Photronics, Inc. · NASDAQ:PLAB
Photronics — Q4 2017 Earnings Presentation
15 slides from Photronics's earnings presentation, Nov 30, 2017
Slide 1: Photronics, Inc. Q4 2017 Financial Results Conference Call
Photronics, Inc. Q4 2017 Financial Results Conference CallNovember 29, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 uncertainties
Slide 3: Save the Date: Photronics Investor Day
Save the DatePhotronics Investor Day Wednesday, May 23, 2018New York CityMore details to follow. If you have any questions, please contact tdewar@photronics.com 3
Slide 4: Q4 2017 Summary
Revenue grew 8% Q/Q and 13% Y/Y; high-end growth achieved in both IC and FPDMargins expanded; incremental operating margin was 76% Q/Q & 52% Y/YNet income attributable to Photronics, Inc. shareholders of $5.4M ($0.08/share)Cash balance reduced as we ramp strategic investments for future growthComple
Slide 5: Income Statement Summary
Income Statement Summary $M (except EPS) Q4 2017 Q3 2017 Q/Q Q4 2016 Y/Y Revenue $ 121.0 $ 111.6 8% $ 107.4 13% Gross Margin 21.9% 19.5% 240 bps 19.1% 280 bps Operating Margin 10.3% 4.7% 560 bps 4.9% 540 bps Net Income* $ 5.4 $ 4.0 35% $ 5.3 2% Diluted EPS* $ 0.08 $ 0.06 $ 0.02 $ 0.08 $ 0.00 Revenue
Slide 6: IC Photomask Revenue
IC Photomask Revenue *45nm and smaller; total may differ due to rounding High-end revenue surged on logic and memory growthHigh-end memory continued to grow sequentiallyHigh-end logic demand improved due to Asian foundry strength, especially 28nmRevenue expected to experience seasonal softness in Q1
Slide 7: FPD Photomask Revenue
FPD Photomask Revenue *≥G8 and AMOLED; total may differ due to rounding High-end improved on China AMOLED demandExpect revenue to stay flay in Q118 before improving later in the yearCompleted $40M capacity expansion with installation of 2nd toolPlaced orders for next phase of FPD growthP-800 for Kor
Slide 8: Select Financial Data
Select Financial Data $M Q4 2017 Q3 2017 Q4 2016 Cash $ 308 $ 341 $ 314 Debt $ 62 $ 63 $ 68 Net Cash* $ 246 $ 277 $ 247 Operating Cash Flow $ 23 $ 27 $ 31 Capital Expenditures $ 53 $ 25 $ 5 LTM EBITDA $ 119 $ 111 $ 150 Cash balance down on higher capexOperating cash flow decreased due to higher acco
Slide 9: Q1 2018 Guidance
Q1 2018 Guidance Revenue ($M) $110 - $118 Taxes ($M) $1 - $2 EPS $0.02 - $0.09 Diluted Shares (M) ~74 Anticipate flat FPD and seasonally soft IC in Q118High-end demand expected to improve later in 2018More AMOLED display capacity coming online, driving mask demandLargest IC customer expects to incre
Slide 10: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFADirector, Investor Relations203.740.5610tdewar@photronics.com
Slide 11: Appendix
Appendix
Slide 12: China Growth Investments
IC FPD Announced August 2016 August 2017 Location Xiamen Hefei Investment ($M) $160M $160M Structure JV* Wholly-owned Time period 5 years 5 years Technology High-end, mainstream, logic, memory Up to G10.5+, AMOLED Production start Early 2019 Early spring 2019 Projected sales $150M (total for both in
Slide 13: IC Photomask Revenue
IC Photomask Revenue 13 Mainstream$243.8M70% High-End$106.5M30% High-End: 45nm and smaller; total may differ due to rounding
Slide 14: FPD Photomask Revenue
FPD Photomask Revenue 14 Mainstream$32.5M32% High-End$67.9M68% High-End: ≥G8 and AMOLED; total may differ due to rounding
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Information
PHOTRONICS INC_AND SUBSIDIARIES ‘Nov-GAAPFinamial Measures ‘Recomiliation af GAAP to Nan GAAP Financial Infrmation (e thovsands, exept pershare data) (Caausited) “Taree Months Ended YearEnded ‘Octomr 9, Suly30, October 30, ‘October 29, October 30, 2017 2017 2016 2017 2016 ‘Recauiliation af GA AP toN