PLAB reports earnings:
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Wednesday May 20, 5:57 pm Eastern Time
Company Press Release
Photronics Reports Record Second Quarter Results
Sales and Earnings Before One Time Charge Grow 25% Over Prior Year
JUPITER, Fla.--(BUSINESS WIRE)--May 20, 1998-- Photronics, Inc. (Nasdaq:PLAB - news), the world's leading photomask supplier, today reported record sales and operating earnings.
Sales for the quarter were a record $61.3 million, up 25% from the $49.0 million recorded for the second quarter of 1997. Net income amounted to $5.3 million, compared to $6.2 million in the second quarter a year earlier. Also in these comparable periods, basic earnings per share amounted to $0.22 compared with $0.26; and diluted earnings per share were $0.22, compared with $0.25. The second quarter and first six months of fiscal 1998 included a non-recurring charge of $3.8 million ($2.4 million after tax), or $0.10 per basic share and $0.08 per diluted share, in connection with the previously announced restructuring plan for the Company's North American operations and the disposition of its Large Area Mask (LAM) business in Colorado Springs, Colorado. Net income before the one-time charge amounted to $7.7 million, a 25% increase over the comparable prior year quarter.
Sales for the first six months of 1998 reached $112.2 million, an increase of 26%, compared to $89.1 million for the first six months of 1997. Net income amounted to $11.6 million compared to $11.5 million during the same period last year. For both the first six months of 1998 and 1997, basic earnings per share amounted to $0.48, and diluted earnings per share amounted to $0.47 and $0.46, respectively.
The first half of 1998 included the previously mentioned non-recurring charge, equivalent to $0.10 per basic share and $0.08 per diluted share, while the first half of fiscal 1997 included a net gain of $0.7 million, or $0.03 per basic and diluted share, from the sale of an equity investment. Net income for the first six months of 1998 before the one-time charge represented a 29% increase over net income for the first six months of 1997 before the investment gain.
Michael J. Yomazzo, President and Chief Executive Officer stated, ''Design activity during the quarter was strong, particularly for those customers requiring advanced photomask technology. Semiconductor manufacturers around the world increasingly require a greater mix of advanced photomask technologies to gain competitive advantages - by shrinking the size of devices and incorporating deep sub-micron process capabilities into next-generation products. Our ability to satisfy these requirements has been strengthened significantly by the progress we have made in ramping our newest facilities in Austin, Texas; Mesa, Arizona; Manchester, England; and in Singapore.''
Mr. Yomazzo noted that photomask demand in both the Asian and European semiconductor markets has increased. ''Many of our customers have been utilizing the foundries in Asia to supplement their capacity requirements and to take advantage of the investments being made in new deep sub-micron process technology. As a result, photomask demand for devices contracted to the foundry market has remained relatively healthy.'' ''At the same time,'' he added, ''growth in the European semiconductor industry continues to generate significant opportunities for our manufacturing network in that region. Our state-of-the-art facility in Manchester, England, in particular, is an excellent platform from which to service an increasing volume of business from European customers requiring advanced technology and service.''
Regarding the continued momentum for advanced photomask technology, Mr. Yomazzo said, ''The photomask industry continues to be challenged by the acceleration of the semiconductor industry's technology roadmaps. Photronics is meeting the challenge with the implementation of a global growth strategy emphasizing innovation and unparalleled commitment to service. We believe this strategy has given Photronics a strong competitive advantage, and will be instrumental in achieving profitable growth well into the next century.''
-- TWO FINANCIAL TABLES TO FOLLOW --
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 twelve strategically located manufacturing facilities in Arizona, California, Connecticut, Texas, Germany, Korea, Singapore, Switzerland and the United Kingdom. Additional information on the Company can be accessed at www.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 uncertainties in the market, pricing, competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the Company's SEC reports. The Company assumes no obligation to update the information in this release.
PHOTRONICS, INC. AND SUBSIDIARIES
Consolidated Condensed Statement of Earnings
(in thousands, except per share amounts)
Quarter Ended Six Months Ended
May 3, May 4, May 3, May 4,
1998 1997 1998 1997
----- ------ ------ -----
Net sales $ 61,307 $ 49,034 $112,239 $ 89,063
Costs and expenses:
Cost of sales 37,560 30,283 68,826 55,630
Selling, general and
Administrative 7,661 6,244 14,251 11,279
Research and development 3,152 2,622 6,085 4,924
Non-recurring restructuring
charge 3,800(c) - 3,800(c) -
----- ------ ------ -----
Operating income 9,134 9,885 19,277 17,230
Other income (expense), net (525) 99 (588) 1,379
----- ------ ------ -----
Income before income taxes 8,609 9,984 18,689 18,609
Provision for income taxes 3,300 3,800 7,100 7,100
----- ------ ------ -----
Net income $ 5,309(c) $ 6,184 $ 11,589(c)$ 11,509
===== ====== ====== =====
Net income per share -
basic (a) $0.22 $0.26 $0.48 $0.48
===== ====== ====== =====
Net income per share -
diluted (a) 0.22 0.25 0.47 0.46
===== ====== ====== =====
Weighted average number of
common shares outstanding -
basic (a)(b) 24,355 24,013 24,328 23,845
===== ====== ====== =====
Weighted average number of
common shares and share
equivalents outstanding -
diluted(a)(b) 29,201 24,941 29,095 24,785
===== ====== ====== =====
(a) Shares and per share amounts presented in accordance with
Statement of Financial Accounting Standards No. 128, "Earnings
per Share".
(b) Adjusted for 2-for-1 stock split paid to shareholders of record on
November 17, 1997.
(c) Includes non-recurring charge of $3.8 million ($2.4 million
after tax, or $0.08 per diluted share) in connection with the
North American operations restructuring plan including the
disposition of the Large Area Mask business unit.
-0-
PHOTRONICS, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
(in thousands)
May 3, November 2,
1998 1997
----------- ----------
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 36,952 $ 86,034
Accounts receivable 39,834 34,563
Inventories 13,992 11,302
Other current assets 7,376 7,038
----------- ----------
Total current assets 98,154 138,937
Property, plant and equipment, net 248,036 203,813
Intangible assets, net 21,055 8,218
Investments and other assets 13,313 14,244
----------- ----------
$ 380,558 $ 365,212
=========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of long-term debt $ 1,990 $ 272
Accounts payable and accrued
liabilities 60,092 57,267
----------- ----------
Total current liabilities 62,082 57,539
Long-term debt 104,361 106,194
Deferred income taxes and other
liabilities 16,181 15,504
Shareholders' equity 197,934 185,975
----------- ----------
$ 380,558 $ 365,212
=========== ==========
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Contact:
For Further Information:
AT THE COMPANY
Michael W. McCarthy
Director - Investor Relations & Corporate Communications
(203) 775-9000
mccarthy@brk.photronics.com
www.photronics.com
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