BROOKFIELD, Conn., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025.

Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth.”

Third Quarter Fiscal 2025 Results

  • Revenue was $210.4 million, down 0.3% year-over-year and 0.3% sequentially.
  • GAAP Net income attributable to Photronics, Inc. shareholders was $22.9 million, or $0.39 per diluted share, compared with $34.4 million, or $0.55 per diluted share, in the third quarter of 2024 and $8.9 million, or $0.15 per diluted share, in the second quarter of 2025.
  • Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.51 per diluted share, compared with $31.9 million, or $0.51 per diluted share in the third quarter of 2024 and $24.3 million, or $0.40 per diluted share, in the second quarter of 2025.
  • IC revenue was $147.8 million, down 5% year-over-year and 5% sequentially.
  • FPD revenue was $62.6 million, up 14% from the same quarter last year and 14% sequentially.
  • Cash, cash equivalents and short-term investments at the end of the quarter were $575.8 million, of which $396.8 million was associated with our Joint Ventures, of which we own 50%.
  • Cash generated from operating activities was $50.1 million, cash invested in organic growth through capital expenditures was $24.8 million, and cash returned to shareholders through share repurchases was $20.7 million.
  • The Board of Directors authorized an increase of $25.0 million to the share repurchase authorization.

Fourth Quarter Fiscal 2025 Guidance

For the fourth quarter of fiscal 2025, Photronics expects Revenue to be between $201 million and $209 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.42 and $0.48 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on August 27, 2025. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here . It is suggested that participants register fifteen minutes prior to the call's scheduled start time.

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 56 years. 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 Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings 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. 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.

Non-GAAP Financial Measures

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
August 3, May 4, July 28, August 3, July 28,
2025 2025 2024 2025 2024
Revenue $ 210,394 $ 210,992 $ 210,984 $ 633,524 $ 644,318
Cost of goods sold 139,539 133,086 135,846 409,228 410,674
Gross Profit 70,855 77,906 75,138 224,296 233,644
Gross margin % 33.7 % 36.9 % 35.6 % 35.4 % 36.3 %
Operating Expenses:
Selling, general and administrative 18,423 18,099 19,436 55,624 56,753
Research and development 4,271 4,090 3,555 12,618 11,291
Total Operating Expenses 22,694 22,189 22,991 68,242 68,044
Other operating gain - - 1 - 90
Operating Income 48,161 55,717 52,148 156,054 165,690
Operating Margin 22.9 % 26.4 % 24.7 % 24.6 % 25.7 %
Non-operating (loss) income, net (9,428 ) (25,786 ) 10,145 (10,232 ) 26,931
Income Before Income Tax Provision 38,733 29,931 62,293 145,822 192,621
Income tax provision 9,594 5,714 14,124 34,209 48,998
Net Income 29,139 24,217 48,169 111,613 143,623
Net income attributable to noncontrolling interests 6,248 15,356 13,781 37,009 46,804
Net income attributable to Photronics, Inc. shareholders $ 22,891 $ 8,861 $ 34,388 $ 74,604 $ 96,819
Earnings per share attributed to Photronics, Inc. shareholders:
Basic $ 0.40 $ 0.15 $ 0.56 $ 1.24 $ 1.57
Diluted $ 0.39 $ 0.15 $ 0.55 $ 1.23 $ 1.55
Weighted-average number of common shares outstanding:
Basic 57,937 60,793 61,815 60,274 61,681
Diluted 58,068 60,974 62,414 60,567 62,369


PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
August 3, October 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents $ 479,521 $ 598,485
Short-term investments 96,277 42,184
Accounts receivable 190,875 200,830
Inventories 63,490 56,527
Other current assets 42,073 33,036
Total current assets 872,236 931,062
Property, plant and equipment, net 838,988 745,257
Other assets 41,541 35,740
Total assets $ 1,752,765 $ 1,712,059
Liabilities and Equity
Current liabilities:
Current portion of long-term debt $ 11 $ 17,972
Accounts payable and accrued liabilities 174,914 165,839
Total current liabilities 174,925 183,811
Long-term debt 16 25
Other liabilities 39,824 47,464
Equity:
Photronics, Inc. shareholders' equity 1,125,551 1,120,864
Noncontrolling interests 412,449 359,895
Total equity 1,538,000 1,480,759
Total liabilities and equity $ 1,752,765 $ 1,712,059


PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended
August 3, July 28,
2025 2024
Cash flows from operating activities:
Net income $ 111,613 $ 143,623
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 59,234 61,613
Share-based compensation 10,003 9,841
Changes in operating assets, liabilities and other (20,876 ) (22,003 )
Net cash provided by operating activities 159,974 193,074
Cash flows from investing activities:
Purchases of property, plant and equipment (120,588 ) (87,733 )
Purchases of short-term investments (96,571 ) (100,558 )
Proceeds from maturities of short-term investments 42,148 44,696
Government incentives 1,469 1,541
Other (57 ) (4 )
Net cash used in investing activities (173,599 ) (142,058 )
Cash flows from financing activities:
Repayments of debt (17,969 ) (4,500 )
Common stock repurchases (97,422 ) -
Proceeds from share-based arrangements 2,120 1,074
Net settlements of restricted stock awards (2,013 ) (3,002 )
Net cash used in financing activities (115,284 ) (6,428 )
Effects of exchange rate changes on cash, cash equivalents, and restricted cash 10,129 (6,454 )
Net (decrease) increase in cash, cash equivalents, and restricted cash (118,780 ) 38,134
Cash, cash equivalents, and restricted cash, beginning of period 601,243 501,867
Cash, cash equivalents, and restricted cash, end of period $ 482,463 $ 540,001


PHOTRONICS, INC.
Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders
(in thousands, except per share amounts)
(Unaudited)
Three Months ended
August 3, May 4, July 28,
2025 2025 2024
GAAP Net income attributable to Photronics, Inc. shareholders $ 22,891 $ 8,861 $ 34,388
FX (gain) loss 14,258 31,111 (4,068 )
Estimated tax effects of FX (gain) loss (3,663 ) (8,337 ) 914
Estimated noncontrolling interest effects of above (4,130 ) (7,376 ) 681
Non-GAAP Net income attributable to Photronics, Inc. shareholders $ 29,356 $ 24,259 $ 31,915
Weighted-average number of common shares outstanding - Diluted 58,068 60,974 62,414
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders $ 0.39 $ 0.15 $ 0.55
Effects of non-GAAP adjustments above 0.12 0.25 (0.04 )
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders $ 0.51 $ 0.40 $ 0.51

For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175
[email protected]