 |
For Further Information:
R. Troy Dewar, CFA
Director, Investor Relations
(203) 740-5610
tdewar@photronics.com |
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Press
Release |
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Photronics Provides
Preliminary First Quarter FY 2016 Financial Results
| ● |
Expects Q116 sales to
be between $128 and $130 million, and diluted EPS in the range of $0.26
to $0.28
|
| ● |
Net income includes a one-time
net gain on sale of investment in foreign entity of approximately $8.7
million, or $0.11 per diluted share; excluding the gain, diluted EPS expected to be $0.15 to $0.17
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| ● |
Strong end market
demand in high-end memory and FPD; soft demand in high-end logic;
seasonal softness in mainstream
IC
|
| ● |
Net cash position
expands to over $100 million
|
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First quarter
earnings announcement scheduled for February 24,
2016 |
BROOKFIELD, Connecticut – February 11, 2016
— Photronics, Inc.
(Nasdaq:PLAB), a worldwide leader in supplying innovative imaging technology
solutions for the global electronics industry, today provided preliminary results
for the first quarter of fiscal 2016, ended January 31, 2016.
Based upon preliminary financial results, Photronics now expects first
quarter sales to be between
$128 and $130 million, and diluted earnings per share (EPS) to be in the range of $0.26 to
$0.28, including a one-time net
gain on the sale of investment in a foreign entity of $0.11 per diluted share.
Excluding this gain, diluted EPS is expected to be in the range of $0.15 to $0.17. These expectations compare with the previously announced guidance range
of $133 to $143 million in sales and diluted EPS of $0.14 to $0.23.
"Similar to the last
several quarters, demand for high-end memory and FPD photomasks during
the first quarter was very strong;
however high end logic, which can be lumpy, was soft due to lower demand from some foundry costumers in Asia, causing our sales
to be lower than we
previously communicated," stated Peter Kirlin, chief executive officer. "Additionally, the seasonal slowdown we experienced in mainstream IC was greater than normal, causing demand for those products
to be lower than our projections. As a result of the lower demand for our products and the
operating leverage in our model, we anticipate earnings will be in the low-end
of our previous guidance, excluding
the one-time gain. Nevertheless, we were able to continue our trend of positive
cash flow, building our net cash position to over $100 million. While our first quarter results
were slightly below expectations, we remain confident that the long-term
growth outlook for our business
is positive, and are committed to our strategic growth plan."
Photronics is scheduled to announce financial results for the first
quarter of fiscal 2016 on February 24,
2016, before the market opens, and will host a public conference call on that same day
at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions
concerning, but not limited to, the Company’s financial performance, business conditions and industry
outlook. Some of these responses may contain information that has not been previously disclosed.
The call will be broadcast live and on-demand
on the “Investor” section of the Photronics
website at www.photronics.com.
Analysts and investors wishing to participate in the Q&A
portion of the call may dial (877) 377-7095,
or (408) 774-4601 outside of the
United States and Canada. It is
suggested that participants call in five minutes prior to the call’s scheduled start time.
# # #
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 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.
xx-2016
