Photronics, Inc. · NASDAQ:PLAB
Photronics — Q2 2023 Earnings Presentation
19 slides from Photronics's earnings presentation, May 24, 2023
Slide 1: Q2 2023 Financial Results Conference Call
Q2 2023 Financial Results Conference Call May 24, 2023 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 contain
Slide 3: Q2 2023 Summary
Committed to driving long-term, profitable growth through strategic investments 5/24/2023 3 Q2 2023 Summary Strong demand trends across markets and regions as design activity remains high Net income* was $39.9M ($0.65/share); non-GAAP was $32.9M ($0.54/share) Investing in mainstream IC capacity to c
Slide 4: CEO: First Year Observations
CEO: First Year Observations Photronics wins with… A dedicated team laser focused on customer service Leading edge technology and process know-how to deliver top-quality photomasks Great market position as the leading photomask merchant Strong balance sheet to fund growth that creates differentiatin
Slide 5: Clear Strategy for Sustainable, Long-Term Profitable Growth
Clear Strategy for Sustainable, Long-Term Profitable Growth 5/24/2023 5 Revenue Growth Win lion’s share of the growth in TAM for IC and FPD Supplement capacity with point tool investments and targeted expansions Capitalize on technology leadership in AMOLED to continue improving mix Leverage global
Slide 6: Delivering on Updated Target Model
Delivering on Updated Target Model $M (except EPS) 2021 2022 Q2 2023 LTM Illustrative FY 24 Target Model Revenue $664 $825 $871 $900 $950 $975 Gross Margin 25% 36% 38% 38-40% 40-42% 42-43% Operating Margin 14% 26% 28% 28-30% 30-32% 32-33% Operating Cash Flow $151 $275 $282 $350-375 $365-380 $375-400
Slide 7: Income Statement Summary
Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q223 Q123 Q222 Q223 Q123 Q222 Revenue 229.3 211.1 204.5 Gross Profit 88.4 76.1 70.2 Gross Margin 38.6% 36.0% 34.3% Operating Income 67.0 56.0 49.4 Operating Margin 29.2% 26.5% 24.2% Non-operating income 13.6 (14.4) 8.0 2.9 2.5 0.2 Income tax pr
Slide 8: IC Photomask Revenue
$M Q223 Q123 Q/Q Q222 Y/Y High-End* $ 43.9 $ 48.0 (9%) $ 51.4 (14%) Mainstream $ 123.1 $ 108.6 13% $ 94.4 30% Total $ 167.1 $ 156.6 7% $145.8 15% IC Photomask Revenue 5/24/2023 High-end decreased on lower foundry/logic demand in Asia Mainstream demand resumed at a high level during the quarter Outlo
Slide 9: FPD Photomask Revenue
FPD Photomask Revenue 5/24/2023 High-end grew as mobile display sustained high AMOLED demand Mainstream expanded with additional write capacity. Outlook Technology development drives demand for higher-value masks Mobile demand is expected continue strong with rollout of new designs *≥G10.5, AMOLED a
Slide 10: Select Financial Data
Select Financial Data $M Q223 Q123 Q222 Cash $ 367 $ 335 $ 329 Short-term Investments $ 45 $ 39 - Debt $ 28 $ 34 $ 83 Net Cash* $ 339 $ 301 $ 247 Operating Cash Flow $ 82 $ 28 $ 44 Capital Expenditures $ 27 $ 31 $ 16 Continued strong operating cash flow from income generation and working capital man
Slide 11: Q3 2023 Guidance
Q3 2023 Guidance Revenue ($M) $224 - $234 Operating Margin 28% - 30% Taxes ($M) $15 - $17 Diluted non-GAAP EPS $0.48 - $0.54 Diluted Shares (M) ~61 Full-year Capex (M) ~$130 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technolog
Slide 12: For Additional Information
For Additional Information: Please contact John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!
Slide 13: Appendix
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Slide 14: Total Revenue ($M)
Total Revenue ($M) 5/24/2023 14 IC FPD Total may differ due to rounding
Slide 15: IC Photomask Revenue ($M)
IC Photomask Revenue ($M) 5/24/2023 15 Mainstream High-End High-End: 28nm and smaller; Total may differ due to rounding
Slide 16: FPD Photomask Revenue ($M)
FPD Photomask Revenue ($M) 5/24/2023 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 Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP earnings per share, Free Cash Flow, LTM Free Cash Flow, and Net Cash are "non-GAAP financial measures" as such term is defined by the Securities and Exchange Commission, and may differ from sim
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 5/24/2023 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 5/24/2023 19