- Quarterly sales of $101.5 million;
meets revised guidance of $101.5 million
- Non-GAAP net income of $2.4
million
- Non-GAAP EPS of $0.04; within revised
guidance of $0.03 - $0.04
- Quarterly high-end IC sales increase 7%
sequentially to $16.6 million
- EBITDA of $25.7 million
- Net Cash of $18.8 million
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 2014
first quarter ended February 2, 2014.
Constantine (“Deno”) Macricostas, Photronics' chairman and chief
executive officer commented, “We met our revised guidance for the
first quarter, reporting $101.5 million in sales and $0.04 in
non-GAAP EPS. As we discussed previously, first-quarter
semiconductor revenue, which is traditionally soft due to customer
seasonal shutdowns, was affected by a slower-than-expected
post-holiday recovery at our mainstream business in the U.S. and
Europe, the absence of an expected pre-Lunar New Year pull-in in
Taiwan, and a delayed ramp in our high-end memory. Flat panel
display (FPD) photomask sales in the first quarter were stable and
had volume similar to last year. Our Korean IC business rebounded
positively both sequentially and compared with a year ago.”
“We are well positioned to capitalize on high-end opportunities
and deliver increased revenue and profitability as the market turns
in our favor. We have a significant technology advantage, our
financial position is solid and we are strengthening our strategic
customer relationships,” concluded Macricostas.
Sales for the first quarter of fiscal 2014 were $101.5 million,
an increase of 2% compared with $99.8 million for the first quarter
of fiscal 2013. Sales of semiconductor photomasks were $76.2
million, or 75% of revenues, during the first quarter of fiscal
2014, and sales of flat panel display (FPD) photomasks were $25.3
million, or 25% of revenues.
GAAP net income attributable to Photronics, Inc. for the first
quarter of fiscal 2014 was $2.0 million, or $0.03 per diluted
share, compared with GAAP net income attributable to Photronics,
Inc. of $2.3 million, or $0.04 per diluted share, for the first
quarter of fiscal 2013. Non-GAAP net income attributable to
Photronics, Inc. shareholders for the first quarter of fiscal 2014,
which excludes pending joint venture transaction expenses of $0.4
million, was $2.4 million, or $0.04 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.
shareholders 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. shareholders
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.
shareholders 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 item:
- Transaction expenses in the first
quarter of fiscal 2014 related to the pending joint venture are
excluded because they are not a part of ongoing operations.
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 Wednesday,
February 19, 2014. 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 2014 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 as well as decisions we may
make in the future regarding our business, capital structure and
other matters. 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.
04-2013
PLAB – E
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Income
(in thousands, except per share amounts) (Unaudited)
Three Months Ended February 2, January 27,
2014 2013 Net sales $ 101,542 $ 99,839
Costs and expenses: Cost of sales (78,660 ) (78,741 )
Selling, general and administrative (12,278 ) (11,067 )
Research and development (4,974 ) (4,839 )
Operating income 5,630 5,192 Other expense, net (873
) (591 ) Income before income taxes 4,757 4,601
Income tax provision (2,716 ) (1,742 )
Net income 2,041 2,859 Net income attributable to
noncontrolling interests (48 ) (536 ) Net
income attributable to Photronics, Inc. shareholders $ 1,993
$ 2,323 Earnings per share: Basic
$
0.03 $ 0.04
Diluted
$ 0.03
$ 0.04 Weighted-average
number of common shares outstanding: Basic
61,200 60,277
Diluted
62,136
61,095
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in thousands) (Unaudited)
February 2,
November 3, 2014 2013
Assets
Current assets: Cash and cash equivalents $ 189,228 $
215,615 Accounts receivable 72,046 73,357 Inventories 19,566 18,849
Other current assets 11,273 10,645 Total
current assets 292,113 318,466 Property, plant and
equipment, net 434,201 422,740 Investment in joint venture 93,104
93,124 Intangible assets, net 32,634 34,080 Other assets
18,716 17,519 $ 870,768 $ 885,929
Liabilities and
Equity
Current liabilities: Current portion of long-term borrowings
$ 9,387 $ 11,818 Accounts payable and accrued liabilities
105,856 92,769 Total current liabilities 115,243
104,587 Long-term borrowings 161,080 182,203 Other
liabilities 13,241 11,308 Equity 581,204
587,831 $ 870,768 $ 885,929
PHOTRONICS, INC.
AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(in thousands) (Unaudited)
Three Months Ended
February 2, January 27, 2014 2013
Cash flows from operating activities: Net income $ 2,041 $
2,859 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 17,899 19,157
Changes in assets and liabilities and other (5,743 )
(3,351 ) Net cash provided by operating activities
14,197 18,665 Cash flows from investing
activities: Purchases of property, plant and equipment (12,184 )
(15,539 ) Increase in restricted cash (1,698 ) - Other 67
(1,043 ) Net cash used in investing activities
(13,815 ) (16,582 ) Cash flows from financing
activities: Repayments of long-term borrowings (23,554 ) (1,655 )
Purchase of common stock of subsidiary - (4,190 ) Payment of
deferred financing fees (310 ) - Proceeds from share-based
arrangements 518 203 Net cash
used in financing activities (23,346 ) (5,642 )
Effect of exchange rate changes on cash (3,423 )
3,287 Net decrease in cash and cash
equivalents (26,387 ) (272 ) Cash and cash equivalents, beginning
of period 215,615 218,043 Cash
and cash equivalents, end of period $ 189,228 $ 217,771
PHOTRONICS, INC.
AND SUBSIDIARIES
Reconciliation of
GAAP to Non-GAAP Financial Information
(in thousands, except per share data) (Unaudited)
Three Months Ended February 2,
January 27,
2014 2013
Reconciliation of
GAAP to Non-GAAP Net Income
Attributable to
Photronics, Inc. Shareholders
GAAP net income attributable to Photronics, Inc.
shareholders $ 1,993 $ 2,323
(a) Joint venture transaction expenses, net of tax 437 -
Non-GAAP net income attributable to
Photronics, Inc. shareholders $ 2,430 $ 2,323
Reconciliation of
GAAP to Non-GAAP Net Income
Applicable to
Common Shareholders
Weighted average number of diluted shares outstanding
GAAP 62,136 61,095 Non-GAAP 62,136
61,095 Net income per diluted share GAAP $
0.03 $ 0.04 Non-GAAP $ 0.04 $ 0.04
(a)
Represents transaction expenses in
connection with the pending joint venture with DNP Photomask
Technology Taiwan Co., Ltd., a wholly-owned subsidiary of Dai
Nippon Printing Co., Ltd.
Photronics, Inc.Pete Broadbent, 203-775-9000Vice President,
Investor Relations & Marketingpbroadbent@photronics.com
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