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

SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

v3.26.1
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 12 Months Ended
Jun. 30, 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 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 announced the end of 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 year ended June 30, 2024
Revenues $ 8,733,556  $ 528,701  $ 552,491  $ 9,814,748 
Less:
Costs of revenues 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
Revenues $ 10,947,359  $ 587,107  $ 621,721  $ 12,156,187 
Less:
Costs of revenues 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 
For the year ended June 30, 2026
Revenues $ 12,244,733  $ 584,064  $ 750,415  $ 13,579,212 
Less:
Costs of revenues 4,453,558  305,303  365,120 
R&D 1,341,321  59,418  130,166 
SG&A 930,850  47,423  100,930 
Other segment items (1)
36,174  107,347  46,155 
Segment profit $ 5,482,830  $ 64,573  $ 108,044  $ 5,655,447 
__________________
(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 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) 2026 2025 2024
Total revenues for reportable segments $ 13,579,212  $ 12,156,187  $ 9,814,748 
Effects of changes in foreign currency exchange rates 264  (25) (2,501)
Total revenues $ 13,579,476  $ 12,156,162  $ 9,812,247 
The following table reconciles total segment profit to total income before income taxes for the indicated periods:
Year Ended June 30,
(In thousands) 2026 2025 2024
Total segment profit $ 5,655,447  $ 4,820,541  $ 3,388,139 
Unallocated amounts (1)
(5,333) 45,414  41,929 
Interest expense 284,440  302,166  311,253 
Other expense (income), net (229,585) (171,487) (155,075)
Income before income taxes $ 5,605,925  $ 4,644,448  $ 3,190,032 
__________________
(1)Unallocated amounts include effects of changes in exchange rates, restructuring costs and other corporate expenses.
Our significant operations outside the U.S. include manufacturing facilities in Singapore, Israel, China and various locations throughout Europe and sales and service facilities in major semiconductor manufacturing regions around the world to support our global customer base. 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,
2026 2025 2024
Revenues:
China $ 4,048,358  29.8  % $ 4,042,567  33.3  % $ 4,196,727  42.8  %
Taiwan 3,643,742  26.8  % 3,205,392  26.4  % 1,738,065  17.7  %
Korea 1,833,836  13.5  % 1,452,826  11.9  % 906,924  9.2  %
North America 1,757,337  13.0  % 1,362,311  11.2  % 1,070,791  10.9  %
Japan 915,111  6.7  % 1,133,002  9.3  % 963,203  9.8  %
Europe and Israel 726,693  5.4  % 574,197  4.7  % 540,263  5.6  %
Rest of Asia 654,399  4.8  % 385,867  3.2  % 396,274  4.0  %
Total $ 13,579,476  100.0  % $ 12,156,162  100.0  % $ 9,812,247  100.0  %
The following is a summary of revenues by major product categories for the indicated periods:
(Dollar amounts in thousands) Year Ended June 30,
2026 2025 2024
Revenues:
Wafer Inspection $ 6,630,813  49  % $ 6,198,815  51  % $ 4,333,296  44  %
Patterning 2,706,763  20  % 2,196,347  18  % 2,054,442  21  %
Specialty Semiconductor Process 502,519  4  % 517,201  4  % 470,565  5  %
PCB and Component Inspection 460,320  3  % 355,891  3  % 291,161  3  %
Services 3,125,939  23  % 2,683,308  22  % 2,329,568  24  %
Other 153,122  1  % 204,600  2  % 333,215  3  %
Total $ 13,579,476  100  % $ 12,156,162  100  % $ 9,812,247  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 each of the fiscal years ended June 30, 2026 and 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.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows:
As of June 30,
(In thousands) 2026 2025
Land, property and equipment, net:
U.S. $ 771,331  $ 728,162 
Europe 289,614  253,848 
Singapore 191,534  153,052 
Rest of Asia 73,110  49,109 
Israel 54,961  68,604 
Total $ 1,380,550  $ 1,252,775