Photronics, Inc. · NASDAQ:PLAB
Photronics — Q3 2020 Earnings Presentation
13 slides from Photronics's earnings presentation, Aug 27, 2020
Slide 1: Photronics, Inc. Q3 2020 Financial Results Conference Call
Photronics, Inc. Q3 2020 Financial Results Conference CallAugust 27, 2020
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 2020 Summary
Revenue was $157.9M, up 11% Q/Q and 14% Y/Y12th consecutive quarter of YOY revenue growthFPD production remained at capacity, with sequential growth across all high-end technologiesIC revenue grew on China recoveryRevenue of products shipped to China improved 10% Q/Q and 46% Y/YNet income attributab
Slide 4: Income Statement Summary
$M (except EPS) Q320 Q220 Q/Q Q319 Y/Y Revenue $ 157.9 $ 142.8 11% $ 138.1 14% Gross Profit $ 37.7 $ 30.4 24% $ 30.6 23% Gross Margin 23.9% 21.3% 260 bps 22.1% 180 bps Operating Income $ 19.9 $ 12.7 57% $ 13.4 49% Operating Margin 12.6% 8.9% 370 bps 9.7% 290 bps Other income (expense) ($ 2.1) ($ 1.0
Slide 5: IC Photomask Revenue
High-end flat; mainstream up on China foundry recoveryChina revenue Up 15% Q/Q and 60% Y/YRepresents 22% of Q320 IC revenueOutlookNew US restrictions on Huawei (8/17) creating greater uncertaintyPotential headwinds if governments escalate shelter-in-place mandates $M Q320 Q220 Q/Q Q319 Y/Y High-End*
Slide 6: FPD Photomask Revenue
High-end revenue growth across all technologies (AMOLED, G10.5+, LTPS)China revenue Up 5% Q/Q and 36% Y/YRepresents 56% of Q320 FPD revenueOutlookDynamic market environmentTemporary dislocation as supply chain reacts to Huawei restrictionsPlanned annual PM in Hefei $M Q320 Q220 Q/Q Q319 Y/Y High-End
Slide 7: Select Financial Data
$M Q320 Q220 Q319 Cash $ 261 $ 238 $ 197 Debt $ 53 $ 53 $ 49 Net Cash* $ 208 $ 184 $ 148 Operating Cash Flow $ 17 $ 31 $ 26 Capital Expenditures $ 7 $ 16 $ 20 Government Incentives for Capital Equipment - $ 3 $ 12 Share repurchase - $ 6 - Debt is mostly local China borrowing to finance fixed assets,
Slide 8: Q4 2020 Guidance
Revenue ($M) $148 - $158 Operating Margin 10% - 14% Taxes ($M) $4 - $5 EPS $0.12 - $0.19 Diluted Shares (M) ~65 Huawei restrictions creates uncertainty across IC & FPD supply chainsAnnual PM planned for Hefei plantFocus on expanding margins and improving cash flowsPotential geopolitical headwind due
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 11 IC FPD Total may differ due to rounding
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: ≥G10.5, AMOLED and LTPS; total may differ due to rounding