Photronics, Inc. · NASDAQ:PLAB
Photronics — Q3 2019 Earnings Presentation
14 slides from Photronics's earnings presentation, Aug 20, 2019
Slide 1: Photronics, Inc. Q3 2019 Financial Results Conference Call
Photronics, Inc. Q3 2019 Financial Results Conference CallAugust 20, 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: Q3 2019 Summary
Revenue up 5% Q/Q and 1% Y/YRecord FPD revenue driven by mobile AMOLED displays and increasing production from new Hefei, China facilitySequential IC growth on Asia foundry demand for mainstream nodesRecord revenue of products shipped to China, representing 25% of total revenueNet income attributabl
Slide 4: Q3 2019 income statement summary
$M (except EPS) Q319 Q219 Q/Q Q318 Y/Y Revenue $ 138.1 $ 131.6 5% $ 136.4 1% Gross Profit $ 30.6 $ 26.0 18% $ 35.6 (14%) Gross Margin 22.1% 19.8% 230 bps 26.1% (400 bps) Operating Income $ 13.4 $ 9.2 46% $ 20.4 (34%) Operating Margin 9.7% 7.0% 270 bps 15.0% (530 bps) Other income (expense) ($ 0.3) $
Slide 5: IC Photomask Revenue
Revenue grew Q/Q on Asian foundry demand for mainstream nodesChina revenue softened on macro concerns-19% Q/Q; -14% Y/YRepresents 15% of Q319 IC revenueOutlookExpect stable to improving high-end demandProduction ramping in XiamenPotential impact from US-China trade discussions $M Q319 Q219 Q/Q Q318
Slide 6: FPD Photomask Revenue
Record FPD revenue driven by mobile AMOLED displays and China production ramp, including G10.5+China revenue +31% Q/Q; +61% Y/YRepresents 53% of Q319 FPD revenueOutlookAMOLED technology expected to remain in high demandHefei shipments should continue to ramp $M Q319 Q219 Q/Q Q318 Y/Y High-End* $ 25.
Slide 7: Select Financial Data
$M Q319 Q219 Q318 Cash $ 197 $ 167 $ 333 Debt $ 49 $ 36 $ 58 Net Cash* $ 148 $ 131 $ 275 Operating Cash Flow $ 26 $ 17 $ 49 Capital Expenditures $ 20 $ 34 $ 20 Share repurchase - - $ 7 LTM EBITDA $141 $ 148 $ 153 Deploying cash balance to fund China investmentsDebt is local China borrowing to financ
Slide 8: Q4 2019 Guidance
Revenue ($M) $143 - $151 Taxes ($M) $2 - $3.5 EPS $0.11 - $0.17 Diluted Shares (M) ~67 Anticipate sequential growth in Q4High-end IC markets stable to improvingFPD demand growing (AMOLED, G10.5+)Ramping China production (IC & FPD)Potential macro headwind & impact from trade policy Q419 Guidance 8
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: IC Photomask Revenue
IC Photomask Revenue 11 Mainstream$253.6M63% High-End$150.9M37% High-End: 28nm and smaller; total may differ due to rounding Mainstream$255.7M61% High-End$160.3M39%
Slide 12: FPD Photomask Revenue
FPD Photomask Revenue 12 Mainstream$42.2M31% High-End$92.4M69% High-End: ≥G8 and AMOLED; total may differ due to rounding Mainstream$43.1M36% High-End$76.1M64%
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Information
PHOTRONICS, INC. Non-GAAP Financial Measures Recondiliation of GAAP to Non-GAAP Financial Information (in thousands) (Unaudited) ‘Three Months Ended July 28, April28, January 27, October 31, July29, April29, January 28, October 29, 2019 219 2019 2018 2018 2018 2018 2017 Reconciliation of GAAP Net In