PHOTRONICS INC has recently released its 10-Q report. Photronics, Inc. and its subsidiaries make and sell photomask products and related services in the United States, Taiwan, China, Korea, Europe, and other markets. Its photomasks are used to manufacture integrated circuits and flat panel displays, and the company also sells electrical and optical components to semiconductor and display designers, manufacturers, and foundries.
In Item 2, management said the company sells substantially all of its photomasks to IC and FPD customers, with demand tied closely to new design activity rather than simply to semiconductor or display sales. Photronics said its order cycle is short, often within 24 hours, and backlog is typically only one to two weeks for IC photomasks and two to three weeks for FPD photomasks, though some IC products can stretch to two to three months.
The company said its business is exposed to shifts in design-node migration, new fabrication methods, and changes in how chips and displays are built. It noted that high-end products are defined internally as 28nm and below for semiconductors and Generation 10.5 plus, Generation 6 and 8 AMOLED, and LTPS for displays, while mainstream products include nodes above 28nm and standard LCD processes below Generation 10.
Photronics said it continues to invest in manufacturing equipment and expects capital expenditure payments of about $330 million in fiscal 2026. Year-to-date capital expenditure payments were $93.4 million in Q2 FY26, compared with $95.7 million in Q2 FY25.
For Q2 FY26, revenue was $209.9 million, down 6.7% from Q1 FY26 and down 0.5% from Q2 FY25. IC revenue fell to $147.5 million, down 10.8% sequentially and 5.4% year over year, while FPD revenue rose to $62.4 million, up 4.4% sequentially and 13.3% year over year.
By product, high-end IC revenue was $56.7 million in Q2 FY26, down 20.5% from Q1 FY26, while mainstream IC revenue was $90.8 million, down 3.4%. High-end FPD revenue was $52.8 million, up 12.5% sequentially and 21.1% from a year earlier, while mainstream FPD revenue was $9.6 million, down 25.1% sequentially.
By geography, Taiwan remained the largest revenue source at $65.0 million, followed by China at $60.6 million, South Korea at $40.0 million, and the United States at $34.2 million. Revenue in Taiwan fell $9.3 million sequentially and $10.1 million from a year earlier, while China rose $1.9 million year over year and the United States rose $3.5 million year over year. The market has reacted to these announcements by moving the company's shares 5.82% to a price of $30.295. If you want to know more, read the company's complete 10-Q report here.
