Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 29, 2023 | Mar. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 29, 2023 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 0-15451 | |
Entity Registrant Name | PHOTRONICS, INC. | |
Entity Central Index Key | 0000810136 | |
Entity Incorporation, State or Country Code | CT | |
Entity Tax Identification Number | 06-0854886 | |
Entity Address, Address Line One | 15 Secor Road | |
Entity Address, City or Town | Brookfield | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06804 | |
City Area Code | 203 | |
Local Phone Number | 775-9000 | |
Title of 12(b) Security | COMMON | |
Trading Symbol | PLAB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,474,604 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 334,792 | $ 319,680 |
Short-term investments | 39,199 | 38,820 |
Accounts receivable, net of allowance of $1,116 in 2023 and $1,002 in 2022 | 220,692 | 198,147 |
Inventories | 52,796 | 50,753 |
Other current assets | 53,337 | 37,252 |
Total current assets | 700,816 | 644,652 |
Property, plant and equipment, net | 710,927 | 643,873 |
Deferred income taxes | 21,922 | 19,816 |
Other assets | 8,015 | 7,489 |
Total assets | 1,441,680 | 1,315,830 |
Current liabilities: | ||
Current portion of long-term debt | 6,541 | 10,024 |
Accounts payable | 84,818 | 79,566 |
Accrued liabilities | 107,972 | 104,207 |
Total current liabilities | 199,331 | 193,797 |
Long-term debt | 27,323 | 32,310 |
Other liabilities | 32,306 | 27,634 |
Total liabilities | 258,960 | 253,741 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value, 2,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value, 150,000 shares authorized, 61,102 shares issued and outstanding at January 29, 2023, and 60,791 shares issued and outstanding at October 31,2022 | 611 | 608 |
Additional paid-in capital | 494,954 | 493,741 |
Retained earnings | 449,620 | 435,634 |
Accumulated other comprehensive loss | (24,420) | (98,456) |
Total Photronics, Inc. shareholders' equity | 920,765 | 831,527 |
Noncontrolling interests | 261,955 | 230,562 |
Total equity | 1,182,720 | 1,062,089 |
Total liabilities and equity | $ 1,441,680 | $ 1,315,830 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
Current assets: | ||
Accounts receivable, allowance | $ 1,116 | $ 1,002 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000 | 2,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000 | 150,000 |
Common stock, shares issued (in shares) | 61,102 | 60,791 |
Common stock, shares outstanding (in shares) | 61,102 | 60,791 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | ||
Condensed Consolidated Statements of Income [Abstract] | |||
Revenue | [1] | $ 211,090 | $ 189,827 |
Cost of goods sold | 135,013 | 129,964 | |
Gross profit | 76,077 | 59,863 | |
Operating expenses: | |||
Selling, general, and administrative | 16,818 | 15,727 | |
Research and development | 3,302 | 5,939 | |
Total operating expenses | 20,120 | 21,666 | |
Operating income | 55,957 | 38,197 | |
Other income (expense): | |||
Foreign currency transactions impact, net | (16,944) | 5,268 | |
Interest income and other income, net | 2,584 | 334 | |
Interest expense | (65) | (895) | |
Income before income tax provision | 41,532 | 42,904 | |
Income tax provision | 12,582 | 11,178 | |
Net income | 28,950 | 31,726 | |
Net income attributable to noncontrolling interests | 14,964 | 8,662 | |
Net income attributable to Photronics, Inc. shareholders | $ 13,986 | $ 23,064 | |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.23 | $ 0.38 | |
Diluted (in dollars per share) | $ 0.23 | $ 0.38 | |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 60,894 | 60,158 | |
Diluted (in shares) | 61,470 | 60,936 | |
[1] This table disaggregates revenue by the location in which it was earned. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 28,950 | $ 31,726 |
Other comprehensive (loss) income, net of tax of $0: | ||
Foreign currency translation adjustments | 90,519 | (9,831) |
Other | (54) | 37 |
Net other comprehensive (loss) income | 90,465 | (9,794) |
Comprehensive income | 119,415 | 21,932 |
Less: comprehensive income attributable to noncontrolling interests | 31,393 | 8,874 |
Comprehensive income attributable to Photronics, Inc. shareholders | $ 88,022 | $ 13,058 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||
Other comprehensive income (loss), tax | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-Controlling Interests [Member] | Total |
Balance at Oct. 31, 2021 | $ 600 | $ 484,672 | $ 317,849 | $ 0 | $ 20,571 | $ 176,870 | $ 1,000,562 |
Balance (in shares) at Oct. 31, 2021 | 60,024 | ||||||
Net income | $ 0 | 0 | 23,064 | 0 | 0 | 8,662 | 31,726 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | (10,006) | 212 | (9,794) |
Shares issued under equity plans | $ 7 | 2,733 | 0 | 0 | 0 | 0 | 2,740 |
Shares issued under equity plans (in shares) | 728 | ||||||
Share-based compensation expense | $ 0 | 1,457 | 0 | 0 | 0 | 0 | 1,457 |
Contribution from noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 14,997 | 14,997 |
Purchase of treasury stock | $ 0 | 0 | 0 | (2,522) | 0 | 0 | $ (2,522) |
Purchase of treasury stock (in shares) | 0 | 188 | |||||
Retirement of treasury stock | $ (1) | (1,520) | (1,001) | 2,522 | 0 | 0 | $ 0 |
Retirement of treasury stock (in shares) | (188) | ||||||
Balance at Jan. 30, 2022 | $ 606 | 487,342 | 339,912 | 0 | 10,565 | 200,741 | 1,039,166 |
Balance (in shares) at Jan. 30, 2022 | 60,564 | ||||||
Balance at Oct. 31, 2022 | $ 608 | 493,741 | 435,634 | 0 | (98,456) | 230,562 | 1,062,089 |
Balance (in shares) at Oct. 31, 2022 | 60,791 | ||||||
Net income | $ 0 | 0 | 13,986 | 0 | 0 | 14,964 | 28,950 |
Other comprehensive (loss) income | 0 | 0 | 0 | 0 | 74,036 | 16,429 | 90,465 |
Shares issued under equity plans | $ 3 | (608) | 0 | 0 | 0 | 0 | (605) |
Shares issued under equity plans (in shares) | 311 | ||||||
Share-based compensation expense | $ 0 | 1,821 | 0 | 0 | 0 | 0 | 1,821 |
Purchase of treasury stock | $ 0 | ||||||
Purchase of treasury stock (in shares) | 0 | ||||||
Balance at Jan. 29, 2023 | $ 611 | $ 494,954 | $ 449,620 | $ 0 | $ (24,420) | $ 261,955 | $ 1,182,720 |
Balance (in shares) at Jan. 29, 2023 | 61,102 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 28,950 | $ 31,726 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,105 | 20,810 |
Share-based compensation | 1,821 | 1,457 |
Changes in assets and liabilities: | ||
Accounts receivable | (7,565) | 3,269 |
Inventories | 1,705 | (7,020) |
Other current assets | (13,060) | (6,730) |
Accounts payable, accrued liabilities, and other | (3,276) | 15,618 |
Net cash provided by operating activities | 27,680 | 59,130 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (31,097) | (19,175) |
Government incentives | 1,014 | 0 |
Other | (87) | (43) |
Net cash used in investing activities | (30,170) | (19,218) |
Cash flows from financing activities: | ||
Repayments of debt | (9,218) | (15,192) |
Purchases of treasury stock | 0 | (2,522) |
Contribution from noncontrolling interest | 0 | 14,997 |
Proceeds from share-based arrangements | 672 | 3,840 |
Net settlements of restricted stock awards | (1,168) | (1,458) |
Net cash used in financing activities | (9,714) | (335) |
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | 27,499 | (2,057) |
Net increase in cash, cash equivalents, and restricted cash | 15,295 | 37,520 |
Cash, cash equivalents, and restricted cash at beginning of period | 322,409 | 279,680 |
Cash, cash equivalents, and restricted cash at end of period | 337,704 | 317,200 |
Less: Ending restricted cash | 2,912 | 3,005 |
Cash and cash equivalents at end of period | 334,792 | 314,195 |
Supplemental disclosure of non-cash information: | ||
Accruals for property, plant and equipment purchased during year | $ 12,031 | $ 7,092 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Jan. 29, 2023 | |
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION | NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION Photronics, Inc. (“Photronics”, “the Company”, “we”, “our”, or “us”) is one of the world’s leading manufacturers of photomasks, which are high-precision photographic quartz or glass plates containing microscopic images of electronic circuits. Photomasks are a key element in the manufacture of ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication of ICs, a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We operate eleven manufacturing facilities, which are located in Taiwan (3), Korea The accompanying unaudited condensed consolidated financial statements (“the financial statements”) have been prepared in accordance with U.S. GAAP for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, adjustments, all of which are of a normal recurring nature, considered necessary for a fair presentation have been included. The financial statements include the accounts of Photronics, its wholly owned subsidiaries, and the majority-owned subsidiaries which it controls. All intercompany balances and transactions have been eliminated in consolidation. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the fiscal year ended October 31, 2022, where we discuss and provide additional information about our accounting policies and the methods and assumptions used in our estimates. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect amounts reported in them. Our estimates, including those on the impact of COVID-19, are based on historical experience and on various assumptions that we believe to be reasonable under the facts and circumstances at the time they are made. Subsequent actual results may differ from such estimates. We review these estimates periodically and reflect any effects of revisions in the period in which they are determined. Our business is typically impacted during the first quarter of our fiscal year by the North American, European, and Asian holiday periods, as some customers reduce their development and buying activities during this period. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2023. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 3 Months Ended |
Jan. 29, 2023 | |
SHORT-TERM INVESTMENTS [Abstract] | |
SHORT-TERM INVESTMENTS | NOTE 2 – SHORT-TERM INVESTMENTS Short-term investments consist of U.S. government securities and are classified as available-for-sale. We classify available-for-sale securities on our consolidated balance sheet as follows: - Maturing within three months or less from the date of purchase Cash and cash equivalents - Maturing, as of the date of purchase, more than three months, but with remaining maturities of less than one year, from the balance sheet date Short-term investments - Maturing one year or more from the balance sheet date Long-term marketable investments As of January 29, 2023, all of our available-for-sale securities had, at their dates of purchase, remaining maturities of more than three months, but less than one year, and have been classified as Short-term investments. Available-for-sale debt investments are reported at fair value, with unrealized gains or losses (net of tax) reported in Accumulated other comprehensive income. The fair values of our available-for-sale securities are Level 1 measurements, based on quoted prices from active markets for identical assets. In the event of a sale of an available-for-sale debt investment, we would determine the cost of the investment sold at the specific individual security level, and would include any gain or loss in Interest income and other income, net, where we also report periodic interest earned and the amortization (accretion) of discounts (premiums) related to these investments. The table below provides information on our available-for-sale debt securities. January 29, 2023 October 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Carrying Value Amortized Cost Unrealized Gains Unrealized Losses Carrying Value Government securities $ 39,280 $ - $ (81 ) $ 39,199 $ 38,911 $ - $ (91 ) $ 38,820 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jan. 29, 2023 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 3 - INVENTORIES Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or net realizable value. Inventories January 29, 2023 October 31, 2022 Raw materials $ 51,160 $ 49,326 Work in process 1,593 1,408 Finished goods 43 19 $ 52,796 $ 50,753 |
PROPERTY, PLANT, AND EQUIPMENT,
PROPERTY, PLANT, AND EQUIPMENT, NET | 3 Months Ended |
Jan. 29, 2023 | |
PROPERTY, PLANT, AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT, NET | NOTE 4 - PROPERTY, PLANT, AND EQUIPMENT, NET Presented below are the components of Property, plant, and equipment, net January 29, 2023 October 31, 2022 Land $ 11,971 $ 11,134 Buildings and improvements 178,095 168,024 Machinery and equipment 1,909,200 1,769,478 Leasehold improvements 20,144 18,802 Furniture, fixtures, and office equipment 15,526 14,355 Construction in progress 115,190 90,846 2,250,126 2,072,639 Accumulated depreciation and amortization (1,539,199 ) (1,428,766 ) $ 710,927 $ 643,873 Information on ROU assets resulting from finance leases, at the balance sheet dates, is presented below. January 29, 2023 October 31, 2022 Machinery and equipment $ 42,822 $ 42,760 Accumulated amortization (5,491 ) (4,784 ) $ 37,331 $ 37,976 The following table presents depreciation expense (including the amortization of ROU assets) related to property, plant, and equipment incurred during the reporting periods Three Months Ended January 29, 2023 January 30, 2022 Depreciation Expense $ 19,028 $ 20,723 |
PDMCX JOINT VENTURE
PDMCX JOINT VENTURE | 3 Months Ended |
Jan. 29, 2023 | |
PDMCX JOINT VENTURE [Abstract] | |
PDMCX JOINT VENTURE | NOTE 5 - PDMCX JOINT VENTURE In January 2018, Photronics, Inc., through its wholly owned Singapore subsidiary (hereinafter, within this Note “we”, “Photronics”, “us”, or “our”), and DNP, through its wholly owned subsidiary “DNP Asia Pacific PTE, Ltd.”, entered into a joint venture under which DNP obtained a 49.99% interest in our IC business in Xiamen, China. The joint venture, which we refer to as “PDMCX”, was established to develop and manufacture photomasks for semiconductors. We entered into this joint venture to enable us to compete more effectively for the merchant photomask business in China, and to benefit from the additional resources and investment that DNP provides to enable us to offer advanced-process technology to our customers. In 2020, in combination with local financing obtained by PDMCX, Photronics and DNP fulfilled their investment obligations under the PDMCX operating agreement ( “ Under the Agreement, DNP is afforded, under certain circumstances, the right to put its interest in PDMCX to Photronics. These circumstances include disputes regarding the strategic direction of PDMCX that may arise after the initial two-year term of the Agreement and cannot be resolved between the two parties. As of the date of issuance of these financial statements, DNP had not indicated its intention to exercise this right. In addition, both Photronics and DNP have the option to purchase, or put, their interest from, or to, the other party, should their ownership interest fall below twenty percent for a period of more than six three The following table presents net income we recorded from the operations of PDMCX during the reporting periods. Three Months Ended January 29, 2023 January 30, 2022 Net income from PDMCX $ 5,918 $ 1,877 As required by the guidance in Topic 810 - “Consolidation” of the our involvement in PDMCX for the purpose of determining whether we should consolidate its results in our financial statements. The initial step of our evaluation was to determine whether PDMCX was a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it was a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE and concluded that we were the primary beneficiary during the current and prior year reporting periods; thus, as required, the PDMCX financial results have been consolidated with Photronics. Our conclusion was based on the facts that we held a controlling financial interest in PDMCX (which resulted from our having the power to direct the activities that most significantly impacted its economic performance) and had the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX. Our conclusions that we had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current and prior year reporting periods were based on our right to appoint the majority of its board of directors, which has, among others, the powers to manage the business (through its rights to appoint and evaluate PDMCX’s management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the variable interest we held during the current and prior year periods, we had the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to PDMCX. The following table presents the carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets. General creditors of PDMCX do not have recourse to the assets of Photronics (other than the net assets of PDMCX); therefore, our maximum exposure to loss from PDMCX is our interest in the carrying amount of the net assets of the joint venture. January 29, 2023 October 31, 2022 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 119,928 $ 59,976 $ 127,542 $ 63,784 Noncurrent assets 150,365 75,198 119,392 59,708 Total assets 270,293 135,174 246,934 123,492 Current liabilities 52,302 26,156 51,274 25,643 Noncurrent liabilities 5,414 2,708 9,161 4,581 Total liabilities 57,716 28,864 60,435 30,224 Net assets $ 212,577 $ 106,310 $ 186,499 $ 93,268 |
DEBT
DEBT | 3 Months Ended |
Jan. 29, 2023 | |
DEBT [Abstract] | |
DEBT | NOTE 6 - DEBT The tables below provide information on our long-term debt. As of January 29, 2023 Xiamen Project Loans Finance Leases Total Principal due: Next 12 months $ - $ 6,541 $ 6,541 Months 13 – 24 $ - $ 20,772 $ 20,772 Months 25 – 36 3,893 2,633 6,526 Months 37 – 48 - 13 13 Months 49 – 60 - 12 12 Long-term debt 3,893 23,430 27,323 Total debt (4) $ 3,893 $ 29,971 $ 33,864 Interest rate at balance sheet date 4.3 % N/A Basis spread on interest rates 0.00 N/A Interest rate reset Quarterly N/A Maturity date December 2025 N/A Periodic payment amount Varies as loans mature (1)(3) Varies as leases mature Periodic payment frequency Semiannual, on individual loans Monthly Loan collateral (carrying amount) $ 73,973 $ 37,331 (2) (1) During the three-month period ended January 29, 2023, we repaid 30.0 million RMB (approximately $4.4 million), of which, 6.0 million RMB was due to be paid in June 2025, and 24.0 million RMB was due to be paid in December 2025. (2) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. (3) In February 2023, we repaid the entire outstanding balance of 26.4 million RMB (approximately $3.9 million) shown in the table above. (4) We are in compliance with all of our debt covenants as of January 29, 2023. As of October 31, 2022 Xiamen Project Loans Xiamen Working Capital Loans Finance Leases Total Principal due: Next 12 months $ - $ 3,512 $ 6,512 $ 10,024 Months 13 – 24 $ - $ - $ 6,610 $ 6,610 Months 25 – 36 1,098 - 17,961 19,059 Months 37 – 48 6,641 - - 6,641 Long-term debt $ 7,739 $ - $ 24,571 $ 32,310 Interest rate at balance sheet date 4.30% - 4.45 % 4.46 % N/A Basis spread on interest rates 0.00 76 N/A Interest rate reset Quarterly Monthly/Annually N/A Maturity date December 2025 July 2023 N/A Periodic payment amount Varies as loans mature (1) Increases as loans mature Varies as leases mature Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Monthly Loan collateral (carrying amount) $ 70,705 N/A $ 37,976 (2) (1) During the three-month period ended October 31, 2022, we repaid 81.0 million RMB (approximately $11.5 million) that had contractual maturity dates ranging from December 2023 through June 2025. (2) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. Xiamen Project Loans In November 2018, PDMCX obtained approval to borrow 345.0 million RMB from the Industrial and Commercial Bank of China. From November 2018 through July 2020, PDMCX entered into separate loan agreements (the “Project Loans”) for the entire approved amount and, as of January 29, 2023, million RMB ($ million) remained outstanding. The Project Loans were used to finance certain capital expenditures at the PDMCX facility and are collateralized by liens granted on the land use right, building, and certain equipment located at the facility. The interest rates on the Project Loans are variable (based on the RMB Loan Prime Rate of the National Interbank Funding Center), and interest incurred on the loans was eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provide for such reimbursements up to a prescribed limit and duration. The Project Loans are subject to covenants and provisions, certain of which relate to the assets pledged as security for the loans, all of which we were in compliance with as of January 29, 2023. In February 2023, PDMCX repaid the entire outstanding balance of 26.4 million RMB ($3.9 million). Xiamen Working Capital Loans In November 2018, PDMCX obtained approval for revolving, unsecured credit of the equivalent of $25.0 million, pursuant to which PDMCX may enter into separate loan agreements with varying terms to maturity. This facility is subject to annual reviews and extensions, with the most recent extension set to expire in November 2023 . The interest rates are variable, based on the RMB Loan Prime Rate of the National Interbank Funding Center. Interest incurred on the loans was eligible for reimbursement through incentives provided by the Xiamen Torch Hi-Tech Industrial Development Zone, which provided for such reimbursements up to a prescribed limit and duration. Finance Leases In December 2020, we entered into a five-year $35.5 million finance lease for a high-end lithography tool. Monthly payments on the lease, which commenced in January 2021, increased from $0.04 million during the first three months to $0.6 million for the following nine months, followed by forty-eight monthly payments of $0.5 million. As of the due date of the forty-eighth monthly payment, we may exercise an early buyout option to purchase the tool for $14.1 million. If we do not exercise the early buyout option, then at the end of the five-year lease term, at our option, we may return the tool, elect to extend the lease term for a period and a lease payment to be agreed with lessor at the time, or purchase the tool for its then-fair market value, as determined by the lessor. Since we are reasonably certain that we will exercise the early buyout option, our lease liability reflects such exercise and we have classified the lease as a finance lease. The interest rate implicit in the lease is 1.58%. The lease agreement incorporates the covenants included in our Corporate Credit Agreement, which are detailed below, and includes a cross-default provision for any agreement or instrument with an outstanding, committed balance greater than $5.0 million in which we are the indebted party. Corporate Credit Agreement In September 2018, we entered into a five-year amended and restated credit agreement (the “Credit Agreement”), which has a $50 million borrowing limit, with an expansion capacity to $100 million. The Credit Agreement is secured by substantially all of our assets located in the United States and common stock we own in certain subsidiaries. The Credit Agreement includes covenants around minimum interest coverage ratio, total leverage ratio, and minimum unrestricted cash balance (all of which we were in compliance with at January 29, 2023), and limits the amount of cash dividends, distributions, and redemptions we can pay on our common stock to an aggregate annual amount of $50 million. We had no outstanding borrowings against the Credit Agreement at January 29, 2023. The interest rate on the Credit Agreement (5.52% at January 29, 2023) is based on our total leverage ratio at one-month LIBOR plus a spread, as defined in the Credit Agreement. Hefei Equipment Loan In October 2020, our Hefei, China, facility was approved to borrow 200 million RMB from the China Construction Bank Corporation. In July 2022, we repaid our entire outstanding balance of 120.7 million RMB ($18.0 million ). extension and we did not apply for an extension. The loan proceeds were used to fund purchases of lithography tools at the Hefei facility. The interest rate on the loan was variable and based on the RMB Loan Prime Rate of the National Interbank Funding Center. The borrowings were secured by the Hefei facility, its related land use right, and certain manufacturing equipment. The Hefei Equipment Loan was subject to covenants and provisions, certain of which relate to the assets pledged as security for the loan, including covenants for the ratio of total liabilities to total assets and the ratio of current assets to current liabilities, all of which we were in compliance with at the time of repayment. |
REVENUE
REVENUE | 3 Months Ended |
Jan. 29, 2023 | |
REVENUE [Abstract] | |
REVENUE | NOTE 7 - REVENUE We recognize revenue when, or as, control of a good or service transfers to a customer, in an amount that reflects the consideration to which we expect to be entitled in exchange for transferring those goods or services. We account for an arrangement as a revenue contract when each party has approved and is committed to perform under the contract, the rights of the contracting parties regarding the goods or services to be transferred and the payment terms are identifiable, the arrangement has commercial substance, and collection of consideration is probable. Substantially all of our revenue comes from the sales of photomasks. We typically contract with our customers to sell sets of photomasks, which are comprised of multiple layers, the predominance of which we invoice as they ship to customers. As the photomasks are manufactured to customer specifications, they have alternative use to us and, as our contracts generally provide us with the right to payment for work completed to date, we recognize revenue as we perform, or “over time”, on most of our contracts. We measure our performance to date using an input method, which is based on our estimated costs to complete the various manufacturing phases of a photomask. At the end of a reporting period, there are a number of uncompleted revenue contracts on which we have performed; for any such contracts under which we are entitled to be compensated for our costs incurred plus a reasonable profit, we recognize revenue and a corresponding contract asset for such performance. We account for shipping and handling activities that we perform after a customer obtains control of a good as being activities to fulfill our promise to transfer the good to the customer, rather than as promised services, or performance obligations, under the contract. We report our revenue net of any sales or similar taxes we collect on behalf of government entities. As stated above, photomasks are manufactured to customer specifications in accordance with their proprietary designs; thus, they are individually unique. Due to their uniqueness and other factors, their transaction prices are individually established through negotiations with customers; consequently, our photomasks do not have standard or “list” prices. The transaction prices of the vast majority of our revenue contracts include only fixed amounts of consideration. In certain instances, such as when we offer a customer an early payment discount, an estimate of variable consideration would be included in the transaction price, but only to the extent that a significant reversal of revenue would not occur when the uncertainty related to the variability was resolved. Contract Assets, Contract Liabilities, and Accounts Receivable We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. Contract assets reflect our transfer of control of photomasks that are in process or completed but not yet shipped to customers. A receivable is recognized when we have an unconditional right to payment for our performance, which generally occurs when we ship the photomasks. Our contract assets primarily consist of a significant amount of our in-process production orders and fully manufactured photomasks which have not yet shipped, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the in-process orders are cancelled by customers. On an individual contract basis, we net contract assets with contract liabilities (deferred revenue) for financial reporting purposes. We did no t identify impairment indicators for any outstanding contract assets during the -month periods ended or . The following table provides information about our contract balances at the balance sheet dates. Classification January 29, 2023 October 31, 2022 Contract Assets Other current assets $ 19,414 $ 15,752 Contract Liabilities Accrued liabilities $ 18,805 $ 18,872 Other liabilities 6,786 4,989 $ 25,591 $ 23,861 The following table presents revenue recognized from contract liabilities that existed at the beginning of the reporting periods. Three Months Ended January 29, 2023 January 30, 2022 Revenue recognized from beginning liability $ 7,638 $ 4,242 We generally record our accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed for collectability during, and at the end of, every reporting period. To the extent we believe a loss on the collection of a customer invoice is probable, we record the loss and credit an allowance for credit losses. In the event that an amount is determined to be uncollectible, we charge the allowance for credit losses and derecognize the related receivable. We did not incur any credit losses on our accounts receivable during the three-month periods ended January 29, 2023, or Our invoice terms generally range from net- thirty to , depending on both the geographic market in which the transaction occurs and our payment agreements with specific customers. In the event that our evaluation of a customer’s business prospects and financial condition indicate that the customer presents a collectability risk, we modify terms of sale, which may require payment in advance of performance. At the time of adoption, we elected the practical expedient allowed under ASC Topic “Revenue from Contracts with Customers” (“Topic ”) that permits us not to adjust a contract’s promised amount of consideration to reflect a financing component when the period between when we transfer control of goods or services to customers and when we are paid is year or less. In instances when we are paid in advance of our performance, we record a contract liability and, as allowed under the practical expedient in Topic , recognize interest expense only if the period between when we receive payment from the customer and the date when we expect to be entitled to the payment is greater than year. Historically, advance payments we have received from customers have generally not preceded the completion of our performance obligations by more than year. Disaggregation of Revenue The following tables present our revenue for the -month periods ended and , disaggregated by product type, geographic origin, and timing of recognition. Three Months Ended January 29, 2023 January 30, 2022 Revenue by Product Type IC High-end $ 48,003 $ 46,534 Mainstream 108,586 83,227 Total IC $ 156,589 $ 129,761 FPD High-end $ 45,691 $ 46,276 Mainstream 8,810 13,790 Total FPD $ 54,501 $ 60,066 $ 211,090 $ 189,827 Three Months Ended January 29, 2023 January 30 2022 Revenue by Geographic Origin* Taiwan $ 75,569 $ 67,841 China 58,932 45,953 Korea 37,832 39,515 United States 29,881 27,176 Europe 8,447 8,914 Other 429 428 $ 211,090 $ 189,827 * This table disaggregates revenue by the location in which it was earned. Three Months Ended Revenue by Timing of Recognition January 29, 2023 January 30 2022 Over time $ 197,164 $ 170,264 At a point in time 13,926 19,563 $ 211,090 $ 189,827 Contract Costs We pay commissions to third-party sales agents for certain sales they procure on our behalf. However, the bases of the commissions are the transaction prices of the sales, which are completed in less than one year; thus, no relationship is established with a customer that will result in future business. Therefore, we do not recognize any portion of these sales commissions as costs of obtaining a contract, nor do we currently foresee other circumstances under which we would recognize contract obtainment costs as assets. Remaining Performance Obligations As we are typically required to fulfill customer orders within a short period of time, our backlog of orders has historically been two three weeks one two weeks ’ two Product Warranties Our photomasks are sold under warranties that generally range from one to twenty-four months . We warrant that our photomasks conform to customer specifications and will typically repair, replace, or issue a refund for any photomasks that fail to do so. The warranties do not represent separate performance obligations in our revenue contracts. Historically, customer claims under warranties have been immaterial. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Jan. 29, 2023 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8 - SHARE-BASED COMPENSATION In March 2016, shareholders approved our current equity incentive compensation plan (the “Plan”), under which incentive stock options, non-qualified stock options, stock grants, stock-based awards, restricted stock, restricted stock units, stock appreciation rights, performance units, performance stock, and other stock or cash awards may be granted. Shares to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by us (in the open market or in private transactions), or a combination thereof. The maximum number of shares of common stock approved that may be issued under the Plan is four million shares. Awards may be granted to officers, employees, directors, consultants, advisors, and independent contractors of Photronics or its subsidiaries. In the event of a change in control (as defined in the Plan), the vesting of awards may be accelerated. The Plan, aspects of which are more fully described below, prohibits further awards from being issued under prior plans. The table below presents information on our share-based compensation expenses for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Expense reported in: Cost of goods sold $ 281 $ 143 Selling, general, and administrative 1,378 1,180 Research and development 162 134 Total expense incurred $ 1,821 $ 1,457 Expense by award type: Restricted stock awards $ 1,764 $ 1,367 Stock options 1 38 Employee stock purchase plan 56 52 Total expense incurred $ 1,821 $ 1,457 Income tax benefits of share-based compensation $ 155 $ 84 Share-based compensation cost capitalized $ - $ - Restricted Stock Awards We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one to four years . The fair value of the awards is determined on the date of grant, based on the closing price of our common stock. The table below presents information on our restricted stock awards for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of shares granted in period 786,500 535,400 Weighted-average grant-date fair value of awards (in dollars per share) $ 16.77 $ 19.28 Compensation cost not yet recognized $ 18,526 $ 15,106 Weighted-average amortization period for cost not yet recognized (in years) 3.2 3.0 Shares outstanding at balance sheet date 1,374,422 1,128,179 Stock Options Option awards generally vest in one to four years and have a ten-year contractual term. All incentive and non-qualified stock option grants must have an exercise price no less than the market value of the underlying common stock on the date of grant. The grant-date fair values of options are based on closing prices of our common stock on the dates of grant and are calculated using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of our common stock. We use historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that options are expected to remain outstanding. The risk-free rate of return for the estimated term of an option is based on the U.S. Treasury yield curve in effect at the date of grant. The table below presents information on our stock options for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of options granted in period - - Cash received from option exercised $ 563 $ 3,714 Compensation cost not yet recognized $ - $ 71 Weighted-average amortization period for cost not yet recognized (in years) - 1.0 Information on outstanding and exercisable option awards as of January 29, 2023 is presented below. Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding and exercisable at January 29, 2023 528,551 $ 10.11 3.28 $ 4,605 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 29, 2023 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES We calculate our provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. The table below sets forth the primary reasons that our effective income tax rates differed from the U.S. statutory tax rates in effect during the three-month periods ended January 29, 2023, and January 30, 2022. Reporting Period U.S. Statutory Tax Rates Photronics Effective Tax Rates Primary Reasons for Differences Three months ended January 29, 2023 21.0% 30.3% Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions; and the establishment of uncertain tax positions in non-U.S. jurisdictions. Three months ended January 30, 2022 21.0% 26.1% Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions; and the establishment of uncertain tax positions in non-U.S. jurisdictions. Uncertain Tax Positions Although the timing of reversal of uncertain tax positions may be uncertain, as they can be dependent upon the settlement of tax audits, we believe that the amount of uncertain tax positions (including interest and penalties, and net of tax benefits) that may be resolved over the next twelve months is $0.4 million. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. We are no longer subject to tax authority examinations in the U.S., major foreign, or state tax jurisdictions for years prior to fiscal year 2017 The table below presents information on our unrecognized tax benefits as of the balance sheet dates. January 29, 2023 October 31, 2022 Unrecognized tax benefits related to uncertain tax positions $ 6,318 $ 5,599 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,318 $ 5,599 Accrued interest and penalties related to uncertain tax positions $ 467 $ 395 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jan. 29, 2023 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 10 - EARNINGS PER SHARE The calculations of basic and diluted earnings per share are presented below. Three Months Ended January 29, 2023 January 30, 2022 Net income attributable to Photronics, Inc. shareholders $ 13,986 $ 23,064 Effect of dilutive securities - - Earnings used for diluted earnings per share $ 13,986 $ 23,064 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 60,894 60,158 Effect of dilutive securities: Share-based payment awards 576 778 Potentially dilutive common shares 576 778 Weighted-average common shares used for diluted earnings per share 61,470 60,936 Basic earnings per share $ 0.23 $ 0.38 Diluted earnings per share $ 0.23 $ 0.38 The table below illustrates the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price 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 antidilutive Three Months Ended January 29, 2023 January 30, 2022 Share-based payment awards 268 165 Total potentially dilutive shares excluded 268 165 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 29, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES As of January 29, 2023, we had commitments outstanding for capital expenditures of approximately $132.0 million, primarily for purchases of high-end equipment. In May 2022, we were informed of a customs audit in one of our China operations. We estimated a contingency ranging from $2.2 million to $3.7 million, which include unpaid additional customs duties and related interest and penalties for the previous three years (the period under audit). In the three-month period ended May 1, 2022, we recorded a contingent loss of $2.2 million, as we believed this was the most likely outcome. The $2.2 million amount was recorded with a charge to Cost of goods sold Accrued liabilities We are subject to various other claims that arise in the ordinary course of business. We believe that our potential liability under such claims, individually or in the aggregate, will not have a material effect on our consolidated financial statements. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT | 3 Months Ended |
Jan. 29, 2023 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT | NOTE 12 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT The following tables set forth the changes in our accumulated other comprehensive (loss) income by component (net of tax of $0) for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2022 $ (97,790 ) $ (666 ) $ (98,456 ) Other comprehensive (loss) income 90,519 (54 ) 90,465 Less: Other comprehensive loss (income) attributable to noncontrolling interests 16,466 (37 ) 16,429 Balance at January 29, 2023 $ (23,737 ) $ (683 ) $ (24,420 ) Three Months Ended January 30, 2022 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2021 $ 21,476 $ (905 ) $ 20,571 Other comprehensive (loss) income (9,831 ) 37 (9,794 ) Less: Other comprehensive loss (income) attributable to noncontrolling interests 194 18 212 Balance at January 30, 2022 $ 11,451 $ (886 ) $ 10,565 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 29, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 13 - FAIR VALUE MEASUREMENTS The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices (unadjusted) in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data. The fair values of our cash and certain cash equivalents (Level 1 measurements), accounts receivable, accounts payable, and certain other current assets and current liabilities (Level 2 measurements) approximate their carrying values due to their short-term maturities. The fair values of our Short-term investments are Level 1 measurements. (Please refer to “Investments” within Note 2 for additional fair value information on our Short-term investments.) The fair values of certain cash equivalents are Level 2 measurements that are provided by independent third-party pricing services or other independent entities, which may use matrix pricing, valuation models, or other methods which utilize observable market data. The fair values of our variable-rate debt instruments are Level 2 measurements and approximate their carrying values due to the variable nature of their underlying interest rates. Other than our Short-term investments, we did not have any assets or liabilities measured at fair value, on a recurring or a nonrecurring basis, at January 29, 2023 |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 3 Months Ended |
Jan. 29, 2023 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
SHARE REPURCHASE PROGRAMS | NOTE 14 - SHARE REPURCHASE PROGRAMS In September 2020, the Company’s board of directors authorized the repurchase of up to $100 million of its common stock, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Act. We commenced repurchasing shares under this authorization on September 16, 2020. All of the shares repurchased under this authorization prior to January 30, 2022, have been retired prior to that date. As of January 29, 2023 The table below presents information on this repurchase program for the three-month periods ended January 29, 2023 , and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of shares repurchased - 188 Cost of shares repurchased $ - $ 2,522 Average price paid per share $ - $ 13.43 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jan. 29, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 15 - RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Updates to be Adopted In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, to increase the transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance, and the effect of the assistance on an entity’s financial statements. The guidance in this Update will be effective for Photronics in its fiscal year 2023 Form 10-K, with early application of the amendments allowed. The amendments are to be applied prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or, retrospectively to those transactions. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from LIBOR, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it was to be applied prospectively from December 31, 2022. In December 2022, the FASB issued ASU 2022-06 “Deferral of the Sunset Date of Topic 848” which extended the time that the optional expedients and exceptions may be adopted to December 31, 2024. We do not expect the impact of this ASU to be material to our consolidated financial statements. |
BASIS OF FINANCIAL STATEMENT _2
BASIS OF FINANCIAL STATEMENT PRESENTATION (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
BASIS OF FINANCIAL STATEMENT PRESENTATION [Abstract] | |
Consolidation | The accompanying unaudited condensed consolidated financial statements (“the financial statements”) have been prepared in accordance with U.S. GAAP for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, adjustments, all of which are of a normal recurring nature, considered necessary for a fair presentation have been included. The financial statements include the accounts of Photronics, its wholly owned subsidiaries, and the majority-owned subsidiaries which it controls. All intercompany balances and transactions have been eliminated in consolidation. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Form 10-K for the fiscal year ended October 31, 2022, where we discuss and provide additional information about our accounting policies and the methods and assumptions used in our estimates. |
Estimates and Assumptions | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect amounts reported in them. Our estimates, including those on the impact of COVID-19, are based on historical experience and on various assumptions that we believe to be reasonable under the facts and circumstances at the time they are made. Subsequent actual results may differ from such estimates. We review these estimates periodically and reflect any effects of revisions in the period in which they are determined. |
INVENTORIES (Policies)
INVENTORIES (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
INVENTORIES [Abstract] | |
Inventories | Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or net realizable value. |
PDMCX JOINT VENTURE (Policies)
PDMCX JOINT VENTURE (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
PDMCX JOINT VENTURE [Abstract] | |
Variable Interest Entities | As required by the guidance in Topic 810 - “Consolidation” of the our involvement in PDMCX for the purpose of determining whether we should consolidate its results in our financial statements. The initial step of our evaluation was to determine whether PDMCX was a variable interest entity (“VIE”). Due to its lack of sufficient equity at risk to finance its activities without additional subordinated financial support, we determined that it was a VIE. Having made this determination, we then assessed whether we were the primary beneficiary of the VIE and concluded that we were the primary beneficiary during the current and prior year reporting periods; thus, as required, the PDMCX financial results have been consolidated with Photronics. Our conclusion was based on the facts that we held a controlling financial interest in PDMCX (which resulted from our having the power to direct the activities that most significantly impacted its economic performance) and had the obligation to absorb losses and the right to receive benefits that could potentially be significant to PDMCX. Our conclusions that we had the power to direct the activities that most significantly affected the economic performance of PDMCX during the current and prior year reporting periods were based on our right to appoint the majority of its board of directors, which has, among others, the powers to manage the business (through its rights to appoint and evaluate PDMCX’s management), incur indebtedness, enter into agreements and commitments, and acquire and dispose of PDMCX’s assets. In addition, as a result of the variable interest we held during the current and prior year periods, we had the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to PDMCX. |
REVENUE (Policies)
REVENUE (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
REVENUE [Abstract] | |
Revenue | We recognize revenue when, or as, control of a good or service transfers to a customer, in an amount that reflects the consideration to which we expect to be entitled in exchange for transferring those goods or services. We account for an arrangement as a revenue contract when each party has approved and is committed to perform under the contract, the rights of the contracting parties regarding the goods or services to be transferred and the payment terms are identifiable, the arrangement has commercial substance, and collection of consideration is probable. Substantially all of our revenue comes from the sales of photomasks. We typically contract with our customers to sell sets of photomasks, which are comprised of multiple layers, the predominance of which we invoice as they ship to customers. As the photomasks are manufactured to customer specifications, they have alternative use to us and, as our contracts generally provide us with the right to payment for work completed to date, we recognize revenue as we perform, or “over time”, on most of our contracts. We measure our performance to date using an input method, which is based on our estimated costs to complete the various manufacturing phases of a photomask. At the end of a reporting period, there are a number of uncompleted revenue contracts on which we have performed; for any such contracts under which we are entitled to be compensated for our costs incurred plus a reasonable profit, we recognize revenue and a corresponding contract asset for such performance. We account for shipping and handling activities that we perform after a customer obtains control of a good as being activities to fulfill our promise to transfer the good to the customer, rather than as promised services, or performance obligations, under the contract. We report our revenue net of any sales or similar taxes we collect on behalf of government entities. As stated above, photomasks are manufactured to customer specifications in accordance with their proprietary designs; thus, they are individually unique. Due to their uniqueness and other factors, their transaction prices are individually established through negotiations with customers; consequently, our photomasks do not have standard or “list” prices. The transaction prices of the vast majority of our revenue contracts include only fixed amounts of consideration. In certain instances, such as when we offer a customer an early payment discount, an estimate of variable consideration would be included in the transaction price, but only to the extent that a significant reversal of revenue would not occur when the uncertainty related to the variability was resolved. Contract Assets, Contract Liabilities, and Accounts Receivable We recognize a contract asset when our performance under a contract precedes our receipt of consideration from a customer, or before payment is due, and our receipt of consideration is conditional upon factors other than the passage of time. Contract assets reflect our transfer of control of photomasks that are in process or completed but not yet shipped to customers. A receivable is recognized when we have an unconditional right to payment for our performance, which generally occurs when we ship the photomasks. Our contract assets primarily consist of a significant amount of our in-process production orders and fully manufactured photomasks which have not yet shipped, for which we have an enforceable right to collect consideration (including a reasonable profit) in the event the in-process orders are cancelled by customers. On an individual contract basis, we net contract assets with contract liabilities (deferred revenue) for financial reporting purposes. We did no t identify impairment indicators for any outstanding contract assets during the -month periods ended or . We generally record our accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed for collectability during, and at the end of, every reporting period. To the extent we believe a loss on the collection of a customer invoice is probable, we record the loss and credit an allowance for credit losses. In the event that an amount is determined to be uncollectible, we charge the allowance for credit losses and derecognize the related receivable. We did not incur any credit losses on our accounts receivable during the three-month periods ended January 29, 2023, or Our invoice terms generally range from net- thirty to , depending on both the geographic market in which the transaction occurs and our payment agreements with specific customers. In the event that our evaluation of a customer’s business prospects and financial condition indicate that the customer presents a collectability risk, we modify terms of sale, which may require payment in advance of performance. At the time of adoption, we elected the practical expedient allowed under ASC Topic “Revenue from Contracts with Customers” (“Topic ”) that permits us not to adjust a contract’s promised amount of consideration to reflect a financing component when the period between when we transfer control of goods or services to customers and when we are paid is year or less. In instances when we are paid in advance of our performance, we record a contract liability and, as allowed under the practical expedient in Topic , recognize interest expense only if the period between when we receive payment from the customer and the date when we expect to be entitled to the payment is greater than year. Historically, advance payments we have received from customers have generally not preceded the completion of our performance obligations by more than year. |
SHARE-BASED COMPENSATION (Polic
SHARE-BASED COMPENSATION (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
Restricted Stock [Member] | |
Stock Options [Abstract] | |
Share-Based Compensation | We periodically grant restricted stock awards, the restrictions on which typically lapse over a service period of one to four years . The fair value of the awards is determined on the date of grant, based on the closing price of our common stock. |
Employee Stock Option [Member] | |
Stock Options [Abstract] | |
Share-Based Compensation | Stock Options Option awards generally vest in one to four years and have a ten-year contractual term. All incentive and non-qualified stock option grants must have an exercise price no less than the market value of the underlying common stock on the date of grant. The grant-date fair values of options are based on closing prices of our common stock on the dates of grant and are calculated using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility of our common stock. We use historical option exercise behavior and employee termination data to estimate expected term, which represents the period of time that options are expected to remain outstanding. The risk-free rate of return for the estimated term of an option is based on the U.S. Treasury yield curve in effect at the date of grant. |
INCOME TAXES (Policies)
INCOME TAXES (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
INCOME TAXES [Abstract] | |
Income Taxes | We calculate our provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. The table below sets forth the primary reasons that our effective income tax rates differed from the U.S. statutory tax rates in effect during the three-month periods ended January 29, 2023, and January 30, 2022. |
FAIR VALUE MEASUREMENTS (Polici
FAIR VALUE MEASUREMENTS (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Financial Instruments | The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices (unadjusted) in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Jan. 29, 2023 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | Accounting Standards Updates to be Adopted In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, to increase the transparency of government assistance including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance, and the effect of the assistance on an entity’s financial statements. The guidance in this Update will be effective for Photronics in its fiscal year 2023 Form 10-K, with early application of the amendments allowed. The amendments are to be applied prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or, retrospectively to those transactions. We are currently evaluating the effect the adoption of this ASU may have on our disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from LIBOR, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it was to be applied prospectively from December 31, 2022. In December 2022, the FASB issued ASU 2022-06 “Deferral of the Sunset Date of Topic 848” which extended the time that the optional expedients and exceptions may be adopted to December 31, 2024. We do not expect the impact of this ASU to be material to our consolidated financial statements. |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
SHORT-TERM INVESTMENTS [Abstract] | |
Available-for-Sale Debt Securities | The table below provides information on our available-for-sale debt securities. January 29, 2023 October 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Carrying Value Amortized Cost Unrealized Gains Unrealized Losses Carrying Value Government securities $ 39,280 $ - $ (81 ) $ 39,199 $ 38,911 $ - $ (91 ) $ 38,820 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
INVENTORIES [Abstract] | |
Inventories | Inventories are stated at the lower of cost, determined under the first-in, first-out (“FIFO”) method, or net realizable value. Inventories January 29, 2023 October 31, 2022 Raw materials $ 51,160 $ 49,326 Work in process 1,593 1,408 Finished goods 43 19 $ 52,796 $ 50,753 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
PROPERTY, PLANT, AND EQUIPMENT, NET [Abstract] | |
Components of Property, Plant and Equipment, Net | Presented below are the components of Property, plant, and equipment, net January 29, 2023 October 31, 2022 Land $ 11,971 $ 11,134 Buildings and improvements 178,095 168,024 Machinery and equipment 1,909,200 1,769,478 Leasehold improvements 20,144 18,802 Furniture, fixtures, and office equipment 15,526 14,355 Construction in progress 115,190 90,846 2,250,126 2,072,639 Accumulated depreciation and amortization (1,539,199 ) (1,428,766 ) $ 710,927 $ 643,873 |
Information on ROU Assets from Finance Leases | Information on ROU assets resulting from finance leases, at the balance sheet dates, is presented below. January 29, 2023 October 31, 2022 Machinery and equipment $ 42,822 $ 42,760 Accumulated amortization (5,491 ) (4,784 ) $ 37,331 $ 37,976 |
Depreciation Expense | The following table presents depreciation expense (including the amortization of ROU assets) related to property, plant, and equipment incurred during the reporting periods Three Months Ended January 29, 2023 January 30, 2022 Depreciation Expense $ 19,028 $ 20,723 |
PDMCX JOINT VENTURE (Tables)
PDMCX JOINT VENTURE (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
PDMCX JOINT VENTURE [Abstract] | |
Net Income (Loss) Recorded from Operations | The following table presents net income we recorded from the operations of PDMCX during the reporting periods. Three Months Ended January 29, 2023 January 30, 2022 Net income from PDMCX $ 5,918 $ 1,877 |
Carrying Amounts and Exposure to Loss Related to Assets and Liabilities | The following table presents the carrying amounts of PDMCX assets and liabilities included in our condensed consolidated balance sheets. General creditors of PDMCX do not have recourse to the assets of Photronics (other than the net assets of PDMCX); therefore, our maximum exposure to loss from PDMCX is our interest in the carrying amount of the net assets of the joint venture. January 29, 2023 October 31, 2022 Classification Carrying Amount Photronics Interest Carrying Amount Photronics Interest Current assets $ 119,928 $ 59,976 $ 127,542 $ 63,784 Noncurrent assets 150,365 75,198 119,392 59,708 Total assets 270,293 135,174 246,934 123,492 Current liabilities 52,302 26,156 51,274 25,643 Noncurrent liabilities 5,414 2,708 9,161 4,581 Total liabilities 57,716 28,864 60,435 30,224 Net assets $ 212,577 $ 106,310 $ 186,499 $ 93,268 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
DEBT [Abstract] | |
Long-term Debt | The tables below provide information on our long-term debt. As of January 29, 2023 Xiamen Project Loans Finance Leases Total Principal due: Next 12 months $ - $ 6,541 $ 6,541 Months 13 – 24 $ - $ 20,772 $ 20,772 Months 25 – 36 3,893 2,633 6,526 Months 37 – 48 - 13 13 Months 49 – 60 - 12 12 Long-term debt 3,893 23,430 27,323 Total debt (4) $ 3,893 $ 29,971 $ 33,864 Interest rate at balance sheet date 4.3 % N/A Basis spread on interest rates 0.00 N/A Interest rate reset Quarterly N/A Maturity date December 2025 N/A Periodic payment amount Varies as loans mature (1)(3) Varies as leases mature Periodic payment frequency Semiannual, on individual loans Monthly Loan collateral (carrying amount) $ 73,973 $ 37,331 (2) (1) During the three-month period ended January 29, 2023, we repaid 30.0 million RMB (approximately $4.4 million), of which, 6.0 million RMB was due to be paid in June 2025, and 24.0 million RMB was due to be paid in December 2025. (2) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. (3) In February 2023, we repaid the entire outstanding balance of 26.4 million RMB (approximately $3.9 million) shown in the table above. (4) We are in compliance with all of our debt covenants as of January 29, 2023. As of October 31, 2022 Xiamen Project Loans Xiamen Working Capital Loans Finance Leases Total Principal due: Next 12 months $ - $ 3,512 $ 6,512 $ 10,024 Months 13 – 24 $ - $ - $ 6,610 $ 6,610 Months 25 – 36 1,098 - 17,961 19,059 Months 37 – 48 6,641 - - 6,641 Long-term debt $ 7,739 $ - $ 24,571 $ 32,310 Interest rate at balance sheet date 4.30% - 4.45 % 4.46 % N/A Basis spread on interest rates 0.00 76 N/A Interest rate reset Quarterly Monthly/Annually N/A Maturity date December 2025 July 2023 N/A Periodic payment amount Varies as loans mature (1) Increases as loans mature Varies as leases mature Periodic payment frequency Semiannual, on individual loans Semiannual, on individual loans Monthly Loan collateral (carrying amount) $ 70,705 N/A $ 37,976 (2) (1) During the three-month period ended October 31, 2022, we repaid 81.0 million RMB (approximately $11.5 million) that had contractual maturity dates ranging from December 2023 through June 2025. (2) Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
REVENUE [Abstract] | |
Contract Balances | The following table provides information about our contract balances at the balance sheet dates. Classification January 29, 2023 October 31, 2022 Contract Assets Other current assets $ 19,414 $ 15,752 Contract Liabilities Accrued liabilities $ 18,805 $ 18,872 Other liabilities 6,786 4,989 $ 25,591 $ 23,861 The following table presents revenue recognized from contract liabilities that existed at the beginning of the reporting periods. Three Months Ended January 29, 2023 January 30, 2022 Revenue recognized from beginning liability $ 7,638 $ 4,242 |
Disaggregation of Revenue | The following tables present our revenue for the -month periods ended and , disaggregated by product type, geographic origin, and timing of recognition. Three Months Ended January 29, 2023 January 30, 2022 Revenue by Product Type IC High-end $ 48,003 $ 46,534 Mainstream 108,586 83,227 Total IC $ 156,589 $ 129,761 FPD High-end $ 45,691 $ 46,276 Mainstream 8,810 13,790 Total FPD $ 54,501 $ 60,066 $ 211,090 $ 189,827 Three Months Ended January 29, 2023 January 30 2022 Revenue by Geographic Origin* Taiwan $ 75,569 $ 67,841 China 58,932 45,953 Korea 37,832 39,515 United States 29,881 27,176 Europe 8,447 8,914 Other 429 428 $ 211,090 $ 189,827 * This table disaggregates revenue by the location in which it was earned. Three Months Ended Revenue by Timing of Recognition January 29, 2023 January 30 2022 Over time $ 197,164 $ 170,264 At a point in time 13,926 19,563 $ 211,090 $ 189,827 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
SHARE-BASED COMPENSATION [Abstract] | |
Share-based Compensation Expenses | The table below presents information on our share-based compensation expenses for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Expense reported in: Cost of goods sold $ 281 $ 143 Selling, general, and administrative 1,378 1,180 Research and development 162 134 Total expense incurred $ 1,821 $ 1,457 Expense by award type: Restricted stock awards $ 1,764 $ 1,367 Stock options 1 38 Employee stock purchase plan 56 52 Total expense incurred $ 1,821 $ 1,457 Income tax benefits of share-based compensation $ 155 $ 84 Share-based compensation cost capitalized $ - $ - |
Restricted Stock Awards Activity | The table below presents information on our restricted stock awards for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of shares granted in period 786,500 535,400 Weighted-average grant-date fair value of awards (in dollars per share) $ 16.77 $ 19.28 Compensation cost not yet recognized $ 18,526 $ 15,106 Weighted-average amortization period for cost not yet recognized (in years) 3.2 3.0 Shares outstanding at balance sheet date 1,374,422 1,128,179 |
Stock Options Activity | The table below presents information on our stock options for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of options granted in period - - Cash received from option exercised $ 563 $ 3,714 Compensation cost not yet recognized $ - $ 71 Weighted-average amortization period for cost not yet recognized (in years) - 1.0 |
Information on Outstanding and Exercisable Option | Information on outstanding and exercisable option awards as of January 29, 2023 is presented below. Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding and exercisable at January 29, 2023 528,551 $ 10.11 3.28 $ 4,605 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
INCOME TAXES [Abstract] | |
Reconciliation of Effective Income Tax Rates from U.S. Statutory Tax Rates | The table below sets forth the primary reasons that our effective income tax rates differed from the U.S. statutory tax rates in effect during the three-month periods ended January 29, 2023, and January 30, 2022. Reporting Period U.S. Statutory Tax Rates Photronics Effective Tax Rates Primary Reasons for Differences Three months ended January 29, 2023 21.0% 30.3% Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions; and the establishment of uncertain tax positions in non-U.S. jurisdictions. Three months ended January 30, 2022 21.0% 26.1% Non-recognition of the tax benefit of losses that, in certain jurisdictions, have been offset by valuation allowances; non-U.S. pre-tax income being taxed at higher statutory rates in non-U.S. jurisdictions; and the establishment of uncertain tax positions in non-U.S. jurisdictions. |
Unrecognized Tax Benefits | The table below presents information on our unrecognized tax benefits as of the balance sheet dates. January 29, 2023 October 31, 2022 Unrecognized tax benefits related to uncertain tax positions $ 6,318 $ 5,599 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,318 $ 5,599 Accrued interest and penalties related to uncertain tax positions $ 467 $ 395 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculations of basic and diluted earnings per share are presented below. Three Months Ended January 29, 2023 January 30, 2022 Net income attributable to Photronics, Inc. shareholders $ 13,986 $ 23,064 Effect of dilutive securities - - Earnings used for diluted earnings per share $ 13,986 $ 23,064 Weighted-average common shares computations: Weighted-average common shares used for basic earnings per share 60,894 60,158 Effect of dilutive securities: Share-based payment awards 576 778 Potentially dilutive common shares 576 778 Weighted-average common shares used for diluted earnings per share 61,470 60,936 Basic earnings per share $ 0.23 $ 0.38 Diluted earnings per share $ 0.23 $ 0.38 |
Outstanding Securities Excluded from Calculation of Diluted Earnings or Loss Per Share | The table below illustrates the outstanding weighted-average share-based payment awards that were excluded from the calculation of diluted earnings per share because their exercise price 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 antidilutive Three Months Ended January 29, 2023 January 30, 2022 Share-based payment awards 268 165 Total potentially dilutive shares excluded 268 165 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income by Component | The following tables set forth the changes in our accumulated other comprehensive (loss) income by component (net of tax of $0) for the three-month periods ended January 29, 2023, and January 30, 2022. Three Months Ended January 29, 2023 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2022 $ (97,790 ) $ (666 ) $ (98,456 ) Other comprehensive (loss) income 90,519 (54 ) 90,465 Less: Other comprehensive loss (income) attributable to noncontrolling interests 16,466 (37 ) 16,429 Balance at January 29, 2023 $ (23,737 ) $ (683 ) $ (24,420 ) Three Months Ended January 30, 2022 Foreign Currency Translation Adjustments Other Total Balance at October 31, 2021 $ 21,476 $ (905 ) $ 20,571 Other comprehensive (loss) income (9,831 ) 37 (9,794 ) Less: Other comprehensive loss (income) attributable to noncontrolling interests 194 18 212 Balance at January 30, 2022 $ 11,451 $ (886 ) $ 10,565 |
SHARE REPURCHASE PROGRAMS (Tabl
SHARE REPURCHASE PROGRAMS (Tables) | 3 Months Ended |
Jan. 29, 2023 | |
SHARE REPURCHASE PROGRAMS [Abstract] | |
Shares Repurchase Programs | The table below presents information on this repurchase program for the three-month periods ended January 29, 2023 , and January 30, 2022. Three Months Ended January 29, 2023 January 30, 2022 Number of shares repurchased - 188 Cost of shares repurchased $ - $ 2,522 Average price paid per share $ - $ 13.43 |
BASIS OF FINANCIAL STATEMENT _3
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) | 3 Months Ended |
Jan. 29, 2023 Facility | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 11 |
Taiwan [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
Korea [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 1 |
China [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
United States [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 3 |
Europe [Member] | |
Manufacturing Facilities [Abstract] | |
Number of manufacturing facilities | 2 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - Government securities [Member] - USD ($) $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
Available-for-sale [Abstract] | ||
Amortized Cost | $ 39,280 | $ 38,911 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (81) | (91) |
Carrying Value | $ 39,199 | $ 38,820 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
INVENTORIES [Abstract] | ||
Raw materials | $ 51,160 | $ 49,326 |
Work in process | 1,593 | 1,408 |
Finished goods | 43 | 19 |
Inventories | $ 52,796 | $ 50,753 |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Oct. 31, 2022 | |
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 2,250,126 | $ 2,072,639 | |
Accumulated depreciation and amortization | (1,539,199) | (1,428,766) | |
Property, plant and equipment, net | 710,927 | 643,873 | |
Finance lease, Right-of-use asset [Abstract] | |||
Finance lease, right-of-use asset, gross | 42,822 | 42,760 | |
Accumulated amortization | (5,491) | (4,784) | |
Finance lease, right-of-use asset, net | 37,331 | 37,976 | |
Depreciation Expense [Abstract] | |||
Depreciation Expense | 19,028 | $ 20,723 | |
Land [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 11,971 | 11,134 | |
Buildings and Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 178,095 | 168,024 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 1,909,200 | 1,769,478 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 20,144 | 18,802 | |
Furniture, Fixtures and Office Equipment [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | 15,526 | 14,355 | |
Construction in Progress [Member] | |||
Property, plant and equipment [Abstract] | |||
Property, plant and equipment, gross | $ 115,190 | $ 90,846 |
PDMCX JOINT VENTURE, VIE (Detai
PDMCX JOINT VENTURE, VIE (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2018 | Jan. 29, 2023 | Jan. 30, 2022 | Oct. 31, 2022 | |
Photronics and DNP [Member] | ||||
Variable Interest Entity [Abstract] | ||||
Term from inception after which interest holder may put their interest in the VIE | 2 years | |||
Period before put or purchase option can be exercised | 6 months | |||
Number of business days for obtaining required approvals and clearance for exiting party | 3 days | |||
Net Income (Loss) from Operations [Abstract] | ||||
Net income from PDMCX | $ 5,918 | $ 1,877 | ||
Photronics and DNP [Member] | Minimum [Member] | ||||
Variable Interest Entity [Abstract] | ||||
Ownership percentage | 20% | |||
PDMCX [Member] | ||||
Variable Interest Entity [Abstract] | ||||
Collateral amount | $ 74,000 | $ 70,700 | ||
Photronics Interest [Member] | ||||
Variable Interest Entity [Abstract] | ||||
Ownership percentage | 50.01% | |||
DNP [Member] | ||||
Variable Interest Entity [Abstract] | ||||
Ownership percentage | 49.99% |
PDMCX JOINT VENTURE, Carrying A
PDMCX JOINT VENTURE, Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | $ 700,816 | $ 644,652 |
Total assets | 1,441,680 | 1,315,830 |
Current liabilities | 199,331 | 193,797 |
Total liabilities | 258,960 | 253,741 |
Carrying Amount [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 119,928 | 127,542 |
Noncurrent assets | 150,365 | 119,392 |
Total assets | 270,293 | 246,934 |
Current liabilities | 52,302 | 51,274 |
Noncurrent liabilities | 5,414 | 9,161 |
Total liabilities | 57,716 | 60,435 |
Net assets | 212,577 | 186,499 |
Photronics Interest [Member] | ||
Carrying amounts of assets and liabilities [Abstract] | ||
Current assets | 59,976 | 63,784 |
Noncurrent assets | 75,198 | 59,708 |
Total assets | 135,174 | 123,492 |
Current liabilities | 26,156 | 25,643 |
Noncurrent liabilities | 2,708 | 4,581 |
Total liabilities | 28,864 | 30,224 |
Net assets | $ 106,310 | $ 93,268 |
DEBT, Long-term Debt (Details)
DEBT, Long-term Debt (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 28, 2023 USD ($) | Feb. 28, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Jan. 29, 2023 USD ($) | Jan. 29, 2023 CNY (¥) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Jan. 29, 2023 CNY (¥) | ||||||
Long Term Debt Maturing In Year One [Abstract] | ||||||||||||||
Next 12 months | $ 6,541 | $ 10,024 | ||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Months 13 - 24 | 20,772 | 6,610 | ||||||||||||
Months 25 - 36 | 6,526 | 19,059 | ||||||||||||
Months 37 - 48 | 13 | 6,641 | ||||||||||||
Months 49 - 60 | 12 | |||||||||||||
Long-term debt | 27,323 | 32,310 | ||||||||||||
Total debt | [1] | 33,864 | ||||||||||||
Xiamen Project Loans [Member] | ||||||||||||||
Long Term Debt Maturing In Year One [Abstract] | ||||||||||||||
Next 12 months | 0 | 0 | ||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Months 13 - 24 | 0 | 0 | ||||||||||||
Months 25 - 36 | 3,893 | 1,098 | ||||||||||||
Months 37 - 48 | 0 | 6,641 | ||||||||||||
Months 49 - 60 | 0 | |||||||||||||
Long-term debt | 3,893 | $ 7,739 | ||||||||||||
Total debt | $ 3,893 | [1] | ¥ 26.4 | |||||||||||
Interest rate at balance sheet date | 4.30% | 4.30% | ||||||||||||
Basis spread on interest rates | 0% | 0% | 0% | 0% | ||||||||||
Maturity date | Dec. 01, 2025 | Dec. 01, 2025 | Dec. 01, 2025 | Dec. 01, 2025 | ||||||||||
Periodic payment amount | Varies as loans mature | [2],[3] | Varies as loans mature | [2],[3] | Varies as loans mature | [4] | Varies as loans mature | [4] | ||||||
Periodic payment frequency | Semiannual, on individual loans | Semiannual, on individual loans | Semiannual, on individual loans | Semiannual, on individual loans | ||||||||||
Loan collateral (carrying amount) | $ 73,973 | $ 70,705 | ||||||||||||
Repayment of long term debt | 4,400 | ¥ 30 | $ 11,500 | ¥ 81 | ||||||||||
Xiamen Project Loans [Member] | Subsequent Event [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Repayment of long term debt | $ 3,900 | ¥ 26.4 | ||||||||||||
Xiamen Project Loans [Member] | Minimum [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Interest rate at balance sheet date | 4.30% | 4.30% | ||||||||||||
Xiamen Project Loans [Member] | Maximum [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Interest rate at balance sheet date | 4.45% | 4.45% | ||||||||||||
Xiamen Project Loans [Member] | Due Date June 2025 [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Repayment of long term debt | ¥ | 6 | |||||||||||||
Xiamen Project Loans [Member] | Due Date December 2025 [Member] | ||||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Repayment of long term debt | ¥ | ¥ 24 | |||||||||||||
Xiamen Working Capital Loans [Member] | ||||||||||||||
Long Term Debt Maturing In Year One [Abstract] | ||||||||||||||
Next 12 months | $ 3,512 | |||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Months 13 - 24 | 0 | |||||||||||||
Months 25 - 36 | 0 | |||||||||||||
Months 37 - 48 | 0 | |||||||||||||
Long-term debt | $ 0 | |||||||||||||
Total debt | 0 | |||||||||||||
Interest rate at balance sheet date | 4.46% | 4.46% | ||||||||||||
Basis spread on interest rates | 0.76% | 0.76% | ||||||||||||
Maturity date | Jul. 01, 2023 | Jul. 01, 2023 | ||||||||||||
Periodic payment amount | Increases as loans mature | Increases as loans mature | ||||||||||||
Periodic payment frequency | Semiannual, on individual loans | Semiannual, on individual loans | ||||||||||||
Repayment of long term debt | $ 3,600 | ¥ 25.6 | ||||||||||||
Finance Leases [Member] | ||||||||||||||
Long Term Debt Maturing In Year One [Abstract] | ||||||||||||||
Next 12 months | 6,541 | $ 6,512 | ||||||||||||
Long-term Debt [Abstract] | ||||||||||||||
Months 13 - 24 | 20,772 | 6,610 | ||||||||||||
Months 25 - 36 | 2,633 | 17,961 | ||||||||||||
Months 37 - 48 | 13 | 0 | ||||||||||||
Months 49 - 60 | 12 | |||||||||||||
Long-term debt | 23,430 | $ 24,571 | ||||||||||||
Total debt | [1] | $ 29,971 | ||||||||||||
Periodic payment amount | Varies as leases mature | Varies as leases mature | Varies as leases mature | Varies as leases mature | ||||||||||
Periodic payment frequency | Monthly | Monthly | Monthly | Monthly | ||||||||||
Loan collateral (carrying amount) | [5] | $ 37,331 | $ 37,976 | |||||||||||
[1]We are in compliance with all of our debt covenants as of January 29, 2023.[2]During the three-month period ended January 29, 2023, we repaid 30.0 million RMB (approximately $4.4 million), of which, 6.0 million RMB was due to be paid in June 2025, and 24.0 million RMB was due to be paid in December 2025.[3]In February 2023, we repaid the entire outstanding balance of 26.4 million RMB (approximately $3.9 million) shown in the table above.[4]During the three-month period ended October 31, 2022, we repaid 81.0 million RMB (approximately $11.5 million) that had contractual maturity dates ranging from December 2023 through June 2025.[5]Represents the carrying amount at the balance sheet date of the related ROU assets, in which the lessors have secured interests. |
DEBT, Xiamen Project Loans (Det
DEBT, Xiamen Project Loans (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2023 USD ($) | Feb. 28, 2023 CNY (¥) | Jan. 29, 2023 USD ($) | Jan. 29, 2023 CNY (¥) | Oct. 31, 2022 USD ($) | Oct. 31, 2022 CNY (¥) | Jan. 29, 2023 CNY (¥) | Nov. 30, 2018 CNY (¥) | |||
Project Loans [Abstract] | ||||||||||
Amount outstanding | $ | [1] | $ 33,864 | ||||||||
Xiamen Project Loans [Member] | ||||||||||
Project Loans [Abstract] | ||||||||||
Maximum borrowing capacity | ¥ | ¥ 345 | |||||||||
Amount outstanding | 3,893 | [1] | ¥ 26.4 | |||||||
Repayments of Long-Term Debt | $ 4,400 | ¥ 30 | $ 11,500 | ¥ 81 | ||||||
Xiamen Project Loans [Member] | Subsequent Event [Member] | ||||||||||
Project Loans [Abstract] | ||||||||||
Repayments of Long-Term Debt | $ 3,900 | ¥ 26.4 | ||||||||
[1]We are in compliance with all of our debt covenants as of January 29, 2023. |
DEBT, Xiamen Working Capital Lo
DEBT, Xiamen Working Capital Loans (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Jan. 29, 2023 USD ($) | Nov. 30, 2018 USD ($) | ||
Debt Instruments [Abstract] | |||||
Amount outstanding | [1] | $ 33,864 | |||
Xiamen Working Capital Loans [Member] | |||||
Debt Instruments [Abstract] | |||||
Maximum borrowing capacity | $ 25,000 | ||||
Expiration date | Nov. 30, 2023 | ||||
Repayments of Long-Term Debt | $ 3,600 | ¥ 25.6 | |||
Amount outstanding | $ 0 | ||||
[1]We are in compliance with all of our debt covenants as of January 29, 2023. |
DEBT, Finance Leases (Details)
DEBT, Finance Leases (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Feb. 28, 2021 | Jan. 31, 2021 | Jan. 29, 2023 | Dec. 31, 2020 | |
$7.2 Million Finance Lease [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease contract term | 5 years | |||
Finance lease amount | $ 7,200 | |||
Early buyout option to purchase tool | $ 2,400 | |||
Finance lease interest implicit rate | 1.08% | |||
$7.2 Million Finance Lease [Member] | Monthly [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease monthly payments | $ 100 | |||
$35.5 Million Finance Lease [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease contract term | 5 years | |||
Finance lease amount | $ 35,500 | |||
Early buyout option to purchase tool | $ 14,100 | |||
Finance lease interest implicit rate | 1.58% | |||
$35.5 Million Finance Lease [Member] | First Three Months [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease monthly payments | $ 40 | |||
$35.5 Million Finance Lease [Member] | Following Nine Months [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease monthly payments | 600 | |||
$35.5 Million Finance Lease [Member] | Forty Eight Months [Member] | ||||
Finance Lease, [Abstract] | ||||
Finance lease monthly payments | 500 | |||
$35.5 Million Finance Lease [Member] | Minimum [Member] | ||||
Finance Lease, [Abstract] | ||||
Outstanding committed balance for cross default provision | $ 5,000 |
DEBT, Corporate Credit Agreemen
DEBT, Corporate Credit Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Sep. 30, 2018 | ||
Debt Instruments [Abstract] | |||
Amount outstanding | [1] | $ 33,864 | |
Amended and Restated Credit Agreement [Member] | |||
Debt Instruments [Abstract] | |||
Term of loan | 5 years | ||
Current borrowing capacity | $ 50,000 | ||
Maximum borrowing capacity | 100,000 | ||
Cash limit for dividends, distributions and redemption on equity | $ 50,000 | ||
Amount outstanding | $ 0 | ||
Effective interest rate | 5.52% | ||
[1]We are in compliance with all of our debt covenants as of January 29, 2023. |
DEBT, Hefei Equipment Loan (Det
DEBT, Hefei Equipment Loan (Details) - Hefei Equipment Loan [Member] ¥ in Millions, $ in Millions | 1 Months Ended | ||
Jul. 31, 2022 CNY (¥) | Jul. 31, 2022 USD ($) | Oct. 31, 2020 CNY (¥) Tool | |
Debt Instruments [Abstract] | |||
Maximum borrowing capacity | ¥ | ¥ 200 | ||
Repayment of long term debt | ¥ 120.7 | $ 18 | |
Number of lithography tools purchased | Tool | 2 |
REVENUE, Contract Assets, Liabi
REVENUE, Contract Assets, Liabilities and Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Oct. 31, 2022 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Credit losses on accounts receivable | $ 0 | $ 0 | |
Contract liabilities | 25,591 | $ 23,861 | |
Change in Contract with Customer, Liability [Abstract] | |||
Revenue recognized from beginning liability | 7,638 | $ 4,242 | |
Other Current Assets [Member] | |||
Contract with Customer, Asset and Liability [Abstract] | |||
Contract assets | 19,414 | 15,752 | |
Accrued Liabilities [Member] | |||
Contract with Customer, Asset and Liability [Abstract] | |||
Contract liabilities | 18,805 | 18,872 | |
Other Liabilities [Member] | |||
Contract with Customer, Asset and Liability [Abstract] | |||
Contract liabilities | $ 6,786 | $ 4,989 | |
Minimum [Member] | |||
Revenue, Performance Obligation [Abstract] | |||
Product invoice term | 30 days | ||
Product warranty period | 1 month | ||
Maximum [Member] | |||
Revenue, Performance Obligation [Abstract] | |||
Product invoice term | 90 days | ||
Product warranty period | 24 months | ||
IC [Member] | Minimum [Member] | |||
Backlog of Orders [Abstract] | |||
Customer order, expected satisfaction period | 7 days | ||
Customer order, extended satisfaction period | 2 months | ||
IC [Member] | Maximum [Member] | |||
Backlog of Orders [Abstract] | |||
Customer order, expected satisfaction period | 14 days | ||
Customer order, extended satisfaction period | 3 months | ||
FPD [Member] | Minimum [Member] | |||
Backlog of Orders [Abstract] | |||
Customer order, expected satisfaction period | 14 days | ||
FPD [Member] | Maximum [Member] | |||
Backlog of Orders [Abstract] | |||
Customer order, expected satisfaction period | 21 days |
REVENUE, Disaggregation of Reve
REVENUE, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | ||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | $ 211,090 | $ 189,827 |
IC [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 156,589 | 129,761 | |
High-end [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 48,003 | 46,534 | |
Mainstream [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 108,586 | 83,227 | |
FPD [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 54,501 | 60,066 | |
High-end [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 45,691 | 46,276 | |
Mainstream [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 8,810 | 13,790 | |
Taiwan [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 75,569 | 67,841 |
China [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 58,932 | 45,953 |
Korea [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 37,832 | 39,515 |
United States [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 29,881 | 27,176 |
Europe [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 8,447 | 8,914 |
Other [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | [1] | 429 | 428 |
Over Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 197,164 | 170,264 | |
At a Point in Time [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | $ 13,926 | $ 19,563 | |
[1] This table disaggregates revenue by the location in which it was earned. |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
Share-based Compensation [Abstract] | ||
Maximum number of shares of common stock that may be issued (in shares) | 4,000,000 | |
Expense incurred | $ 1,821 | $ 1,457 |
Income tax benefits of share-based compensation | 155 | 84 |
Share-based compensation cost capitalized | 0 | 0 |
Cost of Goods Sold [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | 281 | 143 |
Selling, General and Administrative [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | 1,378 | 1,180 |
Research and Development [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | 162 | 134 |
Restricted Stock [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | $ 1,764 | $ 1,367 |
Restricted Stock [Abstract] | ||
Number of shares granted in period (in shares) | 786,500 | 535,400 |
Weighted-average grant-date fair value of awards (in dollars per share) | $ 16.77 | $ 19.28 |
Shares outstanding at balance sheet date (in shares) | 1,374,422 | 1,128,179 |
Estimated Expenses Not Yet Incurred [Abstract] | ||
Compensation cost not yet recognized | $ 18,526 | $ 15,106 |
Weighted-average amortization period for cost not yet recognized (in years) | 3 years 2 months 12 days | 3 years |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation [Abstract] | ||
Award vesting period | 1 year | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation [Abstract] | ||
Award vesting period | 4 years | |
Stock Options [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | $ 1 | $ 38 |
Stock options activity [Abstract] | ||
Contractual term | 10 years | |
Number of options granted in period (in shares) | 0 | 0 |
Cash received from option exercised | $ 563 | $ 3,714 |
Estimated Expenses Not Yet Incurred [Abstract] | ||
Compensation cost not yet recognized | $ 0 | $ 71 |
Weighted-average amortization period for cost not yet recognized (in years) | 1 year | |
Outstanding and exercisable option awards [Roll Forward] | ||
Outstanding at end of period (in shares) | 528,551 | |
Exercisable at end of period (in shares) | 528,551 | |
Weighted-Average Exercise Price [Abstract] | ||
Outstanding at end of period (in dollars per share) | $ 10.11 | |
Exercisable at end of period (in dollars per share) | $ 10.11 | |
Weighted-Average Remaining Contractual Life (in years) [Abstract] | ||
Outstanding at end of period | 3 years 3 months 10 days | |
Exercisable at end of period | 3 years 3 months 10 days | |
Aggregate Intrinsic Value [Abstract] | ||
Outstanding at end of period | $ 4,605 | |
Exercisable at end of period | $ 4,605 | |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation [Abstract] | ||
Award vesting period | 1 year | |
Stock Options [Member] | Maximum [Member] | ||
Share-based Compensation [Abstract] | ||
Award vesting period | 4 years | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation [Abstract] | ||
Expense incurred | $ 56 | $ 52 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Oct. 31, 2022 | |
Effective Income and Statutory Tax Rates [Abstract] | |||
U.S. statutory tax rates | 21% | 21% | |
Effective tax rates | 30.30% | 26.10% | |
Income Tax Examination [Abstract] | |||
Uncertain tax positions that may be resolved over next twelve months | $ 400 | ||
Earliest open tax year | 2017 | ||
Unrecognized Tax Benefits [Abstract] | |||
Unrecognized tax benefits related to uncertain tax positions | $ 6,318 | $ 5,599 | |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 6,318 | 5,599 | |
Accrued interest and penalties related to uncertain tax positions | $ 467 | $ 395 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
Calculation of Basic and Diluted Earnings Per Share [Abstract] | ||
Net income attributable to Photronics, Inc. shareholders | $ 13,986 | $ 23,064 |
Effect of dilutive securities | 0 | 0 |
Earnings used for diluted earnings per share | $ 13,986 | $ 23,064 |
Weighted-average Common Shares Computations [Abstract] | ||
Weighted-average common shares used for basic earnings per share (in shares) | 60,894 | 60,158 |
Effect of Dilutive Securities [Abstract] | ||
Share-based payment awards (in shares) | 576 | 778 |
Potentially dilutive common shares (in shares) | 576 | 778 |
Weighted-average common shares used for diluted earnings per share (in shares) | 61,470 | 60,936 |
Basic earnings per share (in dollars per share) | $ 0.23 | $ 0.38 |
Diluted earnings per share (in dollars per share) | $ 0.23 | $ 0.38 |
Antidilutive Securities [Abstract] | ||
Total potentially dilutive shares excluded (in shares) | 268 | 165 |
Share-based Payment Awards [Member] | ||
Antidilutive Securities [Abstract] | ||
Total potentially dilutive shares excluded (in shares) | 268 | 165 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Nov. 30, 2022 USD ($) | Jan. 29, 2023 USD ($) | May 01, 2022 USD ($) Operation | |
Commitment and Contingencies [Abstract] | |||
Outstanding commitments for capital expenditure | $ 132 | ||
Period of audit | 3 years | ||
Contingency loss recorded | $ 2.2 | ||
Reversal of loss contingency accrual | $ 1 | ||
Minimum [Member] | |||
Commitment and Contingencies [Abstract] | |||
Range of estimated contingency loss | 2.2 | ||
Maximum [Member] | |||
Commitment and Contingencies [Abstract] | |||
Range of estimated contingency loss | $ 3.7 | ||
China [Member] | |||
Commitment and Contingencies [Abstract] | |||
Number of operations | Operation | 1 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 29, 2023 | Jan. 30, 2022 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME BY COMPONENT [Abstract] | ||
Other comprehensive income, tax | $ 0 | $ 0 |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 831,527 | |
Ending Balance | 920,765 | |
Accumulated Other Comprehensive Income [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (98,456) | 20,571 |
Ending Balance | (24,420) | 10,565 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (97,790) | 21,476 |
Ending Balance | (23,737) | 11,451 |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (666) | (905) |
Ending Balance | (683) | (886) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | 90,465 | (9,794) |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | 90,519 | (9,831) |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive (loss) income | (54) | 37 |
AOCI Attributable to Noncontrolling Interest [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive loss (income) attributable to noncontrolling interests | 16,429 | 212 |
Foreign Currency Translation Adjustments [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive loss (income) attributable to noncontrolling interests | 16,466 | 194 |
Other [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive loss (income) attributable to noncontrolling interests | $ (37) | $ 18 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jan. 29, 2023 | Oct. 31, 2022 |
Fair Value, Assets and Liability [Abstract] | ||
Total assets | $ 0 | $ 0 |
Total liabilities | $ 0 | $ 0 |
SHARE REPURCHASE PROGRAMS (Deta
SHARE REPURCHASE PROGRAMS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jan. 29, 2023 | Jan. 30, 2022 | Sep. 30, 2020 | |
Shares Repurchase Programs and Preferred Stock Purchase Rights [Abstract] | |||
Stock repurchased authorized amount | $ 100,000 | ||
Stock repurchase program - commencement date | Sep. 16, 2020 | ||
Amount remaining under authorization for purchase of additional shares | $ 31,700 | ||
Number of shares repurchased (in shares) | 0 | 188 | |
Cost of shares repurchased | $ 0 | $ 2,522 | |
Average price paid per share (in dollars per share) | $ 0 | $ 13.43 |