Slide 1: Q4 2023 Financial Results Conference Call
December 13, 2023 Q4 2023 Financial Results Conference Call
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and some of our comments during this presentation 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
Slide 3: 2023 Summary
2023 Summary Committed to driving long-term, profitable growth through strategic investments 6th consecutive year of record revenue Photomask industry flat in 2023 amidst general slowdown in semiconductor and display sector Margins improved on operating leverage, favorable pricing, and cost control
Slide 4: Q4 2023 Summary
Q4 2023 Summary Committed to driving long-term, profitable growth through strategic investments 1Net income attributable to Photronics, Inc. shareholders. 2Adjusted EPS is a non-GAAP measure. 1See reconciliation included in this presentation. $227.5M Revenue $44.6M Net Income1 $0.72 EPS1 $0.60 Adjus
Slide 5: Long-Term Trends Driving Photomask Demand
Semiconductor: growing capacity and design activity More extensive use of semiconductors across multiple applications Supply chain regionalization driving investments in semiconductor fabs that creates redundant production capacity and drives photomask demand Differentiation by design becoming facto
Slide 6: Strategic Investment Strategy Sustains Profitable Growth
Strategic Investment Strategy Sustains Profitable Growth Proven Approach to Profitably Grow Revenue, Capture Market Share, and Improve ROIC Win market share in growing IC and FPD markets Leverage global footprint to benefit from IC regionalization trends Capitalize on FPD technology leadership to co
Slide 7: Income Statement Summary
Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q423 Q/Q Y/Y Q423 Q/Q Y/Y Revenue 227.5 +1% +8% Gross Profit 84.9 -2% +6% Gross Margin 37.3% -140 bps -90 bps Operating Income 64.8 -1% +7% Operating Margin 28.5% -60 bps -30 bps Non-operating income 18.7 +19.6 +7.9 5.4 +1.8 +5.0 Income tax pro
Slide 8: IC Product Line
IC Product Line $M Q423 Q/Q Y/Y High-End* 57.7 27% 30% Mainstream 106.8 (9%) (5%) Total 164.5 1% 5% High-end increased as stronger design activity drove demand across regions Mainstream softness Q/Q offset by better high-end demand Outlook New designs by customers to gain market share and support te
Slide 9: FPD Product Line
FPD Product Line *≥G10.5, AMOLED and LTPS Totals may differ due to rounding High-end grew on strong mobile display led by AMOLED demand Mainstream output lowered as more production dedicated to meet strong high-end demand Outlook Technology development drives demand for higher-value masks Mobile dem
Slide 10: Balance Sheet and Cash Flow Metrics
Balance Sheet and Cash Flow Metrics *Net cash is a non-GAAP term. See reconciliation included in this presentation. Balance Sheet Provides Resilience, Enables Growth Strategy and Shareholder Value Creation $M Q423 Y/Y Q/Q Cash 499.3 +56% +11% Short-term Investments 12.9 -67% -53% Debt 24.6 -42% -8%
Slide 11: Q1 2024 Guidance
Q1 2024 Guidance Revenue ($M) 217-225 Operating Margin 27%-29% Taxes ($M) 11-15 Diluted non-GAAP EPS $0.45-$0.53 Diluted Shares (M) ~62 Full-year Capex (M) ~140 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technologies Outlook c
Slide 12: Appendix
Appendix | - \
Slide 13: Revenue by Product Group ($M)
Revenue by Product Group ($M) Total may differ due to rounding IC FPD Mainstream High-End Mainstream High-End Total Revenue IC Revenue FPD Revenue High-End: 28nm and smaller High-End: ≥G10.5, AMOLED and LTPS
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission, and may differ from similarly named non-GAA
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures