Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in supplying
innovative imaging technology solutions for the global electronics
industry, today reported fiscal 2009 second quarter results for the
period ended May 3, 2009.
Sales for the second quarter were $83.2 million, down 24.6%, compared to
$110.3 million for the second quarter of fiscal year 2008. Sales of
semiconductor photomasks accounted for $63.8 million, or 76.6% of
revenues during the second quarter of fiscal 2009, and sales of flat
panel display (FPD) photomasks accounted for $19.4 million, or 23.4% of
revenues.
Net loss for the second quarter of fiscal year 2009 was $10.1 million,
or $0.24 per share, compared to a net loss of $2.1 million, or $0.05 per
share, for the second quarter of fiscal 2008. Net loss for the second
quarter of fiscal 2009 included after tax charges of approximately $1.4
million in connection with the Company’s previously disclosed
restructuring of its operations in Manchester, United Kingdom. On a
non-GAAP basis, excluding the effect of the aforementioned charges, the
Company’s adjusted net loss for the second quarter of fiscal year 2009
was $8.7 million, or $0.21 per share.
Sales for the first six months of 2009 were $171.3 million, down 19.8%
from the $213.5 million for the first half of fiscal 2008. Net loss for
the first six months of fiscal 2009 amounted to $20.3 million, or $0.49
per share, compared to the prior year’s first six months net loss of
$5.4 million, or $0.13 per share. Net loss for the first six months of
2009 included after tax charges of approximately $2.6 million in
connection with the restructuring in Manchester discussed above. On a
non-GAAP basis, excluding the effect of the aforementioned charges, the
Company's adjusted net loss for the first six months of 2009 was $17.7
million, or $0.42 per share.
Constantine (“Deno”) Macricostas, Photronics’ chairman and chief
executive officer commented, “Our second quarter results were in line
with expectations and market conditions. We were pleased, despite this
difficult environment, to demonstrate improved sequential gross margin
performance as a result of our continued efforts to reduce our operating
expenses. We will maintain our intense focus on cost control, advanced
technology customer qualifications and market share gains in
anticipation of an improving market environment in the second half of
calendar year 2009.”
A conference call with investors and the media to discuss these results
is scheduled for 8:30 a.m. Eastern time on Wednesday, May 20, 2009. The
live dial-in number is (719) 325-4779. The call can also be accessed by
logging onto Photronics’ web site at www.photronics.com.
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 as discussed in filings with the U. S. Securities and Exchange
Commission (SEC). These risks and uncertainties include, but are not
limited to, economic, competitive, legal, governmental, and
technological factors. Accordingly, there is no assurance that the
Company’s expectations will be realized. The Company assumes no
obligation to provide revisions to any forward-looking statements.
07-2009
|
|
|
PHOTRONICS, INC. AND SUBSIDIARIES
|
|
Condensed Consolidated
Statements of Operations
|
|
(in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
May 3,
|
|
April 27,
|
|
May 3,
|
|
April 27,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
83,232
|
|
|
$
|
110,330
|
|
|
$
|
171,275
|
|
|
$
|
213,545
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(71,792
|
)
|
|
|
(90,056
|
)
|
|
|
(149,275
|
)
|
|
|
(172,675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
(10,630
|
)
|
|
|
(13,575
|
)
|
|
|
(21,032
|
)
|
|
|
(29,878
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
(4,177
|
)
|
|
|
(4,613
|
)
|
|
|
(7,801
|
)
|
|
|
(8,851
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidation, restructuring and related charges
|
|
|
(406
|
)
|
|
|
-
|
|
|
|
(2,086
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of long-lived assets
|
|
|
(1,458
|
)
|
|
|
-
|
|
|
|
(1,458
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
(5,231
|
)
|
|
|
2,086
|
|
|
|
(10,377
|
)
|
|
|
2,141
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
(5,001
|
)
|
|
|
(3,196
|
)
|
|
|
(8,625
|
)
|
|
|
(3,764
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and minority interest
|
|
|
(10,232
|
)
|
|
|
(1,110
|
)
|
|
|
(19,002
|
)
|
|
|
(1,623
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (provision)
|
|
|
76
|
|
|
|
(932
|
)
|
|
|
(1,122
|
)
|
|
|
(2,804
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before minority interest
|
|
|
(10,156
|
)
|
|
|
(2,042
|
)
|
|
|
(20,124
|
)
|
|
|
(4,427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
|
84
|
|
|
|
(27
|
)
|
|
|
(181
|
)
|
|
|
(982
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(10,072
|
)
|
|
$
|
(2,069
|
)
|
|
$
|
(20,305
|
)
|
|
$
|
(5,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.24
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
(0.24
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
41,775
|
|
|
|
41,638
|
|
|
|
41,749
|
|
|
|
41,632
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
41,775
|
|
|
|
41,638
|
|
|
|
41,749
|
|
|
|
41,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHOTRONICS, INC. AND SUBSIDIARIES
|
|
Condensed Consolidated Balance
Sheets
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 3,
|
|
|
|
November 2,
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
of $145 in
2009 and $1,343 in 2008
|
|
|
|
$
|
81,633
|
|
|
|
$
|
85,106
|
|
Accounts receivable
|
|
|
|
|
61,263
|
|
|
|
|
68,095
|
|
Inventories
|
|
|
|
|
16,486
|
|
|
|
|
17,548
|
|
Other current assets
|
|
|
|
|
9,447
|
|
|
|
|
11,748
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
168,829
|
|
|
|
|
182,497
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
399,343
|
|
|
|
|
436,528
|
|
Investment in joint venture
|
|
|
|
|
61,065
|
|
|
|
|
65,737
|
|
Other intangibles, net
|
|
|
|
|
58,486
|
|
|
|
|
62,386
|
|
Other assets
|
|
|
|
|
13,209
|
|
|
|
|
10,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
700,932
|
|
|
|
$
|
758,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings
|
|
|
|
$
|
55,213
|
|
|
|
$
|
20,630
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
72,948
|
|
|
|
|
95,448
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
128,161
|
|
|
|
|
116,078
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
|
|
|
157,564
|
|
|
|
|
202,979
|
|
Deferred income taxes and other liabilities
|
|
|
|
|
7,112
|
|
|
|
|
6,552
|
|
Minority interest
|
|
|
|
|
48,799
|
|
|
|
|
49,616
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
359,296
|
|
|
|
|
382,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
700,932
|
|
|
|
$
|
758,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHOTRONICS, INC. AND SUBSIDIARIES
|
|
Condensed Consolidated
Statements of Cash Flows
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
May 3,
|
|
|
|
April 27,
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(20,305
|
)
|
|
|
|
$
|
(5,409
|
)
|
|
Adjustments to reconcile net loss to net cash
provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
42,027
|
|
|
|
|
|
51,280
|
|
|
Consolidation, restructuring, and related charges and impairment of
long-lived assets
|
|
|
|
|
3,544
|
|
|
|
|
|
-
|
|
|
Minority interest in income of consolidated subsidiaries
|
|
|
|
|
181
|
|
|
|
|
|
982
|
|
|
Changes in assets and liabilities and other
|
|
|
|
|
902
|
|
|
|
|
|
(11,750
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
26,349
|
|
|
|
|
|
35,103
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(20,375
|
)
|
|
|
|
|
(78,067
|
)
|
|
Purchases of short-term investments and other
|
|
|
|
|
-
|
|
|
|
|
|
(306
|
)
|
|
Proceeds from sales of investments and other
|
|
|
|
|
856
|
|
|
|
|
|
3,487
|
|
|
Proceeds from sale of property, plant and equipment
|
|
|
|
|
85
|
|
|
|
|
|
65
|
|
|
Distribution from joint venture
|
|
|
|
|
5,000
|
|
|
|
|
|
-
|
|
|
Investment in joint venture
|
|
|
|
|
-
|
|
|
|
|
|
(2,598
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(14,434
|
)
|
|
|
|
|
(77,419
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Repayments of long-term borrowings
|
|
|
|
|
(10,889
|
)
|
|
|
|
|
(168,991
|
)
|
|
Proceeds from long-term borrowings
|
|
|
|
|
-
|
|
|
|
|
|
132,140
|
|
|
Payments of deferred financing fees
|
|
|
|
|
(2,249
|
)
|
|
|
|
|
(498
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
(13,138
|
)
|
|
|
|
|
(37,349
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
(1,052
|
)
|
|
|
|
|
719
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
|
(2,275
|
)
|
|
|
|
|
(78,946
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
83,763
|
|
|
|
|
|
146,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
81,488
|
|
|
|
|
$
|
67,103
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
Change in accrual for purchases of property, plant and equipment
|
|
|
|
$
|
(14,542
|
)
|
|
|
|
$
|
(25,991
|
)
|
|
Capital lease obligation for purchases of property, plant and
equipment
|
|
|
|
$
|
-
|
|
|
|
|
$
|
61,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Photronics, Inc.
Scott J. Gish, 203-775-9000
Vice President,
Corporate Communications
sgish@photronics.com
