Slide 1: Q1 2023 Financial Results Conference Call
Q1 2023 Financial Results Conference Call February 22, 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: Q1 2023 Summary
Net income attributable to Photronics, Inc. shareholders of $14.0M ($0.23/share); non-GAAP net income was $24.4M ($0.40/share) Investing in mainstream IC capacity to capitalize on market growth trends IC: +0.2% Q/Q, +21% Y/Y FPD: +0.8% Q/Q, -9% Y/Y To China: -10% Q/Q; +18% Y/Y Committed to driving l
Slide 4: Investment Strategy
Investment Strategy Revenue Growth Win lion’s share of the impressive growth in TAM for China IC and FPD Supplement capacity with point tool investments and targeted expansions Capitalize on technology leadership in AMOLED to continue improving mix Leverage global footprint to exploit growth in “leg
Slide 5: Delivering on Updated Target Model
Delivering on Updated Target Model $M (except EPS) 2021 2022 Q1 2023 LTM Illustrative FY 24 Target Model Revenue $664 $825 $846 $900 $950 $975 Gross Margin 25% 36% 37% 38-40% 40-42% 42-43% Operating Margin 14% 26% 27% 28-30% 30-32% 32-33% Operating Cash Flow $151 $275 $244 $350-375 $365-380 $375-400
Slide 6: Income Statement Summary
Income Statement Summary GAAP Non-GAAP1 $M (except EPS) Q123 Q422 Q122 Q123 Q422 Q122 Revenue $ 211.1 $ 210.3 $ 189.8 $ 211.1 $ 210.3 $ 189.8 Gross Profit $ 76.1 $ 80.3 $ 59.9 $ 76.1 $ 80.3 $ 59.9 Gross Margin 36.0% 38.2% 31.5% 36.0% 38.2% 31.5% Operating Income $ 56.0 $ 60.5 $ 38.2 $ 56.0 $ 60.5 $
Slide 7: IC Photomask Revenue
$M Q123 Q422 Q/Q Q122 Y/Y High-End* $ 48.0 $ 44.3 8% $ 46.5 2% Mainstream $ 108.6 $ 111.9 (3%) $ 83.2 31% Total $ 156.6 $ 156.2 0.2% $129.8 21% IC Photomask Revenue 2/22/2023 High-end increased Q/Q on higher foundry/logic demand in Asia Softer mainstream demand on typical seasonality Outlook New des
Slide 8: FPD Photomask Revenue
FPD Photomask Revenue 2/22/2023 High-end grew Q/Q as G10.5+ improved and mobile display grew Mainstream down sequentially as we dedicated capacity to high-end Outlook Mobile demand should continue strong with rollout of new designs Technology development drives demand for higher-value masks *≥G10.5,
Slide 9: Select Financial Data
Select Financial Data $M Q123 Q422 Q122 Cash $ 374 $ 359 $ 314 Debt $ 34 $ 42 $ 97 Net Cash* $ 340 $ 316 $ 217 Operating Cash Flow $ 28 $ 79 $ 59 Capital Expenditures $ 31 $ 66 $ 19 Cash includes cash equivalents and short-term investments Debt primarily comprised of US equipment leases and local Ch
Slide 10: Q2 2023 Guidance
Q2 2023 Guidance Revenue ($M) $205 - $215 Operating Margin 25% - 28% Taxes ($M) $12 - $15 Diluted non-GAAP EPS $0.38 - $0.48 Diluted Shares (M) ~61 Full-year Capex (M) ~$130 Incorporation of chips in IoT, 5G, Crypto and consumer products New designs to capture market share Advanced display technolog
Slide 11: For Additional Information
For Additional Information: Please contact John P. Jordan Executive Vice President & CFO 203.740.5671 jjordan@photronics.com Thank you for your interest!
Slide 12: Appendix
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Slide 13: Total Revenue ($M)
Total Revenue ($M) 2/22/2023 13 IC FPD Total may differ due to rounding
Slide 14: IC Photomask Revenue ($M)
IC Photomask Revenue ($M) 2/22/2023 14 Mainstream High-End High-End: 28nm and smaller; Total may differ due to rounding
Slide 15: FPD Photomask Revenue ($M)
FPD Photomask Revenue ($M) 2/22/2023 15 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; Total may differ due to rounding
Slide 16: 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 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2/22/2023 17 Note: Totals may differ due to rounding Non-GAAP Financial Measures 2/22/2023 17 Non-GAAP Financial Measures 2/22/2023 17 Note: Totals may differ due to rounding
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2/22/2023 18