ONTO INNOVATION INC. Revenue Disclosure
The following table represents a disaggregation of revenue by timing of revenue:
|
|
Year Ended |
|
|||||||||
|
|
January 3, |
|
|
December 28, |
|
|
December 30, |
|
|||
|
|
(in thousands) |
|
|||||||||
Point-in-time |
|
$ |
935,580 |
|
|
$ |
927,368 |
|
|
$ |
761,797 |
|
Over-time |
|
|
69,683 |
|
|
|
59,953 |
|
|
|
54,071 |
|
Total revenue |
|
$ |
1,005,263 |
|
|
$ |
987,321 |
|
|
$ |
815,868 |
|
See Note 15 of the Notes to the Consolidated Financial Statements for additional discussion of the Company’s disaggregated revenue in detail.
Contract Assets and Contract Liabilities
Contract assets consist of amounts the Company has not invoiced but has completed the related performance obligation. These amounts generally arise from variances between the contractual payment terms and the transaction price assigned to the open performance obligations (e.g., the Company has recognized revenue in an amount greater than the amount that is billable under the contract). The contract assets amounts are recorded in “Accounts receivable” in the Consolidated Balance Sheets. As of January 3, 2026 and December 28, 2024, the Company had contract assets of $3.5 million and $10.1 million, respectively.
The Company records contract liabilities when the customer has been billed in advance of the Company completing its performance obligations primarily with respect to liabilities related to service contracts and installation. For contracts that have a duration of one year or less, these amounts are recorded as “Deferred revenue” in the Consolidated Balance Sheets. For contracts with a duration longer than one year, these amounts are recorded in “Other non-current liabilities” in the Consolidated Balance Sheets. As of January 3, 2026 and December 28, 2024, the Company carried a long-term deferred revenue balance of $6.3 million and $4.0 million, respectively.
Changes in deferred revenue were as follows:
|
|
Year Ended |
|
|||||
|
|
January 3, |
|
|
December 28, |
|
||
|
|
(in thousands) |
|
|||||
Balance, beginning of the period |
|
$ |
37,836 |
|
|
$ |
27,225 |
|
Deferral of revenue |
|
|
80,877 |
|
|
|
76,584 |
|
Recognition of current year deferred revenue |
|
|
(51,476 |
) |
|
|
(48,711 |
) |
Recognition of prior period deferred revenue |
|
|
(29,206 |
) |
|
|
(17,262 |
) |
Balance, ending of the period |
|
$ |
38,031 |
|
|
$ |
37,836 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 25, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.