Press Release

Photronics Reports First Quarter Fiscal 2025 Results

February 26, 2025 at 7:00 AM EST
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BROOKFIELD, Conn., Feb. 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

Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 55 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

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.


PHOTRONICS, INC. 
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
   
   
        Three Months Ended  
        February 2,   October 31,   January 28,  
          2025       2024       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    
                   



PHOTRONICS, INC.  
Condensed Consolidated Balance Sheets  
(in thousands)  
(Unaudited)  
   
                 
        February 2,   October 31,    
          2025     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    
                 



PHOTRONICS, INC.    
Condensed Consolidated Statements of Cash Flows    
(in thousands)    
(Unaudited)  
                   
                   
          Three Months Ended    
          February 2,   January 28,    
            2025       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      
                   
                   



PHOTRONICS, INC.
Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders
(in thousands, except per share amounts)
(Unaudited)
             
             
  Three Months ended  
  February 2,   October 31,   January 28,  
    2025       2024       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    
             


For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
tmoreau@photronics.com


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Source: Photronics, Inc.