On this page of StockholderLetter.com we present the latest annual shareholder letter from ONTO INNOVATION INC. — ticker symbol ONTO. Reading current and past ONTO letters to shareholders can bring important insights into the investment thesis.

 •  4/9/2025 Letter Continued (Full PDF)
 •  3/30/2023 ONTO Stockholder Letter
 •  4/5/2024 ONTO Stockholder Letter
 •  More "Semiconductors" Category Stockholder Letters
 •  ONTO Benford's Law Stock Score = 88

ONTO Shareholder/Stockholder Letter Transcript:

Annual Report +
2025 Proxy


Dear Fellow Stockholders
The next five years present tremendous
opportunities for Onto Innovation as we position
ourselves at the forefront of several
transformative, high-growth secular trends that
are reshaping the semiconductor industry.
Artificial intelligence (AI) is expected to expand
at a compound annual growth rate (CAGR) of
more than 30% over the next 5-7 years and has
the potential to fundamentally transform how
work gets done globally. This growth is driving
demand for advanced logic nodes and
cutting-edge memory technologies to support
AI and edge applications. Additionally,
innovations in advanced packaging, such as
2.5D/3D heterogeneous integration and hybrid
bonding, are enhancing functionality, delivering
greater integration, and boosting performance.
Finally, the electrification of everything   from
vehicles to smart infrastructure   continues to
accelerate, driving overall increased demand for
semiconductor devices.
By accelerating our pace of innovation, we aim
to address the evolving needs of our customers
in these high growth markets. We are excited
about the potential of our new products to
tackle emerging challenges and help us
maintain our critical position in the supply chain.
We recently introduced new inspection and
metrology capabilities, including the EchoScan   
system for hybrid bonding and 3Di    technology
for bump metrology applications. Additionally,
we announced our JetStep   lithography system
for one-micron glass applications, featuring
wide-field optics and high-resolution imaging,
which are designed to support next-generation
panel level packaging. For advanced nodes, we
launched the Iris    G2 system to support our
customers in the critical films area. To drive
even greater performance, we announced the
appointment of Dr. Ido Dolev as executive vice
president for all of our product solutions at the
end of 2024. Under Dr. Dolev   s leadership, we
have unified our business units to more
effectively address the increased pace of
innovation demanded by our customers.
Reflecting on 2024, we achieved remarkable
growth, with Dragonfly   inspection tool revenue
and Iris film metrology revenue both more than
doubling over 2023. We also began shipments
of new capabilities, such as sub-surface defect
inspection. Our strong alignment to high growth
markets resulted in revenue increasing by 21% in
2024 over 2023, while our work on supply chain
initiatives, which began in 2023, resulted in an
improvement over 2023 of 70 basis points in
gross margin and 400 basis points in operating
margins, even as we see a much higher level of
competition in these markets.
We are proud to play a pivotal role in enabling
the products that drive a smarter, more
connected, and greener future. Together, we
look forward to shaping the technologies of
tomorrow and delivering exceptional value for all
our stakeholders.
On behalf of the entire team at Onto Innovation
and the board of directors, we extend our
heartfelt gratitude for your continued support
and confidence.
Sincerely,
Michael P. Plisinski
Chief Executive Officer
Christopher A. Seams
Chairman of the Board

Safe Harbor
Certain statements in this document are    forward-looking statements    or are based on    forward-looking
statements,    including, but not limited to, those concerning: our business momentum and future growth;
technology development, product introduction and acceptance of our products and services; our
manufacturing practices and ability to deliver both products and services consistent with our customers   
demands and expectations and to strengthen our market position; our expectations of the semiconductor
market outlook; and future revenue, gross profits, research and development and engineering expenses,
selling, general and administrative expenses, and cash requirements. Statements contained or incorporated by
reference in this proxy statement that are not purely historical are forward-looking statements and are subject
to safe harbors created under Section 27A of the Securities Act of 1933, as amended, Section 21E of the
Securities Exchange Act of 1934, as amended (the    Exchange Act   ), and the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be identified by words such as, but not limited to,
   anticipate,       believe,       continue,       estimate,       expect,       intend,       plan,       should,       may,       could,       will,       would,   
   forecast,       project    and words or phrases of similar meaning, as they relate to our management or us.
Forward-looking statements contained herein reflect our current expectations, assumptions and projections
with respect to future events and are subject to certain risks, uncertainties and assumptions, including, but not
limited to, the following: our ability to leverage our resources to improve our position in core markets; our ability
to weather difficult economic environments; our ability to open new market opportunities and target
high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market
segments; fluctuations in customer capital spending; our abilityto effectively manage our supply chain and
adequately source components from suppliers to meet customer demand; the effects of political, economic,
legal, and regulatory changes or conflicts on our global operations; the effects of natural disasters or public
health emergencies on the global economy and on our customers, suppliers, employees, and business; our
dependence on certain significant customers and anticipated trends and developments in and management
plans for our business and the markets in which we operate; our ability to be successful in managing our cost
structure and cash expenditures and results of litigation; and those identified in Part I, Item 1A.    Risk Factors    of
our Form 10-K for the fiscal year ended December 28, 2024. Actual results may differ materially and adversely
from those included in the forward-looking statements. Forward-looking statements reflect our position as of
the date of this proxy statement and we undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.

Stockholder Information
LOCATION
INVESTOR INFORMATION
HEADQUARTERS
GENERAL STOCKHOLDER AND INVESTOR QUESTIONS MAY
BE DIRECTED TO
Onto Innovation
16 Jonspin Road
Wilmington, Massachusetts 01887
Phone 978.253.6200
ontoinnovation.com
Onto Innovation
Attn: Investor Relations
16 Jonspin Road
Wilmington, Massachusetts 01887
investors@ontoinnovation.com
OTHER LOCATIONS
View all locations on our website:
https://ontoinnovation.com/company/locations
TRANSFER AGENT
MAIL CORRESPONDENCE TO
Computershare Trust Company, N.A.
Stockholder Services
P.O. Box 43006
Providence RI 02940-3006
SEND OVERNIGHT CORRESPONDENCE TO
Computershare
150 Royall St., Suite 101
Canton, MA 02021
ONLINE INQUIRIES
www-us.computershare.com/investor/contact
PHONE
781.575.4223 or 800.368.5948
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young, LLP
Iselin, New Jersey
STOCK SYMBOL
Common stock is traded on the New York Stock
Exchange under the symbol: ONTO
ANNUAL MEETING
Stockholders are invited to attend the Annual
Meeting at 8:00 a.m. (PT) on Wednesday,
May 21, 2025 at our offices, located at:
1550 Buckeye Drive
Milpitas, CA 95035



 4/9/2025 Letter Continued (Full PDF)