Photronics (PLAB) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was $212.1 million, down 2% year-over-year and 5% sequentially, reflecting seasonal and regional softness, especially in Asia and Europe.

• GAAP net income attributable to shareholders rose to $42.9 million ($0.68 per diluted share), up from $26.2 million a year ago, driven by favorable currency impacts and operational efficiency.

• Non-GAAP diluted EPS was $0.52, up 8% year-over-year but down 12% sequentially, exceeding guidance high-end.

• Operating cash flow reached $78.5 million, an 89% increase year-over-year, strengthening the balance sheet.

• Cash and short-term investments totaled $642.2 million at quarter-end, with debt reduced to $2.7 million.

Financial highlights

• IC revenue was $154.0 million, down 6% sequentially and 2% year-over-year; FPD revenue was $58.1 million, down 1% year-over-year.

• Gross margin was 35.6%, down from 36.6% a year ago, mainly due to lower sales volumes.

• Operating margin was 24.6%, at the high end of guidance but down from 26.6% a year ago.

• CapEx for the quarter was $35.2 million, targeting capacity growth and facility expansion.

• $4.6 million was returned to shareholders via share repurchases; $95.4 million remains under the current authorization.

Outlook and guidance

• Q2 FY25 revenue expected between $208 million and $216 million; non-GAAP EPS guidance of $0.44–$0.50 per share.

• Operating margin for Q2 projected between 23% and 25%.

• Full-year CapEx projected at $200 million, focused on high-end and mainstream capacity in Asia and the U.S.

• Management remains cautious for 2025 due to macroeconomic and geopolitical uncertainties.

• Liquidity is considered sufficient for the next twelve months and beyond.