UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

graphic
 Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

Date of report (Date of earliest event reported)
December 13, 2023

PHOTRONICS, INC.
(Exact name of registrant as specified in its charter)

Connecticut
0-15451
06-0854886
(State or Other Jurisdiction of) Incorporation
(Commission File Number)
(IRS Employer Identification No.)

15 Secor Road, Brookfield, CT
06804
(Address of principal executive offices)
(Zip Code)

Registrant's Telephone Number, including area code
(203) 775-9000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
COMMON STOCK, $0.01 par value per share
PLAB
NASDAQ Global Select Market

Item 2.02.
Results of Operations and Financial Condition.

On December 13, 2023, Photronics, Inc. (the “Company”) issued a press release reporting fourth quarter fiscal 2023 results.

A copy of the press release is furnished as Exhibit 99.1 to this report.  The information contained in this Item 2.02 and the attached Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

On December 13, 2023, the Company will conduct a conference call during which certain unaudited, non-GAAP financial information related to the Company’s operations for its fiscal 2023 full year and the three months ended October 31, 2023 may be disclosed. This information is set forth in Exhibit 99.7.

Item 9.01.
Financial Statements and Exhibits.

(d)
Exhibits
     

Press Release December 13, 2023.

Condensed Consolidated Statements of Income.

Condensed Consolidated Balance Sheets.

Condensed Consolidated Statements of Cash Flows.

Reconciliation of GAAP to Non-GAAP Financial Information.

Reconciliation of GAAP to Non-GAAP Financial Information (cont.).

Photronics Q4 2023 Financial Results Conference Call December 13, 2023 slides.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PHOTRONICS, INC.

(Registrant)




By:
 /s/ Richelle E. Burr

Name:
Richelle E. Burr

Title:
Executive Vice President,


Chief Administrative Officer,


General Counsel and Secretary



Date:  December 13, 2023



Exhibit 99.1
For Further Information:
John P. Jordan
Executive Vice President & CFO
203.740.5671
jjordan@photronics.com


Photronics Reports Full Year and Fourth Quarter Fiscal 2023 Results

BROOKFIELD, Conn., Dec. 13, 2023 (GLOBE NEWSWIRE) — Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its full year and fourth quarter of fiscal year 2023 ended October 31, 2023.
 
“We delivered our sixth consecutive year of record revenue with growth in fourth quarter amidst a prolonged industry downturn,” said Frank Lee, chief executive officer.  “Fourth quarter and full year revenue increased 8% year-over-year, and fourth quarter increased 1% sequentially.  Both IC and FPD increased, as demand for our design-driven products remained strong. Operating expenses were lower sequentially, partially offsetting lower gross profit, resulting in operating margins of 28.5% for the fourth quarter and 28.4% for the year.  Strong cash generation and our disciplined strategy of investing in growth strengthened the balance sheet while positioning us for sustained solid performance.  I am proud of our team’s performance and look forward to even greater achievements as we execute our strategy in the year to come.”
 
Full Year Fiscal 2023 Results


 •
Revenue was $892.1 million, up 8% over the previous year – the sixth consecutive year of record revenue

•
GAAP net income attributable to Photronics, Inc. shareholders was $125.5 million, or $2.03 per diluted share, compared with $118.8 million, or $1.94 per diluted share in 2022

•
Non-GAAP net income attributable to Photronics, Inc. shareholders was $126.0 million, or $2.04 per diluted share, compared with $101.7 million, or $1.66 per diluted share in 2022

•
IC revenue was $651.3 million, up 10%

•
FPD revenue was $240.8 million, up 4%

•
Cash generated from operating activities was $302.2 million, and cash invested in organic growth through capital expenditures was $131.3 million
 
Fourth Quarter Fiscal 2023 Results


 •
Revenue was $227.5 million, up 8% year-over-year and 1% sequentially

•
GAAP net income attributable to Photronics, Inc. shareholders was $44.6 million, or $0.72 per diluted share, compared with $37.1 million, or $0.60 per diluted share in the fourth quarter 2022 and $27.0 million, or $0.44 per diluted share in the third quarter of 2023

•
Non-GAAP net income attributable to Photronics, Inc. shareholders was $37.2 million, or $0.60 per diluted share, compared with $31.2 million, or $0.51 per diluted share in the fourth quarter 2022 and $31.6 million, or $0.51 per diluted share in the third quarter of 2023

•
IC revenue was $164.5 million, up 5% year-over-year and 1% sequentially

•
FPD revenue was a record at $63.0 million, up 17% from the same quarter last year and 3% sequentially

•
Cash generated from operating activities was $106.6 million, and cash invested in organic growth through capital expenditures was $52.5 million

•
Cash balance at the end of the quarter was $499.3 million, with $12.9 million in short-term investments and $24.6 million in debt

First Quarter Fiscal 2024 Guidance
 
For the first quarter of fiscal 2024, Photronics expects revenue to be between $217 million and $225 million and non-GAAP net income attributable to Photronics, Inc. shareholders to be between $0.45 and $0.53 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, December 13, 2023.  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 50 years.  As of October 31, 2022, the company had 1,828 employees. 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 the documents we file 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. These certain factors can be found at www.photronics.com/riskfactors.  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 earnings per share, Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by 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 future on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not intended to represent funds available for our discretionary use and are not intended to represent, or be used as a substitute for, gross profit, operating income, net income, cash and cash equivalents, or cash flows from operations, 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 condensed consolidated balance sheets and statement of cash flows and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations on the following pages.
Exhibit 99.2

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)


  
Three Months Ended
    
Year Ended
  


  
October 31,
2023
      
July 30,
2023
      
October 31,
2022
      
October 31,
2023
      
October 31,
2022
  
 

                             
Revenue
  
$
227,473
    
$
224,206
    
$
210,266
    
$
892,076
    
$
824,549
  
                                         
Cost of goods sold
    
142,591
      
137,405
      
129,997
      
555,914
      
530,336
  
                                         
Gross Profit
    
84,882
      
86,801
      
80,269
      
336,162
      
294,213
  
                                         
Operating Expenses:
                                        
                                         
Selling, general and administrative
    
16,731
      
18,032
      
15,683
      
69,458
      
63,989
  
 
                                        
Research and development
    
3,367
      
3,505
      
4,045
      
13,654
      
18,341
  
 
                                        
Total Operating Expenses
    
20,098
      
21,537
      
19,728
      
83,112
      
82,330
  
                                         
Other operating loss
    
-
      
-
      
-
      
-
      
(17
)
                                         
Operating Income
    
64,784
      
65,264
      
60,541
      
253,050
      
211,866
  
                                         
Non-operating (loss) income, net
    
18,660
      
(911
)
    
10,797
      
16,896
      
27,167
  
                                         
Income Before Income Tax Provision
    
83,444
      
64,353
      
71,338
      
269,946
      
239,033
  
                                         
Income tax provision
    
20,288
      
16,098
      
16,074
      
70,312
      
59,791
  
                                         
Net Income
    
63,156
      
48,255
      
55,264
      
199,634
      
179,242
  
                                         
Net income attributable to noncontrolling interests
    
18,545
      
21,296
      
18,204
      
74,149
      
60,456
  
                                         
Net income attributable to Photronics, Inc. shareholders
  
$
44,611
    
$
26,959
    
$
37,060
    
$
125,485
    
$
118,786
  
                                         
Earnings per share:
                                        
                                         
Basic
  
$
0.73
    
$
0.44
    
$
0.61
    
$
2.05
    
$
1.96
  
 
                                        
Diluted
  
$
0.72
    
$
0.44
    
$
0.60
    
$
2.03
    
$
1.94
  
                                         
Weighted-average number of common shares outstanding:
                                  
                                         
Basic
    
61,290
      
61,233
      
60,773
      
61,139
      
60,559
  
 
                                        
Diluted
    
62,067
      
61,974
      
61,374
      
61,755
      
61,189
  


Exhibit 99.3

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)



   
October 31,
2023
October 31,
2022
   
Assets
            

           
Current assets:
            
Cash and cash equivalents
  
$
499,292
    
$
319,680
  
Short-term investments
    
12,915
      
38,820
  
Accounts receivable
    
194,927
      
198,147
  
Inventories
    
49,963
      
50,753
  
Other current assets
    
28,353
      
37,252
  
                 
Total current assets
    
785,450
      
644,652
  
                 
Property, plant and equipment, net
    
709,244
      
643,873
  
Other assets
    
31,527
      
27,305
  
                 
Total assets
  
$
1,526,221
    
$
1,315,830
  
                 
Liabilities and Equity
                
                 
Current liabilities:
                
Current portion of long-term debt
  
$
6,621
    
$
10,024
  
Accounts payable and accrued liabilities
    
178,602
      
183,773
  
                 
Total current liabilities
    
185,223
      
193,797
  
 
                
Long-term debt
    
17,998
      
32,310
  
Other liabilities
    
47,391
      
27,634
  
                 
Photronics, Inc. shareholders' equity
    
975,008
      
831,527
  
Noncontrolling interests
    
300,601
      
230,562
  
Total equity
    
1,275,609
      
1,062,089
  
                 
Total liabilities and equity
  
$
1,526,221
    
$
1,315,830
  


Exhibit 99.4

PHOTRONICS,  INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)


  
Year Ended
  



October 31,
2023

October 31,
2022

           
Cash flows from operating activities:
            
Net income
  
$
199,634
    
$
179,242
  
Adjustments to reconcile net income to net cash
                
provided by operating activities:
                
Depreciation and amortization
    
80,835
      
80,330
  
Share-based compensation
    
8,001
      
6,308
  
Changes in operating assets, liabilities and other
    
13,706
      
9,307
  

               
Net cash provided by operating activities
    
302,176
      
275,187
  

               
Cash flows from investing activities:
                
Purchases of property, plant and equipment
    
(131,295
)
    
(112,338
)
Purchases of available-for-sale debt securities
    
(20,192
)
    
(38,854
)
Proceeds from maturity of available-for-sale debt securities
    
47,537
      
-
  
Government incentives
    
2,522
      
3,615
  
Other
    
(117
)
    
(180
)
                 
Net cash used in investing activities
    
(101,545
)
    
(147,757
)
                 
Cash flows from financing activities:
                
Repayments of debt
    
(18,439
)
    
(65,440
)
Purchases of treasury stock
    
-
      
(2,522
)
Contributions from noncontrolling interest
    
-
      
24,995
  
Proceeds from share-based arrangements
    
1,248
      
5,749
  
Net settlements of restricted stock awards
    
(1,302
)
    
(1,471
)
                 
Net cash used in financing activities
    
(18,493
)
    
(38,689
)
                 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash
    
(2,680
)
    
(46,012
)
                 
Net increase in cash, cash equivalents, and restricted cash
    
179,458
      
42,729
  
Cash, cash equivalents, and restricted cash, beginning of period
    
322,409
      
279,680
  
                 
Cash, cash equivalents, and restricted cash, end of period
  
$
501,867
    
$
322,409
  


Exhibit 99.5

PHOTRONICS, INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands)
(Unaudited)


  
Three Months ended
    
Year ended
  


  
October 31,
2023

July 30,
2023

October 31,
2022

October 31,
2023

October 31,
2022
Reconciliation of GAAP to Non-GAAP Non-operating (loss) Income:
                          
                               
GAAP Non-operating (loss) income, net
  
$
18,660
    
$
(911
)
  
$
10,797
    
$
16,896
    
$
27,167
  
FX (gain) loss
    
(13,234
 )
    
4,543
      
(10,369
)
    
(2,466
)
    
(27,344
)
Non-GAAP Non-operating (loss) income, net
  
$
5,426
    
$
3,632
    
$
428
    
$
14,430
    
$
(177
)
                                         
Reconciliation of GAAP to Non-GAAP Income tax provision:
                                        
                                         
GAAP Income tax provision
  
$
20,288
    
$
16,098
    
$
16,074
    
$
70,312
    
$
59,791
  
Estimated tax effects of FX (gain) loss
    
3,437
      
(1,193
)
    
2,522
      
317
      
5,933
  
Non-GAAP Income tax provision
  
$
16,851
    
$
17,291
    
$
13,552
    
$
69,995
    
$
53,858
  
                                         
Reconciliation of GAAP to Non-GAAP Noncontrolling interests:
                                        
                                         
GAAP Noncontrolling interests
  
$
18,545
    
$
21,296
    
$
18,204
    
$
74,149
    
$
60,456
  
Estimated noncontrolling interest effects of above
    
2,431
      
1,328
      
1,990
      
2,676
      
4,275
  
Non-GAAP Noncontrolling interests
  
$
16,114
    
$
19,968
    
$
16,214
    
$
71,473
    
$
56,181
  
                                         
Reconciliation of GAAP to Non-GAAP Net Income:
                                        
                                         
GAAP Net Income
  
$
44,611
    
$
26,959
    
$
37,060
    
$
125,485
    
$
118,786
  
FX (gain) loss
    
(13,234
 )
   
4,543
      
(10,369
)
    
(2,466
)
    
(27,344
)
Estimated tax effects of above
    
3,437
      
(1,193
)
    
2,522
      
317
      
5,933
  
Estimated noncontrolling interest effects of above
    
2,431
      
1,328
      
1,990
      
2,676
      
4,275
  
Non-GAAP Net Income
  
$
37,245
    
$
31,637
    
$
31,203
    
$
126,012
    
$
101,650
  
                                         
Weighted-average number of common shares outstanding - Diluted
    
62,067
      
61,974
      
61,374
      
61,755
      
61,189
  

                                       
Reconciliation of GAAP to Non-GAAP EPS:
                                        

                                       
GAAP diluted earnings per share
  
$
0.72
    
$
0.44
    
$
0.60
    
$
2.03
    
$
1.94
  
Effects of the above adjustments
  
$
(0.12
 )
 
$
0.07
    
$
(0.10
)
  
$
0.01
    
$
(0.28
)
Non-GAAP diluted earnings per share
  
$
0.60
    
$
0.51
    
$
0.51
    
$
2.04
    
$
1.66
  


Exhibit 99.6

PHOTRONICS, INC.
Reconciliation of GAAP to Non-GAAP Financial Information (cont.)
(in thousands)
(Unaudited)

Reconciliation of Net cash provided by operating activities to Free Cash Flow


  
Year ended
    


October 31,
2023
 

       

       
GAAP Net cash provided by operating activities
  
$
302,176
    
           
Purchases of property, plant and equipment
    
(131,295
)
  
           
Free Cash Flow
  
$
170,881
    

Reconciliation of  Cash and cash equivalents  to Net Cash:


  
As of
  


October 31,
2023

October 31,
2022

           
Cash and  cash equivalents
  
$
499,292
    
$
319,680
  
                 
Current portion of Long-term debt
    
(6,621
)
    
(10,024
)
                 
Long-term Debt
    
(17,998
)
    
(32,310
)
                 
Net Cash
  
$
474,673
    
$
277,346
  


Exhibit 99.7

 December 13, 2023  Q4 2023 Financial Results Conference Call 
 
 Safe Harbor Statement  This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and uncertainties. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found at www.photronics.com/riskfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated to update any forward-looking statements if our expectations change. 

 2023 Summary  Committed to driving long-term, profitable growth through strategic investments  6th consecutive year of record revenue  Photomask industry flat in 2023 amidst general slowdown in semiconductor and display sector  Margins improved on operating leverage, favorable pricing, and cost control  As largest merchant photomask provider with expansive geographic footprint, Photronics uniquely positioned to benefit from expected long-term growth in photomask demand   Capital allocation strategy and prudent balance sheet management support growth initiatives while increasing ROIC and resilience  1Net income attributable to Photronics, Inc. shareholders. 2Adjusted EPS is a non-GAAP measure. 1See reconciliation included in this presentation.  $892.1M  Revenue  $125.5M  Net Income1  $2.03  EPS1  $2.04  Adjusted2 EPS1  $302.2M  OCF  $499.3M  Cash  +8% Y/Y  +6% Y/Y  +5% Y/Y  +23% Y/Y  +10% Y/Y  +56% Y/Y 
 
 Q4 2023 Summary  Committed to driving long-term, profitable growth through strategic investments  1Net income attributable to Photronics, Inc. shareholders. 2Adjusted EPS is a non-GAAP measure. 1See reconciliation included in this presentation.  $227.5M  Revenue  $44.6M  Net Income1  $0.72  EPS1  $0.60  Adjusted2 EPS1  $106.6M  OCF  $499.3M  Cash  +8% Y/Y  +1% Q/Q  +20% Y/Y  +65% Q/Q  +20% Y/Y  +64% Q/Q  +18% Y/Y  +18% Q/Q  +35% Y/Y  +24% Q/Q  +56% Y/Y  +11% Q/Q  Revenue grew on strong demand across both IC and FPD as customers released new designs and ramped new fabs  Adjusted EPS increased as lower operating profit was more than offset by below-the-line items  Balance sheet fortified due to strong free cash flow generation, debt reduction, and effective management of working capital  Investing in IC capacity to capitalize on market growth trends 
 
 
 Semiconductor: growing capacity and design activity  More extensive use of semiconductors across multiple applications  Supply chain regionalization driving investments in semiconductor fabs that creates redundant production capacity and drives photomask demand  Differentiation by design becoming factor in mainstream (ASIC) and    leading-edge applications  Expanding EUV adoption drives semi manufacturer outsourcing of legacy technology nodes, increasing TAM for merchant suppliers  Display: advanced displays driving innovation  Global panel makers innovating to win AMOLED market share  Growing competition drives innovation and greater mask value  AMOLED manufacturing moving to larger form factor, requiring high-quality, advanced photomask  Long-Term Trends Driving Photomask Demand  Design and Manufacturing Complexity is Good for Photomask Demand 
 
 
 Strategic Investment Strategy Sustains Profitable Growth  Proven Approach to Profitably Grow Revenue, Capture Market Share, and Improve ROIC  Win market share in growing IC and FPD markets  Leverage global footprint to benefit from IC regionalization trends  Capitalize on FPD technology leadership to continue improving mix  Enter long-term purchase agreements and obtain process of record  Improved pricing environment in high-end and mainstream IC   Dynamically align asset tool set to match end-market demand  Increasing benefit from operating leverage  GROW REVENUE IN EXCESS OF MARKET  MARGIN EXPANSION IMPROVES PROFITS  Operational Excellence  Commercial Excellence  Technology Leader  Global Footprint  WINNING THROUGH COMPETITIVE ADVANTAGES  Organic growth through high-return targeted capacity expansionEnter LTPAs to mitigate investment risk and quickly ramp revenues  STRATEGIC APPROACH TO CAPITAL INVESTMENTS 
 
 Income Statement Summary  GAAP  Non-GAAP1  $M (except EPS)  Q423  Q/Q  Y/Y  Q423  Q/Q  Y/Y  Revenue  227.5   +1%  +8%  Gross Profit  84.9  -2%  +6%  Gross Margin  37.3%  -140 bps  -90 bps  Operating Income   64.8  -1%  +7%  Operating Margin  28.5%  -60 bps  -30 bps  Non-operating income  18.7  +19.6  +7.9  5.4  +1.8  +5.0  Income tax provision  20.3  +26%  +26%  16.9  -3%  +24%  Minority interest  18.5  -13%  +2%  16.1  -19%  -1%  Net income2  44.6  +65%  +20%  37.2  +18%  +19%  Diluted EPS2   0.72  +0.28  +0.12  0.60  +0.09  +0.09  Days in quarter  93  +2  +1  1See reconciliation included in this presentation. 2Net income attributable to Photronics, Inc. shareholders.  Margins declined due to lower premiums for expedited delivery  Opex decreased as percent of sales as we effectively managed costs  GAAP Non-operating income primarily consists of unrealized FX gain/loss  Non-GAAP removes effect of FX gain/loss  Minority interest reflects net income of IC JVs in Taiwan and China 
 
 
 IC Product Line  $M  Q423  Q/Q  Y/Y  High-End*  57.7  27%  30%  Mainstream  106.8  (9%)  (5%)  Total  164.5  1%  5%  High-end increased as stronger design activity drove demand across regions  Mainstream softness Q/Q offset by better high-end demand  Outlook  New designs by customers to gain market share and support technology roadmap  Regionalization driving investments for global chip capacity  Able to maintain pricing in favorable supply/demand dynamic  *28nm and smaller  Totals may differ due to rounding 
 
 FPD Product Line  *≥G10.5, AMOLED and LTPS   Totals may differ due to rounding  High-end grew on strong mobile display led by AMOLED demand  Mainstream output lowered as more production dedicated to meet strong high-end demand  Outlook  Technology development drives demand for higher-value masks  Mobile demand is expected to remain strong with rollout of new designs and emerging panel makers winning market share  $M  Q423  Q/Q  Y/Y  High-End*  53.3  7%  23%  Mainstream  9.7  (13%)  (9%)  Total  63.0  3%  17% 
 
 Balance Sheet and Cash Flow Metrics  *Net cash is a non-GAAP term. See reconciliation included in this presentation.  Balance Sheet Provides Resilience, Enables Growth Strategy and Shareholder Value Creation  $M  Q423  Y/Y  Q/Q  Cash  499.3  +56%  +11%  Short-term Investments  12.9  -67%  -53%  Debt  24.6  -42%  -8%  Net Cash*  474.7  +71%  +13%  Operating Cash Flow  106.6  +35%  +24%  Capital Expenditures  52.5  -20%  +149%  Continued strong operating cash flow from income generation and working capital management  Debt comprised of US equipment leases  Capex targets growth in IC capacity & facility expansion  Strong balance sheet able to fund investments, share repurchases, and strategic opportunities and remain resilient to effects of industry downturns 
 
 Q1 2024 Guidance   Revenue ($M)  217-225  Operating Margin  27%-29%  Taxes ($M)  11-15  Diluted non-GAAP EPS  $0.45-$0.53  Diluted Shares (M)  ~62  Full-year Capex (M)  ~140  Incorporation of chips in IoT, 5G, Crypto and consumer products   New designs to capture market share  Advanced display technologies  Outlook clouded by geopolitical uncertainty and macro-economic headwinds  Driving margin expansion and cash flows to deliver long-term shareholder value 
 
 Appendix 
 
 Revenue by Product Group ($M)  Total may differ due to rounding  IC  FPD  Mainstream  High-End  Mainstream  High-End  Total Revenue  IC Revenue  FPD Revenue  High-End: 28nm and smaller  High-End: ≥G10.5, AMOLED and LTPS 
 
 Non-GAAP Financial Measures  Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by 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 future on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not intended to represent funds available for our discretionary use and are not intended to represent, or be used as a substitute for, gross profit, operating income, net income, cash and cash equivalents, or cash flows from operations, 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 condensed consolidated balance sheets and statement of cash flows and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations on the following pages.  
 
 Non-GAAP Financial Measures 
 
 Non-GAAP Financial Measures 
 


v3.23.3
Document and Entity Information
Dec. 13, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Dec. 13, 2023
Entity File Number 0-15451
Entity Registrant Name PHOTRONICS, INC.
Entity Central Index Key 0000810136
Entity Incorporation, State or Country Code CT
Entity Tax Identification Number 06-0854886
Entity Address, Address Line One 15 Secor Road
Entity Address, City or Town Brookfield
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06804
City Area Code 203
Local Phone Number 775-9000
Title of 12(b) Security COMMON STOCK, $0.01 par value per share
Trading Symbol PLAB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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