Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.26.1
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Mar. 31, 2026
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 March 31, 2026
Revenue $ 3,083,912  $ 164,028  $ 167,642  $ 3,415,582 
Less:
Cost of revenue 1,127,180  88,505  80,956 
R&D 344,303  13,806  29,905 
SG&A 240,772  11,524  24,033 
Other segment items (1)
8,805  26,754  11,420 
Segment profit $ 1,362,852  $ 23,439  $ 21,328  $ 1,407,619 
For the three months ended March 31, 2025
Revenue $ 2,738,817  $ 156,500  $ 168,552  $ 3,063,869 
Less:
Cost of revenue 973,623  72,673  87,453 
R&D 289,222  12,827  30,414 
SG&A 198,305  10,415  23,909 
Other segment items (1)
10,062  27,199  16,402 
Segment profit $ 1,267,605  $ 33,386  $ 10,374  $ 1,311,365 
For the nine months ended March 31, 2026
Revenue $ 8,987,952  $ 424,360  $ 509,305  $ 9,921,617 
Less:
Cost of revenue 3,269,059  223,734  254,571 
R&D 989,147  44,223  99,018 
SG&A 693,436  34,912  75,002 
Other segment items (1)
28,294  81,316  35,397 
Segment profit $ 4,008,016  $ 40,175  $ 45,317  $ 4,093,508 
For the nine months ended March 31, 2025
Revenue $ 8,069,711  $ 445,241  $ 467,615  $ 8,982,567 
Less:
Cost of revenue 2,924,658  215,798  273,453 
R&D 862,992  34,145  101,750 
SG&A 607,133  38,117  77,962 
Other segment items (1)
32,185  81,763  294,166 
Segment profit (loss) $ 3,642,743  $ 75,418  $ (279,716) $ 3,438,445 
__________________
(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 nine months ended March 31, 2025.
The following table reconciles total reportable segment revenue to total revenue for the indicated periods:
  Three Months Ended March 31, Nine Months Ended March 31,
(In thousands) 2026 2025 2026 2025
Total revenues for reportable segments $ 3,415,582  $ 3,063,869  $ 9,921,617  $ 8,982,567 
Effects of changes in foreign currency exchange rates (504) (840) 303  (1,146)
Total revenues $ 3,415,078  $ 3,063,029  $ 9,921,920  $ 8,981,421 
The following table reconciles total segment profit to total income before income taxes for the indicated periods:
  Three Months Ended March 31, Nine Months Ended March 31,
(In thousands) 2026 2025 2026 2025
Total segment profit $ 1,407,619  $ 1,311,365  $ 4,093,508  $ 3,438,445 
Unallocated amounts (1)
110  10,973  (13,324) 15,078 
Interest expense 70,423  71,889  211,166  229,041 
Other expense (income), net (79,675) (35,930) (160,874) (121,323)
Income before income taxes $ 1,416,761  $ 1,264,433  $ 4,056,540  $ 3,315,649 
__________________
(1)Unallocated amounts include effects of changes in exchange rates, 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 March 31, Nine Months Ended March 31,
2026 2025 2026 2025
Revenues:
Taiwan $ 869,110  25.5  % $ 988,470  32.3  % $ 2,507,705  25.3  % $ 2,331,672  26.0  %
China 829,583  24.3  % 792,884  25.9  % 3,091,630  31.2  % 3,083,713  34.3  %
Korea 681,060  19.9  % 378,548  12.4  % 1,459,747  14.7  % 974,656  10.9  %
North America 410,241  12.0  % 293,980  9.6  % 1,102,379  11.1  % 1,081,114  12.0  %
Europe and Israel 247,323  7.2  % 170,056  5.5  % 559,469  5.6  % 449,142  5.0  %
Rest of Asia 197,387  5.8  % 100,440  3.3  % 496,357  5.0  % 305,290  3.4  %
Japan 180,374  5.3  % 338,651  11.0  % 704,633  7.1  % 755,834  8.4  %
Total $ 3,415,078  100.0  % $ 3,063,029  100.0  % $ 9,921,920  100.0  % $ 8,981,421  100.0  %
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,
2026 2025 2026 2025
Revenues:
Wafer Inspection $ 1,739,671  51  % $ 1,495,685  49  % $ 4,849,697  49  % $ 4,427,238  49  %
Patterning 615,076  18  % 636,415  21  % 1,978,664  20  % 1,743,504  20  %
Specialty Semiconductor Process 144,199  4  % 138,376  4  % 366,006  4  % 394,165  4  %
PCB and Component Inspection 95,148  3  % 104,254  3  % 292,794  3  % 270,489  3  %
Services 774,791  23  % 669,208  22  % 2,305,534  23  % 1,980,749  22  %
Other 46,193  1  % 19,091  1  % 129,225  1  % 165,276  2  %
Total $ 3,415,078  100  % $ 3,063,029  100  % $ 9,921,920  100  % $ 8,981,421  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, 2026, two customers accounted for approximately 19% and 11% of total revenues each. In the three months ended March 31, 2025, one customer accounted for approximately 23% of total revenues. In the nine months ended March 31, 2026, one customer accounted for approximately 17% of total revenues. In the nine months ended March 31, 2025, one customer accounted for approximately 20% of total revenues. Three customers and two customers on an individual basis accounted for greater than 10% of accounts receivable, net, at March 31, 2026 and June 30, 2025, 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, 2026 June 30, 2025
Land, property and equipment, net:
United States $ 768,968  $ 728,162 
Europe 285,242  253,848 
Singapore 178,574  153,052 
Rest of Asia 71,784  49,109 
Israel 59,216  68,604 
Total $ 1,363,784  $ 1,252,775