Photronics recently released its 10-Q report, providing insight into the company's financial performance and operations. Photronics, Inc. is primarily involved in the manufacture and sale of photomask products and services used in the production of integrated circuits and flat panel displays. The company sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers. Photronics' latest 10-Q report provides a detailed breakdown of its financial condition and results of operations.
In its Management's Discussion and Analysis of Financial Condition and Results of Operations, Photronics notes that its selling cycle is closely tied to the development and release of new semiconductor and display designs, with the demand for photomasks primarily depending on design activity rather than sales volumes from products manufactured using photomask technologies. The report also highlights the company's ability to fulfill customer orders within a short period, sometimes within twenty-four hours, and the impact of market dynamics on product backlogs.
In terms of financial performance, for the three months ended April 28, 2024, Photronics reported a gross profit of 36.5% of revenue, with operating income at 25.8% of revenue. The company's net income attributable to Photronics, Inc. shareholders was 16.7% of revenue for the same period.
The report also provides a breakdown of revenue changes by product type and geographic origin. In the second quarter of fiscal year 2024, Photronics reported a 0.3% increase in revenue compared to the previous quarter, but a 5.4% decrease from the same period in the previous year. The company attributes these fluctuations to factors such as seasonal purchasing practices and specific market conditions, such as the impact of the Taiwan earthquakes in April 2024 and soft demand following the Chinese New Year.
Furthermore, the report details changes in gross margin, selling, general, and administrative expenses, research and development expenses, and non-operating income (expense) for the specified periods, providing a comprehensive overview of Photronics' financial performance and operational activities. As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $25.57. For more information, read the company's full 10-Q submission here.
