Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.24.4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 6 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer.

Our operating segments are aggregated into reportable segments based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics. We have three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.
Semiconductor Process Control
The Semiconductor Process Control segment offers a comprehensive portfolio of inspection, metrology and data analytics products, and related services, which helps IC manufacturers achieve target yield throughout the entire semiconductor fabrication process, from R&D to final volume production. Our differentiated products and services are designed to provide comprehensive solutions that help our customers accelerate development and production ramp cycles, achieve higher and more stable semiconductor die yields and improve their overall profitability.
Specialty Semiconductor Process
The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etching process tools, which are used by a broad range of specialty semiconductor customers, including manufacturers of microelectromechanical systems (“MEMS”), radio frequency (“RF”) communication chips and power semiconductors for automotive and industrial applications.
PCB and Component Inspection
The PCB and Component Inspection segment enables electronic device manufacturers to inspect, test and measure PCBs, flat panel displays and ICs to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces. In March 2024, we made the decision to exit the Display business by announcing we would end manufacturing of most Display products but will continue to provide services to the installed base of Display products for existing customers.
The CODM assesses the performance of each operating segment and allocates resources to those segments based on total revenues and segment gross profit and does not evaluate the segments using discrete asset information. Segment gross profit excludes corporate allocations and effects of changes in foreign currency exchange rates, amortization of intangible assets, amortization of inventory fair value adjustments, and transaction costs associated with our acquisitions related to costs of revenues.
The following is a summary of results for each of our three reportable segments for the indicated periods:
  Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2024 2023 2024 2023
Semiconductor Process Control:
Revenues $ 2,755,743  $ 2,194,079  $ 5,330,894  $ 4,329,557 
Segment gross profit 1,763,077  1,418,339  3,379,859  2,804,868 
Specialty Semiconductor Process:
Revenues 160,407  150,065  288,741  276,784 
Segment gross profit 81,122  81,278  145,616  150,579 
PCB and Component Inspection:
Revenues 161,080  143,032  299,063  279,075 
Segment gross profit 55,526  57,165  113,063  96,985 
Totals:
Revenues for reportable segments $ 3,077,230  $ 2,487,176  $ 5,918,698  $ 4,885,416 
Segment gross profit $ 1,899,725  $ 1,556,782  $ 3,638,538  $ 3,052,432 

The following table reconciles total reportable segment revenues to total revenues for the indicated periods:
  Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2024 2023 2024 2023
Total revenues for reportable segments $ 3,077,230  $ 2,487,176  $ 5,918,698  $ 4,885,416 
Corporate allocations and effects of changes in foreign currency exchange rates (379) (450) (306) (1,734)
Total revenues $ 3,076,851  $ 2,486,726  $ 5,918,392  $ 4,883,682 

The following table reconciles total segment gross profit to income before income taxes for the indicated periods:
  Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2024 2023 2024 2023
Total segment gross profit $ 1,899,725  $ 1,556,782  $ 3,638,538  $ 3,052,432 
Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates(1)
44,335  46,802  89,038  92,387 
R&D 346,157  320,418  669,302  631,632 
SG&A 267,081  237,244  518,123  476,889 
Impairment of goodwill and purchased intangible assets 239,100  219,000  239,100  219,000 
Interest expense 74,981  74,202  157,152  148,436 
Other expense (income), net (44,458) (32,154) (85,393) (58,893)
Income before income taxes $ 972,529  $ 691,270  $ 2,051,216  $ 1,542,981 
__________________
(1)Acquisition-related charges primarily include amortization of intangible assets and other acquisition-related costs classified or presented as part of costs of revenues.
Our significant operations outside the United States include manufacturing facilities in China, Germany, Israel and Singapore and sales, marketing and service offices in Japan, the rest of the Asia Pacific region and Europe. For geographical revenue reporting, revenues are attributed to the geographic location in which the customer is located. Long-lived assets consist of land, property and equipment, net, and are attributed to the geographic region in which they are located.
The following is a summary of revenues by geographic region, based on ship-to location, for the indicated periods:
(Dollar amounts in thousands) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Revenues:
China $ 1,092,525  36  % $ 1,027,780  41  % $ 2,290,829  39  % $ 2,053,724  42  %
Taiwan 881,211  29  % 375,259  15  % 1,343,202  23  % 780,602  16  %
Korea 357,434  12  % 310,672  12  % 596,108  10  % 530,493  11  %
North America 286,191  9  % 263,613  11  % 787,134  13  % 514,326  10  %
Japan 228,614  7  % 297,757  12  % 417,183  7  % 525,134  11  %
Europe and Israel 134,266  4  % 123,362  5  % 279,086  5  % 291,798  6  %
Rest of Asia 96,610  3  % 88,283  4  % 204,850  3  % 187,605  4  %
Total $ 3,076,851  100  % $ 2,486,726  100  % $ 5,918,392  100  % $ 4,883,682  100  %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Revenues:
Wafer Inspection $ 1,562,610  51  % $ 1,166,484  47  % $ 2,931,553  50  % $ 2,176,682  45  %
Patterning 530,680  17  % 430,384  17  % 1,107,089  19  % 972,872  20  %
Specialty Semiconductor Process 142,987  5  % 136,278  6  % 255,789  4  % 248,381  5  %
PCB and Component Inspection 93,327  3  % 77,298  3  % 166,235  3  % 148,462  3  %
Services 667,389  22  % 564,917  23  % 1,311,541  22  % 1,125,209  23  %
Other 79,858  2  % 111,365  4  % 146,185  2  % 212,076  4  %
Total $ 3,076,851  100  % $ 2,486,726  100  % $ 5,918,392  100  % $ 4,883,682  100  %
Wafer Inspection and Patterning products are offered in the Semiconductor Process Control segment. Services are offered in multiple segments. Other includes primarily refurbished systems, remanufactured legacy systems, and enhancements and upgrades for previous-generation products that are part of the Semiconductor Process Control segment.
In the three months ended December 31, 2024, one customer accounted for approximately 23% of total revenues. In the three months ended December 31, 2023, no customers accounted for greater than 10% of revenues. In the six months ended December 31, 2024, one customer accounted for approximately 18% of total revenues. In the six months ended December 31, 2023, one customer accounted for approximately 11% of total revenues. One customer on an individual basis accounted for greater than 10% of accounts receivable, net, at December 31, 2024 and at June 30, 2024.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows: 
As of As of
(In thousands) December 31, 2024 June 30, 2024
Land, property and equipment, net:
United States $ 700,963  $ 689,937 
Europe 218,372  155,812 
Singapore 147,895  148,557 
Israel 75,685  84,279 
Rest of Asia 31,013  31,383 
Total $ 1,173,928  $ 1,109,968