A leading provider of photomask,
) reported fiscal second-quarter 2013 adjusted earnings per share
of 8 cents, down 42.9% from a year-ago earnings of 14 cents. The
results missed the Zacks Consensus Estimate of 9 cents by a
Net sales in the reported quarter were approximately $106.7
million, down 9.2% year over year as well as below the Zacks
Consensus Estimate of $109.0 million. The company operates in two
segments: Integrated Chips (ICs) and Flat Panel Displays
In the fiscal second quarter, revenues from the ICs business
were recorded at $82.2 million and accounted for 77.0% of total
revenue. Revenues from the FPD business were roughly 23.0% of
total revenue amounting to $24.5 million.
From a geographical perspective, Asia generated 56.0% of the
total revenue, with North America and Europe generating 35.0% and
Photronics' reported gross margin in the fiscal second quarter
decreased 220 basis points year over year to 23.2% based on
reduced sales. Research and development expense, as a percentage
of sales, was recorded at 4.3% to settle at $4.6 million.
Compared with the year-ago quarter, selling, general and
administrative expense remained almost flat at $12.2 million, and
represented 11.4% as a percentage of sales.
Operating margin in the quarter was 7.6%, decreasing 360 basis
points from the year-ago quarter.
Exiting the fiscal second quarter, Photronics' cash and cash
equivalents stood at $210.6 million compared with $217.8 million
in the previous quarter. Long-term borrowings were $169.3
million, down from $167.3 million in the previous quarter.
Photronics expects capital expenditure in the range of $70.0
million to $90.0 million during fiscal 2013. The company also
expects to utilize its available cash on some strategic
alternatives such as reduction of debt.
Revenues in the fiscal third quarter of 2013 are expected in
the range of $107.0 million to $111.0 million. Along with this,
earnings per share in the next quarter are expected to lie within
the band of 8 cents to 11 cents.
Photronics currently carries a Zacks Rank #3 (Hold). Other
stocks to watch out for in the industry are
Amkor Technology, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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PHOTRONICS INC (PLAB): Free Stock Analysis
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