), an imaging technology solutions provider, held its
analyst/investor day conference in New York on Apr 3. This Zacks
Rank #3 (Hold) company's conference included discussions on the
company's strategies, investment highlights, product and
technology developments along with Photronics' future
expectations and targets.
Photronics has a number of strategic relationships with many
market leaders, including a joint venture with
), which it believes will be of consequence to its future growth.
Photronics expects that its high-end capital expenditure will
lead to a stronger foothold in the memory and foundry logic
markets. PLAB has a strong presence in regions such as Asia,
Europe and North America, making it the global leader in
integrated chips (IC) and flat panel display (FPD) photomask.
Strategic Growth Driver - Taiwan
Photronics' strong foothold in Taiwan is expected to boost its
performance as two of the biggest foundries,
Taiwan Semiconductor Manufacturing Company
United Microelectronics Corporation
) are located in the region. Also, in late February, PLAB
announced its plans to acquire all of the shares of the
majority-owned Taiwan subsidiary, PSMC.
New Designs for Photomask
A photomask, which is an opaque surface etched with highly
detailed patterns, is used to manufacture ICs as well as FPDs.
With the FPDs increasing usage in many sizes and devices, it
becomes imperative to design the photomasks according to the
need. The newer designs of photomasks are augmenting the revenue
Photronics is in the process of inventing new technologies
like photomask double and multi patterning, which is expected to
PLAB expects the panel display industry to improve in the year
2013 led by personal computers (PCs), tablets and mobile phones.
It also believes that the demand for flat panel displays will be
stable due to the introduction of smart TVs.
Photronics believes that its use of the AMOLED (Active-Matrix
Organic Light-Emitting Diode) technology will help it increase
market share, given the application of the technology in most of
the mobile phones and TVs. According to PLAB, the use of AMOLED
will outpace the other technologies by 2016.
Photronics has a target of reaching the net cash position of
$75.0 million in the future, compared with $43.0 million at the
end of first quarter 2013. It also expects its cash capital
expenditure to be in the range of $70-$90 million in 2013. PLAB
remains focused on increasing free cash flow along with reducing
the cost of capital and debt.
MICRON TECH (MU): Free Stock Analysis Report
PHOTRONICS INC (PLAB): Free Stock Analysis
TAIWAN SEMI-ADR (TSM): Free Stock Analysis
UTD MICROELECTR (UMC): Free Stock Analysis
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