Photronics Reports First Quarter Fiscal 2018 Results
Tweet
Share
E-mailGet Alerts PLAB Hot Sheet
Join SI Premium – FREE
BROOKFIELD, CT -- (Marketwired) -- 02/14/18 --
- First quarter 2018 revenue was $123.4 million, up 2% sequentially and 12% year-over-year
- Net income attributable to Photronics, Inc. shareholders was $5.9 million ($0.09 per diluted share)
- Balance sheet strengthened as cash balance increased $40.5 million to $348.6 million
- Second quarter 2018 guidance: revenue between $120 and $128 million with diluted EPS between $0.04 and $0.09
Photronics, Inc. (NASDAQ: PLAB), a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, today reported financial results for its fiscal 2018 first quarter ended January 28, 2018.
First quarter revenue was $123.4 million, increases of 2% sequentially and 12% compared with same quarter prior year. Integrated circuit (IC) revenue was $95.7 million, essentially flat sequentially and up 11% compared with last year. Flat panel display (FPD) revenue was $27.8 million, up 11% sequentially and 19% compared with last year.
Net income attributable to Photronics, Inc. shareholders was $5.9 million ($0.09 per diluted share), compared with $5.4 million ($0.08 per diluted share) for the fourth quarter of 2017 and $1.9 million ($0.03 per diluted share) for the first quarter of 2017.
"We achieved another quarter of solid revenue growth, despite seasonal headwinds, due to continued strength in high-end IC demand, and overall improvement in FPD," said Peter Kirlin, chief executive officer. "High-end IC improved primarily due to logic demand from Asia foundry customers, where tape-out activity remains robust. FPD demand for new LCD panels was strong as customers released new designs to improve factory utilization. Operating expenses were slightly higher sequentially as adjustments recognized in the previous quarter did not recur; operating margin was 9.6% compared with 10.3% in the previous quarter. Below the operating income line, a foreign exchange loss of $2.7 million, net of tax and non-controlling interest, and tax benefits of $4.2 million resulted in net income of $5.9 million. Our balance sheet strengthened during the quarter, with cash balance growing to $348.6 million on strong operating cash flow and the initial contribution from our partner for the PDMCX joint venture in China."
Second Quarter 2018 Guidance
Kirlin continued, "For the second quarter of 2018, we expect revenue to be between $120 million and $128 million, and net income attributable to Photronics, Inc. shareholders to be between $0.04 and $0.09 per diluted share."
Conference Call
A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, February 14, 2018. The call can be accessed by logging onto Photronics' web site at www.photronics.com. The live dial-in number is (877) 377-7095 or (408) 774-4601 outside of the United States and Canada. The call will be archived on Photronics' web site for instant replay access.
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 display 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", 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.
PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
----------------------------------------
January 28, October 29, January 29,
2018 2017 2017
------------ ------------ ------------
Revenue $ 123,446 $ 120,971 $ 109,831
Cost of goods sold (95,784) (94,529) (86,832)
------------ ------------ ------------
Gross profit 27,662 26,442 22,999
Operating Expenses:
Selling, general and
administrative (11,750) (10,182) (10,871)
Research and development (4,104) (3,838) (3,485)
------------ ------------ ------------
Total Operating Expenses (15,854) (14,020) (14,356)
------------ ------------ ------------
Operating income 11,808 12,422 8,643
Other (expense) income, net (4,105) 536 (2,083)
------------ ------------ ------------
Income before income taxes 7,703 12,958 6,560
Income tax benefit (provision) 1,778 (2,462) (2,050)
------------ ------------ ------------
Net income 9,481 10,496 4,510
Net income attributable to
noncontrolling interests (3,583) (5,110) (2,564)
------------ ------------ ------------
Net income attributable to
Photronics, Inc. shareholders $ 5,898 $ 5,386 $ 1,946
============ ============ ============
Earnings per share:
Basic $ 0.09 $ 0.08 $ 0.03
============ ============ ============
Diluted $ 0.09 $ 0.08 $ 0.03
============ ============ ============
Weighted-average number of common
shares outstanding:
Basic 68,755 68,615 68,176
============ ============ ============
Diluted 69,372 69,218 69,169
============ ============ ============
PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
January 28, October 29,
2018 2017
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 348,560 $ 308,021
Accounts receivable 104,638 105,320
Inventories 26,997 23,703
Other current assets 12,162 12,080
------------- -------------
Total current assets 492,357 449,124
Property, plant and equipment, net 548,307 535,197
Intangible assets, net 16,224 17,122
Other assets 24,568 19,351
------------- -------------
Total assets $ 1,081,456 $ 1,020,794
============= =============
Liabilities and Equity
Current liabilities:
Current portion of long-term borrowings $ 3,259 $ 4,639
Accounts payable and accrued liabilities 84,814 77,137
------------- -------------
Total current liabilities 88,073 81,776
Long-term borrowings 57,366 57,337
Other liabilities 17,570 16,386
Photronics, Inc. shareholders' equity 777,433 744,564
Noncontrolling interests 141,014 120,731
------------- -------------
Total equity 918,447 865,295
------------- -------------
Total liabilities and equity $ 1,081,456 $ 1,020,794
============= =============
PHOTRONICS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended
----------------------------
January 28, January 29,
2018 2017
------------- -------------
Cash flows from operating activities:
Net income $ 9,481 $ 4,510
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 22,363 20,896
Changes in operating assets, liabilities
and other (982) 6,133
------------- -------------
Net cash provided by operating activities 30,862 31,539
------------- -------------
Cash flows from investing activities:
Purchases of property, plant and equipment (10,995) (9,600)
Acquisition of business - (5,400)
Other (134) (396)
------------- -------------
Net cash used in investing activities (11,129) (15,396)
------------- -------------
Cash flows from financing activities:
Repayments of long-term borrowings (1,381) (1,343)
Contribution from noncontrolling interest 11,998 -
Proceeds from share-based arrangements 798 1,113
Other (261) (16)
------------- -------------
Net cash provided by (used in) financing
activities 11,154 (246)
------------- -------------
Effect of exchange rate changes on cash 9,652 (275)
------------- -------------
Net increase in cash and cash equivalents 40,539 15,622
Cash and cash equivalents, beginning of period 308,021 314,074
------------- -------------
Cash and cash equivalents, end of period $ 348,560 $ 329,696
============= =============
For Further Information: R. Troy Dewar, CFA Director, Investor Relations (203) 740-5610 [email protected]
Source: Photronics, Inc.
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
