Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative
imaging technology solutions for the global electronics industry, today
reported financial results for the fourth quarter and fiscal year ended
October 28, 2012.
"Fourth quarter revenues reflect decreased demand for both integrated
circuit (IC) and flat panel display (FPD) photomasks during a
challenging global economic and electronics industry environment,"
stated Constantine ("Deno") Macricostas, Photronics' chairman and chief
executive officer. "A universal softness in new designs for both IC and
FPD components impacted demand for photomasks this quarter. Despite
lower revenues, non-GAAP diluted earnings per share was $0.07, exceeding
our revised forecast of $0.03 to $0.04 per share. Also, we continued to
strengthen our balance sheet with improvements in net cash and working
capital during the quarter. Looking at the full year, while overall
sales were down, a 16% increase in high-end IC photomasks demonstrates
the continued success of our strategy and strength of our technology. We
believe our technology and market position coupled with favorable long
term trends in electronic devices will provide substantial opportunities
for Photronics when the market rebounds."
Sales for the fourth quarter of fiscal 2012 were $104.2 million,
compared with $122.2 million for the fourth quarter of fiscal year 2011.
Sales of semiconductor photomasks were $83.9 million, or 81% of
revenues, during the fourth quarter of fiscal 2012, and sales of flat
panel display (FPD) photomasks were $20.3 million, or 19% of revenues.
For the fourth quarter of fiscal 2012, GAAP net income attributable to
Photronics, Inc. was $3.8 million, or $0.06 earnings per diluted share,
compared with $9.3 million, or $0.14 earnings per diluted share, for the
fourth quarter of fiscal 2011. Non-GAAP net income attributable to
Photronics, Inc. for the fourth quarter of 2012, excluding consolidation
and restructuring charges of $0.2 million, was $4.1 million, or $0.07
earnings per diluted share. Non-GAAP net income attributable to
Photronics, Inc. for the fourth quarter of 2011, excluding $0.2 million
impact of warrants, was $9.1 million, or $0.14 earnings per diluted
Sales for the 2012 fiscal year were $450.4 million, compared with $512.0
million for the 2011 fiscal year. For the 2012 fiscal year, sales of
semiconductor photomasks were $350.1 million, or 78% of revenues, and
sales of FPD photomasks were $100.3 million, or 22% of revenues. GAAP
net income attributable to Photronics, Inc. for the 2012 fiscal year was
$27.9 million, or $0.44 earnings per diluted share, compared with GAAP
net income of $16.2 million, or $0.28 earnings per diluted share, for
the 2011 fiscal year. Non-GAAP net income attributable to Photronics,
Inc. for the 2012 fiscal year, excluding consolidation and restructuring
charges of $1.4 million and $0.1 million impact of warrants, was $29.2
million, or $0.46 earnings per diluted share. Non-GAAP net income
attributable to Photronics, Inc. for the 2011 fiscal year, excluding a
$35.5 million debt extinguishment loss and $0.4 million impact of
warrants, was $52.1 million, or $0.80 earnings per diluted share.
The section below entitled "Non-GAAP Financial Measures"
provides a definition and information about the use of non-GAAP
financial measures in this press release, and the attached financial
supplement reconciles non-GAAP financial information with Photronics,
Inc.'s financial results under GAAP.
Non-GAAP Financial Measures
Non-GAAP net income attributable to Photronics, Inc. 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. Photronics, Inc.
believes that non-GAAP net income attributable to Photronics, Inc. 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. 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:
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.
A conference call with investors and the media to discuss these results
is scheduled for 8:30 a.m. Eastern Time on Wednesday, December 5, 2012.
The call can be accessed by logging onto Photronics' web site at www.photronics.com.
The live dial-in number is 408-774-4601. The call will be archived for
instant replay access until the Company reports its fiscal 2013 first
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.
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.
PLAB - E
PHOTRONICS, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP
Reconciliation of GAAP to Non-GAAP Net
Attributable to Photronics, Inc.
(c) Debt extinguishment loss and net interest impact, net
Applicable to Common Shareholders
(c) Represents extinguishment charges during the year ended
October 30, 2011 related to the repurchase of $35.4 million of the
Company's 5.50% convertible senior notes due in October 2014, and
net interest impact on convertible transactions.
Condensed Consolidated Statements of
Condensed Consolidated Balance Sheets
Liabilities and Equity
Condensed Consolidated Statements of Cash
Adjustments to reconcile net income to net cash provided by
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