Photronics(PLAB) - 2025 Q3 - Quarterly Results

Photronics Reports Third Quarter Fiscal 2025 Financial Results Executive Summary and Outlook Photronics exceeded Q3 FY2025 expectations, guiding Q4 revenue $201M-$209M and non-GAAP EPS $0.42-$0.48, focusing on efficiency and growth - Photronics delivered very good results in Q3 FY2025, with revenue, profitability, and EPS ahead of expectations[3] - Management focuses on operational efficiency, accelerating internal investment for geographic revenue diversification, and positioning for sustained revenue and earnings growth[3] Fourth Quarter Fiscal 2025 Guidance | Metric | Range | | :------------------------------------------------ | :------------------- | | Revenue | $201 million to $209 million | | Non-GAAP Net income attributable to Photronics, Inc. shareholders per diluted share | $0.42 to $0.48 | Third Quarter Fiscal 2025 Key Financial Highlights Photronics reported Q3 FY2025 revenue of $210.4M, GAAP net income $22.9M, non-GAAP $29.4M, with FPD growth offsetting IC decline Q3 FY2025 Key Financial Highlights | Metric | Q3 FY2025 | YoY Change | QoQ Change | | :------------------------------------------------ | :---------- | :--------- | :--------- | | Revenue | $210.4 million | -0.3% | -0.3% | | GAAP Net income attributable to Photronics, Inc. shareholders | $22.9 million | -33.5% | +157.3% | | GAAP Diluted EPS | $0.39 | -29.1% | +160.0% | | Non-GAAP Net income attributable to Photronics, Inc. shareholders | $29.4 million | -7.8% | +21.0% | | Non-GAAP Diluted EPS | $0.51 | 0.0% | +27.5% | | IC revenue | $147.8 million | -5% | -5% | | FPD revenue | $62.6 million | +14% | +14% | Q3 FY2025 Cash Flow and Capital Allocation | Metric | Amount | | :------------------------------------ | :------------- | | Cash, cash equivalents and short-term investments (end of quarter) | $575.8 million | | Cash generated from operating activities | $50.1 million | | Cash invested in organic growth (capital expenditures) | $24.8 million | | Cash returned to shareholders (share repurchases) | $20.7 million | - The Board of Directors approved a $25.0 million increase to the share repurchase authorization[7] About Photronics Photronics is a global leader in photomask technologies, manufacturing high-precision quartz plates for IC and FPD production - Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks[8] - Photomasks are high-precision quartz plates with microscopic electronic circuit images, crucial for IC and FPD manufacturing[8] - Founded in 1969, the company operates 11 manufacturing facilities across Asia, Europe, and North America[8] Financial Statements Photronics' unaudited condensed consolidated financial statements are presented, covering income, balance sheets, cash flows, and GAAP to non-GAAP reconciliation Condensed Consolidated Statements of Income Condensed Consolidated Statements of Income (Three Months Ended) | Metric | August 3, 2025 | May 4, 2025 | July 28, 2024 | | :------------------------------------------ | :------------- | :---------- | :------------ | | Revenue | $210,394 thousand | $210,992 thousand | $210,984 thousand | | Cost of goods sold | $139,539 thousand | $133,086 thousand | $135,846 thousand | | Gross Profit | $70,855 thousand | $77,906 thousand | $75,138 thousand | | Gross margin % | 33.7% | 36.9% | 35.6% | | Operating Income | $48,161 thousand | $55,717 thousand | $52,148 thousand | | Operating Margin | 22.9% | 26.4% | 24.7% | | Net Income attributable to Photronics, Inc. shareholders | $22,891 thousand | $8,861 thousand | $34,388 thousand | | Diluted EPS | $0.39 | $0.15 | $0.55 | Condensed Consolidated Statements of Income (Nine Months Ended) | Metric | August 3, 2025 | July 28, 2024 | | :------------------------------------------ | :------------- | :------------ | | Revenue | $633,524 thousand | $644,318 thousand | | Cost of goods sold | $409,228 thousand | $410,674 thousand | | Gross Profit | $224,296 thousand | $233,644 thousand | | Gross margin % | 35.4% | 36.3% | | Operating Income | $156,054 thousand | $165,690 thousand | | Operating Margin | 24.6% | 25.7% | | Net Income attributable to Photronics, Inc. shareholders | $74,604 thousand | $96,819 thousand | | Diluted EPS | $1.23 | $1.55 | Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets | Metric | August 3, 2025 | October 31, 2024 | | :------------------------------------ | :------------- | :--------------- | | Total current assets | $872,236 thousand | $931,062 thousand | | Property, plant and equipment, net | $838,988 thousand | $745,257 thousand | | Total assets | $1,752,765 thousand | $1,712,059 thousand | | Total current liabilities | $174,925 thousand | $183,811 thousand | | Photronics, Inc. shareholders' equity | $1,125,551 thousand | $1,120,864 thousand | | Total equity | $1,538,000 thousand | $1,480,759 thousand | | Total liabilities and equity | $1,752,765 thousand | $1,712,059 thousand | - Cash and cash equivalents decreased from $598,485 thousand at October 31, 2024, to $479,521 thousand at August 3, 2025[14] - Short-term investments increased significantly from $42,184 thousand to $96,277 thousand[14] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | Metric | August 3, 2025 | July 28, 2024 | | :------------------------------------------ | :------------- | :------------ | | Net cash provided by operating activities | $159,974 thousand | $193,074 thousand | | Net cash used in investing activities | $(173,599) thousand | $(142,058) thousand | | Net cash used in financing activities | $(115,284) thousand | $(6,428) thousand | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(118,780) thousand | $38,134 thousand | | Cash, cash equivalents, and restricted cash, end of period | $482,463 thousand | $540,001 thousand | - Purchases of property, plant and equipment increased to $120,588 thousand for the nine months ended August 3, 2025, from $87,733 thousand in the prior year period[16] - Common stock repurchases significantly increased to $97,422 thousand for the nine months ended August 3, 2025, compared to none in the prior year period[16] Non-GAAP Financial Measures Reconciliation Non-GAAP Net Income and EPS Reconciliation (Three Months Ended) | Metric | August 3, 2025 | May 4, 2025 | July 28, 2024 | | :---------------------------------------------------------------- | :------------- | :---------- | :------------ | | GAAP Net income attributable to Photronics, Inc. shareholders | $22,891 thousand | $8,861 thousand | $34,388 thousand | | Non-GAAP Net income attributable to Photronics, Inc. shareholders | $29,356 thousand | $24,259 thousand | $31,915 thousand | | GAAP Diluted EPS attributable to Photronics, Inc. shareholders | $0.39 | $0.15 | $0.55 | | Non-GAAP Diluted EPS attributable to Photronics, Inc. shareholders | $0.51 | $0.40 | $0.51 | - Non-GAAP adjustments primarily include