Onto Innovation Inc. (NYSE:ONTO) Q4 2023 Earnings Conference Call February 8, 2024 4:30 PM ET
Company Participants
Mike Sheaffer - Investor Relations
Michael Plisinski - Chief Executive Officer
Mark Slicer - Chief Financial Officer
Conference Call Participants
Vedvati Shrotre - Jefferies
Craig Ellis - B. Riley Securities
Brian Chin - Stifel Nicolaus
Charles Shi - Needham & Company
David Duley - Steelhead Securities
Mark Miller - Benchmark Company
Operator
Good day and welcome to the Onto Innovation Fourth Quarter and Full-Year Earnings Release Conference Call. Today's conference is being recorded.
At this time, I would 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 its 2023 fourth quarter and full-year 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 Web site, 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 management on this call will contain forward-looking statements within the meaning of the federal securities laws. Those 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 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 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. As you may have already seen, Onto Innovation had a strong end to the year, with fourth quarter revenues exceeding the high end of our guidance range. This was primarily due to stronger-than-projected demand for Dragonfly inspection systems to support packaging of memory and logic devices for AI applications. We expect this demand to continue, as reflected in our increased guidance range for the first quarter. Financially, we're starting to benefit from tighter controls and operational efficiencies, which resulted in generating over 28% of cash from operations in the quarter, while still supporting the multi-quarter surge in demand for the Dragonfly systems.