Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.25.4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 6 Months Ended
Dec. 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 integrated circuit (“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 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 because asset allocation is not managed at the segment level and assets are not tracked by segment in a way that it is meaningful for decision-making. 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 three months ended December 31, 2025
Revenue $ 3,004,648  $ 140,577  $ 152,175  $ 3,297,400 
Less:
Cost of revenue 1,085,042  73,688  80,432 
R&D 333,828  16,911  37,001 
SG&A 237,621  11,951  25,266 
Other segment items (1)
9,744  27,281  11,978 
Segment profit (loss) $ 1,338,413  $ 10,746  $ (2,502) $ 1,346,657 
For the three months ended December 31, 2024
Revenue $ 2,755,743  $ 160,407  $ 161,080  $ 3,077,230 
Less:
Cost of revenue 992,666  79,285  105,554 
R&D 299,315  11,018  35,319 
SG&A 215,406  13,762  26,397 
Other segment items (1)
10,546  27,283  259,929 
Segment profit (loss) $ 1,237,810  $ 29,059  $ (266,119) $ 1,000,750 
For the six months ended December 31, 2025
Revenue $ 5,904,040  $ 260,332  $ 341,663  $ 6,506,035 
Less:
Cost of revenue 2,141,879  135,229  173,615 
R&D 644,844  30,417  69,113 
SG&A 452,664  23,388  50,969 
Other segment items (1)
19,489  54,562  23,977 
Segment profit $ 2,645,164  $ 16,736  $ 23,989  $ 2,685,889 
For the six months ended December 31, 2024
Revenue $ 5,330,894  $ 288,741  $ 299,063  $ 5,918,698 
Less:
Cost of revenue 1,951,035  143,125  186,000 
R&D 573,770  21,318  71,336 
SG&A 408,828  27,702  54,053 
Other segment items (1)
22,123  54,564  277,764 
Segment profit (loss) $ 2,375,138  $ 42,032  $ (290,090) $ 2,127,080 
__________________
(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 for all periods presented and impairment of goodwill and purchased intangible assets for the three and six months ended December 31, 2024.
The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
  Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2025 2024 2025 2024
Total revenues for reportable segments $ 3,297,400  $ 3,077,230  $ 6,506,035  $ 5,918,698 
Effects of changes in foreign currency exchange rates (254) (379) 807  (306)
Total revenues $ 3,297,146  $ 3,076,851  $ 6,506,842  $ 5,918,392 
The following table reconciles total segment profit to total income before income taxes for the indicated periods:
  Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2025 2024 2025 2024
Total segment profit $ 1,346,657  $ 1,000,750  $ 2,685,889  $ 2,127,080 
Unallocated amounts (1)
(15,489) (2,302) (13,434) 4,105 
Interest expense 69,668  74,981  140,743  157,152 
Other expense (income), net (37,825) (44,458) (81,199) (85,393)
Income before income taxes $ 1,330,303  $ 972,529  $ 2,639,779  $ 2,051,216 
__________________
(1)Unallocated amounts include effects of changes in exchange rates, as well as restructuring costs and other corporate expenses.
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,
2025 2024 2025 2024
Revenues:
China $ 994,891  30.2  % $ 1,092,525  35.5  % $ 2,262,047  34.8  % $ 2,290,829  38.7  %
Taiwan 844,987  25.6  % 881,211  28.6  % 1,638,595  25.2  % 1,343,202  22.7  %
Korea 479,314  14.5  % 357,434  11.6  % 778,687  12.0  % 596,108  10.1  %
North America 394,231  12.0  % 286,191  9.3  % 692,138  10.6  % 787,134  13.3  %
Japan 229,050  6.9  % 228,614  7.5  % 524,259  8.1  % 417,183  7.0  %
Rest of Asia 193,503  5.9  % 96,610  3.1  % 298,970  4.5  % 204,850  3.5  %
Europe and Israel 161,170  4.9  % 134,266  4.4  % 312,146  4.8  % 279,086  4.7  %
Total $ 3,297,146  100.0  % $ 3,076,851  100.0  % $ 6,506,842  100.0  % $ 5,918,392  100.0  %
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,
2025 2024 2025 2024
Revenues:
Wafer Inspection $ 1,572,782  48  % $ 1,562,610  51  % $ 3,110,026  48  % $ 2,931,553  50  %
Patterning 696,161  21  % 530,680  17  % 1,363,588  21  % 1,107,089  19  %
Specialty Semiconductor Process 121,588  4  % 142,987  5  % 221,807  3  % 255,789  4  %
PCB and Component Inspection 80,348  2  % 93,327  3  % 197,646  3  % 166,235  3  %
Services 786,053  24  % 667,389  22  % 1,530,743  24  % 1,311,541  22  %
Other 40,214  1  % 79,858  2  % 83,032  1  % 146,185  2  %
Total $ 3,297,146  100  % $ 3,076,851  100  % $ 6,506,842  100  % $ 5,918,392  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, 2025, two customers accounted for approximately 17% and 11% of total revenues each. In the three months ended December 31, 2024, one customer accounted for approximately 23% of total revenues. In the six months ended December 31, 2025, two customers accounted for approximately 16% and 11% of total revenues each. In the six months ended December 31, 2024, one customer accounted for approximately 18% of total revenues. Two customers on an individual basis accounted for greater than 10% of accounts receivable, net, at both December 31, 2025 and June 30, 2025.
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, 2025 June 30, 2025
Land, property and equipment, net:
United States $ 764,869  $ 728,162 
Europe 280,639  253,848 
Singapore 165,596  153,052 
Rest of Asia 71,257  49,109 
Israel 62,407  68,604 
Total $ 1,344,768  $ 1,252,775