Onto Innovation Inc. (NYSE:ONTO) Q3 2023 Earnings Conference Call November 9, 2023 4:30 PM ET
Company Participants
Mike Sheaffer - Senior Director Investor Relations, Corporate Communications and Market Research
Michael Plisinski - Chief Executive Officer
Mark Slicer - Chief Financial Officer
Conference Call Participants
Craig Ellis - B. Riley Securities
Brian Chin - Stifel Financial
Charles Shi - Needham & Company
Vedvati Shrotre - Jefferies
David Duley - Steelhead Securities
Mark Miller - Benchmark Company
Operator
Good day and welcome to the Onto Innovation Third 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, Rachel and good afternoon, everyone. Onto Innovation issued it’s 2023 third 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. Today's discussion of our financial results will be presented on a non-GAAP financial basis, unless otherwise specified. As a reminder, a detailed reconciliation between GAAP and non-GAAP results can be found on 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 and thank you for joining the call today. We finished the third quarter just above the midpoint of guidance for operating income and earnings, despite top line revenue near the low end of guidance. This financial performance is just beginning to reflect the improvements from the initiatives we outlined in July. Shortly, Mark will outline how we expect to accelerate additional improvements through the next several quarters.
Now, I'll share what we see as a new wave of opportunities for Onto Innovation following recent visits with several customers in Asia, including those leading the innovations in memory and packaging that are enabling this new era of artificial intelligence. Gartner estimates that today's semiconductors supporting artificial intelligence are estimated to represent less than 10% of the approximated $500 billion semiconductor market. By 2030, the overall market for semiconductors is expected to double reaching $1 trillion in revenue. However, semiconductors supporting AI are expected to increase 6x to 8x reaching $300 billion to $500 billion in sales as applications and hardware migrate from data centers to edge computing.