Photronics (NASDAQ: PLAB ) is a leading global producer of photomasks, which are high-precision quartz or glass plates housing microscopic images of electronic circuits. These photomasks play a pivotal role both in semiconductor and flat panel display production, serving to imprintStock Research Platform (SRP) is run by an experienced full-time CFO and equity investor with a passion for researching stocks to find asymmetric investment opportunities. SRP is screening the market for companies with a strong ba ...

BROOKFIELD, Conn., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2024 ended July 28, 2024. "Market softness in some segments during the quarter impacted photomask demand, reducing both IC and FPD revenue," said Frank Lee, chief executive officer. "The photomask demand recovery that started to take shape early in the third quarter slowed during the period due t ...

Core Viewpoint - Photronics, Inc. is positioned to benefit from the increasing demand for semiconductors driven by AI and IoT applications, with a projected fair price of approximately $54.85 based on DCF analysis [1][22][26] Business Growth and Headcount Growth - Photronics is the world's leading manufacturer of photomasks, with eleven manufacturing fabs across multiple regions including Taiwan, China, Korea, the United States, and Europe [2] - The company reported a diverse customer base of 696 clients in 2023, indicating geographic and client diversification [2] - Headcount increased from 1,500 in 2014 to 1,885 in 2023, suggesting a correlation with net sales growth [2] Financial Performance and Projections - EPS estimates for 2024 and 2025 are projected at $2.10 and $2.20 respectively, with year-over-year growth rates of 2.94% and 4.76% [4] - The company has seen significant growth in net property, plant, and equipment (PP&E), increasing from $550 million in 2014 to $729 million in 2023, indicating reinvestment in capacity [5][11] - Total assets have grown from $1 billion in 2003 to $1.6 billion in 2023, reflecting overall business expansion [5] Cash and Equity Position - Cash reserves increased from $192 million in 2014 to approximately $493.9 million in 2023, suggesting strong liquidity [5][11] - The tangible book value per share is reported at $16.75, indicating the company is undervalued at current market prices [5][12] Valuation Metrics - The company trades at approximately 4.4x forward EBITDA, significantly lower than the sector median of around 15x [15][16] - Comparatively, competitors trade at forward EBITDA multiples ranging from 9x to 23x, highlighting Photronics' undervaluation [14][15] Future Growth Expectations - Anticipated capital expenditures for FY24 are approximately $140 million, aimed at enhancing IC capacity and efficiency [19][26] - The AMOLED market is projected to grow from $16.59 billion to $78.83 billion by 2030, with a CAGR of 21.51%, which could further drive demand for Photronics' products [18] Analyst Sentiment - The average target price from analysts is around $32 per share, indicating a potential upside of 21.49% from current levels [24] - The overall analyst rating for the company is a strong buy, reflecting positive sentiment towards its future performance [24]

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Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 28, 2024 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Securities registered pursuant to Section 12(b) of the Act: ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 000-15451 PHOTRONICS, INC. (Exact name of registrant as specif ...

Core Insights - Photronics, Inc. has appointed Eric Rivera as the new Chief Financial Officer, effective immediately, after serving as interim CFO since February 2024 [1][2] - The CEO, Frank Lee, expressed confidence in Rivera's experience and financial knowledge, emphasizing the importance of his role in driving profitable growth and shareholder value [2] - Photronics is a leading manufacturer of photomasks for integrated circuits and flat panel displays, with a history of over 50 years in the industry [3] Company Overview - Photronics specializes in high precision quartz plates that contain microscopic images of electronic circuits, essential for IC and FPD manufacturing [3] - The company was founded in 1969 and has approximately 1,885 employees as of October 31, 2023 [3] - Photronics operates 11 manufacturing facilities strategically located across Asia, Europe, and North America [3]

BROOKFIELD, Conn., May 28, 2024 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today announced that Eric Rivera, has been promoted to chief financial officer, effective immediately. Eric previously held the role of interim CFO since February 2024 and served as chief accounting officer since 2020. For Further Information: "I am pleased to have Eric join our leadership team in this important role as we work together to continue growing profitabl ...

Core Viewpoint - Photronics reported a decline in earnings and revenues for the second quarter of fiscal 2024, primarily impacted by external factors such as the Taiwan earthquake and the Chinese New Year holiday [1][2]. Financial Performance - Non-GAAP earnings were 46 cents per share, missing the Zacks Consensus Estimate by 16.36% and decreasing 14.8% year over year [1]. - Revenues totaled $217 million, down 5% year over year but up 0.3% sequentially [1]. - Integrated Circuit (IC) revenues increased 2% sequentially but declined 4% year over year to $160.9 million, driven by higher demand in mainstream IC sales [3]. - FPD revenues fell 10% year over year to $56.1 million, with a sequential decline of 5% due to foreign exchange headwinds [3]. - Gross margin contracted 200 basis points year over year to 36.5% [4]. - Operating income was $56.1 million, down 16.4% year over year, with an operating margin contraction of 340 basis points to 25.8% [4]. Balance Sheet & Cash Flow - As of April 28, 2024, cash and cash equivalents and short-term investments were $559.9 million, an increase from $521.5 million as of January 28, 2024 [5]. - Total debt decreased to $21.8 million from $23.4 million in the previous quarter [6]. - Cash generated from operating activities was $76.5 million, with $20 million invested in organic growth through capital expenditures [6]. Guidance - For the third quarter of fiscal 2024, Photronics expects revenues between $221 million and $229 million, with earnings projected between 53 cents and 59 cents per share [7]. Market Position - Photronics currently holds a Zacks Rank 3 (Hold) and has seen its shares decline 16.1% year to date, contrasting with a 6.7% increase in the Zacks Computer & Technology sector [8]. - Competitors with better rankings include Nutanix (Zacks Rank 1), CrowdStrike (Zacks Rank 2), and Dell Technologies (Zacks Rank 2) [8].

Financial Data and Key Metrics Changes - Net income for the quarter was $36.3 million, or $0.58 per diluted share on a GAAP basis, while non-GAAP net income was $28.7 million, or $0.46 per diluted share after adjusting for non-operating FX gain [26] - Operating cash flow generated was $76.5 million, with capital expenditures (capex) at $20 million for the quarter, maintaining an expected total capex of $140 million for 2024 [26][27] - The company ended the quarter with a cash balance of $539.2 million, short-term investments of $20.7 million, and debt of $21.8 million, indicating sufficient liquidity for investments [27] Business Line Data and Key Metrics Changes - Second quarter revenue was $217 million, slightly higher than the first quarter, with IC sales improving quarter-over-quarter while LPD decreased [45][30] - Gross margin was 36.5%, similar to the first quarter but down from the previous year due to lower premium charges, resulting in an operating margin of 25.8% [47] - IC mainstream sales increased, driven by market share gains, while high-end sales were down primarily due to lower U.S. demand [39] Market Data and Key Metrics Changes - The semiconductor environment is gradually improving, with expectations for positive demand momentum in Q3 and Q4 across most IC segments and regions [39][40] - Demand for mobile display masks is expected to pick up in Q3, ahead of anticipated fall launches of new premium smartphones [46] - The company noted that the overall revenue remains around 5% below prior year levels, with a slower ramp in order rates following the Lunar New Year [72] Company Strategy and Development Direction - The company aims to address anticipated demand growth in both high-end and mainstream IC markets while increasing return on invested capital [26] - Long-term optimism is maintained regarding demand trends for both IC and LPD, with expectations that megatrends such as AI will drive chip design activity [40][41] - The company is focused on maintaining strong customer relations and leveraging leading technology to outgrow the photomask industry [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged unique challenges in Q2, including the impact of the earthquake, but expressed confidence in achieving solid results for the year [30][83] - The company expects third quarter revenue to be in the range of $221 million to $229 million, with non-GAAP earnings per share estimated between $0.53 and $0.59 [28] - Management highlighted that order rates at the beginning of Q3 are encouraging, providing confidence for the upcoming quarter [36] Other Important Information - The earthquake in Taiwan resulted in a $3 million impact primarily due to production lost time, but no significant damage to facilities or equipment was reported [24][71] - The company is investigating the impact of the earthquake on photomasks, with some potentially needing to be scrapped or serviced [82] Q&A Session Summary Question: What was the impact of the earthquake on production and guidance? - The earthquake had a $3 million impact, mainly from production lost time, but it was a one-time event and not expected to affect future guidance [24][34] Question: How is the demand environment looking for the next quarter? - The demand environment is expected to improve, with higher order rates entering Q3, particularly in the high-end segment [36][39] Question: What are the expectations for gross margins in the upcoming quarter? - Gross margins are expected to remain stable, with a focus on improving product mix to maintain profitability despite lower premium charges [47][63]

Safe Harbor Statement | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | Q2 2024 Financial | | | | | | | | | Results Conference Call | | | | | | | | | May 22, 2024 | | | | | | | | PHOTRONICS, INC. 2 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/o ...