 Press Release | For Further Information: |
Photronics Reports First Quarter Fiscal 2015 Results
| ● | Quarterly sales of $123.5 million; within guidance of $121-126 million |
| ● | Non-GAAP net income of $4.7 million |
| ● | Non-GAAP EPS of $0.07; at high-end of guidance of $0.02 - $0.07 |
| ● | Quarterly high-end IC sales increase 8% sequentially to $36.4 million |
| ● | Non-GAAP EBITDA of $34 million |
| ● | Net Cash of $29 million |
| ● | Agreed to exchange $57.5 million 3.25% convertible senior notes with 2016 maturity date for 3.25% notes with 2019 maturity date |
BROOKFIELD, Connecticut February 17, 2015 — Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, today reported financial results for the fiscal 2015 first quarter ended February 1, 2015.
Constantine (“Deno”) Macricostas, Photronics' chairman and chief executive officer commented, “Our first quarter results reflect renewed high-end demand across our logic, memory and flat panel customers. Our mainstream semiconductor business also held up well in what is normally a seasonally soft environment in the first quarter due to the holiday period.”
“Earnings were at the high end of our expectations due to solid cost controls across a number of categories. Our operating cash flow continued to be strong. Over the past year we have successfully managed to invest in deploying high-end equipment to support our customers while continuing to strengthen our balance sheet and provide financial flexibility for the future,” concluded Macricostas.
Sales for the first quarter of fiscal 2015 were $123.5 million, an increase of 22% compared with $101.5 million for the first quarter of fiscal 2014. Sales of semiconductor photomasks were $101.5 million, or 82% of revenues, during the first quarter of fiscal 2015, and sales of flat panel display (FPD) photomasks were $22.0 million, or 18% of revenues.
GAAP net income attributable to Photronics, Inc. shareholders for the first quarter of fiscal 2015 was $3.8 million, or $0.06 per diluted share, compared with GAAP net income attributable to Photronics, Inc. shareholders of $2.0 million, or $0.03 per diluted share, for the first quarter of fiscal 2014. Non-GAAP net income attributable to Photronics, Inc. shareholders for the first quarter of fiscal 2015, which excludes financing expenses of $0.9 million, was $4.7 million, or $0.07 per diluted share. Non-GAAP net income attributable to Photronics, Inc. shareholders for the first quarter of fiscal 2014, which excludes acquisition transaction expenses of $0.4 million, was $2.4 million, or $0.4 per diluted share.
The section below entitled "Non-GAAP Financial Measures" provides a definition and information about the use of non-GAAP financial measures in this press release, and the attached financial supplement reconciles non-GAAP financial information with Photronics, Inc.'s financial results under GAAP.
Non-GAAP Financial Measures
Non-GAAP net income attributable to Photronics, Inc. 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:
| ● | Financing expenses in the first quarter of fiscal 2015 related to the exchange of convertible senior notes are excluded because they are not a part of ongoing operations. |
| ● | Transaction expenses in the first quarter of fiscal 2014 related to the joint venture, PDMC, in Taiwan, are excluded because they are not a part of ongoing operations. |
The presentation of this financial information should not be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States. The attached financial supplement reconciles non-GAAP financial information with Photronics, Inc.'s financial results under GAAP.
A conference call with investors and the media to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, February 18, 2015. 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 second quarter results.
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Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the Company can be accessed at www.photronics.com
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements made by or on behalf of Photronics, Inc. and its subsidiaries (the Company). The forward-looking statements contained in this press release and other parts of Photronics’ web site involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices, and other factors. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental, and technological factors 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.