Photronics, Inc PLAB stock dropped on Wednesday after the company released its second-quarter financial report.
The company reported an adjusted EPS of 40 cents, missing the Wall Street view of 48 cents. In addition:
- Quarterly revenues of $211 million are down 3% year-over-year.
- Sales missed the analyst consensus estimate of $212.07 million. The revenue decreased by 1% Q/Q.
- Integrated Circuits (IC) revenue was $155.9 million, down 3% Y/Y.
- Revenue fell by 1% Q/Q.
- Flat Panel Displays (FPD) revenue was $55.1 million, down 2% from last year’s quarter. The revenue fell by 5% Q/Q.
- The gross margin improved by 40 bps to 36.9%. The operating margin climbed by 60 bps to 26.4%.
- Operating cash flow was $31.5 million in the quarter under review
- Cash invested in organic growth through capital expenditures was $60.5 million.
- Cash and short-term investments balance at the end of the quarter was $558.4 million, with $2.7 million in debt.
- Node migration remains a positive driver of its IC business at both the high and higher end of the mainstream.
CEO Transition: CEO Frank Lee has stepped down from his role as CEO. As a board member, he will focus on the company’s Asia operations and remain chairman and president of Photronics’ PDMC subsidiary in Taiwan.
Board chairman George Macricostas will immediately assume the additional role of CEO.
Outlook: For the third quarter, Photronics expects revenue of $200 million–$208 million below the analyst consensus estimate of $219.76 million). The company expects adjusted EPS of 35 cents and 41 cents below the analyst consensus estimate of 50 cents.
Price Action: Photronics stock is down 5.68% to $18.91 premarket at last check Wednesday.
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