Onto Innovation Inc. (NYSE:ONTO) Q2 2023 Earnings Call Transcript

Michael Plisinski: Generally, they’re in different lines. So it’s the tools that have to be moved. And the tools are configured very differently for your traditional fan out or just traditional bump. The amount of sensors and the capabilities like Clearfind, which is another option on our tool, those are all required for the HBM and for the heterogeneous – the logic side. So it’s not really fungible. We haven’t seen anyone trying to move our product, our existing tools into those lines. It’s all new tools.

Vedvati Shrotre: So does that mean that gross margins sort of end up higher when you’re addressing, like, a CoWoS HBM application versus what it was historically?

Michael Plisinski: I believe so. But we’d have to get back to you on that.

Operator: We will take our next question from Mark Miller with Benchmark.

Mark Miller: The $90 million volume purchase order for process control, how does that order ship in terms of the third and fourth quarter? Is it equally divided or is it going to be more back end loaded?

Michael Plisinski: That we’re working on. So, we’re projecting the $90 million. And when it’s finalized with the customers, we’ll be able to provide clarity on the rollout of that and the follow on, the size of the follow-on additional orders we expect. But I would expect Q3 to be a little lighter, Q3 and Q4 and Q1 to be maybe semi equal between that ramp.

Mark Miller: To date, you’ve announced 18 power customers first time orders. Any new power customers this quarter or the June quarter?

Mark Slicer: We had five new power customers this quarter.

Operator: And there are no further questions at this time. I will now turn the conference back over to Mr. Sheaffer for any additional or closing remarks.

Mike Sheaffer : Thanks, Cynthia. Just a quick reminder for everybody about three upcoming events. First, Onto management will be participating in the Needham Semi Cap Virtual Conference on August 23. Second, we’ll be participating in the Jefferies Semi Conference in Chicago on August 29. And third, we will be at The Benchmark Conference in New York City on September 13. Thanks again for joining us today. A replay of the call is going to be available on our website about 7:30 Eastern Time this evening. We’d like to thank you for your continued interest in Onto Innovation. Cynthia, please conclude the call. Thank you.

Operator: Thank you, gentlemen. This concludes today’s call. Thank you for your participation and you may now disconnect.