Photronics Reports Q1 FY2025 Results with $212.1M Revenue and Increased Net Income

Photronics, Inc. reported its financial results for the first quarter of fiscal year 2025, ending February 2, 2025, revealing a revenue of $212.1 million, a decrease of 4.7% from the previous quarter and a 1.9% decline compared to the same period last year. The company's net income attributable to shareholders was $42.9 million, translating to earnings per share of $0.68, up from $0.42 in the prior year. The increase in profitability was attributed to favorable foreign currency transactions, which contributed $18.4 million to other income, compared to a loss of $8.9 million in the same quarter last year.

In terms of operational metrics, Photronics experienced a decrease in revenue from its Integrated Circuit (IC) segment, which fell by 6.0% from the previous quarter, primarily due to a decline in mainstream IC sales. The company’s revenue from Flat Panel Display (FPD) photomasks also saw a slight decrease of 1.2% from the previous quarter. Geographically, revenue from Taiwan and the United States showed modest growth, while sales in China and Europe declined significantly, reflecting broader market conditions affecting demand.

The company’s balance sheet as of February 2, 2025, showed total assets of $1.7 billion, slightly down from $1.71 billion at the end of the previous fiscal year. Cash and cash equivalents increased to $642.2 million, bolstered by strong cash flow from operations, which amounted to $78.5 million for the quarter. Photronics also reported a reduction in current liabilities, primarily due to a significant decrease in the current portion of long-term debt, which fell to $2.6 million from $18 million in the previous quarter.

Strategically, Photronics continues to invest in its operational capabilities, with capital expenditures projected at approximately $200 million for fiscal year 2025, focusing on high-end and mainstream capacity enhancements. The company has also authorized a share repurchase program, increasing the total available for repurchase to $100 million, with $95.4 million remaining as of the end of the quarter. This move is part of Photronics' strategy to return value to shareholders while maintaining sufficient liquidity to support ongoing operations and potential growth opportunities.

Looking ahead, Photronics anticipates that the semiconductor and display industries will continue to experience volatility, influenced by consumer demand and technological advancements. The company remains committed to aligning its investments with customer technology roadmaps and is prepared to adapt to changing market conditions. Management expressed confidence in the company's ability to navigate these challenges while continuing to deliver value to shareholders.