Financial Data and Key Metrics Changes - The company achieved second quarter sales of $211 million, which was in the middle of the guidance range, representing a 3% year-over-year decline [7][16] - Non-GAAP diluted EPS was reported at $0.40, while diluted GAAP EPS attributable to shareholders was $0.15 [20] - Gross margin was 37%, in line with the quarterly average over the past three years, and operating margin improved to 26%, above guidance [19][20] Business Line Data and Key Metrics Changes - Integrated Circuit (IC) revenue was $156 million, down 3% year-over-year, with high-end revenue increasing 2% year-over-year, representing 38% of IC revenue [16][19] - Flat Panel Display (FPD) revenue was $55 million, declining 2% year-over-year, with seasonal demand expected to uplift later in the quarter [18][19] Market Data and Key Metrics Changes - Revenue from IC joint ventures in China and Taiwan remained healthy, while revenue from the U.S. declined sequentially due to lower-end design node weakness [19] - The company noted a broad-based weakness in mainstream markets, particularly in Europe, which is heavily reliant on automotive and industrial microcontrollers [30] Company Strategy and Development Direction - The company is focusing on capacity expansion in the U.S. to support reshoring semiconductor production and is strategically positioned to benefit from the transition to higher-end nodes [8][11] - The management emphasized the importance of geographic footprint as a strategic asset to mitigate tariff costs and support global customers [12][19] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding near-term demand due to macroeconomic uncertainties and tariff dynamics, expecting third quarter revenue to be in the range of $200 million to $208 million [23][47] - The company remains optimistic about the long-term health and growth potential, as indicated by the $72 million spent on share repurchases [22][48] Other Important Information - The CEO announced retirement after three years, with George Makrokastas appointed as the new CEO, focusing on operational execution and profitable growth [12][14] - The company plans to spend $200 million in CapEx for fiscal 2025, with a focus on capacity, capability, and end-of-life tool initiatives [21] Q&A Session Summary Question: Insights on mainstream business and supply-demand dynamics - Management noted that the mainstream market remains weak due to low wafer fab utilization among aged fab customers, particularly in power, industrial, and consumer sectors [25][26] Question: Weakness in Asia and its impact - The weakness is not confined to Asia; it is broad-based, with Europe showing significant weakness due to its reliance on automotive and industrial applications [30] Question: Year-over-year earnings impact - The largest impact on earnings year-over-year is attributed to pricing pressures in the mainstream market, although product mix strategies are being employed to mitigate this [32][33] Question: Priorities for the new CEO - The new CEO indicated a focus on cost structure, driving revenue, and gaining market share, emphasizing an orderly transition rather than a wholesale change [39][40] Question: Capacity expansion versus regionalization - The company will evaluate opportunities in the U.S. while balancing growth in Asia, particularly in response to geopolitical issues and reshoring efforts [46] Question: Share repurchase strategy - The company will remain opportunistic with the existing share repurchase authorization and will consider future expansions based on investment opportunities [48]

BROOKFIELD, Conn., May 28, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its second quarter of fiscal year 2025 ended May 4, 2025 and also announced that Dr. Frank Lee has informed Photronics of his plans to retire in the next year or two. In order to prepare for this transition, effective immediately, Dr. Lee has stepped down from his role as CEO of Photronics, but will continue to focus on the compa ...

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 ...