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BROOKFIELD, Conn. - Photronics, Inc. (NASDAQ:PLAB), a global leader in photomask technologies with an impressive "GREAT" financial health rating according to InvestingPro, has disclosed its financial outcomes for the second quarter of fiscal year 2025, which concluded on May 4, 2025. The company also revealed that Dr. Frank Lee plans to retire within the next two years. Dr. Lee has resigned as CEO but will continue to concentrate on the company’s Asia operations and will remain Chairman and President of Photronics’ PDMC subsidiary in Taiwan and a member of the Board of Directors. George Macricostas is set to take over as CEO while maintaining his position as Chairman of the Board.
In a statement, Mr. Macricostas expressed gratitude to Dr. Lee for his leadership and contributions, particularly in growing the business in Asia and driving significant, profitable revenue growth. Dr. Lee reflected on the company’s robust performance in Asia and the strategic decision to aggressively return cash to shareholders, with $72 million in stock repurchases during the quarter, endorsing the long-term business model.
For Q2 of fiscal 2025, Photronics reported a revenue of $211.0 million, a decrease of 3% year-over-year and 1% sequentially. GAAP net income attributable to shareholders was $8.9 million, or $0.15 per diluted share, a significant drop from $36.3 million, or $0.58 per diluted share, in the same quarter of the previous year. Despite recent headwinds, InvestingPro analysis indicates the company maintains strong fundamentals, with a healthy current ratio of 5.66x and virtually no debt on its balance sheet. Non-GAAP net income attributable to shareholders was $24.3 million, or $0.40 per diluted share. The company’s IC revenue was $155.9 million, and FPD revenue stood at $55.1 million. Operating activities generated $31.5 million in cash, while $60.5 million was invested in capital expenditures and $72.1 million was returned to shareholders through share repurchases.
Looking ahead, Photronics anticipates third-quarter revenue to be between $200 million and $208 million, with non-GAAP net income attributable to shareholders projected to be between $0.35 and $0.41 per diluted share. According to InvestingPro data, analysts maintain a Strong Buy consensus with a $35 price target, suggesting significant upside potential from current levels. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis.
Photronics specializes in the production of photomasks, which are essential components in the manufacturing of integrated circuits and flat panel displays. The company has been a significant player in the industry for over 55 years, operating 11 manufacturing facilities across Asia, Europe, and North America. With a market capitalization of $1.28 billion and trading at a P/E ratio of 8.46x, the company demonstrates strong fundamentals backed by robust cash flows. Discover more detailed insights and 7 additional key ProTips about PLAB through InvestingPro’s comprehensive research report.
The information in this article is based on a press release statement from Photronics, Inc.
In other recent news, Photronics Inc. held its annual shareholder meeting, where several significant proposals were approved. Shareholders elected all eight nominated individuals to the Board of Directors, with votes ranging from 38,921,822 to 49,885,106. The 2025 Equity Incentive Compensation Plan received strong support, with 47,017,473 votes in favor. Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending October 31, 2025, with 53,933,288 votes supporting the proposal. Additionally, a non-binding resolution regarding executive compensation was approved by shareholders, receiving 45,329,046 votes in favor. In a separate development, the independent members of the Board appointed Adam Lewis as the Lead Independent Director, effective immediately. These decisions, detailed in a recent SEC filing, demonstrate shareholder support for Photronics’ current management and strategic direction.
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