Onto Innovation Inc ( ONTO Quick Quote ONTO - Free Report) reported second-quarter 2023 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 4.8%. The bottom line decreased 38.3% year over year. Revenues of $190.7 million also lagged the Zacks Consensus Estimate by 6.1%. The top line declined 25.6% year over year. The downtick can be mainly attributed to delayed shipment of three lithography system in the quarter under review. Specialty devices and advanced packaging revenues increased 20% sequentially. Revenues from power device customers grew 35%. However, revenues from the advanced nodes market were down 43%. Sales from specialty devices and advanced packaging, and advanced node markets contributed 69% and 20% to revenues, respectively. Software and services accounted for 21% of the top line. Margin Details
Total operating expenses increased to $75.7 million, rising 1.3% from $74.7 million in the prior-year quarter.
Non-GAAP gross profit fell to $100.5 million from $132.1 million in the year-earlier quarter. Non-GAAP gross profit margin expanded 100 basis points to 53%. Non-GAAP operating income was $40.6 million compared with $73.1 million in the year-ago quarter. Non-GAAP operating margin was 21%, down from 29% reported in the previous-year quarter. Balance Sheet
As of Jul 1, the company had $609.6 million in cash and cash equivalents with $136.9 million of total current liabilities compared with $583.5 million and $148.4 million, respectively, as of Apr 1, 2023. Accounts receivable was $187.9 million.
Management expects revenues in the range of $205-$225 million. The Zacks Consensus Estimate is pegged at $203.7 million.
Non-GAAP earnings per share are projected to be between 85 cents and $1.05. The consensus mark is pegged at 96 cents. Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter ( BMI Quick Quote BMI - Free Report) , Salesforce ( CRM Quick Quote CRM - Free Report) and Pegasystems ( PEGA Quick Quote PEGA - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while Salesforce and Pegasystems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 63.5% in the past year. The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%. CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 9.7% in the past year. The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings outshined estimates in the last four quarters, the average surprise being 166.2%. Shares of PEGA have jumped 12.7% in the past year.