Photronics Reports $212.1M Revenue in 10-Q Filings

By Tamara Parker • Thursday, March 13 15:19 • Permanent Link

Photronics, Inc. has recently released its 10-Q report, providing insights into its financial performance. The company, based in Brookfield, Connecticut, is engaged in the manufacture and sale of photomask products and services globally. Photomasks are essential in the production of integrated circuits and flat panel displays. The company's revenue for the three months ended February 2, 2025, was $212.1 million, with a gross margin of 35.6%.

In the management’s discussion and analysis of financial condition and results of operations, Photronics emphasizes the impact of industry trends on its business. The demand for photomasks is closely tied to the development and release of new semiconductor and display designs. The company faces challenges such as reduced demand for photomasks due to changes in technology or design complexity.

The company's revenue is influenced by seasonal purchasing practices, with reduced demand during the first quarter of its fiscal year due to holiday periods in North America, Europe, and Asia. In the first quarter of fiscal year 2025, revenue decreased by 4.7% compared to the previous quarter and by 1.9% compared to the same period in the previous fiscal year.

Photronics reported a gross profit of $75.5 million for the first quarter of fiscal year 2025, representing a decrease of 8.2% from the previous quarter. Additionally, the company's effective income tax rate decreased to 24.5% in the first quarter of fiscal year 2025, compared to 26.6% in the previous quarter and 27.3% in the same period of the previous fiscal year.

The company's liquidity and capital resources indicate a strong financial position, with cash and cash equivalents totaling $642.2 million as of February 2, 2025. Photronics continues to evaluate funding alternatives to support its capital expenditures and ongoing operations, with a focus on maintaining sufficient liquidity for the foreseeable future. Following these announcements, the company's shares moved 0.4%, and are now trading at a price of $20.92. If you want to know more, read the company's complete 10-Q report here.

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