Photronics Enters into Strategic Supply and Technology License Agreements with Micron
March 24 2015 - 5:07PM
Business Wire
Existing MP Mask Joint Venture Will Not Be
Renewed Past May 5, 2016
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
PhotronicsPete Broadbent, 203-775-9000Vice President,
Investor Relations & Marketingpbroadbent@photronics.com
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