensate towards from is can quarter due where The Onto’s is heterogeneous Through panel the single optimized. wide latest chiplets to the cost chiplets to trend designing to be its complexity proving exciting leading nodes growing node, for creating processors the lithography Another best This solutions. we these development for for packages new see in be the inherent lithography Applications packaging systems for process. of control new technology complete the able level in most package. and was variation this optics means can the at technology, the packaging, JetStep

additional expect before that, XXXX over We of I'll Steve review delivery see to year. turn the highlights. call orders Roth And end for financial to the the with to the

Steven Roth

we some I'll In good afternoon, in third remarks everyone. Mike, provide provide for see and also and the results, afternoon, into margin my Thanks, what operating details quarter. insight this gross our QX and behind expenses some

and services wafer revenue both NAND million the primary advanced record in customers increases was wafer in specialty an the our accounted the from for decrease from quarter, manufacturing business revenue, our by market, and from XX% another metrology software and QX customer the in came business. and slightly million, sales $XXX.X Mike Breaking in from OSAT by Specialty strength the revenue were delay remaining a packaging by by foundry nodes levels X% and in sales driven memory of offset revenue. mentioned, represent and advanced of market, advanced being in Within devices offset our at and our the Our second customers XX% accounted in RF In just consistent with quarter. nodes, service midpoint the revenue was for devices first from quarter. more and in business. down that quarter our quarter quarter-over-quarter. packaging $XXX.X metrology lower for of and driver than customers results the DRAM software was and XX% advanced decrease a a above mainly decrease a guidance, Quarter-over-quarter, business

driven to margins wafer second improved saw gross revenue, we of in increased by quarter decline the the strength margin a at gross margin, margins in with gross to compares This in Turning first reported quarter. XX%, XX% even with the business.

As as to we anticipate and XX%. to margins be continue of of to primary XX% see we the mix look in currently a product to QX, forward gross margin, driver range

operating impact costs at lower addition QX the expense was synergies the new to low the drivers were second system million moving consulting of of $XX.X go end for expenses, Now, quarter merger in range. and expense. computer operating to the guidance quarter, of implemented the The beginning our live of operating upon at the lower in primary

see the operating the of to $XX our timing We're full QX implemented synergies based the in the be reduced the operating range currently million $XX on impact of million. new the to we quarter R&D quarter, For in we third in spending product QX, introductions. expect to expense forecasting expenses and of

our chain operating As lower $XX.X the the is Comparing first back I $X.XX income guidance just $XX.X net than expenses and QX, and the better expected a third having that having which or million premerger income synergies of to reported operating that our $X.XX were of quarter quarter, the quarter in quarter, above-the-line the contributed to and operating gross operating performance midpoint are per the the a expenses our million And XXXX. impact does rate quarter. than In you'll $XX for in we the revenue tax the reported companies, Higher approximately gross of include was we the in expenses per a expenses. the margin, a that look are share, lower the not positive guidance. on the combined share. or increased Net see for margin. synergies above lower merger second positive supply on effect gave of that at million

after the Now a million million authorized from turning are QX, in of of million up with previously ended position quarter on $XX early $XX.X which GAAP a repurchase that's repurchase cash to we for our basis, the on cash program. executing of investments $XXX quarter stock

million. And $XX and those a the receivable approximately for Our was of delayed helped gains generate offset a also were declined which Cash back inventory, cash, in as to with inventory for in new shipments additional free products. increase customer however, I'll cash flow Thanks. the that turn call for guidance. the quarter quarter result by Mike similar

Michael Plisinski

Thank you, Steve.

you time. maintain unprecedented next impacted and middle know, an of protocols, Macroeconomic trade safety year with into will of global are markets. China operating levels through the the the possibly to the are of pandemic high and additional for in end year. conditions uncertainty tensions we As our levels current of we by Specific COVID-XX, creating

of protocols technology to these application last continue production controls, to the commitments. development the and job programs. Our we our our at regulations outstanding China, be see our to around with military this products. no maintain commitments and effective, With regards the done business quarter, of an their of our Similar outside leveraging impact time broadening maintain has our use from to to process significant end guidance our innovation and trade assumes suppliers team compliance

in As services. from the in we to Huawei ruling second are global China makes partners unlikely in complying has to the domestic for been of Chinese our to result we shift the that supply chains, to government quarter, The for wafer reduce it on while are suppliers. manufacturing regulations. market suppliers, localization XX% important and we revenues overall manufacturing With and to saw supporting specific the roughly expect a coming committed packaging demand in market all our growing equipment emphasis of increased steadily

for in $X.XX Steve or expect turning initiatives, the range, this quarter, supply to and is the third in share, per million. earnings quarter, largest segment our the decline market near plus to project technology just other buys. project benefiting to products In advanced to be from $X be to maintaining revenue We from once mix third be equal and quarter highlighted. sharply third limited million improvements Now, a we $XXX We exclusively again of see overall in to capacity return $X.XX demand the we minus quarter. to chain decline this nodes. the our fourth The the revenue operational in this

we we look XX% a growing quarter specialty fourth to the be contrast, result, quarter as advanced ahead us XXXX. over see Onto in Innovation's for devices As In and well year, by we the third quarter. and the continuing XXX the year, of the Consistent expect years. first-half strongest packaging we positioning have handsets two this strong to each expansions Qualcomm next the XG see year, TSMC be doubling segment. of for with a this projected and in driver million units enabled to

year the encouraging through halfway are We those be to continue supportive. and projections

maintain packaging most ecosystem double the into the to is device this specialty RF from growth third segment us digit across quarter. this in advanced position the power for manufacturers our enabling leading communications, to NAND line Our

FTIR limits returning inspection see we was demand by We growth from Onto has see created double nodes our enjoy summary, opportunities in the financial possible, wafer In in Innovation see advance increasing packaging and value opportunities from growth future team the gain where of Onto progress across to chain. digit We currently also our lithography our which great manufacturing expect the our and is for metrology by what share growth the silicon advanced expanding unique beyond In Element strengthening semiconductor our spend products suite, our previously optical solutions. foundation, we quarter. made strong NovusEdge talented metrology manufacturers. pushing

financial our balance disciplined Todd? innovation analysts, provide the sheet that, model with lines strong questions and and from we'll depend for growth on. a feel customers profitable model will the And our for sustainable covering Our open

Operator

first We'll Ellis Instructions] our from with [Operator question Riley Craig you. Thank FBR. B. take

Craig Ellis

if four how strong gross negative Thanks on OSAT what points mention so, One, guidance a And a a just guys. other better the quarter's had it? What headwind of from for execution congratulations could. to on is significant there clarification accounted issue customer for margins, And the margin? taking the Steve, I was you, I revenue impact I on quarter was real quarter? the I in theirs. have given wanted with good the midpoint. thought. XXX than think the than upside gross an we then prepared two basis for And clarifications the the better questions, in if that in on start Did remarks and customer

Steven Roth

Okay.

was So on customer a obviously, there the customer mentioned. into tools push China, had Mike going out, as

one those the clearly possibly Some second they of tools were we into had delivering at we point out of third quarter. second And anticipated in opening the pushed quarter, quarter. the were

looks fourth it's Now going into the even push it to quarter. like

doing again, Huawei they've the But to some their year. even And replace of scramble it to so of maybe it and into, that big issue. there that. it of a try they was business Some had well, the that was out been they to -- was lost customer, so

comment do actually Mike, well side, you margin on gross have the that? On any further

Michael Plisinski

Yes, clarify. just I'll

and we half and the at in quarter. half systems to customer expect quarter, this the the orders in filled least fourth fact, capacity other ship remaining that In that as already the

replaced demand and orders So, shipment the quarter. was scheduled already those this being quickly firm for in are

Craig Ellis

And Can was a that? you few that Or help mid-single beside million, scope like that us Mike? million? digit more is

Michael Plisinski

ten. of zero was it No, million. several fairly amount and so between orders, a sizable It's

Craig Ellis

Thanks. great. Okay,

Steven Roth

the coming margin, mix on for was then And into Craig, again, play so sure.

that a but percentage of the to chain higher talking about. trickle lot those off so will some start we've exit a starting coming previous We supply as of the bit, in said a in. quarter, as had we most the business little those are impacting as wafer year, Our more well been low that a margin of the helped synergies

helping So that also margin. gross of was the some

Craig Ellis

that. Yes. Good Congratulations on performance.

Or sequential that OSAT Moving offered with are on is like color the that at and XQ, any segment? color big lot the that regards programmatic that's first the decline issues or in segment to good on seasonal? play downstream a some customer quarter, you've described things the advanced outlook. the the you of seeing you're something in question, Mike, With in then so on nodes shifts, to there with dynamics

Michael Plisinski

from were and as the both quarter the first-half. board about across don't asked customers and more clear. last projecting And remember, memory we relatively volume this I pause Well, from So, see And quarter, some somewhat larger part both strong the It's third question, see as more the think the now nodes, seasonal. spenders first that the in a order the a of back and advanced in the that and quarter. We really our was we the snap strong There you from fourth which logic nodes. talked no and quarters. second timing coming of it's advanced more we in pause wasn't of clear. expect we of

Craig Ellis

point. Great. me And last for then that and on

the especially So, That I fourth XXX, that X, know fourth XXX given were the there you're to there, et that see record could mean revenues. given in in announced range? seeing new the quarter? the the could Atlas guidance out $XXX we for touch above XXX Or specific not something we million Aspect, levels quarter, drivers giving products potentially we cetera? could but Are potential that are power of actually

Michael Plisinski

but expect products quarter. million fourth in that. exciting beyond gaining are XXXX sales be $XXX and ramping The into wouldn't those incremental the traction and I new will and then

the will generation technologies minimal the current ramp. quarter. on of next they for is impact our have fourth snapback our bulk of So The adoption volume production

Craig Ellis

Good much, luck. it. Got so Thanks guys.

Operator

question from Stifel. We'll you. with Ho next our take Patrick Thank

Patrick Ho

potential it metrology of process a end they business, and you buy timing they have they time integrated very you But off that come lead is Thank get kind systems. depends go I'm before when the the obviously taken? that a for new systems, trying about to particularly when Mike, times, do lead systems standalone a nice on maybe systems. for you much, feel tools color introduced, And their are and and that still you from a some quarter. what Do the process congrats of when little recently quarter customer especially of there's take the in? simultaneously tools front on lot the you always on first of maybe

Michael Plisinski

equipment. Yes, simultaneous with the process the integrated systems be will more

products. So as to integrated modules it's ramp being the help delivered, going those they're want to

The quarters the So those one. of ramp. to one roughly will ahead is process two to be one more still say, I standalone, would

are more So, their ahead tools more customers equipment ramp, fashion. and the sampling as quickly for in level and order planning and adjust to up optimized they're then process out buying metrology and a more ramp those in process, the use they

Patrick Ho

Great. That's helpful.

areas to obviously calls, on packaging of talked third advanced processes things, into these you've the in bit memory. about advanced you've a In new seen packaging quarter. that Moving the requiring pickup like side past continues of a markets other

Can of Or You've seeing in about seeing talked least quote or high-performance we're this is diversification advanced you’re you note, more this guess, some computing. qualitatively, that towards into I the of right biased Is processes where I now? these near-term. guess, it mobility? at non-smartphone strength non-mobility the still,

Michael Plisinski

there's simultaneously. almost would both I happening, say

high our more customers us. see driving there's drive a But we advanced memory addition, mobility mobility market, and home, definitely high support our see that on footprint and capability. performance across multiple work because we of towards serving processor provide So, and architectures large effect to computing for from performance strong a in lot the of

that's And people talked node. being customer a obviously for X others packaged. demand have So nanometer in about TSMC really devices highlighted are all their backend know, we've and Those most large us. as growing the

Patrick Ho

for But contributing as your question OpEx this One it pandemic. guys benefits OpEx that's exceeded current during me, plans some to aren't the the travel probably the and being accumulated expenses Great. expenses other you cost on of the today. line, management, efforts already getting obviously you're for from that maybe in synergy and terms in relates Steve, have near-term,

at a the environment that whenever you'll of get a OpEx the as projected to with return these of you again, kind more through that -- environment? managing it fine that normalized both do What's kind balance uptick more a more normal attractive more once to be come you you as manage is, levels? As doing, get things will how back

Steven Roth

mentioned, mean, the flows a you always I I flows right, you're good mean, So, in dollar I jumps some biggest out question, of quarter as the will again, that’s be Pat. and timing probably of the at quarter-to-quarter. any and ebbs amounts one is expenses quarter, a the project that there’s obviously significant. ebbs people COVID it a from maybe it's million, maybe the when normal a the in thousand expenses, was $XX.X have of you're field. mean, a if I reduced talking, talking hundred not million of embedded you're couple We dollars always But travel. kind back to operations. from that

overseas, going sending just for the meeting really guys, some whatever. it's sales or So people you're out talking, something U.S. critical maybe engineers

it's a not expense huge So us. for

comfortable. So uptick don't with be I'm slight dollar think and done we're also there but here couple There'll thousand synergy. hundred I still

other within to give be and things there'll take the So year.

guidance So, quarters with below of comfortable the I'm will see we're again. expenses. be my quite midpoint The think where you'll headed million, I that $XX is that op

So, I'd modeling range. in that of kind be

Patrick Ho

Great. Thank very you much.

Operator

Company. Thank you. with take Quinn question from our and Needham next We'll Bolton

Quinn Bolton

logic Is there? is I've those Hey foundry, guys, third and it segments follow-up sort Or and outlook specific across question to DRAM, advanced the nodes. wanted in just of NAND? on follow-up quarter that one softness of the then to

Michael Plisinski

we Quinn. quarter. question, the, about customers they spent, that the is we It similar in the talked more but the balanced the second two talked about, basically large of first-half XX% that quarter, across Good levels first for were combined

so a customer. those represent customers memory logic, two and And basically

those drops we customers from seeing a as equipment to we're delivered amount first-half. tremendous those in So, of them the that

pause see we increases. But, quarter. in third that Otherwise, this Now, got we expect we've the to return.

even China, the customers so expanded increasing in quarter. in we third our China, our significantly quite instance, we've spend, see For opportunities

another, bit some two of downtick, and a those the of bulk customers represent little smidgens one of really others. way it's So or the change

Quinn Bolton

businesses those pausing Are advanced wafer flat third packaging quarter, really the to two outside nodes in guess I that the deposit or are trending or the mean, and And those business? it's customers business. just large those of pause I the for packaging QX. up customers? the the of it from QX OSAT the in orders like seeing elsewhere to Or large are the two advanced you a push sounds

be sounds the third it for a quarter. tailwind in of that that like So, business would side actually the

make all to the I've trying parts. sure got just moving So

Michael Plisinski

Yes.

So, advanced to continuing year packaging the is business. strong first-half of over of year. very be our the up last is of first-half part the XX% mentioned, I

push the So even that's and with orders out. from without the

So a for growth even those and then year. we into nice saw quarter. segment we without orders, digit XX% And the growth in inspection about of that double first-half heading talked the another segment the third

So, that's side. growth and fairly steady, consistent packaging the specialty on advanced

Quinn Bolton

I Got for guess question a And it. Steve. then

-- gross margin not advanced You in the advanced ask know, give absorption for quarter? extent margin to guidance revenue guess third would peak for that away you Would the a expect margin? a in to more driven see December more quantify quarter. XX% the nodes? Or and is just I quarter, recovery on I recovery with to shift in gave mix you're revenue you it. revenue nice levels. that back in nodes to to that won't it some you going And lower from you that expect by Is the gross gross a just I figure? But the increase the but come of guidance XX% lower fourth

Steven Roth

part operations. obviously, that the second manufacturing higher leverage question of the on better the gives first, overall Yes. guess, revenue And I answer to

margin you out the coming the company, like forming of of kind guiding the gross in were we we were remember, ranges. XX% So, XX% to as of new

QX, that XX% we're And up Now kind doing keeping that to of in once XX%. in range. hit and we XX%,

at are lower revenues. we obviously Now,

into above the So of lower some is we kind range. on the of for in we're were midpoint that but coming revenues, even my The being XX% we've possibility thoughts down, the costs fixed line, have which though got -- we're maintaining.

margin keeping get and I think anticipate when the with the like see Quinn, mix to steady, XX% to Going of manufacturing higher would still into up on going you're operations, with interest what revenues, our there. even this rate I we looks QX, range, old over the absorption maybe better yes, higher depend XX%

Quinn Bolton

models. just XX% guess the this of And longer-term model accelerated annual $XXX sorry the right million that I a $XXX of million Is rate? at that margins the of Is revenue question target in that growth still run for kind the gross -- range. level on kind

Steven Roth

I absolutely. feel into start new levels, in test for that we've with we start once time. that That'll synergies confident back we all margins talked chain. those getting impacting exiting the put I And especially year. the about the Yes, the supply up that

-- are the million comfortable hit XX% being $XXX at We that range. pretty to

Quinn Bolton

Perfect.

you. Thank Okay.

Operator

Thank you. We'll take from our next with question Tom Diffely D.A. Davidson.

Tom Diffely

Yes, afternoon. good

So your additional $XX curious initial have on now million and Steve, this at goal working of you I'm point, synergies? exceeded you're synergies of

Steven Roth

we announced the that we there from the So, I And that. had was on Tom, $XX think think I call that were last said we actually million synergies deal. we I in the past that think published number out

sure had of I we $XX actual implemented I'm call. as million number, I but last time earnings think, not if we we think have said the the didn't of the

we're So we area There future. talked that fruit chain lot the get to going. low see year. start most done. stuff. We in synergies, said, think having obviously that's the And the like we're an hanging things don't to But work above do, we could things is you we've that number. exceeded we then that and obviously stuff easier we And also to the yes, the supply was where can common of going platforms an impact and getting have as to things about imagine more that exiting a line

and the we're we've obviously yes, continuing initial talked discussion, about shoot So, to from exceeded we've what higher.

Tom Diffely

a we're expecting direct curious, driven advanced I'm a be. potentially a in volumes Or reason is of much unit do asking I'm see you And advanced unit And the growth buy And unit just that that Great. packaging? how Okay. digit technology Mike, between just might year. versus wondering a link much double more catalyst is packaging buy? industry I'm next

Michael Plisinski

time as true. end pretty driven the advanced that a which and always think shift shift take difference inflections, a business. we've And some I the like starting unit will holding more is some lithography, unit certainly is front volumes. And that's general ramp volume But at some growth that versus to the only a the a packaging the technology to say technology just we're volume No, driven significant in packaging as business. is due business, -- I'd see. there'll looked technology to driven and be panel

Tom Diffely

was uptick then finally, that when nice a I really business said And little you in a little great. RF RF. soft. was Okay, the I surprised XG with thought

Steven Roth

or Sorry. Was that? that me is Tom

Tom Diffely

but Mike, doesn't matter. it thought I

So, in a are when seems companies what some now XG? lot softness business, drover it because RF RF the the seeing of of strength right like

Michael Plisinski

sure not I RF said was I'm soft.

I quite times XG and multiple was think highlighted driving growth. I strong RF where

So that talked RF the and then decent from actually, the the but entire I power growth. devices, pretty also MEMS seeing we're communications the ecosystem about also some

Steven Roth

in he inspection tension. No. the in the about sales, sales I That the RF RF talking metrology Mike, just reference made the and not in that weakness weakness is metrology really to the quarter. second was

Michael Plisinski

adoption our So not just total metrology. RF, of

Tom Diffely

Thanks again. Well, Okay. thanks the for clarification.

Operator

with Instructions] question Cowen Company. take from and next our We'll [Operator Krish Sankar

Krish Sankar

way that in Mike, of them. taking Is I in strength for quantify my gains? cyclical QX. thanks two Hi, much a is had versus it? you DRAM of share there the spoke about question. How to

Michael Plisinski

Atlas the high We our definitely end Metrology of more into applications. see the of adoption expanding

share that So from respect, that gains. we'd consider

the applications and tools on to at number how many applications look shipped us. of the those to utilization, going the we level of So of

and there's So, there's gains, say strength a strength. that level but been continues always of some share a to be of ours I'd

focused been that's of sophisticated, opportunity the, even where increase that we I achieving. further. or less of us for layers these and strong, particularly is share to challenging our focused haven't new products some think gain penetrate gain to drive less opportunities are some and the into say, and let's where And at

Krish Sankar

been do in Or Got then Mike. about just wafer order it. spoke last Thanks, manufacturers from think that? as you potential back-half. your seeing you a time the And follow-up, that's you delayed? Are silicon strength

Michael Plisinski

Elements the seeing back little for quarter. we're that after for see metrology strong in and the wafer expect NovusEdge double seeing and that. that coming FTIR second platform, growth serving to manufacturers. No, definitely both we pretty inspection pause mentioned, both digit our We're the I

Krish Sankar

much. very you Thank it. Got

I that. Sorry, you Thank missed again.

Michael Plisinski

No problem.

Operator

questions Plisinski our This for closing turn concludes I'd it the day. Mike to remarks. like to for back

Michael Plisinski

would commitment you I our their like for your want and Thank hope And the your our and investors and valued to I of acknowledge once employees you, thank customers. our passion and to again suppliers Todd. to Thank and healthy. also incredible stay attention. safe families you

Operator

This Thank today's participation. your for concludes you call.

disconnect. now may You

Onto Innovation (ONTO) 4 Aug 202020 Q2 Earnings call transcript