BROOKFIELD, Conn., Feb. 23, 2022 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2022 first quarter ended January 30, 2022.

"Strong end-market demand trends have continued into 2022, helping us achieve our fourth consecutive quarter of record revenue," said Peter Kirlin, chief executive officer. "Our investment strategy is producing the intended results as demonstrated by growth in excess of market rates. We've aligned our operations and technology to serve the strongest sectors of the market, such as AMOLED for mobile displays, high-end logic devices for advanced electronics and mainstream IC to support the proliferation of chips needed for the enablement of the internet of things."

First Quarter 2022 Results

Revenue was $189.8 million, up 5% sequentially and 25% year-over-year
Net income attributable to Photronics, Inc. shareholders was $23.1 million ($0.38 per diluted share), compared with fourth quarter 2021 net income of $19.8 million ($0.33 per diluted share) – a 15% sequential increase in EPS, and first quarter 2021 net income of $8.0 million ($0.13 per diluted share) – nearly 300% year-over-year increase
Integrated circuit (IC) revenue in the first quarter was $129.8 million, up 3% sequentially and 24% compared with the first quarter of last year
Flat panel display (FPD) revenue was $60.1 million, up 8% over last quarter and 27% over the same period last year

"Market dynamics and Photronics' execution have driven profitability levels that propelled the Company well beyond the projections in the target model we provided in December 2020," concluded Kirlin. "Significant indicators from the market and other market participants are that these conditions will continue well into the future. We have therefore included an updated target model in the supplemental information issued in connection with our conference call later today."

Second Quarter 2022 Guidance

For the second quarter of 2022, Photronics expects revenue to be between $188 million and $196 million, and net income attributable to Photronics, Inc. shareholders to be between $0.32 and $0.38 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, February 23, 2022. The call can be accessed by logging onto Photronics' website at www.photronics.com. The live dial-in number is (877) 377-7095 or (408) 774-4601 outside of the United States and Canada. The call will be archived on Photronics' website.

About Photronics

Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 50 years. As of October 31, 2021, the company had 1,728 employees. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to the documents we file with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at www.photronics.com/riskfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

For Further Information:

John P. Jordan

Executive Vice President & CFO

203.740.5671

jjordan@photronics.com

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)


	Three Months Ended
	January 30,		October 31,		January 31,
	2022		2021		2021

Revenue	$	189,827	$	181,288	$	152,067

Cost of goods sold		129,964		129,347		121,538

Gross Profit		59,863		51,941		30,529

Operating Expenses:

Selling, general and administrative		15,727		14,322		14,053

Research and development		5,939		4,100		4,710

Total Operating Expenses		21,666		18,422		18,763

Operating Income		38,197		33,519		11,766

Non-operating income, net		4,707		3,809		680

Income Before Income Tax Provision		42,904		37,328		12,446

Income tax provision		11,178		8,697		2,937

Net Income		31,726		28,631		9,509

Net income attributable to noncontrolling interests		8,662		8,820		1,473

Net income attributable to Photronics, Inc. shareholders	$	23,064	$	19,811	$	8,036

Earnings per share:

Basic	$	0.38	$	0.33	$	0.13

Diluted	$	0.38	$	0.33	$	0.13

Weighted-average number of common shares outstanding:

Basic		60,158		60,216		62,475

Diluted		60,936		60,908		63,005

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)


	January 30,		October 31,
	2022		2021

Assets

Current assets:
Cash and cash equivalents	$	314,195	$	276,670
Accounts receivable		170,673		174,447
Inventories		61,971		55,249
Other current assets		50,940		44,250

Total current assets		597,779		550,616

Property, plant and equipment, net		692,289		696,553
Other assets		45,180		47,033

Total assets	$	1,335,248	$	1,294,202



Liabilities and Equity

Current liabilities:
Current portion of long-term debt	$	18,307	$	22,248
Accounts payable and accrued liabilities		172,787		153,900

Total current liabilities		191,094		176,148

Long-term debt		78,540		89,446
Other liabilities		26,448		28,046

Photronics, Inc. shareholders' equity		838,425		823,692
Noncontrolling interests		200,741		176,870
Total equity		1,039,166		1,000,562

Total liabilities and equity	$	1,335,248	$	1,294,202

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


	Three Months Ended
	January 30,			January 31,
		2022			2021

Cash flows from operating activities:
Net income	$	31,726		$	9,509
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		20,810			23,724
Share-based compensation		1,457			1,301
Changes in operating assets, liabilities and other		5,137			(8,247	)

Net cash provided by operating activities		59,130			26,287

Cash flows from investing activities:
Purchases of property, plant and equipment		(19,175	)		(17,532	)
Government incentives		-			397
Other		(43	)		(61	)

Net cash used in investing activities		(19,218	)		(17,196	)

Cash flows from financing activities:
Repayments of debt		(15,192	)		(7,796	)
Purchases of treasury stock		(2,522	)		(13,209	)
Contribution from noncontrolling interest		14,997			-
Proceeds from long-term debt		-			6,205
Proceeds from share-based arrangements		3,840			765
Net settlements of restricted stock awards		(1,458	)		(315	)

Net cash used in financing activities		(335	)		(14,350	)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(2,057	)		5,195

Net increase (decrease) in cash, cash equivalents, and restricted cash		37,520			(64	)
Cash, cash equivalents, and restricted cash, beginning of period		279,680			281,602

Cash, cash equivalents, and restricted cash, end of period	$	317,200		$	281,538

Photronics Reports First Quarter Fiscal 2022 Results and Updates Long-Term Target Model