NOTE 9 - EARNINGS PER SHARE

The calculations of basic and diluted earnings per share is presented below.

	Three Months Ended				Nine Months Ended
	July 29, 2018		July 30, 2017		July 29 2018		July 30 2017

Net income attributable to Photronics, Inc. shareholders	$	13,005	$	4,001	$	29,568	$	7,745

Effect of dilutive securities:
Interest expense on convertible notes, net of tax		496		-		1,488		-

Earnings used for diluted earnings per share	$	13,501	$	4,001	$	31,056	$	7,745

Weighted-average common shares computations:
Weighted-average common shares used for basic earnings per share		69,374		68,525		69,141		68,376
Effect of dilutive securities:
Convertible notes		5,542		-		5,542		-
Share-based payment awards		342		855		438		935

Potentially dilutive common shares		5,884		855		5,980		935

Weighted-average common shares used for diluted earnings per share		75,258		69,380		75,121		69,311

Basic earnings per share	$	0.19	$	0.06	$	0.43	$	0.11
Diluted earnings per share	$	0.18	$	0.06	$	0.41	$	0.11

The table below shows the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise prices exceeded the average market value of the common shares for the period or, under application of the treasury stock method, they were otherwise determined to be anti-dilutive. The table also shows convertible notes that, if converted, would have been anti-dilutive, at July 30, 2017.

	Three Months Ended				Nine Months Ended
	July 29, 2018		July 30, 2017		July 29, 2018		July 30, 2017

Share-based payment awards		1,873		1,087		1,826		1,054
Convertible notes		-		5,542		-		5,542

Total potentially dilutive shares excluded		1,873		6,629		1,826		6,596