Press Release

Photronics Reports Second Quarter Fiscal 2025 Results and Announces CEO Transition

May 28, 2025 at 7:00 AM EDT
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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 company’s Asia operations and will remain Chairman and President of Photronics’ PDMC subsidiary in Taiwan, while also remaining on the Photronics Board of Directors. Mr. George Macricostas will immediately assume the role of Chief Executive Officer of Photronics, Inc. while remaining Chairman of the Board.

“I would like to thank Frank for leading Photronics over the past three years as CEO,” said Mr. Macricostas. “For nearly twenty years he led and grew Photronics business in Asia including years of strong execution driving significant, profitable revenue growth. I look forward to working with Frank as he continues to manage the Asia operations until his retirement.”

Commenting on the second-quarter performance, Dr. Lee said, “Our business in Asia continued to perform at a strong level and I am extremely proud of what we continue to accomplish. Node migration remains a positive driver of our IC business at both the high end and the higher end of mainstream. Strategically, we took an aggressive approach to return cash to our shareholders during the quarter, repurchasing $72 million of our stock as an endorsement of our long-term business model.”

Second Quarter Fiscal 2025 Results

  • Revenue was $211.0 million, down 3% year-over-year and 1% sequentially.
  • GAAP Net income attributable to Photronics, Inc. shareholders was $8.9 million, or $0.15 per diluted share, compared with $36.3 million, or $0.58 per diluted share, in the second quarter of 2024 and $42.9 million, or $0.68 per diluted share, in the first quarter of 2025.
  • Non-GAAP Net income attributable to Photronics, Inc. shareholders was $24.3 million, or $0.40 per diluted share, compared with $28.7 million, or $0.46 per diluted share in the second quarter of 2024 and $32.4 million, or $0.52 per diluted share, in the first quarter of 2025.
  • IC revenue was $155.9 million, down 3% year-over-year and up 1% sequentially.
  • FPD revenue was $55.1 million, down 2% from the same quarter last year and 5% sequentially.
  • Cash generated from operating activities was $31.5 million, cash invested in organic growth through capital expenditures was $60.5 million, and cash returned to shareholders through share repurchases was $72.1 million.
  • Cash, cash equivalents and short-term investments at the end of the quarter was $558.4 million.

Third Quarter Fiscal 2025 Guidance

For the third quarter of fiscal 2025, Photronics expects Revenue to be between $200 million and $208 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.35 and $0.41 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on May 28, 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   Six Months Ended
        May 4,   February 2,   April 28,   May 4,   April 28,
          2025       2025       2024       2025       2024  
                         
Revenue       $ 210,992     $ 212,138     $ 217,000     $ 423,130     $ 433,334  
                         
Cost of goods sold       133,086       136,603       137,749       269,689       274,828  
                         
Gross Profit         77,906       75,535       79,251       153,441       158,506  
Gross margin %       36.9%       35.6%       36.5%       36.3%       36.6%  
                         
Operating Expenses:                      
                         
Selling, general and administrative   18,099       19,101       18,996       37,201       37,317  
                         
Research and development     4,090       4,257       4,292       8,346       7,736  
                         
Total Operating Expenses     22,189       23,358       23,288       45,547       45,053  
                         
Other operating gain       -       -       89       -       89  
                         
Operating Income       55,717       52,177       56,052       107,894       113,542  
Operating Margin       26.4%       24.6%       25.8%       25.5%       26.2%  
                         
Non-operating (loss) income, net   (25,786 )     24,981       20,534       (805 )     16,786  
                         
Income Before Income Tax Provision   29,931       77,158       76,586       107,089       130,328  
                         
Income tax provision       5,714       18,901       20,214       24,615       34,874  
                         
Net Income         24,217       58,257       56,372       82,474       95,454  
                         
Net income attributable to noncontrolling interests   15,356       15,406       20,121       30,762       33,023  
                         
Net income attributable to Photronics, Inc. shareholders $ 8,861     $ 42,851     $ 36,251     $ 51,712     $ 62,431  
                         
Earnings per share attributed to Photronics, Inc. shareholders:                
                         
Basic       $ 0.15     $ 0.69     $ 0.59     $ 0.84     $ 1.01  
                                             
Diluted       $ 0.15     $ 0.68     $ 0.58     $ 0.84     $ 1.00  
                         
Weighted-average number of common shares outstanding:                  
                         
Basic         60,793       62,093       61,771       61,443       61,613  
                                             
Diluted         60,974       62,661       62,409       61,817       62,346  
                                             


PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
 
               
        May 4,   October 31,  
        2025   2024  
               
Assets              
               
Current assets:            
Cash and cash equivalents   $ 530,708   $ 598,485  
Short-term investments     27,699     42,184  
Accounts receivable     195,977     200,830  
Inventories       61,201     56,527  
Other current assets     40,221     33,036  
               
Total current assets     855,806     931,062  
               
Property, plant and equipment, net   807,558     745,257  
Other assets       39,668     35,740  
               
Total assets     $ 1,703,032   $ 1,712,059  
               
               
               
Liabilities and Equity          
               
Current liabilities:            
Current portion of long-term debt $ 11   $ 17,972  
Accounts payable and accrued liabilities   166,772     165,839  
               
Total current liabilities     166,783     183,811  
               
Long-term debt       19     25  
Other liabilities       39,461     47,464  
               
Equity:              
Photronics, Inc. shareholders' equity   1,100,920     1,120,864  
Noncontrolling interests     395,849     359,895  
Total equity       1,496,769     1,480,759  
               
Total liabilities and equity   $ 1,703,032   $ 1,712,059  
               


PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
               
               
          Six Months Ended
          May 4,   April 28,
            2025       2024  
               
Cash flows from operating activities:        
Net income       $ 82,474     $ 95,454  
Adjustments to reconcile net income to net cash      
provided by operating activities:        
Depreciation and amortization     40,386       41,487  
Share-based compensation     6,710       6,499  
Changes in operating assets, liabilities and other   (19,651 )     (25,446 )
               
Net cash provided by operating activities     109,919       117,994  
               
Cash flows from investing activities:        
Purchases of property, plant and equipment   (95,749 )     (63,311 )
Purchases of short-term investments     (27,689 )     (66,040 )
Proceeds from maturities of short-term investments   41,482       13,234  
Government incentives       1,166       1,419  
Other           (57 )     (6 )
               
Net cash used in investing activities     (80,847 )     (114,704 )
               
Cash flows from financing activities:        
Repayments of debt       (17,966 )     (2,844 )
Common stock repurchases     (76,682 )     -  
Proceeds from share-based arrangements   1,583       1,055  
Net settlements of restricted stock awards   (2,007 )     (2,938 )
               
Net cash used in financing activities     (95,072 )     (4,727 )
               
Effects of exchange rate changes on cash, cash equivalents, and restricted cash   (1,697 )     (3,839 )
               
Net decrease in cash, cash equivalents, and restricted cash   (67,697 )     (5,276 )
Cash, cash equivalents, and restricted cash, beginning of period   601,243       501,867  
               
Cash, cash equivalents, and restricted cash, end of period $ 533,546     $ 496,591  
               
               


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
  May 4,   February 2,   April 28,
    2025       2025       2024  
           
           
GAAP Net income attributable to Photronics, Inc. shareholders $ 8,861     $ 42,851     $ 36,251  
FX (gain) loss   31,111       (18,443 )     (14,766 )
Estimated tax effects of FX (gain) loss   (8,337 )     5,152       3,743  
Estimated noncontrolling interest effects of above   (7,376 )     2,823       3,489  
Non-GAAP Net income attributable to Photronics, Inc. shareholders $ 24,259     $ 32,383     $ 28,717  
           
Weighted-average number of common shares outstanding - Diluted   60,974       62,661       62,409  
           
           
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders $ 0.15     $ 0.68     $ 0.58  
Effects of non-GAAP adjustments above   0.25       (0.16 )     (0.12 )
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders $ 0.40     $ 0.52     $ 0.46  
           

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


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Source: Photronics, Inc.