Are you interested in the semiconductor industry? If so, pay close attention to the following: On Tuesday, after Photronics (NASDAQ:$PLAB) reported Q3 results and news that the CFO was retiring, shares of the photo mask manufacturer tumbled. It shouldn’t come as a total surprise to hear that the stock has been falling, as the company reported a steeper-than-expected revenue decline. To top it off, this comes three months after a weak Q2 report. As of 3:30 p.m. EDT, PLAB stock was down roughly 20%.
Photronics Q3 Results: Quick Facts
- Photronics posted third-quarter revenue of $111.6 million, down 9% year over year and $3.5 million below the average analyst estimate.
- Integrated-circuit (IC) photomask sales fell 7% to $85.1 million
- Flat-panel-display photomask sales dropped 16% to $26.5 billion
- Earnings per share: $0.06
Here’s what Photronics CEO Peter Kirlin had to say about the quarter:
“IC sales were generally in line with our expectations, as high-end memory grew and high-end logic remained flat. FPD sales were also higher, although slightly below our expectations due to unfavorable product mix. Operating income was modestly lower as an increase in gross profit was offset mostly by higher R&D [research and development] as qualification activity remained robust.”
What Does the Future Hold?
Now Photronics sees the fourth quarter being similar to Q3. What does this mean? There will be growth in high-end memory offset by weakness in high-end logic. Revenue is forecast to come in between the $108 million-$116 million range, which is up from $107 million during the 2016 period. Earnings per share is thought to come in between $0.03 and $0.09.
Featured Image: twitter
