Photronics Redeems Convertible Debt, Reduces Potentially Dilutive Shares
April 04 2019 - 2:38PM
Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask
technologies and solutions, reported that $57.5 million in
convertible debt which matured on April 1, 2019 was repaid in full.
The debt repayment eliminated 5.5 million
potentially dilutive shares. When combined with the previous
repayment of convertible debt in April 2016, 10.4 million
potentially dilutive shares have been eliminated over the last
three years. In addition, as previously reported, the company
repurchased 3.7 million shares on the open market beginning in July
2018; thus, a total of 14.1 million shares, or 18% of total
potentially-dilutive shares outstanding have been eliminated since
2016.
"During the last few years, we have
strategically improved our balance sheet, with this debt repayment
being the most recent step in that strategy,” said Peter Kirlin,
chief executive officer. “All debt has been repaid, with the
exception of targeted debt in China for which we expect to receive
reimbursement on all interest expense. In addition, over the last
three years we have significantly lowered our diluted share count,
providing greater value for our equity holders. We now have greater
financial flexibility as we evaluate future uses of cash, whether
it be additional share repurchases or investments in organic growth
to respond to customer commitments.”
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 50 years. Today, the company employs
1,575 across 11 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 the company and its subsidiaries. The
forward-looking statements contained in this press release 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, political, 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”,
and similar expressions. There is no assurance that the
company’s expectations will be realized. For additional information
please see the company’s quarterly and annual reports filed with
the Securities and Exchange Commission.
For Further Information:R. Troy
Dewar, CFAVice President, Investor Relations(203)
740-5610tdewar@photronics.com
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