 | FORFURTHERINFORMATION:
Pete Broadbent
Vice President, Investor Relations
& Marketing
(203) 775-9000
pbroadbent@photronics.com |
| Press Release | |
PHOTRONICSREPORTSFOURTHQUARTER
AND FISCAL2014RESULTS
- Quarterly sales of$124.3 million
- Quarterly GAAPand Non-GAAP dilutedEPS of $0.07; within guidance of $0.07 - $0.11
- Quarterly Non-GAAP EBITDAof $33 million
- Net cash of $51million up $22million sequentially
BROOKFIELD,Conn. December 08, 2014 —Photronics, Inc.(NASDAQ:PLAB), a worldwide leader in supplyinginnovative imaging technology solutions for the global electronics industry, today reported financial results for the fourth quarter and fiscal year endedNovember 2, 2014.
Constantine ("Deno") Macricostas, Photronics’ chairman and chief executive officer, commented: “Fourthquarter revenues were slightly lower than previously anticipated due to slower than expected rampsin advancedmemory nodes and a pause in 28nm demand due to a refresh of the designpipeline at afoundry customer. Ourmarket position remains strong and our qualifications are in place for these customers and we expect the ramps tomaterialize and drive revenue growthin the new fiscal year.”
Sales for the fourth quarterof fiscal 2014 were $124.3 million, comparedwith $106.0million forthe fourth quarter of fiscal year 2013. Sales of semiconductor photomasks were $99.4 million, or 80% of revenues,during the fourth quarter of fiscal 2014, and sales of flat panel display (FPD) photomasks were $24.9 million, or20% of revenues. For the fourth quarter of fiscal 2014,GAAP andNon-GAAPnet income attributable toPhotronics, Inc. shareholders was $4.3 million, or $0.07 perdiluted share, comparedwith $4.8 million, or $0.08per diluted share, for the fourth quarter of fiscal 2013. Non-GAAP net income attributable toPhotronics, Inc. shareholdersfor the fourth quarter of2013, excluding joint venture transaction expenses of $0.8 million, was $5.6million, or $0.09 per diluted share.
Sales for the 2014 fiscal year were $455.5 million, compared with $422.2 million for the 2013 fiscal year. For the 2014 fiscal year, sales of semiconductor photomasks were $352.7 million, or 77% of revenues, and sales of FPD photomasks were $102.8 million, or 23% of revenues. GAAP net income attributable to Photronics, Inc. shareholders for the 2014 fiscal year was $26.0 million, or $0.41 per diluted share, compared with GAAP net income of $18.0 million, or $0.29 per diluted share, for the 2013 fiscal year. Non-GAAP net income attributable to Photronics, Inc. shareholders for the 2014 fiscal year, excluding the acquisition gain of $16.4 million and expenses related to the joint venture of $2.5 million, was $12.1 million, or $0.19 per diluted share. Non-GAAP net income attributable to Photronics, Inc. shareholders for the 2013 fiscal year, excluding $0.8 million in expenses related to the joint venture, was $18.7 million, or $0.30 per diluted share.
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The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of non-GAAP financial measures in this press release, and the attached financial supplement reconciles non-GAAP financial information with Photronics, Inc.'s financial results under GAAP.
Non-GAAP Financial Measures
Non-GAAP net income attributable to Photronics, Inc.shareholders and non-GAAP earnings per share are "non-GAAP financial measures," as such term is defined by the Securities and Exchange Commission, and may differ from non-GAAP financial measures used by other companies. Photronics, Inc. believes that non-GAAP net income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share that exclude certain non-cash or non-recurring income or expense items are useful for analysts and investors to evaluate Photronics, Inc.'s future on-going performance because they enable a more meaningful comparison of Photronics, Inc.'s projected earnings and performance with its historical results of prior periods. These non-GAAP metrics, in particular non-GAAP net income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share are not intended to represent funds available for Photronics, Inc.'s discretionary use and are not intended to represent, or be used as a substitute for, operating income, net income or cash flows from operations data as measured under GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the consolidated statements of operations and must be considered in performing a comprehensive assessment of overall financial performance. Non-GAAP financial information is adjusted for the following items:
The presentation of this financial information should not be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States. The attached financial supplement reconciles non-GAAP financial information with Photronics, Inc.'s financial results under GAAP.
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A conference call with investors and the media to discuss these results is scheduled for 8:30 a.m. Eastern time on Tuesday, December 9, 2014. The live dial-in number is (408) 774-4601. The call can also be accessed by logging onto Photronics' web site at www.photronics.com. The call will be archived for instant replay access until the Company reports its fiscal 2015 first quarter results.
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Photronics is a leading worldwide manufacturer ofphotomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically locatedmanufacturing facilities in Asia, Europe, and North America. Additional information on the Company can be accessed atwww.photronics.com
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements made by or on behalf of Photronics, Inc. and its subsidiaries (the Company). The forward-looking statements contained in this press release and other parts of Photronics’ web site involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices, and other factors. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental, and technological factors as well as decisions we may make in the future regarding our business, capital structure and other matters. These forward-looking statements generally can be identified by phrases such as “believes”, “expects”, “anticipates”, “plans”, “projects”, “could”, “estimate”, “intend”, “may”, “will” and similar expressions. Accordingly, there is no assurance that the Company’s expectations will be realized. For a fuller discussion of the factors that may affect the Company's operations, see "Forward Looking Statements" in the Company's Quarterly and Annual Reports to the Securities and Exchange Commission on Forms 10-Q and 10-K. The Company assumes no obligation to provide revisions to any forward-looking statements.
11-2014
PLAB – E
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