Existing MP Mask Joint Venture Will Not Be Renewed Past May 5, 2016
BROOKFIELD, Conn.--(BUSINESS WIRE)--
Photronics,
Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative
imaging technology solutions for the global electronics industry,
announced today that it has entered into strategic supply and technology
license agreements with Micron Technology, Inc. (NASDAQ:MU) whereby
Photronics will receive outsourced photomask supply volume from Micron.
Micron and Photronics will not renew their existing MP Mask joint
venture after May 5, 2016, which is the ten year anniversary of its
formation. The new agreement places the company in the majority merchant
supplier position for Micron. Upon the conclusion of the MP Mask joint
venture, Micron may elect to purchase the MP Mask assets or Photronics'
equity interest in MP Mask, in which case Photronics will receive a
payment based upon net book value as of May 5, 2016, which was
approximately $93 million as of December 4, 2014.
"Both companies have seen a major transformation of their respective
business and market position since we established our relationship in
2006," said Constantine "Deno" Macricostas, Chairman and CEO of
Photronics. "Looking forward to the next five to ten years, with
technology advances and the size of our respective markets and capital
requirements, we both came to the conclusion that it was best to
transfer MP Mask's assets to Micron while freeing capital for
Photronics. This successful relationship helped propel Photronics to the
global merchant leader. We are very appreciative of Micron and their
support of Photronics through the years and we look forward to
continuing our strong relationship in the future."
"Implementing the joint venture served both companies well as we grew
market share and achieved success in each of our respective markets,"
stated Scott DeBoer, VP Research and Development for Micron. "Photronics
has been a valued partner to Micron as we operated MP Mask together, and
we look forward to continuing to work with Photronics in the future."
A conference call with investors and the media to discuss this
announcement is scheduled for 8:30 a.m. Eastern time on Wednesday, March
25, 2015. The live dial-in number is (408) 774-4601. The call can also
be accessed by logging onto Photronics' web site at www.photronics.com.
The call will be archived for instant replay access until the Company
reports its fiscal 2015 second quarter results.
About Photronics
Photronics
is a leading worldwide manufacturer of photomasks.
Photomasks are high precision quartz plates that contain microscopic
images of electronic circuits. A key element in the manufacture of
semiconductors and flat panel displays, photomasks are used to transfer
circuit patterns onto semiconductor wafers and flat panel substrates
during the fabrication of integrated circuits, a variety of flat panel
displays and, to a lesser extent, other types of electrical and optical
components. They are produced in accordance with product designs
provided by customers at strategically located manufacturing
facilities in Asia, Europe, and North America. Additional
information on the Company can be accessed at www.photronics.com
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements made by or on behalf of
Photronics, Inc. and its subsidiaries (the Company). The forward-looking
statements contained in this press release and other parts of
Photronics' web site involve risks and uncertainties that may affect the
Company's operations, markets, products, services, prices, and other
factors. These risks and uncertainties include, but are not limited to,
economic, competitive, legal, governmental, and technological factors as
well as decisions we may make in the future regarding our business,
capital structure and other matters. These forward-looking statements
generally can be identified by phrases such as "believes", "expects",
"anticipates", "plans", "projects", "could", "estimate", "intend",
"may", "will" and similar expressions. Accordingly, there is no
assurance that the Company's expectations will be realized. For a fuller
discussion of the factors that may affect the Company's operations, see
"Forward Looking Statements" in the Company's Quarterly and Annual
Reports to the Securities and Exchange Commission on Forms 10-Q and
10-K. The Company assumes no obligation to provide revisions to any
forward-looking statements.
08-2015
Photronics
Pete Broadbent, 203-775-9000
Vice President,
Investor Relations & Marketing
pbroadbent@photronics.com
Source: Photronics
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