Photronics Inc (PLAB) Reports Growth Amid Seasonal Headwinds in Q1 Fiscal 2024

Revenue and High-End IC Sales Rise, Operating Margin Expands Year-Over-Year

  • Revenue: Photronics Inc (PLAB) reports an increase in first-quarter revenue year-over-year.
  • High-End IC and FPD Sales: Growth in high-end IC revenue, particularly in 22nm and 28nm nodes; high-end FPD sales also up from the previous year.
  • Operating Margin: Year-over-year expansion in operating margin, despite a sequential contraction.
  • Cash Generation: Strong cash generation continues, enhancing the company's balance sheet and liquidity.
  • Q2 Fiscal 2024 Guidance: Revenue projected between $226 million and $236 million, with non-GAAP net income per diluted share estimated at $0.50 to $0.58.
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On February 21, 2024, Photronics Inc (PLAB, Financial), a global leader in photomask technologies, released its financial results for the first quarter of fiscal year 2024, which ended on January 28, 2024. The company announced an increase in revenue compared to the same period last year, despite facing weaker than expected seasonal demand at the start of the quarter. The full details of the financial results are available in the company's 8-K filing.

Company Overview

Photronics Inc is a U.S.-based company specializing in the production of photomasks, which are essential components in the manufacturing of integrated circuits (IC) and flat-panel displays (FPD). With a majority of its revenue stemming from IC production, Photronics has a significant global presence, including assets and operations in Taiwan, Korea, and the United States, and it serves markets across the United States, Europe, Asia, and more.

Financial Performance and Challenges

CEO Frank Lee highlighted the company's resilience in the face of seasonal headwinds, noting an increase in high-end IC revenue, driven by customer migration to 22nm and 28nm nodes for improved performance and cost efficiency. High-end FPD sales also saw a year-over-year increase, although there was a decline from the previous quarter due to seasonal demand fluctuations for premium smartphone displays utilizing AMOLED technology.

While operating margin improved on a year-over-year basis, there was a sequential decrease, attributed to the impact of higher operating expenses. Nevertheless, Photronics' strong cash generation has continued to fortify its balance sheet, providing ample liquidity for future growth investments. This financial stability is particularly important in the semiconductor industry, where capital-intensive operations and rapid technological advancements necessitate robust financial health.

Looking Ahead

For the second quarter of fiscal 2024, Photronics anticipates revenue to be in the range of $226 million to $236 million, with non-GAAP net income per diluted share expected to be between $0.50 and $0.58. This guidance reflects the company's expectations for growth and a positive outlook for the upcoming quarter.

The company will host a webcast to discuss these results and provide further insights into its performance and strategies. Photronics remains committed to maintaining its position as a trusted supplier in the photomask industry and is poised for another record year in 2024, building on the momentum established in the first quarter.


Photronics Inc (PLAB, Financial) has demonstrated its ability to navigate seasonal challenges and continue its growth trajectory. The company's focus on high-end IC and FPD production, coupled with strong cash generation and a solid balance sheet, positions it well for sustained success in the competitive semiconductor industry. Investors and analysts will be watching closely as Photronics aims to capitalize on market opportunities and drive further growth in the coming quarters.

Explore the complete 8-K earnings release (here) from Photronics Inc for further details.