 |
For Further Information:
R.
Troy Dewar, CFA
Director, Investor
Relations
(203)740-5610
tdewar@photronics.com |
| |
Photronics
Reports First Quarter Fiscal 2016 Results
| ● |
Record first-quarter
sales of $130.0 million, up 5% compared with last year and the seventh
consecutive quarter of year-over-year revenue
growth
|
| ● |
Net income of $21.0
million ($0.28 per diluted share) includes a non-recurring net gain of
$8.8 million ($0.11 per diluted share)
|
| ● |
FPD sales increased 37%
year-over-year, with high-end FPD sales up 56%
|
| ● |
EBITDA of $49.7 million,
up 46% from the first quarter of 2015
|
| ● |
Net cash of $101
million, up $28 million sequentially, providing financial strength and
flexibility to fund growth
|
| ● |
Second quarter 2016
guidance: sales between $120 and $130 million; diluted EPS between $0.08
and $0.16 |
BROOKFIELD, Connecticut –
February 24, 2016 — Photronics,
Inc. (NASDAQ:PLAB), a worldwide
leader in supplying innovative imaging technology solutions for the global
electronics industry, today reported financial results for fiscal 2016 first
quarter ended January 31, 2016.
First quarter sales were
$130.0 million, up 5% compared with last year, and down 8% sequentially. Sales
of IC photomasks were $99.8 million, down 2% from the same period last year and
11% from last quarter, while sales of flat panel display (FPD) photomasks were
$30.2 million, up 37% compared with last year and flat sequentially. GAAP net
income attributable to Photronics, Inc. shareholders was $21.0 million, or $0.28
per diluted share, including a non-recurring net gain of $8.8 million ($0.11 per
diluted share) on the sale of investment in a foreign entity, compared with $3.8
million, or $0.06 per diluted share, for the first quarter of 2015. Excluding
the gain, non-GAAP net income attributable to Photronics, Inc. shareholders was
$12.2 million, or $0.17 per diluted share, compared with $4.7 million, or $0.07
per diluted share, for the first quarter of 2015, excluding net financing
expenses.
"Despite a challenging
macroeconomic environment, we executed well and were able to achieve record
first-quarter sales," stated Peter Kirlin, chief executive officer. "Continuing
the trend from 2015, demand for high-end memory and FPD masks was strong. Demand
for high-end logic masks, which can be uneven when transitioning to new nodes,
was soft due to slower product launches from Asian foundries. Mainstream IC was down globally due to Asian
foundry softness and a greater-than-normal seasonal downturn in the US and
Europe. These factors contributed to net income well above last year’s results
but off from the record-setting fourth quarter. We also built upon our already
solid cash balance, lifting our net cash position to $101 million. All said, I
believe our results were very good given the environment we faced, and I’m still
very confident in our long-term ability to achieve profitable growth."
Second Quarter 2016
Guidance
Kirlin continued, “Looking
into the second quarter, we expect continued strong demand from high-end memory
and FPD. We anticipate continued softness in high-end logic due to low demand
from Asian foundries, as well as potential headwinds in Asia due to the Chinese
New Year.” For the second quarter of 2016, Photronics expects revenues to be
between $120 million and $130 million and net income attributable to Photronics,
Inc. shareholders to be between $0.08 and $0.16 per diluted share.
Non-GAAP Financial Measures
Non-GAAP net income
attributable to Photronics, Inc. shareholders and non-GAAP earnings per share
are "non-GAAP financial measures," as such term is defined by the Securities and
Exchange Commission, and may differ from non-GAAP financial measures used by
other companies. The attached financial supplement reconciles non-GAAP financial
information with Photronics, Inc.'s financial results under GAAP. Photronics,
Inc. believes that non-GAAP net income attributable to Photronics, Inc.
shareholders and non-GAAP earnings per share that exclude certain non-cash or
non-recurring income or expense items are useful for analysts and investors to
evaluate Photronics, Inc.'s future on-going performance because they enable a
more meaningful comparison of Photronics, Inc.'s projected earnings and
performance with its historical results of prior periods. These non-GAAP
metrics, in particular non-GAAP net income attributable to Photronics, Inc.
shareholders and non-GAAP earnings per share, are not intended to represent
funds available for Photronics, Inc.'s discretionary use and are not intended to
represent, or be used as a substitute for, operating income, net income or cash
flows from operations data as measured under GAAP. The items excluded from these
non-GAAP metrics, but included in the calculation of their closest GAAP
equivalent, are significant components of the consolidated statements of
operations and must be considered in performing a comprehensive assessment of
overall financial performance. Non-GAAP financial information is adjusted for
the following items:
| ● |
Non-recurring net gain
on sale of investment in fiscal 2016
|
| ● |
Financing expenses in
fiscal 2015 related to the exchange of convertible senior notes
|
The presentation of this
financial information should not be considered in isolation or as a substitute
for the financial information prepared and presented in accordance with
accounting principles generally accepted in the United States. The attached
financial supplement reconciles non-GAAP financial information with Photronics,
Inc.'s financial results under GAAP.
Conference Call
A conference call with
investors and the media to discuss these results is scheduled for 8:30 a.m.
Eastern Time on Wednesday, February 24, 2016. 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 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.
