Photronics, Inc. (PLAB) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

the notice regarding forward-looking statements contained both in today's earnings release as well as our most recent SEC filings. During the quarter, we will be participating in the New York Summit next week and the Needham Growth Conference in January. I will now turn the call over to George. Thank you, Ted, and good morning, everyone. We delivered strong financial results with sales of $216 million, exceeding expectations and increasing 3% sequentially. The major positive in the quarter was record high-end IC revenue led by the US and Asia. Non-GAAP diluted EPS also surpassed guidance, coming in at 60 cents per share. During the quarter, we recognized a tax valuation allowance reversal, reflecting an improvement in our US execution and outlook, which Eric will elaborate on. As we looked at 2026, We will continue to leverage our operational strengths and geographic footprint spanning 11 production facilities to continue to deliver high quality photo masks. As previously communicated, we are currently executing strategic geographic expansions at existing facilities, reinforcing our position as a leading merchant provider of photo masks. These initiatives are expected to enhance the revenue contribution from these facilities broadening and further diversifying our geographic revenue mix. Our investments are aligned with two industry trends. First, advanced node migration. Progression to more advanced nodes requires more mask layers per IC device and finer resolution mask features, driving increased mask demand and higher mask set ASPs. Our investments will increase our exposure to higher-end nodes in the U.S. and in Korea. Second, regionalization. Semiconductor manufacturing continues to diversify globally, including meaningful reshoring of production in the U.S. We ...