Photronics, Inc. · NASDAQ:PLAB
Photronics — Q2 2018 Earnings Presentation
14 slides from Photronics's earnings presentation, May 22, 2018
Slide 1: Photronics, Inc. Q2 2018 Financial Results Conference Call
Photronics, Inc. Q2 2018 Financial Results Conference CallMay 22, 2018
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: Q2 2018 Summary
Revenue grew 21% Y/Y and 6% Q/QHigh-end IC biggest growth factor (+83% Y/Y)China revenue doubled Y/Y; up 18% Q/QGross and operating margins expanded on higher revenue and operating leverageNet income attributable to Photronics, Inc. shareholders of $10.7M ($0.15/share)Cash balance of $321M; capex in
Slide 4: Income Statement Summary
$M (except EPS) Q218 Q118 Q/Q Q217 Y/Y Revenue $ 130.8 $ 123.4 6% $ 108.3 21% Gross Profit $ 32.8 $ 27.7 19% $ 20.2 63% Gross Margin 25.1% 22.4% 270 bps 18.6% 650 bps Operating Income $ 15.4 $ 11.8 30% $ 5.5 178% Operating Margin 11.7% 9.6% 210 bps 5.1% 660 bps Net Income* $ 10.7 $ 5.9 80% $ 1.8 493
Slide 5: IC Photomask Revenue
Strong high-end growthHigh-end logic growth driven by Asia foundriesMemory demand from Asia continues to be strongChina revenue more that doubled Y/Y; represents 11% of Q218 IC revenueExpect demand trends to continue in Q3High-end logic improvingHigh-end memory flat to upMainstream stable $M Q218 Q1
Slide 6: FPD Photomask Revenue
High-end down Q/Q primarily due to lower AMOLED demandMainstream strengthened as demand for LTPS LCD displays increasedChina represents 36% of Q218 FPD revenueExpect customers to ramp new AMOLED designs to improve fab utilizationQualifying P-800 in Korea to maintain AMOLED technology leadership $M Q
Slide 7: Select Financial Data
$M Q218 Q118 Q217 Cash $ 321 $ 349 $ 346 Debt $ 59 $ 61 $ 65 Net Cash* $ 262 $ 288 $ 281 Operating Cash Flow $ 7 $ 31 $ 15 Capital Expenditures $ 33 $ 11 $ 5 LTM EBITDA $ 138 $ 122 $ 120 Cash balance lower on higher capex and lower operating cash flowOperating cash flow lower due to increase in net
Slide 8: Q3 2018 Guidance
Revenue ($M) $128 - $136 Taxes ($M) $2 - $3 EPS $0.12 - $0.18 Diluted Shares (M) ~75 High-end demand expectations are positiveHigh-end IC logic up on Asia foundry demandHigh-end IC memory stable to improvingHigh-end FPD mask demand should improve as customers release new designs to maintain utilizat
Slide 9: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFADirector, Investor Relations203.740.5610tdewar@photronics.com
Slide 10: Appendix
Appendix
Slide 11: IC Photomask Revenue
IC Photomask Revenue 11 Mainstream$250.2M66% High-End$129.0M34% High-End: 28nm and smaller; total may differ due to rounding
Slide 12: FPD Photomask Revenue
FPD Photomask Revenue 12 Mainstream$36.7M34% High-End$70.9M66% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$32.5M32% High-End$67.9M68%
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Information
PHOTRONICS, INC. Non-GAAP Financial Measures Reconciliation of GAAP to Non-GAAP Financial Information (in thousands) (Unaudited) Three Months Ended Six Months Ended April29, January 28 April 30, April 29, April 30, 2018 2018 2017 2018 2017 Reconciliation of GAAP Net Income to Non-GAAP EBITDA GAAP Ne