Photronics Inc Reports Third Quarter Fiscal 2024 Results
Intellectia.AI Updated: 2024-08-29
Photronics, Inc. Reports Third Quarter Fiscal 2024 Results
Photronics, Inc. (NASDAQ: PLAB), a global leader in photomask technologies and solutions, announced its financial results for the third quarter of fiscal year 2024, which ended on July 28, 2024.
Key Financial Metrics
| Metric | Q3 FY2024 | Q2 FY2024 | Q3 FY2023 | YoY Change | QoQ Change | Consensus Estimate | Comparison to Estimate |
|---|---|---|---|---|---|---|---|
| Total Revenue | $211.0M | $217.3M | $224.5M | -6% | -3% | $225M | Below Estimate |
| GAAP EPS | $0.55 | $0.58 | $0.44 | +25% | -5% | $0.56 | Below Estimate |
| Non-GAAP EPS | $0.51 | $0.46 | $0.51 | 0% | +11% | - | - |
Interpretation: Photronics reported a decrease in total revenue both year-over-year and quarter-over-quarter. The GAAP EPS saw an impressive YoY increase of 25%, but a minor QoQ decline. Non-GAAP EPS remained flat compared to last year but improved 11% sequentially. The reported revenue and GAAP EPS were slightly below the consensus estimates.
Segmented Revenue Performance
| Segment | Q3 FY2024 Revenue | Q2 FY2024 Revenue | Q3 FY2023 Revenue | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| IC Revenue | $155.9M | $160.8M | $162.4M | -4% | -3% |
| FPD Revenue | $55.1M | $56.5M | $61.2M | -10% | -2% |
Interpretation: Segment performance showed a decrease in IC and FPD revenue both on a year-over-year and sequential basis. The IC segment saw a 4% decline YoY and 3% QoQ, while the FPD segment experienced a steeper decline of 10% YoY and 2% QoQ.
Key Developments and Operational Highlights
- Cash Flow and Investments: Generated $75.1 million from operating activities and invested $24.4 million in organic growth through capital expenditures.
- Balance Sheet: Ended the quarter with $606.4 million in cash and short-term investments, and $20.1 million in debt.
- Share Repurchase Program: Increased the existing share repurchase program from $31.7 million remaining to a total of $100 million.
Management Commentary
CEO Frank Lee commented:
- Market Softness: The company experienced market softness in some segments, particularly impacting photomask demand which reduced both IC and FPD revenue.
- Strategic Adjustments: Adjustments to mix and sales strategy helped optimize margins.
- Long-Term Outlook: Remains optimistic about long-term prospects driven by megatrends like AI, supply chain regionalization, and edge computing.
- Shareholder Value: Emphasized commitment to enhancing shareholder returns through strategic investments and share repurchase programs.
Dividends and Share Repurchase Program
- Share Repurchase Program: The Board authorized an increase from $31.7 million remaining to a total of $100 million.
Forward Guidance
For the fourth quarter of fiscal 2024, Photronics expects: - Revenue: Between $213 million and $221 million. - Non-GAAP Net Income per Share: Between $0.48 and $0.54.
Stock Price Movement
After the earnings release, Photronics' stock price decreased by approximately 0.0374%.
In summary, Photronics, Inc. faced challenging market conditions in Q3 FY2024 but remains focused on optimizing margins and positioning for long-term growth. The company strategically capitalizes on emerging trends and maintains a strong balance sheet to drive shareholder value.
