Onto Innovation Inc. (NYSE:ONTO) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET
Company Participants
Mike Sheaffer – Investor Relations
Michael Plisinski – Chief Executive Officer
Mark Slicer – Chief Financial Officer
Conference Call Participants
Quinn Bolton – Needham & Company
Craig Ellis – B. Riley Securities
Vedvati Shrotre – Jeffries
Operator
Good day, and welcome to the Onto Innovation First Quarter Earnings Release Conference Call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Mike Sheaffer, Investor Relations. Please go ahead.
Mike Sheaffer
Thank you, Danielle, and good afternoon, everyone.
Onto Innovation issued its 2023 first quarter financial results this afternoon shortly after the market closed. If you did not receive a copy of the release, please refer to the company's website where a copy of the release is posted.
Joining us on the call today are Michael Plisinski, Chief Executive Officer; and Mark Slicer, Chief Financial Officer.
I would like to remind you that the statements made by the management on this call will contain forward-looking statements within the meaning of the federal securities laws. Such statements are subject to a range of changes, risks and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Onto Innovation's results, I would encourage you to review our earnings release and our SEC filings. Onto Innovation does not undertake the obligation to update these forward-looking statements in light of new information or future events.
As a reminder, today's discussion of our financial results will be presented on a non-GAAP financial basis, unless otherwise specified. A detailed reconciliation between GAAP and non-GAAP results can be found in today's earnings release.
I will now go ahead and turn the call over to our CEO, Mike Plisinski. Mike?
Michael Plisinski
Thank you, Mike. Good afternoon, everyone and thank you for joining our call today.
Onto Innovation closed the first quarter with revenue of $199 million near the midpoint of guidance, while earnings came in near the high end of guidance aided by gross margin, favorably impacted by product mix. The primary shift in mix was an increase in revenue from higher margin Iris film systems and two lithography tools sliding into the second quarter due to delays from our supply chain.
Following the growth of the last few years, we're increasing our focus on strategic supply chain initiatives and expanding our development engagements. We expect our investment in the supply chain to yield over $10 million in cost synergies in 2024 with additional savings to follow.