EX-99.1 2 ef20054461_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 
 
For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
tmoreau@photronics.com

Photronics Reports Third Quarter Fiscal 2025 Financial Results

BROOKFIELD, Conn. August 27, 2025 (GLOBE NEWSWIRE) — Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025.

Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth.”

Third Quarter Fiscal 2025 Results

 •
Revenue was $210.4 million, down 0.3% year-over-year and 0.3% sequentially.

•
GAAP Net income attributable to Photronics, Inc. shareholders was $22.9 million, or $0.39 per diluted share, compared with $34.4 million, or $0.55 per diluted share, in the third quarter of 2024 and $8.9 million, or $0.15 per diluted share, in the second quarter of 2025.

•
Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.51 per diluted share, compared with $31.9 million, or $0.51 per diluted share in the third quarter of 2024 and $24.3 million, or $0.40 per diluted share, in the second quarter of 2025.

•
IC revenue was $147.8 million, down 5% year-over-year and 5% sequentially.

•
FPD revenue was $62.6 million, up 14% from the same quarter last year and 14% sequentially.

•
Cash, cash equivalents and short-term investments at the end of the quarter were $575.8 million, of which $396.8 million was associated with our Joint Ventures of which we own 50%.

•
Cash generated from operating activities was $50.1 million, cash invested in organic growth through capital expenditures was $24.8 million, and cash returned to shareholders through share repurchases was $20.7 million.

•
The Board of Directors approved an increase of $25.0 million to the share repurchase authorization.

Fourth Quarter Fiscal 2025 Guidance

For the fourth quarter of fiscal 2025, Photronics expects Revenue to be between $201 million and $209 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.42 and $0.48 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on August 27, 2025.  The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.

About Photronics

Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially.  Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

Non-GAAP Financial Measures

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)

 
  
Three Months Ended
    
Nine Months Ended
  
 
  
August 3,
    
May 4,
    
July 28,
    
August 3,
    
July 28,
  
 
  
2025
    
2025
    
2024
    
2025
    
2024
  
 
                              
Revenue
  
$
210,394
    
$
210,992
    
$
210,984
    
$
633,524
    
$
644,318
  
                                         
Cost of goods sold
    
139,539
      
133,086
      
135,846
      
409,228
      
410,674
  
                                         
Gross Profit
    
70,855
      
77,906
      
75,138
      
224,296
      
233,644
  
Gross margin %
    
33.7
%
    
36.9
%
    
35.6
%
    
35.4
%
    
36.3
%
                                         
Operating Expenses:
                                        
                                         
Selling, general and administrative
    
18,423
      
18,099
      
19,436
      
55,624
      
56,753
  
 
                                        
Research and development
    
4,271
      
4,090
      
3,555
      
12,618
      
11,291
  
 
                                        
Total Operating Expenses
    
22,694
      
22,189
      
22,991
      
68,242
      
68,044
  
                                         
Other operating gain
    
-
      
-
      
1
      
-
      
90
  
                                         
Operating Income
    
48,161
      
55,717
      
52,148
      
156,054
      
165,690
  
Operating Margin
    
22.9
%
    
26.4
%
    
24.7
%
    
24.6
%
    
25.7
%
                                         
Non-operating (loss) income, net
    
(9,428
)
    
(25,786
)
    
10,145
      
(10,232
)
    
26,931
  
                                         
Income Before Income Tax Provision
    
38,733
      
29,931
      
62,293
      
145,822
      
192,621
  
 
                                        
Income tax provision
    
9,594
      
5,714
      
14,124
      
34,209
      
48,998
  
                                         
Net Income
    
29,139
      
24,217
      
48,169
      
111,613
      
143,623
  
                                         
Net income attributable to noncontrolling interests
    
6,248
      
15,356
      
13,781
      
37,009
      
46,804
  
                                         
Net income attributable to Photronics, Inc. shareholders
  
$
22,891
    
$
8,861
    
$
34,388
    
$
74,604
    
$
96,819
  
                                         
Earnings per share attributed to Photronics, Inc. shareholders:
                                        
                                         
Basic
  
$
0.40
    
$
0.15
    
$
0.56
    
$
1.24
    
$
1.57
  
 
                                        
Diluted
  
$
0.39
    
$
0.15
    
$
0.55
    
$
1.23
    
$
1.55
  
                                         
Weighted-average number of common shares outstanding:
                                        
                                         
Basic
    
57,937
      
60,793
      
61,815
      
60,274
      
61,681
  
 
                                        
Diluted
    
58,068
      
60,974
      
62,414
      
60,567
      
62,369
  

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

 
  
August 3,
    
October 31,
  
 
  
2025
    
2024
  
 
            
Assets
            
 
            
Current assets:
            
Cash and cash equivalents
  
$
479,521
    
$
598,485
  
Short-term investments
    
96,277
      
42,184
  
Accounts receivable
    
190,875
      
200,830
  
Inventories
    
63,490
      
56,527
  
Other current assets
    
42,073
      
33,036
  
                 
Total current assets
    
872,236
      
931,062
  
                 
Property, plant and equipment, net
    
838,988
      
745,257
  
Other assets
    
41,541
      
35,740
  
                 
Total assets
  
$
1,752,765
    
$
1,712,059
  
                 
Liabilities and Equity
                
                 
Current liabilities:
                
Current portion of long-term debt
  
$
11
    
$
17,972
  
Accounts payable and accrued liabilities
    
174,914
      
165,839
  
                 
Total current liabilities
    
174,925
      
183,811
  
                 
Long-term debt
    
16
      
25
  
Other liabilities
    
39,824
      
47,464
  
                 
Equity:
                
Photronics, Inc. shareholders' equity
    
1,125,551
      
1,120,864
  
Noncontrolling interests
    
412,449
      
359,895
  
Total equity
    
1,538,000
      
1,480,759
  
                 
Total liabilities and equity
  
$
1,752,765
    
$
1,712,059
  

PHOTRONICS,  INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

 
  
Nine Months Ended
  
 
  
August 3,
    
July 28,
  
 
  
2025
    
2024
  
 
            
Cash flows from operating activities:
            
Net income
  
$
111,613
    
$
143,623
  
Adjustments to reconcile net income to net cash
                
provided by operating activities:
                
Depreciation and amortization
    
59,234
      
61,613
  
Share-based compensation
    
10,003
      
9,841
  
Changes in operating assets, liabilities and other
    
(20,876
)
    
(22,003
)
                 
Net cash provided by operating activities
    
159,974
      
193,074
  
                 
Cash flows from investing activities:
                
Purchases of property, plant and equipment
    
(120,588
)
    
(87,733
)
Purchases of short-term investments
    
(96,571
)
    
(100,558
)
Proceeds from maturities of short-term investments
    
42,148
      
44,696
  
Government incentives
    
1,469
      
1,541
  
Other
    
(57
)
    
(4
)
                 
Net cash used in investing activities
    
(173,599
)
    
(142,058
)
                 
Cash flows from financing activities:
                
Repayments of debt
    
(17,969
)
    
(4,500
)
Common stock repurchases
    
(97,422
)
    
-
  
Proceeds from share-based arrangements
    
2,120
      
1,074
  
Net settlements of restricted stock awards
    
(2,013
)
    
(3,002
)
                 
Net cash used in financing activities
    
(115,284
)
    
(6,428
)
                 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash
    
10,129
      
(6,454
)
                 
Net (decrease) increase in cash, cash equivalents, and restricted cash
    
(118,780
)
    
38,134
  
Cash, cash equivalents, and restricted cash, beginning of period
    
601,243
      
501,867
  
                 
Cash, cash equivalents, and restricted cash, end of period
  
$
482,463
    
$
540,001
  

PHOTRONICS, INC.

Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders
(in thousands, except per share amounts)
(Unaudited)

 
  
Three Months ended
  
 
  
August 3,
    
May 4,
    
July 28,
  
 
  
2025
    
2025
    
2024
  
 
                  
GAAP Net income attributable to Photronics, Inc. shareholders
  
$
22,891
    
$
8,861
    
$
34,388
  
FX (gain) loss
    
14,258
      
31,111
      
(4,068
)
Estimated tax effects of FX (gain) loss
    
(3,663
)
    
(8,337
)
    
914
  
Estimated noncontrolling interest effects of above
    
(4,130
)
    
(7,376
)
    
681
  
Non-GAAP Net income attributable to Photronics, Inc. shareholders
  
$
29,356
    
$
24,259
    
$
31,915
  
                         
Weighted-average number of common shares outstanding - Diluted
    
58,068
      
60,974
      
62,414
  

                       
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders
  
$
0.39
    
$
0.15
    
$
0.55
  
Effects of non-GAAP adjustments above
    
0.12
      
0.25
      
(0.04
)
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders
  
$
0.51
    
$
0.40
    
$
0.51