Photronics, Inc. Sees Growth Amid Robust Market Trends

Photronics, Inc. Reports Successful Fiscal Year 2024

Photronics, Inc. (NASDAQ: PLAB), a prominent player in photomask technologies, has recently unveiled its financial performance for the complete fiscal year and the fourth quarter of 2024. With a significant presence in the global market, Photronics continues to advance its innovative solutions.

Highlights from the Fourth Quarter

During the fourth quarter, Photronics noticed a sequential revenue increase. CEO Frank Lee remarked on the upward trends in sales, particularly within the Integrated Circuits (IC) and Flat Panel Displays (FPD) sectors. The IC market benefited from high-end sales, primarily in the U.S., while mainstream demand fueled growth within the FPD market. As the company transitions into the next fiscal year, it remains cautiously optimistic about these trends.

Detailed Fiscal Year 2024 Financial Overview

For the fiscal year 2024, Photronics reported:

• Total Revenue: $866.9 million, representing a 3% decline compared to the previous year.
• Net Income: GAAP net income attributed to shareholders was $130.7 million, or $2.09 per diluted share, a slight increase from $125.5 million, or $2.03 per diluted share in 2023.
• Non-GAAP Net Income: $127.6 million, or $2.05 per diluted share, compared to $126.0 million, or $2.04 per diluted share in 2023.
• IC Revenue: $638.1 million, down 2% year-over-year.
• FPD Revenue: $228.8 million, down 5% from the prior year.
• Operating Cash Flow: Generated $261.4 million, with $130.9 million reinvested into organic growth through capital expenditures.

Fourth Quarter Performance Metrics

The fourth quarter results showcased mixed trends:

• Total revenue declined by 2% year-over-year to $222.6 million but increased by 6% sequentially.
• GAAP net income attributable to shareholders stood at $33.9 million or $0.54 per diluted share, contrasting with $44.6 million or $0.72 per diluted share for the same period last year.
• Non-GAAP net income was reported at $37.1 million or $0.59 per diluted share, a slight decrease from $37.2 million or $0.60 per diluted share in the fourth quarter of 2023.
• IC revenue was $163.7 million, which saw a 1% decrease from the previous year.
• FPD revenue was $58.9 million, decreasing 7% from the same quarter last year.
• Operating cash flow generated was $68.4 million, with $43.2 million allocated to organic growth through capital investments.

Future Projections and Guidance

Looking ahead to the first quarter of fiscal 2025, Photronics anticipates revenue in the range of $208 million to $216 million. The company expects non-GAAP net income attributable to shareholders to fall between $0.43 and $0.49 per diluted share. These projections reflect confidence amid the company’s strong foundation and emerging market opportunities.

Understanding Photronics, Inc.

Founded in 1969, Photronics, Inc. is recognized globally as a premium provider of integrated circuit (IC) and flat-panel display (FPD) photomasks. The company’s expertise positions it as a pivotal player in the manufacturing of high-precision quartz plates necessary for electronic circuits, serving a clientele that spans across multiple sectors. With around 1,878 employees and strategically positioned manufacturing facilities across Asia, Europe, and North America, Photronics remains dedicated to innovation and excellence.

Frequently Asked Questions

What are the main drivers of revenue growth at Photronics?

The revenue growth at Photronics is largely attributed to strong demand in the Integrated Circuits (IC) sector, especially from high-end sales in the U.S. and mainstream demand in the Flat Panel Displays (FPD) sector.

How did Photronics perform in fiscal year 2024 compared to the previous year?

For fiscal year 2024, Photronics reported total revenue of $866.9 million, a 3% decline from the previous year, but an increase in net income, showing resilience amidst market fluctuations.

What guidance has Photronics provided for the upcoming quarter?

Photronics anticipates revenue of $208 million to $216 million for the first quarter of fiscal 2025, with non-GAAP net income expected to be between $0.43 and $0.49 per diluted share.

How does Photronics position itself in the market?

Photronics utilizes its competitive advantages in technology and operational efficiencies to maintain market leadership in the photomask industry, embracing megatrends such as AI and edge computing to drive future growth.

Who can I contact for more information about Photronics?

For detailed inquiries regarding Photronics, contact Ted Moreau, VP of Investor Relations, at 469.395.8175 or via email at tmoreau@photronics.com.

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