Photronics (PLAB) 8-K Results of Operations and Financial Condition

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

	Nine Months Ended
	July 29				July 30
	2007				2006
Cash flows from operating activities:
Net income		$	24,161			$	19,513
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization			72,234				67,594
Gain on sale of facility and other			(3,027	)			-
Gain on sale of investments			(257	)			-
Minority interest in income of consolidated subsidiaries			2,424				3,710
Consolidation, restructuring and related charges			-				13,216
Changes in assets and liabilities and other			(1,461	)			(24,135	)
Net cash provided by operating activities			94,074				79,898
Cash flows from investing activities:
Purchases of property, plant and equipment			(56,951	)			(83,441	)
Purchases of short-term investments and other			(5,465	)			(64,983	)
Proceeds from sales of investments and other			48,253				78,697
Proceeds from sale of facility			5,783				-
Investment in joint venture, technology and supply agreements			(1,000	)			(120,505	)
Acquisition of additional interest in PK Ltd.			-				(8,432	)
Net cash used in investing activities			(9,380	)			(198,664	)
Cash flows from financing activities:
Repayments of long-term debt and other			(94,587	)			(4,725	)
Proceeds from long-term debt			3,369				12,218
Proceeds from issuance of common stock			631				1,172
Other			(1,485	)			-
Net cash (used in) provided by financing activities			(92,072	)			8,665
Effect of exchange rate changes on cash			(1,991	)			(709	)
Net decrease in cash and cash equivalents			(9,369	)			(110,810	)
Cash and cash equivalents, beginning of period			129,425				196,049
Cash and cash equivalents, end of period		$	120,056			$	85,239
Supplemental disclosure of cash flow information:
Change in accrual for purchases of property, plant and equipment			16,480				12,585