Photronics, Inc. · NASDAQ:PLAB
Photronics — Q1 2022 Earnings Presentation
18 slides from Photronics's earnings presentation, Feb 23, 2022
Slide 1: Q1 2022 Financial Results Conference Call
Q1 2022 Financial Results Conference CallFebruary 23, 2022 Photronics, Inc.
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 contai
Slide 3: Q1 2022 Summary
Net income attributable to Photronics, Inc. shareholders of $23.1M ($0.38/share)Updating long-term target model based upon improving performance and positive demand outlookInvesting in mainstream IC capacity to capitalize on market growth trends IC (+3% Q/Q, +24% Y/Y) and FPD (+8% Q/Q, +27% Y/Y) bot
Slide 4: Investment Strategy
Investment Strategy Revenue GrowthWin lion’s share of “Made in China 2025” TAM growthSupplement new factories with point tool investmentsCapitalize on technology leadership in AMOLED to continue improving mixLeverage global footprint to exploit growth in “legacy foundry” businessMargin ExpansionSust
Slide 5: Growth in Legacy Foundry = Dynamic Mainstream Mask Market
Growth in Legacy Foundry = Dynamic Mainstream Mask Market Rebirth of the ASIC mask marketMoore’s law inefficient for many applicationsMask intensity higher than over-all semiconductor marketIndustry demand exceeds supplyDelivery times expanding from days to monthsWe are investing in incremental capa
Slide 6: Delivering on Commitments and Updating Target Model
Delivering on Commitments and Updating Target Model $M (except EPS) 2019 2020 2021 Q1 2022 LTM Illustrative Target Model 2-Year Horizon Revenue $551 $610 $664 $702 $7759% CAGR $80010% CAGR $85011% CAGR Gross Margin 22% 22% 25% 28% 31-33% 32-34% 34-36% Operating Margin 9% 10% 14% 17% 20-22% 22-24% 24
Slide 7: Income Statement Summary
Income Statement Summary $M (except EPS) Q122 Q421 Q/Q Q121 Y/Y Revenue $ 189.8 $ 181.3 5% $ 152.1 25% Gross Profit $ 59.9 $ 51.9 15% $ 30.5 96% Gross Margin 31.5% 28.7% 280 bps 20.1% 1,140 bps Operating Income $ 38.2 $ 33.5 14% $ 11.8 225% Operating Margin 20.1% 18.5% 160 bps 7.7% 1,240 bps Other n
Slide 8: IC Photomask Revenue
$M Q122 Q421 Q/Q Q121 Y/Y High-End* $ 46.5 $ 42.6 9% $ 36.8 27% Mainstream $ 83.2 $ 82.9 1% $ 68.2 22% Total $ 129.8 $ 125.4 3% $ 105.0 24% IC Photomask Revenue 2/23/2022 High-end growth driven by strong logic demand in AsiaMainstream up on proliferation of chips in IoT, 5G, Crypto and consumer prod
Slide 9: FPD Photomask Revenue
FPD Photomask Revenue 2/23/2022 High-end demand improving for mobile AMOLED and G10.5+Mainstream recovery continues, with slight Q/Q decline due to capacity dedicated to high-end productsOutlookDynamic market environmentMobile demand strength and mainstream LCD recovery expected to continueTechnolog
Slide 10: Select Financial Data
Select Financial Data $M Q122 Q421 Q121 Cash $ 314 $ 277 $ 279 Debt $ 97 $ 112 $ 102 Net Cash* $ 217 $ 165 $ 177 Operating Cash Flow $ 59 $ 38 $ 26 Capital Expenditures $ 19 $ 17 $ 18 Share repurchase $ 3 $ 13 $ 13 Debt is US equipment lease and local China loansTotal share repurchases of $68M under
Slide 11: Q2 Guidance
Q2 22 Guidance Revenue ($M) $188 - $196 Operating Margin 20% - 22% Taxes ($M) $9 - $10 Diluted EPS $0.32 - $0.38 Diluted Shares (M) ~61 Full-year Capex (M) ~$100 Incorporation of chips in IoT, 5G, Crypto and consumer products Remote work and learningAdvanced display technologiesGrowing nationalism s
Slide 12: For Additional Information
For Additional Information:John P. JordanExecutive Vice President & CFO203.740.5671jjordan@photronics.com Thank you for your interest!
Slide 13: Appendix
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Slide 14: Total Revenue
Total Revenue 2/23/2022 14 IC FPD Total may differ due to rounding
Slide 15: IC Photomask Revenue
IC Photomask Revenue 2/23/2022 15 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 16: FPD Photomask Revenue
FPD Photomask Revenue 2/23/2022 16 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2/23/2022 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2/23/2022 18