XML 35 R23.htm IDEA: XBRL DOCUMENT v3.24.4
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 6 Months Ended
Dec. 31, 2024
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 December 31,Six Months Ended December 31,
(In thousands)2024202320242023
Semiconductor Process Control:
Revenues$2,755,743 $2,194,079 $5,330,894 $4,329,557 
Segment gross profit1,763,077 1,418,339 3,379,859 2,804,868 
Specialty Semiconductor Process:
Revenues160,407 150,065 288,741 276,784 
Segment gross profit81,122 81,278 145,616 150,579 
PCB and Component Inspection:
Revenues161,080 143,032 299,063 279,075 
Segment gross profit55,526 57,165 113,063 96,985 
Totals:
Revenues for reportable segments$3,077,230 $2,487,176 $5,918,698 $4,885,416 
Segment gross profit$1,899,725 $1,556,782 $3,638,538 $3,052,432 

The following table reconciles total reportable segment revenues to total revenues for the indicated periods:
 Three Months Ended December 31,Six Months Ended December 31,
(In thousands)2024202320242023
Total revenues for reportable segments$3,077,230 $2,487,176 $5,918,698 $4,885,416 
Corporate allocations and effects of changes in foreign currency exchange rates(379)(450)(306)(1,734)
Total revenues$3,076,851 $2,486,726 $5,918,392 $4,883,682 

The following table reconciles total segment gross profit to income before income taxes for the indicated periods:
 Three Months Ended December 31,Six Months Ended December 31,
(In thousands)2024202320242023
Total segment gross profit$1,899,725 $1,556,782 $3,638,538 $3,052,432 
Acquisition-related charges, corporate allocations and effects of changes in foreign currency exchange rates(1)
44,335 46,802 89,038 92,387 
R&D346,157 320,418 669,302 631,632 
SG&A267,081 237,244 518,123 476,889 
Impairment of goodwill and purchased intangible assets239,100 219,000 239,100 219,000 
Interest expense74,981 74,202 157,152 148,436 
Other expense (income), net(44,458)(32,154)(85,393)(58,893)
Income before income taxes$972,529 $691,270 $2,051,216 $1,542,981 
__________________
(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 December 31,Six Months Ended December 31,
2024202320242023
Revenues:
China$1,092,525 36 %$1,027,780 41 %$2,290,829 39 %$2,053,724 42 %
Taiwan881,211 29 %375,259 15 %1,343,202 23 %780,602 16 %
Korea357,434 12 %310,672 12 %596,108 10 %530,493 11 %
North America286,191 9 %263,613 11 %787,134 13 %514,326 10 %
Japan228,614 7 %297,757 12 %417,183 7 %525,134 11 %
Europe and Israel134,266 4 %123,362 5 %279,086 5 %291,798 6 %
Rest of Asia96,610 3 %88,283 4 %204,850 3 %187,605 4 %
Total$3,076,851 100 %$2,486,726 100 %$5,918,392 100 %$4,883,682 100 %
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,
2024202320242023
Revenues:
Wafer Inspection$1,562,610 51 %$1,166,484 47 %$2,931,553 50 %$2,176,682 45 %
Patterning530,680 17 %430,384 17 %1,107,089 19 %972,872 20 %
Specialty Semiconductor Process142,987 5 %136,278 6 %255,789 4 %248,381 5 %
PCB and Component Inspection93,327 3 %77,298 3 %166,235 3 %148,462 3 %
Services667,389 22 %564,917 23 %1,311,541 22 %1,125,209 23 %
Other79,858 2 %111,365 4 %146,185 2 %212,076 4 %
Total$3,076,851 100 %$2,486,726 100 %$5,918,392 100 %$4,883,682 100 %
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, 2024, one customer accounted for approximately 23% of total revenues. In the three months ended December 31, 2023, no customers accounted for greater than 10% of revenues. In the six months ended December 31, 2024, one customer accounted for approximately 18% of total revenues. In the six months ended December 31, 2023, one customer accounted for approximately 11% of total revenues. One customer on an individual basis accounted for greater than 10% of accounts receivable, net, at December 31, 2024 and at June 30, 2024.
Land, property and equipment, net by geographic region as of the dates indicated below were as follows: 
As ofAs of
(In thousands)December 31, 2024June 30, 2024
Land, property and equipment, net:
United States$700,963 $689,937 
Europe218,372 155,812 
Singapore147,895 148,557 
Israel75,685 84,279 
Rest of Asia31,013 31,383 
Total$1,173,928 $1,109,968