Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, today reported financial results for the fiscal 2012
first quarter ended January 29, 2012.
Constantine ("Deno") Macricostas, Photronics' chairman and chief
executive officer commented, “As anticipated, the soft demand
environment continued into our seasonally slow first fiscal quarter
resulting in sales of $112.2 million. On the bottom line, as a
result of strict expense control we reported EBITDA for the quarter
of $33 million and Non-GAAP EPS in the middle of our guidance range
of $0.09 per diluted share.”
“We did see strength in high-end semiconductor photomask sales
as leading edge customers continued to invest in new designs during
the cycle,” continued Macricostas. “We increased high end IC sales
6% sequentially and 98% over the same period last year as our
investments at the leading edge partially offset the slowdown in
the mainstream business during the period. Our technology
leadership, coupled with a lean and flexible operating structure,
enabled us to deliver on our expectations for the quarter and
should drive solid earnings growth when the market returns.”
Sales for the first quarter of fiscal 2012 were $112.2 million,
a decrease of 7% compared with $120.8 million for the first quarter
of fiscal 2011. Sales of semiconductor photomasks were $86.8
million, or 77% of revenues, during the first quarter of fiscal
2012, and sales of flat panel display (FPD) photomasks were $25.4
million, or 23% of revenues.
GAAP net income attributable to Photronics, Inc. for the first
quarter of fiscal 2012 was $4.3 million, or $0.07 per diluted
share, compared with GAAP net income attributable to Photronics,
Inc. of $12.1 million, or $0.20 per diluted share, for the first
quarter of fiscal 2011. First quarter fiscal 2012 GAAP net income
includes a $1.1 million charge related to the previously announced
Singapore restructuring. Non-GAAP net income attributable to
Photronics, Inc. for the first quarter of fiscal 2012, excluding
charges related to the Singapore restructuring and the impact of
warrants, was $5.3 million, or $0.09 per diluted share.
The section below entitled "Non-GAAP Financial Measures"
provides a definition and information about the use of non-GAAP
financial measures in this press release, and the attached
financial supplement reconciles non-GAAP financial information with
Photronics, Inc.'s financial results under GAAP.
Non-GAAP Financial Measures
Non-GAAP net income attributable to Photronics, Inc. and
non-GAAP earnings per share are “non-GAAP financial measures,” as
such term is defined by the Securities and Exchange Commission, and
may differ from non-GAAP financial measures used by other
companies. Photronics, Inc. believes that non-GAAP net income
attributable to Photronics, Inc. and non-GAAP earnings per share
that exclude certain non-cash or non-recurring income or expense
items are useful for analysts and investors to evaluate Photronics,
Inc.’s future on-going performance because they enable a more
meaningful comparison of Photronics, Inc.’s projected earnings and
performance with its historical results of prior periods. These
non-GAAP metrics, in particular non-GAAP net income attributable to
Photronics, Inc. and non-GAAP earnings per share are not intended
to represent funds available for Photronics, Inc.’s discretionary
use and are not intended to represent, or be used as a substitute
for, operating income, net income or cash flows from operations
data as measured under GAAP. The items excluded from these non-GAAP
metrics, but included in the calculation of their closest GAAP
equivalent, are significant components of the consolidated
statements of operations and must be considered in performing a
comprehensive assessment of overall financial performance. Non-GAAP
financial information is adjusted for the following items:
- Consolidation and restructuring charges
in the first quarter of fiscal 2012 are excluded because they are
not a part of ongoing operations.
- Impact of warrants is excluded because
it does not affect cash earnings.
The presentation of this financial information should not be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with accounting
principles generally accepted in the United States. The attached
financial supplement reconciles non-GAAP financial information with
Photronics, Inc.'s financial results under GAAP.
A conference call with investors and the media to discuss these
results is scheduled for 8:30 a.m. Eastern time on Thursday,
February 16, 2012. The call can be accessed by logging onto
Photronics' web site at www.photronics.com. The live dial-in number
is 408-774-4601. The call will be archived for instant replay
access until the Company reports its fiscal 2012 second quarter
results.
# # #
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. 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.
05-2012
PLAB – E
PHOTRONICS, INC.
AND SUBSIDIARIES
Reconciliation of
GAAP to Non-GAAP Financial Information
(in thousands, except per share data) (Unaudited)
Three Months Ended January 29,
January 30, 2012 2011
Reconciliation of
GAAP to Non-GAAP Net Income
Attributable to
Photronics, Inc.
GAAP net income attributable to Photronics, Inc. $ 4,268 $
12,111
(a) Consolidation and restructuring charges,
net of tax 1,118 -
(b) Impact of warrants, net of tax
(94 ) 75 Non-GAAP net income attributable to
Photronics, Inc. $ 5,292 $ 12,186
Reconciliation of
GAAP to Non-GAAP Net Income
Applicable to
Common Shareholders
Weighted average number of diluted shares outstanding
GAAP 60,930 66,411 Non-GAAP
60,856 66,411 Net income per diluted share
GAAP $ 0.07 $ 0.20 Non-GAAP $ 0.09 $
0.20
(a) Represents consolidation and restructuring charges
primarily related to the announced restructuring in Singapore.
(b) Represents financing expenses related to
warrants, which are recorded in other income (expense), net.
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Income
(in thousands, except per share amounts) (Unaudited)
Three Months Ended January
29, January 30, 2012 2011 Net sales
$ 112,154 $ 120,823 Costs and expenses: Cost of sales
(86,696 ) (90,229 ) Selling, general and administrative
(11,325 ) (10,713 ) Research and development (4,444 ) (3,771
) Consolidation, restructuring and related charges
(1,118 ) - Operating income 8,571 16,110
Other income (expense), net (409 ) 957
Income before income taxes 8,162 17,067 Income tax
provision (3,321 ) (3,483 ) Net income 4,841
13,584 Net income attributable to noncontrolling interests
(573 ) (1,473 ) Net income attributable to
Photronics, Inc. $ 4,268 $ 12,111 Earnings per
share: Basic
$ 0.07 $
0.23 Diluted
$
0.07 $ 0.20
Weighted-average number of common shares outstanding: Basic
59,817 53,817
Diluted
60,930
66,411
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in thousands) (Unaudited)
January 29, October 30, 2012
2011
Assets
Current assets: Cash and cash equivalents $ 201,800 $
189,928 Accounts receivable 84,092 85,540 Inventories 21,626 22,100
Other current assets 8,137 7,639 Total current
assets 315,655 305,207 Property, plant and equipment, net
359,814 368,680 Investment in joint venture 80,365 79,984
Intangible assets, net 41,194 42,462 Other assets 22,663
21,521 $ 819,691 $ 817,854
Liabilities and
Equity
Current liabilities: Current portion of long-term borrowings
$ 5,529 $ 5,583 Accounts payable and accrued liabilities
89,638 90,318 Total current liabilities 95,167 95,901
Long-term borrowings 151,257 152,577 Other liabilities 8,821
9,620 Equity 564,446 559,756 $ 819,691
$ 817,854
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(in thousands) (Unaudited)
Three Months Ended January 29, January
30, 2012 2011 Cash flows from
operating activities: Net income $ 4,841 $ 13,584 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 22,667 23,189 Changes in assets and
liabilities and other 6,527 4,882
Net cash provided by operating activities 34,035
41,655 Cash flows from investing
activities: Purchases of property, plant and equipment (18,127 )
(19,120 ) Investment in joint venture (400 ) (3,999 ) Other
(1,602 ) - Net cash used in investing
activities (20,129 ) (23,119 ) Cash flows from
financing activities: Repayments of long-term borrowings (999 )
(24,346 ) Repurchase of common stock of subsidiary (885 ) -
Proceeds from share-based payments 233 159 Proceeds from long-term
borrowings - 17,000 Net cash
used in financing activities (1,651 ) (7,187 )
Effect of exchange rate changes on cash (383 ) 2,429
Net increase in cash and cash equivalents 11,872
13,778 Cash and cash equivalents, beginning of period
189,928 98,945 Cash and cash
equivalents, end of period $ 201,800 $ 112,723
Supplemental disclosure of cash flow information: Change in accrual
for purchases of property, plant and equipment $ 5,159 $ 13,273
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