Revenue and Profitability - Revenue for Q1 FY25 was $212.1 million, a decrease of 4.7% compared to Q4 FY24 and a decrease of 1.9% compared to Q1 FY24, primarily due to seasonal softness and mainstream weakness in Asia and Europe [110]. - Gross profit for Q1 FY25 was $75.5 million, resulting in a gross margin of 35.6%, down from 37.0% in Q4 FY24, primarily due to a revenue decrease of 4.7% [113]. - Net income attributable to Photronics, Inc. shareholders was 20.2% in Q1 FY25, an increase from 15.3% in Q4 FY24 [104]. - Non-GAAP net income attributable to shareholders for Q1 FY25 was $32.4 million, compared to $29.9 million in Q1 FY24 [134]. Expenses - Selling, general, and administrative expenses were $19.1 million in Q1 FY25, a decrease from $21.0 million in Q4 FY24, attributed to lower compensation and professional fees [115]. - Research and development expenses decreased to $4.3 million in Q1 FY25 from $5.3 million in Q4 FY24, primarily due to reduced qualification activities in Asia [116]. Cash Flow and Investments - As of February 2, 2025, cash and cash equivalents totaled $642.2 million, an increase from $598.5 million on October 31, 2024 [122]. - Net cash provided by operating activities increased by $37.0 million in Q1 FY25, totaling $78.5 million compared to $41.5 million in Q1 FY24 [128]. - Net cash flows provided by investing activities improved by $49.0 million in Q1 FY25, driven by an additional maturity of short-term investments of $39.0 million [129]. - The company repurchased 195,079 shares for $4.6 million during Q1 FY25, with $95.4 million remaining under the share repurchase authorization [125]. Tax and Other Income - The effective income tax rate for Q1 FY25 was 24.5%, down from 26.6% in Q4 FY24, primarily due to changes in the jurisdictional mix of earnings [118]. - Other income increased to $25.0 million in Q1 FY25 from a loss of $1.0 million in Q4 FY24, driven by favorable foreign currency impacts [117]. Market Conditions and Future Outlook - The backlog for IC photomasks can expand to as long as two to three months due to demand exceeding supply capacity [100]. - The company anticipates continued transitions and cycles in the semiconductor industry, which will affect its business and financial condition [101]. - The company estimates capital expenditures for fiscal year 2025 to be approximately $200 million, primarily in Asia and the U.S. [124]. - The company plans to continue investing in its business and is ready to pursue mergers, acquisitions, or strategic partnerships if suitable opportunities arise [123]. Foreign Currency and Commitments - A 10% adverse movement in foreign currencies would have resulted in a net unrealized pre-tax loss of $62.7 million as of February 2, 2025 [141]. - Outstanding capital commitments as of February 2, 2025, were approximately $170.3 million, with accrued liabilities related to capital equipment purchases of approximately $13.9 million [124]. - The company has CNY 200 million (approximately $27.7 million) of borrowing capacity in China to support local operations [122].

PHOTRONICS, INC. Fiscal Q1 2025 Financial Results February 26, 2025 PHOTRONICS, INC. Investor Presentation February 2025 Safe Harbor Statement This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and uncertainties. We refer you to the risk factors in our Annual Report on Form 10- ...

Photronics, Inc. (NASDAQ:PLAB) Q1 2025 Earnings Conference Call February 26, 2025 8:30 AM ET Company Participants Ted Moreau - Vice President of Investor Relations Frank Lee - Chief Executive Officer Eric Rivera - Chief Financial Officer Chris Progler - Chief Technology Officer Conference Call Participants Thomas Diffely - D.A. Davidson Gowshi Sriharan - Singular Research Operator And hello, and welcome to Photronics fiscal first quarter 2025 financial results conference call. At this time, all participants ...

Financial Performance - Revenue for Q1 Fiscal 2025 was $212.1 million, down 2% year-over-year and 5% sequentially[6]. - GAAP Net income attributable to Photronics, Inc. shareholders was $42.9 million, or $0.68 per diluted share, compared to $26.2 million, or $0.42 per diluted share, in Q1 2024[6]. - Non-GAAP Net income attributable to Photronics, Inc. shareholders was $32.4 million, or $0.52 per diluted share, compared to $29.9 million, or $0.48 per diluted share in Q1 2024[6]. - Integrated Circuits (IC) revenue was $154.0 million, down 2% year-over-year and 6% sequentially[6]. - Flat Panel Display (FPD) revenue was $58.1 million, down 1% year-over-year and 1% sequentially[6]. Cash Flow and Investments - Cash generated from operating activities was $78.5 million, with $35.2 million invested in organic growth through capital expenditures[6]. - Cash at the end of the quarter was $642.2 million, with total debt of $2.7 million[6]. Future Outlook - For Q2 Fiscal 2025, revenue is expected to be between $208 million and $216 million, with non-GAAP Net income per diluted share projected between $0.44 and $0.50[5]. - The company remains cautious about 2025 while managing costs and optimizing product mix to deliver margins[3]. Operational Overview - Photronics operates 11 manufacturing facilities globally, strategically located in Asia, Europe, and North America[8].

Core Viewpoint - Photronics, Inc. reported its financial results for the first quarter of fiscal year 2025, indicating a slight decline in revenue but an increase in net income compared to the previous year [1][8]. Financial Performance - Revenue for the first quarter was $212.1 million, down 2% year-over-year and 5% sequentially [8]. - GAAP net income attributable to Photronics, Inc. shareholders was $42.9 million, or $0.68 per diluted share, compared to $26.2 million, or $0.42 per diluted share, in the first quarter of 2024 [8]. - Non-GAAP net income attributable to Photronics, Inc. shareholders was $32.4 million, or $0.52 per diluted share, compared to $29.9 million, or $0.48 per diluted share in the first quarter of 2024 [8]. - Integrated Circuits (IC) revenue was $154.0 million, down 2% year-over-year and 6% sequentially, while Flat Panel Display (FPD) revenue was $58.1 million, down 1% from the same quarter last year and 1% sequentially [8]. Market Insights - The company observed favorable demand for high-end products in the IC and FPD markets, particularly for photomasks supporting node migration and memory [2]. - The most mature mainstream masks were affected by general market softness, leading to a cautious outlook for 2025 [2]. Guidance - For the second quarter of fiscal 2025, Photronics expects revenue to be between $208 million and $216 million, with non-GAAP net income attributable to shareholders projected to be between $0.44 and $0.50 per diluted share [4]. Cash Flow and Investments - Cash generated from operating activities was $78.5 million, with $35.2 million invested in organic growth through capital expenditures [8]. - Cash returned to shareholders through share repurchases amounted to $4.6 million, and cash at the end of the quarter was $642.2 million [8]. Company Overview - Photronics is a leading manufacturer of photomasks for integrated circuits and flat panel displays, operating 11 manufacturing facilities globally [6].

Core Viewpoint - Photronics (PLAB) is expected to report its first-quarter fiscal 2025 results on February 26, with anticipated revenues between $208 million and $216 million and non-GAAP earnings between 43 cents and 19 cents [1][2]. Group 1: Financial Performance Expectations - For the upcoming quarter, PLAB's performance is likely to benefit from strong sales in the Integrated Circuit (IC) and Flat Panel Display (FPD) segments, with a notable 21% increase in high-end IC mask sales in the previous quarter [2][3]. - The demand for high-end photomasks is expected to be driven by growth in nodes such as 22-28 nanometers and sub-14 nanometers, particularly in the specialty Extreme Ultraviolet business [4]. - The FPD segment is also projected to see strong demand due to the increased adoption of AMOLED and LTPS display technologies, which require advanced photomasks [4][5]. Group 2: Market Dynamics and Challenges - Despite the anticipated growth, PLAB's first-quarter performance may be negatively impacted by seasonal factors, including the Chinese New Year slowdown and reduced demand for advanced mobile displays [5]. - Year-to-date, PLAB shares have declined by 7.6%, underperforming the Zacks Computer & Technology sector, which has seen a return of 0.9% [6]. - The company has outperformed peers such as Hoya and Dai Nippon Printing, which have experienced larger declines of 16.8% and 13.6%, respectively, as well as the Semiconductor Equipment - Photomasks industry peer Fujifilm, which has seen a 23.6% drop [7]. Group 3: Investment Outlook - Despite strong sales in high-end IC and growth in the FPD segment, PLAB faces challenges from sluggish semiconductor industry trends, geopolitical uncertainties, and macroeconomic headwinds that may affect financial performance [8]. - Currently, Photronics holds a Zacks Rank 3 (Hold), suggesting that investors should wait for a more favorable time to accumulate the stock [9].

Core Viewpoint - Photronics, Inc. is set to announce its financial results for the first quarter of fiscal 2025 on February 26, 2025, before market opening [1] Company Overview - Photronics is a leading global manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD), utilizing high precision quartz plates that contain microscopic images of electronic circuits [3] - The company has been a trusted supplier for over 55 years and operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [3] Upcoming Events - A public conference call will be held on the same day as the financial results announcement at 8:30 a.m. Eastern time, where management will address questions regarding financial performance, business conditions, and industry outlook [2] - The call will be broadcast live and available on-demand on the Photronics website, with registration suggested 15 minutes prior to the start time for those wishing to participate in the Q&A [2]

Core Viewpoint - Photronics (PLAB) is currently trading at a significant discount, with a Value Score of A, and a forward 12-month Price/Earnings ratio of 10.6X, which is lower than its median of 11.53X and the sector average of 26.99X [1][2]. Group 1: Financial Performance and Guidance - PLAB's shares have declined 17.5% over the trailing 12 months, underperforming the broader sector's appreciation of 29.5% [5]. - For Q1 fiscal 2025, PLAB expects revenues between $208 million and $216 million, with an operating margin of 23% to 25% and earnings between 43 cents and 49 cents per share [8]. - The Zacks Consensus Estimate for fiscal 2025 earnings is $2.30 per share, reflecting a 4.5% increase over the past 60 days and a 12.2% year-over-year growth [9]. Group 2: Market Trends and Demand - Despite sluggish semiconductor industry trends, the demand for PLAB's chips in AI, IoT, 5G, and consumer products is expected to improve in 2025 [2]. - The increasing demand for high-end chips supporting AI is anticipated to drive growth for PLAB, particularly in complex advanced leading-edge nodes [11]. - PLAB has seen improved demand for high-end integrated circuits (ICs) in Q4 fiscal 2024, primarily driven by high-end designs in Asia [12]. Group 3: Strategic Developments - PLAB is expanding its footprint in China with new facilities, capitalizing on the region's growth in semiconductor and display production [14]. - The company plans to invest $200 million in 2025 to expand U.S. IC manufacturing capacity, supported by improved liquidity with cash and short-term investments totaling $640.7 million [16]. - PLAB has returned $130 million to shareholders since 2018, with $100 million remaining under the current share repurchase authorization [17]. Group 4: Conclusion - Photronics is positioned for growth with an expanding global presence and strong market share, making it attractive for investors due to its undervaluation [18].

Core Viewpoint - Photronics, Inc. has appointed George Macricostas as Executive Chairman, effective January 6, 2025, marking a significant leadership transition within the company [1][2]. Company Leadership - George Macricostas has over 30 years of experience in technical and management roles, having been on the Photronics Board since 2002 and previously serving as Chairman of the Compensation Committee [2]. - With this appointment, David Garcia will succeed Macricostas in his committee roles, and both George and Constantine Macricostas will no longer be considered independent directors, leaving a Board of Directors of nine members, six of whom are independent [2]. Background of George Macricostas - George Macricostas was the Founder, Chairman, and CEO of RagingWire Data Centers, guiding the company through a two-stage sale to NTT of Japan in 2014 and 2018 [3]. - He previously held a senior vice president position at Photronics, overseeing the company's IT infrastructure [3]. Company Overview - Photronics is a leading manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD), with over 50 years of experience in the industry [5]. - The company operates 11 manufacturing facilities strategically located in Asia, Europe, and North America [5].

Company Overview - Photronics, Inc. is a leading worldwide manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD) [2] - The company has been a trusted supplier for over 50 years, founded in 1969 [2] - Photronics operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [2] Upcoming Event - Photronics is scheduled to present at the 27th Annual Needham Growth Conference on January 14, 2025, at 4:30 p.m. Eastern Time [1] - The event will take place at the Lotte NY Palace hotel in New York City [1] - The presentation will be accessible via a live and on-demand webcast on the company's website [1]