ONTO - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, 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 Mr. Michael Sheaffer, Investor Relations. Please go ahead, sir.

Michael Sheaffer

Kyle. you, Thank everyone. afternoon, And good Onto Innovation afternoon financial this second its after the XXXX shortly quarter market results issued close.

the where If you refer copy website, please the of posted. of a haven't received to a the copy release is release, company's

are Joining Plisinski, Officer, Financial Chief Chief Michael us Slicer, call Mark Executive the Officer. on today and

are like the you on statements that I'd materially. will contain to meaning call laws. this the subject forward-looking statements securities made always, to of and As within range the to remind statements of federal cause vary management changes, by that uncertainties a the actual Such risks results can

more For financial non-GAAP new Onto information not statements discussion undertake you the encourage to of may that review update Today's of otherwise in our the our light be obligation financial on Innovation basis, impact does to will and factors these filings. Onto information earnings forward-looking or results, SEC would a regarding specified. Innovation's events. presented I release results unless future risk our

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

Michael Plisinski

afternoon earnings good And to Mike. second welcome quarter you, Thank Innovation call. Onto and

today. We to first do, welcome Onto have his with But Mark first to many exciting I highlights cover Innovation. Slicer we before want to earnings call

be supply we and chain billion our annually. $X expansion experience scale an Mark from the global our improvements, having Scientific the Boston for will aware, support solutions. us manufacturing of build to growing where senior the joins asset was margin gross you In as the operations. distribution demand financial to connected of of worldwide global are this driving team vice performance network M&A was As value approximately president many role, a of financial and for responsible he production he Mark's

to a strong XX% believe in fact, for XX% XXXX. this we're following grow the systems of performance been which Onto this value performance result strategic our support see sustain We compelling success of in will years pace to in help customers our to realigned the and is goals. collaborations the solutions year has team strong deeper growth value our with across turn the In customer Innovation and chain, earlier on a customers We which leading ahead. revenue connected

the revenue let's by at of growth is the lithography quarter. a of for customer in designed quarter high Innovation second program, million again, delivered So the for to applications. packages Once JetStep for compute to with advanced a was another aided support record acceptance our begin XXXX the team Onto lithography milestone breaking significant look $XXX systems. heterogeneous the performance This which meet JetStep growing demand of substrates

next these in of logistics [indiscernible] the costs see could through targets. increasing agreements, strong of In improving the and the number addition efficiencies, we in future increase we this volume XXXX. and supply logistics are manufacturing initial resulted to Considering times layers volume below product of lead output. impacts an well acceleration per panel compounded by meet Through multi-year capacity quarters, demand, performance program these use six constraints rising continue of our chains, the to The margins factors, each of the effective cost to factory COVID, we platform. productivity more supply systematically leveraging growth, interconnect anticipate

quarter. Including in revenue XX% contributions XX% norms third elevated advanced the fourth corporate the business, the and over quarter. packaging we projected for Jet spite increased costs, efforts, return and to the of that quarter remainder expect of to of year, gross of recent second chain of half in supply the for XX% includes XXXX and our to margin two With three the lithography prior shipment the in from specialty subsystems and these our

logic differentiation Onto Through adopted Another provides of wafers orders a more from EBXX recently required novice than for securing We new manufacturing TrueADC $XXX capacity edge sensitivity this the to into This throughput module highlight partially the includes by a their wafer devices. just This meet for second memory required expansion of and applications. included the our Dragonfly software, further new sophisticated defect customers, process integrating for system our the deliver by this machine inspection quarter. customer market learning in to platform quarter of advanced extending XXXX shipments GX. by demand EBXX, the which to suppliers was our loss edge the million. for not proposition launch $X our silicon impacted in their delivery our increased support enhanced of commitments the at and from value in alternatives. successful insights to classifications to less this of roughly and counts few EV million contributed the same rapid struggled to This monitor yield

expect constrained improvements third we'll be fourth the We quarter, but quarter. the in still until

each This V with Americas new Award award is Leading by Atlas Digest our Best show. SEMI the over platform for OCD and Atlas quarter, that innovative growth significantly market. manufacturing SEMICON but was West the the critical measuring West this trade scale. nanometer Last month, first at Semiconductor industry down transistors recognizes to capabilities. of the advancing up year semiconductor was Revenue now products honored nodes Turning at dimensions advanced are slightly our XD XX% of at year-over-year. experts

transistor more higher of in advances complicated performance course, from to nanosheet Of the one industry is transition the the biggest FinFET structure. but transistors a

twice patented Our manufacturers nodes. control both advanced several X other and optical We've metrology demonstrates received the process been X for leading into production. optical technology films steps. our alternative the systems Iris or proving currently expansion the our alternatives throughputs by of over customers. end of million is while Likewise, advantage XX% market on valuable the at performance speed of ray exceed X over and We stability. revenue and for to of analytics nanometer and grew year. of planar the track volume $XX comparable this maintaining goal from Atlas revenue sensors last year, quarter, by The the segment from orders market nanosheet second we has to our delivering logic achieving In meet this the nanosheet critical for qualified platform is are their in believe XD metrology Iris

applications revenue and Over acoustic years, NAND the of seen double metrology power MetaPULSE last we've addressing MEM XD years, segments. preceding two that in from

Our new is capability that metrology extend to eco-acoustic positioned challenges. newer industry to

order for are of NAND, inflections to continue is stacks market as channel tier already example, grow, hard being new formation. Eco-metrology backlog positioned critical advantage hole of is and XD transitioned For million. these with to opaque take uniquely the the $XX mask in materials entering an technology

turn Mark for the over of I'll third call a the outlook. review and Now financial to highlights quarter our

Mark Slicer

good afternoon, everyone. Thanks, And Mike.

an and results, profitable me details next by the to the ahead part team for incredible and leverage Innovation of forward Onto for Onto quarter. to of entire Welcome. follow an let then us. to phase contributing thank excited First, third some on QX providing Mike I be start of growth outlook the with I'm and look will

revenue and nodes and XX% packaging, end benefited XX% advanced the market, by device $XXX.X systems and within had another XXXX down record revenue. range quarter by of guidance quarter, recognition million, quarter. represents the we of revenue. supported the from XXXX high $XX.X quarter, mentioned, the Breaking our above Specialty of the lithography which of million Mike approximately XX% revenues grew revenue of year-over-year achieved $XXX.X represents year-over-year previous second grew the of million, $X million As with advanced within revenue XX% the

services record, XX% revenue. year-over-year $XX.X and grew of revenue setting another of million, Software quarterly and XX% represents

recognize was able gross As headwind down systems, margins, on create the the were first QX, from on quarter. XX% mentioned will a lithography revenue this during which to in XX%, once the quarterly

in chain, are In inflationary experience quarter. also pressures margins impacting continue cost addition, to our from we the supply which disruptions in gross significant

expenses quarter million guidance. Second million, the did operating the increase midpoint higher sequentially compensation costs. see We primarily an at approximately $XX quarter, by our of first $X from from were previous

XXX operating leverage year on expense significant year percent expenses over drive by as, operating points. as to continue decreased a basis we a of revenue However, comparison,

the continuing We basis our compared the ago. midpoint at guidance. or by of XXX impact gross points from Operating operating margin expect due margin Net demonstrate our systems. increased margin also share, QX. above was approximately XX%, model in margin operating in lithography year our a posted We operating $X.XX strong $XX to primarily as to second to operating the to leverage previous income QX, the the is $X.XX margins per from our do re-accelerate down in quarter million

since since the QX. million, the ended the second quarter year the up cash $X.X and million balance $XX We to up of of start million Moving sheet. $XXX with

within increased normal $XXX timing XXXX. to the million During against and in stock to the a levels to did to half disruptions. in increased increased generation support back in We the further Accounts the of higher million quarter, inventory sales of our planned infrastructure to our quarter the Inventory our to in the to make due get quarter, revenue and second business. investments days strong increasing we the the hedge certain overall ongoing in well growth safety half XXXX on XX as chain of supply receivable the position leverage $XXX as the to expect cash do trend quarter. day outstanding as our second revenue of the cash of

to turning between and QX. outlook Now quarter the for $XXX to third be $XXX revenue currently million expect for million. We

our structure. gross expanding by our expect margins to leveraging XX%, between and mix, sales cost XX% will be fixed driven our chain supply We

we $XX expenses, operating expect million million. between $XX For to be to

tax no full-year expect the XX%. we to effective legislation, tax be to to assuming between rate For XX% changes XXXX, our

to to share. the diluted share with it we turn Mike be remainder that, non-GAAP to into insights and anticipate $X.XX back of to between XX additional for And our our for assumptions, be shares. per We share expect these QX will earnings I million QX upon count $X.XX XXXX. Based approximately per

Michael Plisinski

Thank you, Mark.

stronger XXXX first believe to in than the half. continue be half second the We of revenue will

metrology. market DRAM more NAND than in The by spending increases higher manufacturers. Atlas In double X Aspect metrology. we primarily the strong nodes spending logic quarter, gains, third for nanometer NAND, share adoption complemented offsetting catch XD nodes being of from are in advanced where we the growth is sub resulting see logic and rates for sales from Within Atlas see our in sampling rates and declines digit layer growing customers in

system to Aspect channel for repeat in stability quarter. solutions orders NAND another and five ratio the traditional expect adopt metrology precision, robustness designs. aspect competitive metrology We home the for The relative to top manufacturer simpler interferometric high using superior Aspect is providing production and

packaging advanced be of larger a into a NAND do specialty We XD a stack customers for high second expect such our volumes move as after foresee contributor quarter. higher manufacturers We this and to product to revenue production. decline strong

to quarter, outpaced second packaging expect in in $XXX is up fourth Contributing We again particularly the half, to our quarter, view adding billings a over the this second bookings pick for devices. power and our now to backlog which million. stronger of

XX% Even Given partner the this over estimates advanced company of the growth, we're for and this to stages unprecedented node a customers our chain. overall. advanced sales choice for industry into fab the over of X% system connected semiconductor devices spending for grow project well to early still the solutions in to XX% across of and for transform of exciting packaging year value with we ahead grow XX%, to visibility, each equipment specialty systems

our call advances questions. with for see we're we although exciting still the And with Kyle, most will lines. come. progress and open open we made happy please So, your the best far, are that, the to so

Operator

first [Operator Bolton Instructions]. take from Needham Company. & We'll question Quinn with our

Quinn Bolton

And affected. sounds with of constraints the for with that start Can give was to on those demand what that and us especially JetStep the very results, inspection XXXX. the clarifications, EBXX? revenue of couple some I kind a the I a there nice in revenue were production of just wanted QX issues especially like you'd continue you of you're systems into mentioned it Mike, million for some on on Dragonfly Congratulation strong think sense with for market, QX. just seeing $X recognizing

Michael Plisinski

challenge. actually the That's

were meet demand. our to suppliers unable strong of Some that

So, to in the I – several think first, we product, had over announced the and million tools XX know, it customers quarters, up customers was in let's quarters. or the backlog say, over customers, or add I the two we $XX wanted don't first – XX

meet unable were of demand. fact, some was capabilities. – our to fairly suppliers increase And them with in their and some suppliers to capacity obscure their We're the meet production smaller, get through some working There track. quality we able as help issues full back we'll rework. on we to And be to them demand and where through right had work that, some be

We are accelerating.

ship tools second the did in quarter. we So

fourth in constraints the more in ship and the finally relieve will the third quarter, tools We quarter.

Quinn Bolton

in forward to evals? on those to initial quarter here Second eval of the second JetStep begin given where through margins, QX, as sense did us low some the lithography as extended those that not look I But give tools you long the know recognized you QX, question systems pretty the can you just margins you go systems. that recognize gross carry go sort costs.

Michael Plisinski

continue that quarters. in quarter the As And I improvements lithography the I and three improve to product peel the steady that third back six throughout And third And will will XXXX. in then XX% next mentioned, will there'll systems in individual fourth quarters. and range did XX%, JetStep that commentary the two trying provide to include fourth. into be over margins, be line the back gross without

Operator

We Riley Securities. with Craig take our next B. Ellis question from

Craig Ellis

echo (XX:XX) the [indiscernible] JetStep congratulations on XXXX. I'll the

guys. a milestone there, Just significant

start by question. So congratulations. term following up a I wanted to just longer with JetStep

out nice momentum the So the what you in ship XXXX? or any go see just linearity million is $XXX prior provide And you on building that second the backlog to minus the respectively XQ. backlog? way to the and have in the could the back three million shipping half and and have with XQ us products half simply in shipped shake XQ Can to in to $XXX added plan two we you color as

Michael Plisinski

constrained. capacity were we recall, might You

So for we XXXX. full capacity already booked our

booked was early that done that. capacity increased for And then we last year. XXXX and fact, In

we're start at in a right but and be demand. increasing demand capacity be quarters. From the would XXXX top to on starting don't the four serve max I for and So now, at quarter, we'll next recall first that at level first all right if quarters the working where three perspective, quarter XXXX out leveling in the going looking linearity capacity off then for it to we're and

Craig Ellis

Mike, it'd transistor all advanced architecture Atlas of the some around in be things you're of and on gig and some nanometer that color the commentary great additional the part and market. just the X seeing to qualifications get around just

Michael Plisinski

what demand for trying still We in nanosheet from production, people a process. and volume, seeing, we there's to of lot recently, our perspective A of and movement. ramp their customers to to are bunch transition. then, seeing had pull-ins, pilot announce ramp for accelerate delays But their publicly to order some nanometer ability Atlas and we're the eventually X decent the the

We are seeing different timelines from different logic suppliers.

behind, they're So, year production production. maybe bring to Other, to that already one that's running quickly. third announced, little bit, even then a than racing relatively and behind further Everybody's a that.

of sampling there. to potent movement far the measurements steps. What's see the them Atlas the critical for process a are to APC space. new proving requiring competition I is measurements tool for because the lot nanosheet be that And nice more in critical So, of the us a very is be those to make able and for control

actually data the and we're our process. adjusting taking So,

in process yield the So, order requirements. meet APC, to providing automatic true control,

adding to the So attach also that's rate.

Craig Ellis

company's memory just market, that hopping there's back of I from your sneak like us you're which And in number lot manufacturers the concern three across benefiting while are the marketplace. a the XXX there you're spending you seeing the just late position where seeing color been announcements area? it predominantly of indeed before I capital strength Is that's layer. in on XXX to could queue. that positioned think seems for more in strong. in that right? like layer above you're can NAND one like give bit the Mike, count what increases, it If a Aspect little It about in up have more of seems going different layer, sounded – is quite a been the And commentary

Michael Plisinski

that's definitely Yeah, correct.

it think brings line well. also as product in Echo I the

this density. overall about transition transition. opportunities It's to there XD step seeing big we're had the NAND be case It's like the going all So stack the well is similar a bit And perspective, process to in on product as From now Echo an layer. function. where mask be to for solution a hard going historically hard to NAND transistor high we and complete control well more – Atlas, just in of as whole channel other layer. for we Aspect the Echo providing the formation, mask XD development, line, have the of Atlas, features as NAND,

and take In the different further tools our addition, leveraging we're to from streams customers. the – we're enhance to information providing these capabilities metrology the provide data hybrid

and combination from mix replace, provide So, sticky. It's get maybe their thing unique let's but very becomes, and different can unique. you data some three to that becomes match say, measurement streams and that tools value, capability one of more when

Operator

Brian question Stifel. our take We Chin next from with

Brian Chin

A few questions on lithography.

have half number wondering, Number could in would to margins XQ litho. if two, pretty excluding snapback. a XQ second XX% and XX% is gross what provide Just you Mark, And in good level been one. the

in kind initial So improvement half. tools, in cetera, some gross levers margin Atlas recovery also second with you're if other in what terms mix seeing that maybe better of a those products seeing also et of and terms you're of curious the of

Mark Slicer

comment XX% into gross the see on mentioned, as a the baked commented and that, as to pressures, to made we we we're back we do I of continue return we chain think cost see Mike going litho on. on, Certainly, And certainly, the obviously, get But which tool. specifics don't pressures XX% within to supply into margin, range. that

QX. be any So I different expect that don't and to QX in

try headwinds of we'll have to and still offset. So, we'll see some those

Brian Chin

One to helpers revenue with sort second contribution, the big is lower of of litho. XQ the relative half

Michael Plisinski

gross the been quarters, working the driving in existing next improvement supply challenges other litho. margin And seen. steady driving throughput, increasing a mentioned, I enhancements as for offset propositions on to the the to tools, see, help throughout also value some of specifically will we've chain also six we've we the Brian,

the or despite think we're the So, several continue expand maintain to margin, headwinds definitely taking gross we to I steps face.

Brian Chin

are I think sort memory, Obviously, in play second memory. spenders in of the recent in Mike, about second versus a year in to of specifically, seems the – half. as the little I new well fluid I'm today. that to in one bit again, your role, some it product and expansions what you first terms half your construct a of from risk higher even of half obliged, memory? ask in terms commentary of or as big But certainly, probably key dialing think, earlier

So what curious, kind what you in It second year next of sort downtick maybe in the fluidity? in half DRAM. of out like NAND dialing terms are terms are through you of seems pretty still. a even in healthy and maybe seems thinking the of tease But

Michael Plisinski

We offset for announcements advanced the for I to DRAM strength our did that we sure. baked remarks have but Yeah, by be think the particularly the nodes. in NAND logic, and in would in down, continued prepared commentary. mention

off our We're continued was So in that with of we're high the an future bus the we discussions the channel the be barring customers. surprises, thing, fact over in where pretty still the to the book-to-bill checks wheels believe is falling equipment us environment kind leads X, have, demand. visibility confident to our higher,

tied DRAM volume. as, be as opportunities they transitions, not talking with certain the the well see there's strong we've about with it's of names, not us, pretty of right. the wafer the DRAM technology XD several For also looks demand the NAND sub with products, certainly technology high all transitions, the or in about. course, of XA, packaging, X have the different just some XB, talked We're but the also just nanometer, space. but transitions, nanosheet, NAND, advanced and transistors, the the stack we've to backlog Dragonfly some with Flipping specialty very solid. lithography, some We you're high And do new manufacturing been to the to XD

market. wafers process solutions and growing our for So, the control that driving position and for manufacturers to very support expansions to material conservative way for solutions EUV serve the demand

the some take or – all can a take of the for and different add talked negativity and more second and shots half and you So, XX% you advanced factor some and packaging stronger goal for we we systems of and on numbers up still node about the see these specialty. growth for them XX%

Operator

from We take D.A. Chung with our question next Hans Davidson.

Hans Chung

some end how How segments? of more to provide specialty between color revenue And can mix the exposure packaging versus also have compound advanced much around also, mobile sort the exposure semi what's the First, piece, you silicon much the and of other the market? the carbide? to business and

Michael Plisinski

that give we step for. view. That don't lot. think kind breakdowns was back of provide higher – a to some you have a level just But the asking you're to I all and

around a flip our would there. say, in. say and for on part a that has a are the for the slowdown yield by that's of yields there monitoring is We driver Dragonfly advanced and demand process see the to die. But of improve where packaging let's been consumer primary side, edge customers memory of in For, higher I devices business and efforts packaging yields, loss higher definitely could market, better and business, by part our the logic they driving OSAT the factored those on mentioned investing that the devices for

power part say business is the compound semi. I that's In tied our one the think bulk of specialty, So I'd to it. of

is in silicon are the ramp, carbide that don't extent carbide we have silicon investing more you relatively but detail? think still positions. I to our there, certainly do know, small I ever the customers

Mark Slicer

No.

Michael Plisinski

down. Sorry, have that don't broken finely so we

Hans Chung

of the more Aspect it's the kind curious, to to NAND or more I will than be or acoustic that opportunity next come the be across more I Atlas, is metrology Atlas? XXX like guess more the XX% question I that term. how remember revenue does weighted NAND, translate of layers. terms in will XD was NAND before XD we in and your be medium just of the in, they will

Michael Plisinski

well That's The Atlas workhorse. the NAND definitely in manufacturer. is in process established every tool record

that in the we are that and into lines. we're combinations, our Aspect Echo ramp to further a product especially workhorse The increase percentage bulk the revenue or to of sure. for those XD those with we and certainly think going overall the see revenue do How step monitoring be they're to how with tools. a much process trying going little And sampling on ramping unclear part these still line production. what a in is is bit they're Is every or it now going opportunities. there. stack And going working that's adding But in much to NAND, that's they're higher to because combinations determine the as So the to it up of be increase as of rate?

For – sure, each these tools, production. being for we of see qualified seeing will them we're already

What's will they part attach So amount. question of be the the rate. production, in is

Operator

take We David from our with next question Duley Securities. Steelhead

David Duley

Congratulations more market at market line could results. How share is you bit a have point? what if you do size of think in that I the on this us provide was with space? Atlas I the do little big that wondering And nice of you details. sort guess product

Michael Plisinski

to would say million because analyst. optical I These industry out now. by broken about not about metrology an million or it's down of $XXX billion estimates any are $XXX of market $X.X it's so

So in applications. I'd we're have share. the good high don't pretty probably dominant in know. say I high I'd end say, OCD – a we that, the end, Certainly,

is. Atlas. is little I'd into expensive we're to penetration some on then lower points half upgrade we are that. the offer That's full more the able or overall, other share maybe we're so Iris share, might where and gain for high And there platform our optical planar because to applications, effectively the less end where the end the after our full something for can XX%, and of think have on offer share we sure common and play, market. coming more compete and the view. upgradeability that's that that is what cost ability, then market capability the like a the of OCD the other to OCD be which the little that more. films, And able go of then XX%, metrology this of can't I share. say XX% I say common But,

David Duley

far in As I half. just business about you sounds second the the recognition first you're in the goes, that shipping, to units as guess, lithography That had level talking five half. similar revenue the

So, constraints? the you year. us there's Can I year, increasing capacity next if supply understand, is help revenue guess potential the roughly calendar million with for what no you XX-ish

Michael Plisinski

had I we had mentioned in $XXX million backlog.

the You've out. coming $XX million got

So squeeze And least can more a we'll little $XX that's at million. try. in, we if

David Duley

you a specialty, advanced couple housekeeping, another in could I mentioned rates just somehow as and of because those advanced system sales and for them? packaging times nodes XXXX or the then me Just you repeat missed a growth

Mark Slicer

and nodes, XX% represents Advanced device year-over-year grew XX% it of advanced of revenue. XX% packaging, and and year-over-year XX% Specialty revenue. represents

at and grew services and year-over-year Software of XX% XX% represents revenue.

Michael Plisinski

you I think was for what what referred another. to Mike within mentioned the be quarter. just one year calendar the going for or Not at point systems growth the segments both

Mark Slicer

based pace systems packaging would revenue systems revenue the be Sorry. XX%, and the I specialty had the projections, mentioned we're over advanced XX%. node would be And the advanced XX%. around on that, based on projections we the over see, at,

Operator

to question Benchmark Company. The our take next from Mark with We Miller

Mark Miller

for up start opportunities bill, over year. signed $XX hitting and fabs Europe these recently CHIP to that US supposed funding the order book? seven With totaling there's are start do next coming also believe I internal authorized has least chip production, at billion your When previously

Michael Plisinski

as soon they I as ordering guess start fluid pretty now, Right that's situation. equipment. a

that but two So groups funds set allocated being up a the considered is say or an body bureaucracy, amount be because quite are entire, a considered bodies I being and government to this. there's is going two big different how it's govern different for my won't will understanding to the

the there's be As saw will out, between rules on the that money come comes We the various that policymakers sensitivities. distributed. in then out Act will itself. the Obviously, for the how debates CHIPS

the pretty fabs, that, got ground, announcements from to from we'll pretty aggressive and then start the fill they've to ordering see, equipment got our build to aggressive ramps. shelfs, customers and start hopefully, them. break then So They've to

I say a year. would So

have already Some started.

So six probably anything expect would the them. wouldn't we're is up But Intel coming optimistic – behind TSMC along. be months. in the I next Samsung's furthest and

Mark Miller

cash? for cash. significant priorities, up again, building What You're are your

Michael Plisinski

for creation. about We primarily buybacks. opportunity the then, think value best M&A. are for we've that's Priorities And talked shareholder still

million, out authorized have there. million? We $XX $XXX an buyback

Mark Slicer

$XXX million.

Operator

question Advisory We Instructions]. Four from next with our Three [Operator take [ph]. Grid [ph] Eric

Unidentified Participant

is and Congratulations on And right looks about balance this on actually, you're up like It sheet the the good and cash follow just you've outlook. now of the a immediately trading at $XX great at maybe maybe quarter prior seem to and relative Why balanced to may capital allocation how earnings. these stock year's attractive low higher isn't or risk XX acquisitions, repurchases a focus times your priority in so given next levels? more question. it

Mark Slicer

first M&A consider to a priority. continue we Certainly,

I standpoint, that in priority. a making have funds a sure from available regard, we think obviously So cash is those

Michael Plisinski

formulas. could at look we and buyback we based returns. make have basically decisions We the we the for the and pipeline have the M&A investments on and best We make

so, just a prudent that's guess. I And management,

Operator

Thank are additional closing this it there or to like comments. appears I'd time. to call further no turn any questions the at you. back Michael for And Sheaffer

Michael Sheaffer

Thanks, evening. of thank to X:XX going Kyle. Kyle, Thank our We'd time for the available replay continued Innovation. the to everybody Eastern we'd by in to call like your And call. this website Onto like A joining conclude for you. on us you today. thank interest is be please

Operator

for you participation. And this your call. Thank today's concludes

You may now disconnect.

Onto Innovation (ONTO) 10 Aug 222022 Q2 Earnings call transcript