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Onto (ONTO) Augments Inspection Portfolio With Dragonfly G3

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Zacks Equity Research
·4 min read
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Onto Innovation Inc. ONTO recently enhanced its product inspection and detection portfolio with the launch of Dragonfly G3 inspection platform. Designed to meet the most advanced 2D and 3D sensitivity requirements for advanced packaging and specialty device manufacturers, the product is likely to be a boon in identifying low contrast defects that hitherto went unnoticed.   

Backed by an optical system with sub-micron resolution, the Dragonfly G3 platform significantly improves 2D defect detection capabilities in bright field, dark field or Clearfind illumination mode that eliminates high-contrast graininess seen under conventional illumination. Scanning relatively 30% faster than its predecessor, it also enhances 3D defect detection capabilities by leveraging a redesigned 3D metrology system called the LT-200. The platform is equipped with Discover Defect software, which provides actionable value to raw data through its intelligent, real-time analytics for complex applications in 5G, high-performance computing and DRAM packages.  

Notably, the Dragonfly G3 platform offers sub-micron sensitivity for complex packaging designs requiring redistribution lines to the tune of 1µm. Such high-tech product attributes have become more relevant with the growing specialty device market, which includes next-generation power devices, RF filters and amplifiers. These products require impeccable quality standards and process control equipment beyond the capabilities of legacy systems in order to detect smaller and new defect types. The Dragonfly G3 platform perfectly fits this bill with highly sensitive tools, providing repeatable and accurate data for high-precision product materials.

In addition, it includes TrueADC AI — a proprietary multi-engine deep learning approach for a comprehensive solution to customers. This solution has greatly improved yield with less scrap, enhancing the rate of misclassifications by 30-50% while outperforming manual classification rates by more than 400%. The product has already garnered significant interest among customers and resulted in multiple orders from unnamed third-party packaging and test services provider and image sensor manufacturer.

Backed by an expertise in core technologies of optics and software, the rapid and ongoing development of new products and enhancements to existing products enable Onto to quickly respond to dynamic industry trends as well as competitive challenges. It caters to various markets such as Bare Wafer, Image Sensors, Flat Panel Display, Probe Test and RF/MEMS (Radio-frequency/Microelectromechanical system) among others. As the complexity of leading devices is rapidly increasing, manufacturers and fabless companies need better ways to measure physical features such as film thickness and feature sizes. Equipped with a best-in-class suite of semiconductor materials, Onto is focused on process control and is well positioned to capitalize on almost every aspect of the semiconductor industry, including 5G, 3D NAND (NOT AND) and advanced packaging.

We remain impressed with the inherent long-term growth potential of this Zacks Rank #3 (Hold) stock.

Some better-ranked stocks in the broader industry are Comtech Telecommunications Corp. CMTL, sporting a Zacks Rank #1 (Strong Buy), and Qualcomm Incorporated QCOM and Sonim Technologies, Inc. SONM, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Comtech delivered a positive earnings surprise of 2%, on average, in the trailing four quarters.

Qualcomm has a long-term earnings growth expectation of 19.6%. It delivered a positive earnings surprise of 17.3% in the trailing four quarters, on average, beating estimates thrice.

Sonim delivered a positive earnings surprise of 2.2%, on average, in the trailing four quarters.

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