Photronics, Inc. · NASDAQ:PLAB
Photronics — Q4 2019 Earnings Presentation
13 slides from Photronics's earnings presentation, Dec 11, 2019
Slide 1: Photronics, Inc. Q4 2019 Financial Results Conference Call
Photronics, Inc. Q4 2019 Financial Results Conference CallDecember 11, 2019
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: Q4 2019 Summary
Record revenue, up 13% Q/Q and 8% Y/YRecord FPD revenue driven by mobile displays and Hefei production rampRecord IC revenue as China design activity acceleratesRecord revenue of products shipped to China, representing 33% of total revenueOperating margin expanded to 13.7% on operating leverage and
Slide 4: Income Statement Summary
$M (except EPS) Q419 Q319 Q/Q Q418 Y/Y Revenue $ 156.3 $ 138.1 13% $ 144.7 8% Gross Profit $ 38.2 $ 30.6 25% $ 35.4 8% Gross Margin 24.4% 22.1% 230 bps 24.5% (10 bps) Operating Income $ 21.5 $ 13.4 60% $ 18.0 19% Operating Margin 13.7% 9.7% 400 bps 12.5% 120 bps Other income (expense) ($ 6.1) ($ 0.3
Slide 5: IC Photomask Revenue
Revenue grew with increase in broad-based design activityChina revenue rebounded as firms accelerate product development+72% Q/Q; +32% Y/YRepresents 22% of Q419 IC revenueOutlookExpect stable to improving high-end demandAnticipate production ramping in XiamenPotential impact from US-China trade disc
Slide 6: FPD Photomask Revenue
Record FPD revenue driven by mobile displays and China production ramp, including G10.5+China revenue +32% Q/Q; +118% Y/YRepresents 61% of Q419 FPD revenueOutlookMobile display demand expected to remain highLCD industry downturn continuesHefei shipments should continue to ramp $M Q419 Q319 Q/Q Q418
Slide 7: Select Financial Data
$M Q419 Q319 Q418 Cash $ 207 $ 197 $ 329 Debt $ 53 $ 49 $ 57 Net Cash* $ 154 $ 148 $ 272 Operating Cash Flow $ 48 $ 26 $ 44 Capital Expenditures $ 17 $ 20 $ 28 Share repurchase $ 11 - $ 16 Deploying cash balance to fund China investmentsDebt is local China borrowing to finance fixed assetsFY 2019 ca
Slide 8: Q1 2020 Guidance
Revenue ($M) $146 - $154 Operating Margin 10% - 13% Taxes ($M) $3.5 - $4.5 EPS $0.13 - $0.18 Diluted Shares (M) ~66 FPD demand growing (AMOLED, G10.5+)High-end IC markets stable to improvingRamping China production (IC & FPD)Potential geopolitical headwindTypical seasonal softness in US and Europe,
Slide 9: 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 10: Appendix
Appendix
Slide 11: Total Revenue
Total Revenue 550.7 535.3 483.5 450.7 2016 2017 2018 2019 gic @ FPD
Slide 12: IC Photomask Revenue
IC Photomask Revenue 12 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 13: FPD Photomask Revenue
FPD Photomask Revenue 13 Mainstream High-End High-End: ≥G8 and AMOLED; total may differ due to rounding