Photronics(PLAB)

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Photronics(PLAB) - 2021 Q2 - Quarterly Report
2021-06-09 19:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 2, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 0-15451 PHOTRONICS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...
Photronics(PLAB) - 2021 Q2 - Earnings Call Transcript
2021-05-26 17:44
Photronics, Inc. (NASDAQ:PLAB) Q2 2021 Earnings Conference Call May 26, 2021 8:30 AM ET Company Participants Troy Dewar – Vice President-Investor Relations Peter Kirlin – Chief Executive Officer John Jordan – Chief Financial Officer Chris Progler – Chief Technology Officer Conference Call Participants Patrick Ho – Stifel Gus Richard – Northland Tom Diffely – D.A. Davidson Orin Hirschman – AIGH Operator Good morning, ladies and gentlemen, and welcome to the Photronics Q2 2021 Earnings Results Conference Call ...
Photronics(PLAB) - 2021 Q2 - Earnings Call Presentation
2021-05-26 15:22
Photronics, Inc. Q2 2021 Financial Results Conference Call May 26, 2021 PHOTRONICS, INC. PHOTRONICS, INC. Safe Harbor Statement This presentation and some of our comments 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. Actual events or results may differ materially from those presented. These statements include words like ...
Photronics(PLAB) - 2021 Q1 - Quarterly Report
2021-03-10 22:17
Financial Performance - In Q1 FY21, the company's revenue was $152.1 million, with a gross margin of 20.1% compared to 21.4% in Q4 FY20[122] - The total revenue from IC photomasks decreased by $1.0 million, or 0.9%, from Q4 FY20, while FPD photomasks increased by $3.7 million, or 8.6%[125] - The company's operating income for Q1 FY21 was $11.7 million, representing 7.7% of revenue, down from 10.0% in Q4 FY20[122] - The company experienced a decrease in net income attributable to shareholders, which was 5.3% in Q1 FY21 compared to 4.3% in Q4 FY20[122] - Revenue decreased by 4.8% in Q1 FY21 compared to Q1 FY20, with IC demand declining by 1.9% and FPD demand falling by 10.7%[129] - Gross margin decreased by 1.3 percentage points in Q1 FY21 from Q4 FY20, primarily due to an unfavorable product mix and increased material costs[130] - Gross profit for Q1 FY21 was $30.5 million, down from $31.9 million in Q4 FY20 and $34.6 million in Q1 FY20[130] - Selling, general and administrative expenses were $14.1 million in Q1 FY21, an increase from $12.8 million in Q4 FY20[132] - Net cash provided by operating activities was $26.3 million in Q1 FY21, a decrease of $4.5 million from $30.8 million in Q1 FY20[139] - Cash and cash equivalents at the end of Q1 FY21 were $278.5 million, a slight decrease from $278.7 million at the end of fiscal 2020[138] - Net income attributable to noncontrolling interests was $1.5 million in Q1 FY21, down from $2.1 million in Q4 FY20, mainly due to decreased net income at the Taiwan-based IC facility[137] Investments and Financing - The company entered into a five-year finance lease for a high-end lithography tool valued at $35.6 million, with monthly payments starting at $0.04 million[110] - The interest rate for the finance lease of the high-end inspection tool is 1.09%[111] - The company received initial proceeds of approximately $6.3 million from a loan approved for 200 million RMB (approximately $30.9 million) in Q4 FY20[112] - A dividend of approximately $16.2 million was paid to noncontrolling interests from the company's majority-owned IC subsidiary in Taiwan[115] - The company authorized a stock repurchase program of up to $100 million in Q4 FY20, repurchasing 2.5 million shares at an average price of $11.34 per share[120] Research and Development - Research and development expenses increased to 3.1% of revenue in Q1 FY21, up from 2.8% in Q4 FY20[122] - Research and development expenses rose to $4.7 million in Q1 FY21, compared to $4.1 million in both Q4 FY20 and Q1 FY20, reflecting increased development activities in the U.S.[133] Future Outlook - The company expects Q4 FY20 revenue to increase in the high single digits as a percentage of FY20 revenue[146] - Operating profit is anticipated to grow at a rate similar to the 23% increase experienced in FY20[146] - Growth drivers for IC include added capacity from the China IC facility, increased demand for semiconductor masks, and recovery in high-end IC logic[146] - FPD revenue is expected to rise due to increased demand for AMOLED displays and the transition from LCD to OLED technologies[146] - The company has invested in three additional FPD write tools to support the anticipated increase in demand for high-end display masks[146] Market and Economic Conditions - A 10% adverse movement in foreign currencies could result in a net unrealized pre-tax loss of $32.5 million, with significant exposures to the Chinese renminbi and South Korean won[152] - The company does not expect a material effect from a 10% adverse movement in interest rates on variable rate borrowings[153] - The majority of growth in the IC and FPD markets is expected to come from the Asia region, predominantly China[148] - The company is continually assessing its global manufacturing strategy, which may lead to future facility closures or expansions based on market conditions[148] - Recent changes in U.S. leadership may improve trade relations with China, potentially affecting the company's operations[147]
Photronics(PLAB) - 2021 Q1 - Earnings Call Transcript
2021-02-24 16:51
Photronics, Inc. (NASDAQ:PLAB) Q1 2021 Earnings Conference Call February 24, 2021 8:30 AM ET Company Participants Peter Kirlin - CEO John Jordan - CFO Troy Dewar - VP, IR Conference Call Participants Tom Diffely - D.A. Davidson & Co. Patrick Ho - Stifel Nicolaus Gus Richard - Northland Capital Markets Operator Good morning, ladies and gentlemen, and welcome to the Photronics First Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will cond ...
Photronics(PLAB) - 2021 Q1 - Earnings Call Presentation
2021-02-24 13:26
Photronics, Inc. Q1 2021 Financial Results Conference Call February 24, 2021 PHOTRONICS, INC. PHOTRONICS, INC. Safe Harbor Statement This presentation and some of our comments 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. Actual events or results may differ materially from those presented. These statements include words ...
Photronics (PLAB) Presents At 23rd Annual Needham Growth Conference - Slideshow
2021-01-19 20:56
Global Merchant Photomask Leader 23rd Annual Needham Virtual Growth Conference January 15, 2021 PHOTRONICS, INC. PHOTRONICS, INC. Safe Harbor Statement This presentation and some of our comments 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. Actual events or results may differ materially from those presented. These state ...
Photronics(PLAB) - 2020 Q4 - Annual Report
2021-01-14 22:31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Connecticut 06-0854886 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...
Photronics(PLAB) - 2020 Q4 - Earnings Call Presentation
2020-12-10 07:10
Photronics, Inc. Q4 2020 Financial Results Conference Call December 9, 2020 PHOTRONICS, INC. PHOTRONICS, INC. Safe Harbor Statement This presentation and some of our comments 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. Actual events or results may differ materially from those presented. These statements include words l ...
Photronics(PLAB) - 2020 Q4 - Earnings Call Transcript
2020-12-09 17:40
Financial Data and Key Metrics Changes - Full year revenue for 2020 was $610 million, marking the highest revenue in the company's history and the third consecutive year of record revenue, an increase of 11% compared to 2019 [6][17] - Fourth quarter revenue decreased by 5% sequentially due to seasonality and geopolitical factors, with a diluted earnings per share of $0.10 [7][25] - Cash balance at the end of 2020 was $279 million, an increase of $72 million from the previous year, despite $71 million spent on capital expenditures and $34 million on share repurchases [8][25] Business Line Data and Key Metrics Changes - FPD (Flat Panel Display) revenue achieved record levels, surpassing last year's total by 32%, while IC (Integrated Circuit) revenue was the second highest ever, just below the record set in 2015 [6][17] - IC revenue was particularly strong in China, with record product shipments, driven by foundry and logic demand, while memory demand was weaker [19][20] - FPD mask demand was negatively impacted by U.S. trade sanctions against Huawei, leading to a 21% sequential decline in AMOLED mask sets [20][22] Market Data and Key Metrics Changes - The geopolitical environment, particularly U.S. trade sanctions against Huawei, significantly affected the FPD business, constraining mobile display demand [7][20] - The supply chain is in the process of resetting, with a shift in demand from Huawei to other Chinese mobile phone manufacturers [21][22] - The overall market for high-end IC is expected to recover, particularly in the memory segment, with customers planning aggressive transitions to next-generation devices [41][42] Company Strategy and Development Direction - The company aims to expand its leadership position by delivering the right technology to the right customers at the right time, with plans to enhance profit margins and cash generation [15][28] - Photronics is focused on diversifying its business by increasing revenue from China and high-end products, while maintaining operational excellence and customer intimacy [14][12] - The company is open to M&A opportunities in the photomask space to extend market and technology leadership [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the long-term outlook, anticipating that challenges from 2020 will diminish as vaccines are rolled out and geopolitical conditions stabilize [10][15] - The company expects first quarter revenue to be in the range of $145 million to $155 million, reflecting a flat quarter compared to Q4, with underlying market demand improving [31][32] - Initial outlook for fiscal year 2021 suggests high single-digit revenue growth and operating profit growth similar to the 23% achieved in 2020 [33] Other Important Information - Total capital expenditures for 2020 were $71 million, with a forecast of about $100 million for the next year as the company completes its Phase I investment in Xiamen [27][28] - The company has returned $79 million through share repurchases since 2018, demonstrating a commitment to returning cash to shareholders [28] Q&A Session Summary Question: Can you help reconcile the commentary regarding high utilization rates in the mainstream IC marketplace? - Management noted that the mainstream business has been stable, with a shift in demand from the U.S. and Europe to Taiwan and China, and expects continued strength in foundry logic demand in Asia [36][37] Question: Can you reconcile the softness in the memory market with the shift to next-generation devices? - Management acknowledged the current softness in the memory market but expressed optimism for a rebound in 2021, driven by aggressive plans from customers for transitions to next-generation nodes [38][42] Question: How much conservatism is included in the first quarter outlook? - Management indicated that the guidance reflects improvements in market conditions to offset typical seasonal declines, with a focus on improving demand trends in Asia [47][48] Question: Are you seeing customers migrate their business to other foundries due to SMIC's ban? - Management stated that while any harm to customers is negative, a shift in demand from customers who build their own photomasks to those who purchase them could create demand for Photronics [53][54] Question: Are there considerations for listing on the star market due to higher valuations for semiconductor-related companies? - Management is aware of the potential upside of such a move but prefers to evaluate new trends carefully before making decisions [55][56]