PLAB Revises Expectations for Third Quarter of Fiscal 2001
JUPITER, Fla., June 26 /PRNewswire/ -- Photronics, Inc. (Nasdaq: PLAB),
the world's leading sub-wavelength reticle solutions supplier, announced today
that it is revising its revenue and earnings guidance for the third and fourth
quarters of fiscal 2001.
Photronics expects that revenues for the third quarter of fiscal 2001
which ends on July 31, will be approximately $80 million to $85 million, or
approximately 15% to 20% lower than the record $100.6 million posted during
the second quarter of fiscal 2001. As a result, diluted earnings per share
are expected to be between $0.01 and $0.05. The Company attributes this
revision to the unprecedented downturn in the global semiconductor industry,
as well as the impact of temporary wafer fabrication facility shutdowns on the
release of new integrated circuit designs.
James L. Mac Donald, Photronics' President stated, "While visibility
within the global semiconductor industry is typically poor during cyclical
downturns, the current environment is one of the most severe Photronics has
experienced during its 32 year history. Our lack of visibility is exacerbated
by the temporary wafer fab shutdowns being instituted by our customers as they
attempt to reduce inventory levels and operating expenses. To date, we have
been notified of over 40 wafer fab shutdowns, varying in length from one to
three weeks, that will take place before the end of our fiscal year in
October. Therefore, we currently believe that the balance of fiscal 2001 will
continue to be impacted by these conditions and do not expect that fourth
quarter revenues and earnings will exceed those we report for the third
quarter."
Mr. Mac Donald added, "Photronics has learned that the most effective way
to work through these cycles is to aggressively manage its business,
particularly with respect to increasing market share, reducing operating costs
and investing carefully to support our customers as they see a return of
upward momentum in their end markets. Our previously announced consolidation
plan is well underway in enabling us to achieve these goals. Furthermore, we
believe that the underlying fundamentals of photomask demand remain intact.
Longer-term visibility, a function of our strategic technology discussions
with customers is considerably more reassuring. Our largest customers remain
committed to developing their next generation process technologies in
anticipation of an upturn in demand for high performance semiconductor
technology. Their concerns continue to center around the availability of
advanced photomask manufacturing capacity for the 0.13 micron and 0.1 micron
technology nodes, driven primarily by the growing demand for advanced reticle
technologies including phase shift and optical proximity correction
enhancements."
A conference call with investors and the media can be accessed by logging
onto Photronics' web site at
photronics.com, then clicking on the
Conference Call button. The call is scheduled for 8:30 a.m. Eastern Daylight
Time on Wednesday, June 27th and will be archived on the web site for instant
replay access until the Company reports its third quarter results the week of
August 13, 2001.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks
are high precision quartz plates that contain microscopic images of electronic
circuits. A key element in the manufacture of semiconductors, photomasks are
used to transfer circuit patterns onto semiconductor wafers during the
fabrication of integrated circuits. They are produced in accordance with
circuit designs provided by customers at strategically located manufacturing
facilities in Asia, Europe, and North America. Additional information on the
Company can be accessed at photronics.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for historical information, the matters discussed in this
news release that may be considered forward-looking statements may be subject
to certain risks and uncertainties that could cause the actual results to
differ materially from those projected, including, but not limited to,
uncertainties in the market, pricing competition, procurement and
manufacturing efficiencies, described in the Company' Annual Report on Form
10-K for the year ended October 31, 2000 under the caption "Forward Looking
Information" and other risks detailed from time to time in the Company's other
SEC reports. The Company assumes no obligation to update the information in
this release.
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SOURCE Photronics, Inc.
-0- 06/26/2001
/CONTACT: Michael W. McCarthy, Vice President - Investor Relations and
Corporate Communications, of Photronics, Inc., 203-775-9000, or
mmccarthy@brk.photronics.com/
/Web site: photronics.com
(PLAB)
CO: Photronics, Inc.
ST: Florida
IN: CPR
SU: ERP
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