Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.25.2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 12 Months Ended
Jun. 30, 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 MEMS, radio frequency 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 uses total segment revenues and segment profit (loss) to assess performance and allocate resources (including employees, financial or capital resources), primarily during the annual strategic long-term planning and budgeting process. The CODM considers changes in market conditions, technology constraints and the competitive environment when making decisions about allocating resources to segments. The CODM does not evaluate segments using discrete asset
information. Segment profit (loss) represents segment income (loss) before income taxes, and excludes interest expense, other expense (income), net, restructuring costs, effects of changes in foreign currency exchange rates, and other corporate expenses.
The following is a summary of results for each of our three reportable segments for the indicated periods.
(In thousands)
 Semiconductor Process Control Specialty Semiconductor Process PCB and Component Inspection Total
For the year ended June 30, 2023
Revenue $ 9,324,190  $ 543,398  $ 631,604  $ 10,499,192 
Less:
Cost of revenue 3,366,617  261,456  410,353 
R&D 1,064,752  40,436  168,283 
SG&A 713,924  45,982  116,613 
Other segment items (1)
78,747  114,049  78,768 
Segment profit (loss) $ 4,100,150  $ 81,475  $ (142,413) $ 4,039,212 
For the year ended June 30, 2024
Revenue $ 8,733,556  $ 528,701  $ 552,491  $ 9,814,748 
Less:
Cost of revenue 3,104,254  245,791  393,531 
R&D 1,077,366  40,043  147,867 
SG&A 728,349  43,959  116,074 
Other segment items (1)
56,014  108,069  365,292 
Segment profit (loss) $ 3,767,573  $ 90,839  $ (470,273) $ 3,388,139 
For the year ended June 30, 2025
Revenue $ 10,947,359  $ 587,107  $ 621,721  $ 12,156,187 
Less:
Cost of revenue 3,922,735  283,160  358,847 
R&D 1,165,858  47,054  133,487 
SG&A 814,074  48,980  102,662 
Other segment items (1)
41,946  108,961  307,882 
Segment profit (loss) $ 5,002,746  $ 98,952  $ (281,157) $ 4,820,541 
__________________
(1)Other segment items for each reportable segment includes:
•Semiconductor Process Control — amortization of purchased intangible assets and acquisition related expenses.
•Specialty Semiconductor Process — amortization of purchased intangible assets.
•PCB and Component Inspection — amortization of purchased intangible assets and impairment of goodwill and purchased intangible assets for the years ended June 30, 2024 and 2025.
The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
  Year Ended June 30,
(In thousands) 2025 2024 2023
Total revenues for reportable segments $ 12,156,187  $ 9,814,748  $ 10,499,192 
Corporate allocations and effects of changes in foreign currency exchange rates (25) (2,501) (3,136)
Total revenues $ 12,156,162  $ 9,812,247  $ 10,496,056 
The following table reconciles total segment profit to total income before income taxes for the indicated periods:
  Year Ended June 30,
(In thousands) 2025 2024 2023
Total segment profit $ 4,820,541  $ 3,388,139  $ 4,039,212 
Unallocated expenses (1)
45,414  41,929  44,516 
Interest expense 302,166  311,253  296,940 
Loss on extinguishment of debt —  —  13,286 
Other expense (income), net (171,487) (155,075) (104,720)
Income before income taxes $ 4,644,448  $ 3,190,032  $ 3,789,190 
__________________
(1)Unallocated expenses include restructuring costs, effects of changes in exchange rates and other corporate expenses.
Our significant operations outside the U.S. 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) Year Ended June 30,
2025 2024 2023
Revenues:
China $ 4,042,567  33  % $ 4,196,727  43  % $ 2,867,443  27  %
Taiwan 3,205,392  27  % 1,738,065  18  % 2,493,379  24  %
Korea 1,452,826  12  % 906,924  9  % 1,895,710  18  %
North America 1,362,311  11  % 1,070,791  11  % 1,254,956  12  %
Japan 1,133,002  9  % 963,203  10  % 888,016  9  %
Europe and Israel 574,197  5  % 540,263  6  % 682,103  6  %
Rest of Asia 385,867  3  % 396,274  3  % 414,449  4  %
Total $ 12,156,162  100  % $ 9,812,247  100  % $ 10,496,056  100  %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands) Year Ended June 30,
2025 2024 2023
Revenues:
Wafer Inspection $ 6,198,815  51  % $ 4,333,296  44  % $ 4,336,663  41  %
Patterning 2,196,347  18  % 2,054,442  21  % 2,791,130  26  %
Specialty Semiconductor Process 517,201  4  % 470,565  5  % 492,109  5  %
PCB and Component Inspection 355,891  3  % 291,161  3  % 378,030  4  %
Services 2,683,308  22  % 2,329,568  24  % 2,117,031  20  %
Other 204,600  2  % 333,215  3  % 381,093  4  %
Total $ 12,156,162  100  % $ 9,812,247  100  % $ 10,496,056  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 fiscal year ended June 30, 2025, one customer accounted for approximately 19% of total revenues. In the fiscal year ended June 30, 2024, one customer accounted for approximately 13% of total revenues. In the fiscal year ended June 30, 2023, two customers accounted for approximately 18% and 15% of total revenues.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows:
  As of June 30,
(In thousands) 2025 2024
Land, property and equipment, net:
U.S. $ 728,162  $ 689,937 
Europe 253,848  155,812 
Singapore 153,052  148,557 
Israel 68,604  84,279 
Rest of Asia 49,109  31,383 
Total $ 1,252,775  $ 1,109,968