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Photronics Reports First Quarter Fiscal 2025 Results

BROOKFIELD, Conn. February 26, 2025 (GLOBE NEWSWIRE) — Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its first quarter of fiscal year 2025 ended February 2, 2025.

 

“We achieved top-line results in line with our expectations and reflective of seasonal demand patterns,” said Frank Lee, chief executive officer. “Within Integrated Circuits (IC) and Flat Panel Display (FPD) end markets, we observed favorable demand for high-end products while the most mature mainstream masks were impacted by general market softness. In IC, photomasks supporting node migration and memory were particularly strong. In FPD, we continue to strategically leverage our IC technical expertise to drive our market leading position and market share gains. We remain cautious about 2025, while we continue to manage costs and optimize product mix to deliver margins.”

 

First Quarter Fiscal 2025 Results

•	Revenue was $212.1 million, down 2% year-over-year and 5% sequentially.

•	GAAP Net income attributable to Photronics, Inc. shareholders was $42.9 million, or $0.68 per diluted share, compared with $26.2 million, or $0.42 per diluted share, in the first quarter of 2024 and $33.9 million, or $0.54 per diluted share, in the fourth quarter of 2024.

•	Non-GAAP Net income attributable to Photronics, Inc. shareholders was $32.4 million, or $0.52 per diluted share, compared with $29.9 million, or $0.48 per diluted share in the first quarter of 2024 and $37.1 million, or $0.59 per diluted share, in the fourth quarter of 2024.

•	IC revenue was $154.0 million, down 2% year-over-year and 6% sequentially.

•	FPD revenue was $58.1 million, down 1% from the same quarter last year and 1% sequentially.

•	Cash generated from operating activities was $78.5 million, cash invested in organic growth through capital expenditures was $35.2 million, and cash returned to shareholders through share repurchases was $4.6 million.

•	Cash at the end of the quarter was $642.2 million, and Debt was $2.7 million.

 

Second Quarter Fiscal 2025 Guidance

 

For the second quarter of fiscal 2025, Photronics expects Revenue to be between $208 million and $216 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.44 and $0.50 per diluted share.

 

Webcast

 

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on February 26, 2025.  The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call’s scheduled start time.

 

About Photronics

 

 

Forward-Looking Statements

 

Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results.  These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially.  Please refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

 

Non-GAAP Financial Measures

 

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share are “non-GAAP financial measures” as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

 

		Three Months Ended
		February 2, 2025				October 31, 2024				January 28, 2024
Revenue		$	212,138			$	222,628			$	216,334
Cost of goods sold			136,603				140,326				137,079
Gross Profit			75,535				82,302				79,255
Gross margin %			35.6	%			37.0	%			36.6	%
Operating Expenses:
Selling, general and administrative			19,101				21,008				18,321
Research and development			4,257				5,285				3,445
Total Operating Expenses			23,358				26,293				21,766
Other operating (loss) gain			-				(182	)			-
Operating Income			52,177				55,827				57,489
Operating Margin			24.6	%			25.1	%			26.6	%
Non-operating (loss) income, net			24,981				(1,034	)			(3,747	)
Income Before Income Tax Provision			77,158				54,793				53,742
Income tax provision			18,901				14,568				14,660
Net Income			58,257				40,225				39,082
Net income attributable to noncontrolling interests			15,406				6,356				12,902
Net income attributable to Photronics, Inc. shareholders		$	42,851			$	33,869			$	26,180
Earnings per share attributed to Photronics, Inc. shareholders:
Basic		$	0.69			$	0.55			$	0.43
Diluted		$	0.68			$	0.54			$	0.42
Weighted-average number of common shares outstanding:
Basic			62,093				61,863				61,455
Diluted			62,661				62,456				62,283

		February 2, 2025				October 31, 2024
Assets
Current assets:
Cash and cash equivalents		$	642,200			$	598,485
Short-term investments			-				42,184
Accounts receivable			188,438				200,830
Inventories			57,583				56,527
Other current assets			32,613				33,036
Total current assets			920,834				931,062
Property, plant and equipment, net			749,809				745,257
Other assets			34,028				35,740
Total assets		$	1,704,671			$	1,712,059
Liabilities and Equity
Current liabilities:
Current portion of long-term debt		$	2,631			$	17,972
Accounts payable and accrued liabilities			160,012				165,839
Total current liabilities			162,643				183,811
Long-term debt			21				25
Other liabilities			47,798				47,464
Equity:
Photronics, Inc. shareholders’ equity			1,127,749				1,120,864
Noncontrolling interests			366,460				359,895
Total equity			1,494,209				1,480,759
Total liabilities and equity		$	1,704,671			$	1,712,059

		Three Months Ended
		February 2, 2025				January 28, 2024
Cash flows from operating activities:
Net income		$	58,257			$	39,082
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			20,792				20,702
Share-based compensation			3,334				2,573
Changes in operating assets, liabilities and other			(3,917	)			(20,849	)
Net cash provided by operating activities			78,466				41,508
Cash flows from investing activities:
Purchases of property, plant and equipment			(35,200	)			(43,314	)
Purchases of short-term investments			-				(2,436	)
Proceeds from maturities of short-term investments			41,482				2,500
Government incentives			620				1,091
Other			(57	)			(56	)
Net cash provided by (used in) investing activities			6,845				(42,215	)
Cash flows from financing activities:
Repayments of debt			(15,343	)			(1,194	)
Common stock repurchases			(4,573	)			-
Proceeds from share-based arrangements			1,433				936
Net settlements of restricted stock awards			(1,995	)			(2,613	)
Net cash used in financing activities			(20,478	)			(2,871	)
Effects of exchange rate changes on cash, cash equivalents, and restricted cash			(21,202	)			13,026
Net increase in cash, cash equivalents, and restricted cash			43,631				9,448
Cash, cash equivalents, and restricted cash, beginning of period			601,243				501,867
Cash, cash equivalents, and restricted cash, end of period		$	644,874			$	511,315

		Three Months ended
		February 2, 2025				October 31, 2024				January 28, 2024
GAAP Net income attributable to Photronics, Inc. shareholders		$	42,851			$	33,869			$	26,180
FX (gain) loss			(18,443	)			7,758				8,909
Estimated tax effects of FX (gain) loss			5,152				(1,936	)			(2,244	)
Estimated noncontrolling interest effects of above			2,823				(2,637	)			(2,939	)
Non-GAAP Net income attributable to Photronics, Inc. shareholders		$	32,383			$	37,054			$	29,906
Weighted-average number of common shares outstanding - Diluted			62,661				62,456				62,283
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders		$	0.68			$	0.54			$	0.42
Effects of non-GAAP adjustments above			(0.16	)			0.05				0.06
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders		$	0.52			$	0.59			$	0.48