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Photronics Inc. (PLAB), a leading global supplie r of photomasks for the semiconductor and flat panel display (FPD) industries, has released its financial results for the third quarter of fiscal year 2023. Despite a slight sequential decline, the company reported a net income of $27.0 million and revenue of $224.2 million for the quarter.
In the third quarter of fiscal 2023, Photronics Inc. reported a GAAP net income attributable to its shareholders of $27.0 million, equivalent to $0.44 per diluted share. This marks a decrease compared to the third quarter of 2022 when the company recorded a net income of $31.2 million, or $0.51 per diluted share. Moreover, it represents a notable decline from the second quarter of 2023 when the company reported a net income of $39.9 million, or $0.65 per diluted share. The dip in net income is indicative of the challenges the company faced during the quarter.
On a non-GAAP basis, net income attributable to Photronics Inc. shareholders for the third quarter of 2023 was $31.6 million, or $0.51 per diluted share. This is in contrast to the third quarter of 2022, when the non-GAAP net income was $28.9 million, or $0.47 per diluted share, and the second quarter of 2023, when it stood at $32.9 million, or $0.54 per diluted share.
Photronics Inc. recorded total revenue of $224.2 million for the third quarter of fiscal 2023, representing a 2% increase year-over-year. However, the company experienced a 2% sequential decline in revenue. This mixed revenue performance underscores the dynamic nature of the semiconductor and FPD industries, which can be influenced by various market factors.
Segment Breakdown
In terms of revenue segmentation:
Integrated Circuits (IC) Revenue
The IC segment, a key component of Photronics Inc.'s business, generated $163.1 million in revenue for the third quarter of 2023. This figure represents a 1% year-over-year increase but a 2% decrease sequentially. The performance of this segment is reflective of the broader trends in the semiconductor industry.
Flat Panel Display (FPD) Revenue
The FPD segment saw revenue of $61.1 million for the third quarter of 2023, showing a 4% increase compared to the same quarter last year. However, similar to the IC segment, FPD revenue also experienced a 2% sequential decline. The FPD industry continues to evolve, and Photronics Inc. faces both opportunities and challenges in this sector.
Photronics Inc. remains financially robust. The company generated $85.9 million in cash from operating activities during the third quarter of 2023. Additionally, Photronics invested $21.1 million in organic growth through capital expenditures. At the close of the quarter, the company boasted a cash balance of $448.5 million, with $27.3 million in short-term investments and $26.7 million in debt.
Photronics Inc. reported third-quarter results that highlight the ongoing dynamism and challenges within the semiconductor and FPD industries. Despite facing sequential revenue declines and a drop in net income, the company remains financially healthy and strategically positioned to navigate the evolving landscape of these high-tech sectors. Shareholders and industry observers will be closely watching as Photronics Inc. continues to adapt and innovate in an ever-changing marketplace.