Revenue was a record $170.6 million, up 7% sequentially and 8% year-over-year

Net income attributable to Photronics, Inc. shareholders was $17.1 million, or $0.28 per diluted share, and includes a gain on the sale of a fixed asset of $3.5 million, or $0.06 per diluted share
Cash provided by operating activities was $54.9 million, capex was $18.8 million, share repurchases were $12.5 million, and ending cash balance was $283.2 million
Fourth quarter 2021 guidance: revenue between $171 and $179 million with diluted EPS between $0.21 and $0.29

BROOKFIELD, Conn., Aug. 25, 2021 (GLOBE NEWSWIRE) -- Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its fiscal 2021 third quarter ended August 1, 2021.

Third quarter revenue was $170.6 million, up 7% compared with the previous quarter and 8% compared with the same quarter last year. Integrated circuit (IC) revenue was $117.8 million, up 5% sequentially and 8% compared with the third quarter of last year. Flat panel display (FPD) revenue was $52.9 million, up 11% compared with last quarter and 7% compared with the same period last year.

Net income attributable to Photronics, Inc. shareholders was $17.1 million, or $0.28 per diluted share, compared with $10.5 million, or $0.17 per diluted share, for the second quarter of 2021 and $10.8 million, or $0.17 per diluted share, for the third quarter of 2020.

"Demand trends that we observed over the first two quarters of 2021 continued into the third quarter as we achieved record revenue on a consolidated basis as well as for both IC and FPD," said Peter Kirlin, chief executive officer. "Design activity was strong, and we were able to expand our global manufacturing presence by adding new tools to our operations. Third quarter margin expansion was in line with our demonstrated ability to keep cost under control even as production increases. Most importantly, we maintained a strong balance sheet, enabling us to invest in organic growth and return cash to shareholders through our share repurchase activity. As the leading merchant photomask manufacturer, we expect our business to continue to grow throughout the balance of this year, and remain on track to deliver on our long-term target model objectives."

Fourth Quarter 2021 Guidance

For the fourth quarter of 2021, Photronics expects revenue to be between $171 million and $179 million, and net income attributable to Photronics, Inc. shareholders to be between $0.21 and $0.29 per diluted share.

Conference Call

A conference call to discuss these results is scheduled for 8:30 a.m. Eastern time on Wednesday, August 25, 2021. The call can be accessed by logging onto Photronics' website at www.photronics.com. The live dial-in number is (877) 377-7095 or (408) 774-4601 outside of the United States and Canada. The call will be archived on Photronics' website.

About Photronics

Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 50 years. As of October 31, 2020, the company had 1,728 employees. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements made by or on behalf of the company and its subsidiaries. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Photronics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," "may increase," "may fluctuate," "will," "should," "would," "may" and "could" or similar words or expressions are generally forward-looking in nature and not historical facts. Any statements that refer to outlook, expectations or other characterizations of future events, circumstances or results are also forward-looking statements. Important risks, assumptions and other important factors that could cause future results to differ materially from those expressed in the forward-looking statements are specified in Photronics' Annual and Quarterly filings with the Securities and Exchange Commission under headings such as "Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in other filings and furnishings made by Photronics with the Securities and Exchange Commission from time to time. These risks and uncertainties include, but are not limited to, the current pandemic and future recurrences and other developments with respect thereto, governmental responses to the pandemic and related matters, changes in end markets resulting therefrom, changes in investment, tax, trade, exchange and other laws and regulations, compliance with local, State and Federal laws, rules and regulations including, but not limited to, import and export controls, tariffs and penalties, fines and violations related thereto, as well as economic, competitive, legal, governmental, political, monetary and fiscal policy, and technological factors and decisions we may make in the future regarding our business, capital structure and other matters. Photronics undertakes no obligation to release publicly any revisions to any forward-looking statements or, except as required to be disclosed in filings or furnishings with the Securities and Exchange Commission, to report events or to report the occurrence of unanticipated events. There is no assurance that Photronics' expectations will be realized.

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)


	Three Months Ended								Nine Months Ended
	August 1,		May 2,			August 2,			August 1,		August 2,
		2021		2021			2020			2021		2020

Revenue	$	170,643	$	159,763		$	157,895		$	482,473	$	460,405

Cost of goods sold		125,318		120,514			120,161			367,370		357,636

Gross Profit		45,325		39,249			37,734			115,103		102,769

Operating Expenses:

Selling, general and administrative		15,083		14,067			13,306			43,203		40,792

Research and development		5,305		4,375			4,492			14,390		13,034

Total Operating Expenses		20,388		18,442			17,798			57,593		53,826

Other operating income, net		3,525		-			-			3,525		-

Operating Income		28,462		20,807			19,936			61,035		48,943

Other non-operating income (expense), net		3,735		(772	)		(2,135	)		3,643		610

Income Before Income Tax Provision		32,197		20,035			17,801			64,678		49,553

Income tax provision		7,842		3,714			4,937			14,493		17,789

Net Income		24,355		16,321			12,864			50,185		31,764

Net income attributable to noncontrolling interests		7,279		5,795			2,088			14,547		4,404

Net income attributable to Photronics, Inc. shareholders	$	17,076	$	10,526		$	10,776		$	35,638	$	27,360

Earnings per share:

Basic	$	0.28	$	0.17		$	0.17		$	0.58	$	0.42

Diluted	$	0.28	$	0.17		$	0.17		$	0.57	$	0.42

Weighted-average number of common shares outstanding:

Basic		60,884		62,054			64,780			61,804		65,090

Diluted		61,515		62,568			65,247			62,362		65,704

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)


	August 1,		October 31,
		2021		2020

Assets

Current assets:
Cash and cash equivalents	$	283,249	$	278,665
Accounts receivable		151,190		134,470
Inventories		53,165		57,269
Other current assets		42,860		29,735

Total current assets		530,464		500,139

Property, plant and equipment, net		699,609		631,475
Intangible assets, net		904		3,437
Other assets		50,780		53,131

Total assets	$	1,281,757	$	1,188,182



Liabilities and Equity

Current liabilities:
Debt	$	25,163	$	13,678
Accounts payable and accrued liabilities		142,454		129,261

Total current liabilities		167,617		142,939

Long-term debt		92,740		54,980
Other liabilities		26,939		27,997

Photronics, Inc. shareholders' equity		817,892		804,962
Noncontrolling interests		176,569		157,304
Total equity		994,461		962,266

Total liabilities and equity	$	1,281,757	$	1,188,182

PHOTRONICS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)


	Nine Months Ended
	August 1,			August 2,
		2021			2020

Cash flows from operating activities:
Net income	$	50,185		$	31,764
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		69,305			71,120
Share-based compensation		4,034			3,773
Changes in operating assets, liabilities and other		(10,428	)		(28,393	)

Net cash provided by operating activities		113,096			78,264

Cash flows from investing activities:
Purchases of property, plant and equipment		(92,301	)		(36,693	)
Government incentives		5,775			5,263
Purchases of intangible assets		(170	)		(139	)

Net cash used in investing activities		(86,696	)		(31,569	)

Cash flows from financing activities:
Proceeds from long-term debt		20,858			5,699
Purchases of treasury stock		(35,750	)		(16,894	)
Repayments of debt		(13,311	)		(5,929	)
Contribution from noncontrolling interest		-			17,596
Proceeds from share-based arrangements		2,251			3,869
Net settlements of restricted stock awards		(403	)		(248	)

Net cash (used in) provided by financing activities		(26,355	)		4,093

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		4,602			3,486

Net increase in cash, cash equivalents, and restricted cash		4,647			54,274
Cash, cash equivalents, and restricted cash, beginning of period		281,602			209,291

Cash, cash equivalents, and restricted cash, end of period	$	286,249		$	263,565

For Further Information:

R. Troy Dewar, CFA

Vice President, Investor Relations

(203) 740-5610

tdewar@photronics.com

Photronics Reports Third Quarter Fiscal 2021 Results