Photronics, Inc. · NASDAQ:PLAB
Photronics — Q1 2020 Earnings Presentation
15 slides from Photronics's earnings presentation, Mar 4, 2020
Slide 1: Photronics, Inc. Q1 2020 Financial Results Conference Call
Photronics, Inc. Q1 2020 Financial Results Conference CallMarch 4, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation and some of our comments may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions, and contain risks and uncertainti
Slide 3: Photronics Investor Day Save the Date
Photronics Investor DayFriday, May 29, 2020New York Hilton Midtown ManhattanNew York CityDetails to follow. Contact Troy Dewar (tdewar@photronics.com) with questions. Save the Date
Slide 4: Q1 2020 Summary
Record revenue of $159.7M, up 2% Q/Q and 28% Y/YRecord FPD revenue driven by mobile displays and Hefei production rampIC revenue up Y/Y as design activity remains strong; seasonal softness in memory Q/QRecord revenue of products shipped to China, up 13% Q/Q; represents 37% of total revenueNet income
Slide 5: Income Statement Summary
$M (except EPS) Q120 Q419 Q/Q Q119 Y/Y Revenue $ 159.7 $ 156.3 2% $ 124.7 28% Gross Profit $ 34.6 $ 38.2 (9%) $ 26.1 33% Gross Margin 21.7% 24.4% (270 bps) 20.9% 80 bps Operating Income $ 16.3 $ 21.5 (24%) $ 8.0 103% Operating Margin 10.2% 13.7% (350 bps) 6.5% 370 bps Other income (expense) $ 3.7 ($
Slide 6: IC Photomask Revenue
High-end down Q/Q on seasonal softness; Y/Y driven by strong logic and memoryChina revenue strong as design activity remains robust+3% Q/Q; +74% Y/YRepresents 24% of Q120 IC revenueOutlookHigh uncertainty related to coronavirus reactionOtherwise, expect stable to improving high-end demandAnticipate
Slide 7: FPD Photomask Revenue
Record FPD revenue driven by mobile displays and China production ramp, including G10.5+China revenue +22% Q/Q; +154% Y/YRepresents 62% of Q120 FPD revenueOutlookHigh uncertainty related to coronavirus reactionMobile display demand expected to remain highProduction should remain at capacity $M Q120
Slide 8: New FPD High-End Definition
Full-year 2018 Q119 Q219 Q319 Q419 Full-year 2019 High-End FPD 52,942 15,350 22,051 23,088 25,435 85,924 Mainstream FPD 66,270 14,482 10,942 14,839 18,283 58,546 Total FPD 119,212 29,832 32,993 37,927 43,718 144,470 To align with industry trends and reflect our new operating environment, we redefine
Slide 9: Select Financial Data
$M Q120 Q419 Q119 Cash $ 218 $ 207 $ 232 Debt $ 54 $ 53 $ 86 Net Cash* $ 164 $ 154 $ 146 Operating Cash Flow $ 31 $ 45 ($ 19) Capital Expenditures $ 14 $ 18 $ 107 Government Incentives $ 2 $ 9 $ 5 Share repurchase $ 11 $ 11 $ 11 Debt is local China borrowing to finance fixed assetsFY 2020 capex ~ $1
Slide 10: Q2 20 Guidance
Revenue ($M) $145 - $155 Operating Margin 7% - 11% Taxes ($M) $3.5 - $4.5 EPS $0.11 - $0.17 Diluted Shares (M) ~66 High uncertainty related to coronavirus reactionFPD demand growing (AMOLED, LTPS, G10.5+)High-end IC markets stable to improvingRamping China production (IC & FPD)Potential geopolitical
Slide 11: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFAVice President, Investor Relations203.740.5610tdewar@photronics.com
Slide 12: Appendix
Appendix
Slide 13: Total Revenue
Total Revenue 585.7 550.7 535.3 2018 2019 Q1 2020 LTM gic @ FPD
Slide 14: IC Photomask Revenue
IC Photomask Revenue 14 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 15: FPD Photomask Revenue
FPD Photomask Revenue 15 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding