Photronics Reports Second Quarter Fiscal 2025 Results and Announces CEO Transition

May 28, 2025 07:00 ET | Source: Photronics, Inc. BROOKFIELD, Conn., May 28, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its second quarter of fiscal year 2025 ended May 4, 2025 and also announced that Dr. Frank Lee has informed Photronics of his plans to retire in the next year or two. In order to prepare for this transition, effective immediately, Dr. Lee has stepped down from his role as CEO of Photronics, but will continue to focus on the company’s Asia operations and will remain Chairman and President of Photronics’ PDMC subsidiary in Taiwan, while also remaining on the Photronics Board of Directors. Mr. George Macricostas will immediately assume the role of Chief Executive Officer of Photronics, Inc. while remaining Chairman of the Board. “I would like to thank Frank for leading Photronics over the past three years as CEO,” said Mr. Macricostas. “For nearly twenty years he led and grew Photronics business in Asia including years of strong execution driving significant, profitable revenue growth. I look forward to working with Frank as he continues to manage the Asia operations until his retirement.” Commenting on the second-quarter performance, Dr. Lee said, “Our business in Asia continued to perform at a strong level and I am extremely proud of what we continue to accomplish. Node migration remains a positive driver of our IC business at both the high end and the higher end of mainstream. Strategically, we took an aggressive approach to return cash to our shareholders during the quarter, repurchasing $72 million of our stock as an endorsement of our long-term business model.” Second Quarter Fiscal 2025 Results Revenue was $211.0 million, down 3% year-over-year and 1% sequentially.GAAP Net income attributable to Photronics, Inc. shareholders was $8.9 million, or $0.15 per diluted share, compared with $36.3 million, or $0.58 per diluted share, in the second quarter of 2024 and $42.9 million, or $0.68 per diluted share, in the first quarter of 2025.Non-GAAP Net income attributable to Photronics, Inc. shareholders was $24.3 million, or $0.40 per diluted share, compared with $28.7 million, or $0.46 per diluted share in the second quarter of 2024 and $32.4 million, or $0.52 per diluted share, in the first quarter of 2025.IC revenue was $155.9 million, down 3% year-over-year and up 1% sequentially.FPD revenue was $55.1 million, down 2% from the same quarter last year and 5% sequentially.Cash generated from operating activities was $31.5 million, cash invested in organic growth through capital expenditures was $60.5 million, and cash returned to shareholders through share repurchases was $72.1 million.Cash, cash equivalents and short-term investments at the end of the quarter was $558.4 million. Third Quarter Fiscal 2025 Guidance For the third quarter of fiscal 2025, Photronics expects Revenue to be between $200 million and $208 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.35 and $0.41 per diluted share. Webcast A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on May 28, 2025. 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 55 years. 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 our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings 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. 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 diluted earnings per share are "non-GAAP financial measures" as such term is defined by Regulation G of 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 on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. 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 statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below. PHOTRONICS, INC.Condensed Consolidated Statements of Income(in thousands, except per share amounts)(Unaudited) Three Months Ended Six Months Ended May 4, February 2, April 28, May 4, April 28, 2025 2025 2024 2025 2024 Revenue $210,992 $212,138 $217,000 $423,130 $433,334 Cost of goods sold 133,086 136,603 137,749 269,689 274,828 Gross Profit 77,906 75,535 79,251 153,441 158,506 Gross margin % 36.9% 35.6% 36.5% 36.3% 36.6% Operating Expenses: Selling, general and administrative 18,099 19,101 18,996 37,201 37,317 Research and development 4,090 4,257 4,292 8,346 7,736 Total Operating Expenses 22,189 23,358 23,288 45,547 45,053 Other operating gain - - 89 - 89 Operating Income 55,717 52,177 56,052 107,894 113,542 Operating Margin 26.4% 24.6% 25.8% 25.5% 26.2% Non-operating (loss) income, net (25,786) 24,981 20,534 (805) 16,786 Income Before Income Tax Provision 29,931 77,158 76,586 107,089 130,328 Income tax provision 5,714 18,901 20,214 24,615 34,874 Net Income 24,217 58,257 56,372 82,474 95,454 Net income attributable to noncontrolling interests 15,356 15,406 20,121 30,762 33,023 Net income attributable to Photronics, Inc. shareholders$8,861 $42,851 $36,251 $51,712 $62,431 Earnings per share attributed to Photronics, Inc. shareholders: Basic $0.15 $0.69 $0.59 $0.84 $1.01 Diluted $0.15 $0.68 $0.58 $0.84 $1.00 Weighted-average number of common shares outstanding: Basic 60,793 62,093 61,771 61,443 61,613 Diluted 60,974 62,661 62,409 61,817 62,346 PHOTRONICS, INC.Condensed Consolidated Balance Sheets(in thousands)(Unaudited) May 4, October 31, 2025 2024 Assets Current assets: Cash and cash equivalents $530,708 $598,485 Short-term investments 27,699 42,184 Accounts receivable 195,977 200,830 Inventories 61,201 56,527 Other current assets 40,221 33,036 Total current assets 855,806 931,062 Property, plant and equipment, net 807,558 745,257 Other assets 39,668 35,740 Total assets $1,703,032 $1,712,059 Liabilities and Equity Current liabilities: Current portion of long-term debt$11 $17,972 Accounts payable and accrued liabilities 166,772 165,839 Total current liabilities 166,783 183,811 Long-term debt 19 25 Other liabilities 39,461 47,464 Equity: Photronics, Inc. shareholders' equity 1,100,920 1,120,864 Noncontrolling interests 395,849 359,895 Total equity 1,496,769 1,480,759 Total liabilities and equity $1,703,032 $1,712,059 PHOTRONICS, INC.Condensed Consolidated Statements of Cash Flows(in thousands)(Unaudited) Six Months Ended May 4, April 28, 2025 2024 Cash flows from operating activities: Net income $82,474 $95,454 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40,386 41,487 Share-based compensation 6,710 6,499 Changes in operating assets, liabilities and other (19,651) (25,446) Net cash provided by operating activities 109,919 117,994 Cash flows from investing activities: Purchases of property, plant and equipment (95,749) (63,311)Purchases of short-term investments (27,689) (66,040)Proceeds from maturities of short-term investments 41,482 13,234 Government incentives 1,166 1,419 Other (57) (6) Net cash used in investing activities (80,847) (114,704) Cash flows from financing activities: Repayments of debt (17,966) (2,844)Common stock repurchases (76,682) - Proceeds from share-based arrangements 1,583 1,055 Net settlements of restricted stock awards (2,007) (2,938) Net cash used in financing activities (95,072) (4,727) Effects of exchange rate changes on cash, cash equivalents, and restricted cash (1,697) (3,839) Net decrease in cash, cash equivalents, and restricted cash (67,697) (5,276)Cash, cash equivalents, and restricted cash, beginning of period 601,243 501,867 Cash, cash equivalents, and restricted cash, end of period$533,546 $496,591 PHOTRONICS, INC.Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders(in thousands, except per share amounts)(Unaudited) Three Months ended May 4, February 2, April 28, 2025 2025 2024 GAAP Net income attributable to Photronics, Inc. shareholders$8,861 $42,851 $36,251 FX (gain) loss 31,111 (18,443) (14,766)Estimated tax effects of FX (gain) loss (8,337) 5,152 3,743 Estimated noncontrolling interest effects of above (7,376) 2,823 3,489 Non-GAAP Net income attributable to Photronics, Inc. shareholders$24,259 $32,383 $28,717 Weighted-average number of common shares outstanding - Diluted 60,974 62,661 62,409 GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders$0.15 $0.68 $0.58 Effects of non-GAAP adjustments above 0.25 (0.16) (0.12)Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders$0.40 $0.52 $0.46 For Further Information:Ted MoreauVP, Investor Relations469.395.8175tmoreau@photronics.com

Photronics Reports Second Quarter Fiscal 2025 Results and Announces CEO Transition

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