Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.25.1
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Mar. 31, 2025
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 March 31, Nine Months Ended March 31,
(In thousands) 2025 2024 2025 2024
Semiconductor Process Control:
Revenues $ 2,738,817  $ 2,096,005  $ 8,069,711  $ 6,425,562 
Segment gross profit 1,765,194  1,343,467  5,145,053  4,148,335 
Specialty Semiconductor Process:
Revenues 156,500  130,649  445,241  407,433 
Segment gross profit 83,827  69,280  229,443  219,859 
PCB and Component Inspection:
Revenues 168,552  133,399  467,615  412,474 
Segment gross profit 81,099  (949) 194,162  96,036 
Totals:
Revenues for reportable segments $ 3,063,869  $ 2,360,053  $ 8,982,567  $ 7,245,469 
Segment gross profit $ 1,930,120  $ 1,411,798  $ 5,568,658  $ 4,464,230 
The following table reconciles total reportable segment revenues to total revenues for the indicated periods:
  Three Months Ended March 31, Nine Months Ended March 31,
(In thousands) 2025 2024 2025 2024
Total revenues for reportable segments $ 3,063,869  $ 2,360,053  $ 8,982,567  $ 7,245,469 
Corporate allocations and effects of changes in foreign currency exchange rates (840) (223) (1,146) (1,957)
Total revenues $ 3,063,029  $ 2,359,830  $ 8,981,421  $ 7,243,512 
The following table reconciles total segment gross profit to income before income taxes for the indicated periods:
  Three Months Ended March 31, Nine Months Ended March 31,
(In thousands) 2025 2024 2025 2024
Total segment gross profit $ 1,930,120  $ 1,411,798  $ 5,568,658  $ 4,464,230 
Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates(1)
42,780  45,853  131,818  138,240 
R&D 338,043  321,590  1,007,345  953,222 
SG&A 248,905  237,514  767,028  714,403 
Impairment of goodwill and purchased intangible assets —  70,474  239,100  289,474 
Interest expense 71,889  79,981  229,041  228,417 
Other expense (income), net (35,930) (45,622) (121,323) (104,515)
Income before income taxes $ 1,264,433  $ 702,008  $ 3,315,649  $ 2,244,989 
__________________
(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 March 31, Nine Months Ended March 31,
2025 2024 2025 2024
Revenues:
Taiwan $ 988,470  32  % $ 433,916  18  % $ 2,331,672  26  % $ 1,214,518  17  %
China 792,884  26  % 996,885  42  % 3,083,713  34  % 3,050,609  42  %
Korea 378,548  12  % 201,290  9  % 974,656  11  % 731,783  10  %
Japan 338,651  11  % 267,045  11  % 755,834  9  % 792,179  11  %
North America 293,980  10  % 246,993  10  % 1,081,114  12  % 761,319  11  %
Europe and Israel 170,056  6  % 129,350  6  % 449,142  5  % 421,148  6  %
Rest of Asia 100,440  3  % 84,351  4  % 305,290  3  % 271,956  3  %
Total $ 3,063,029  100  % $ 2,359,830  100  % $ 8,981,421  100  % $ 7,243,512  100  %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands) Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024
Revenues:
Wafer Inspection $ 1,495,685  49  % $ 987,709  42  % $ 4,427,238  49  % $ 3,164,391  43  %
Patterning 636,415  21  % 539,296  23  % 1,743,504  20  % 1,512,168  21  %
Specialty Semiconductor Process 138,376  4  % 116,449  5  % 394,165  4  % 364,830  5  %
PCB and Component Inspection 104,254  3  % 68,332  3  % 270,489  3  % 216,794  3  %
Services 669,208  22  % 590,461  25  % 1,980,749  22  % 1,715,670  24  %
Other 19,091  1  % 57,583  2  % 165,276  2  % 269,659  4  %
Total $ 3,063,029  100  % $ 2,359,830  100  % $ 8,981,421  100  % $ 7,243,512  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 March 31, 2025, one customer accounted for approximately 23% of total revenues. In the three months ended March 31, 2024, one customer accounted for approximately 14% of revenues. In the nine months ended March 31, 2025, one customer accounted for approximately 20% of total revenues. In the nine months ended March 31, 2024, one customer accounted for approximately 12% of total revenues. Two customers and one customer on an individual basis accounted for greater than 10% of accounts receivable, net, at March 31, 2025 and at June 30, 2024, respectively.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows: 
As of As of
(In thousands) March 31, 2025 June 30, 2024
Land, property and equipment, net:
United States $ 710,572  $ 689,937 
Europe 231,375  155,812 
Singapore 152,287  148,557 
Israel 71,970  84,279 
Rest of Asia 32,098  31,383 
Total $ 1,198,302  $ 1,109,968