Upcoming AWS Coverage on Kulicke and Soffa Industries Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 13, 2016 / Active Wall St. announces its post-earnings coverage on Photronics, Inc. (NASDAQ: PLAB). The Company posted its fourth quarter and fiscal 2016 earnings results on December 06, 2016. The electronics imaging company's sales and net income numbers declined on a y-o-y basis, but were able to beat expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Photronics' competitors within the Semiconductor Equipment & Materials space, Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC), reported on November 15, 2016 its Q4 & Fiscal Year 2016 results. AWS will be initiating a research report on Kulicke and Soffa Industries in the coming days.

Today, AWS is promoting its earnings coverage on PLAB; touching on KLIC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=PLAB

http://www.activewallst.com/registration-3/?symbol=KLIC

Earnings Reviewed

For the fourth quarter ended on October 30, 2016, Photronics reported sales of $107.4 million, down 13% sequentially and 24% compared to the year ago same period. The company stated that weakness was observed across all of its markets, primarily at the high-end for both Integrated Circuits (IC) and flat panel display (FPD). The company's revenue numbers topped market expectations of $107 million. During Q4 FY16, sales of FPD photomasks declined 17% on a y-o-y basis to $25.1 million, while sales of IC photomasks were $82.3 million in the reported quarter, down 26% from the same period last year. The company stated that its largest customer had taken some production off-line and is transitioning from LCD to OLED. In the long-term, the company believed that the transition would be positive, but it will impact the company's nearer-term demand. On a geographical basis, Photronics' Q4 FY16 sales were 73% from Asia and 27% were from the US and Europe.

For Q4 FY16, Photronics' gross margin totaled 19.1%, down 640 basis points sequentially as a result of the reduced revenue and increased equipment expense, principally depreciation. SG&A expenses for Q4 FY16 were down $970,000 sequentially, primarily related to reduced compensation expenses. The company reduced operating expense by 12% compared with Q4 FY15, limiting the decline in operating profit. Despite lower sales, the company achieved a 4.9% operating margin for the reported quarter.

Net income attributed to Photronics' shareholders was $5.3 million, or $0.08 per diluted share, and includes a non-recurring tax benefit of $1.8 million ($0.03 per diluted share) primarily related to the recognition of certain tax benefits in Taiwan that were determined to be realizable in filings for future tax periods compared with net income attributed to Photronics' shareholders of $18.6 million, or $0.25 per diluted share, for Q4 FY15. The company's earnings results beat Wall Street's expectations of $0.02 per share.

Full Year Results

For FY16, Photronics' sales were $483.5 million, down 8% compared to FY15. Sales of IC photomasks were down 13%, while sales of FPD photomasks increased 15% on a y-o-y basis. Net income attributed to Photronics' shareholders for FY16 was $46.2 million, or $0.64 per diluted share, compared to $44.6 million, or $0.63 per diluted share, in FY15. Non-GAAP net income attributed to Photronics' shareholders was $32.6 million, or $0.47 per diluted share, compared to $45.5 million, or $0.64 per diluted share, in FY15.

Balance Sheet

As of October 30th, 2016, Photronics had cash and cash equivalents worth $314.07 million with net cash totaling $247 million, an improvement of $173 million from last year. The company's cash CapEx for Q4 FY16 was $5 million, bringing the year-end total to $50 million. For FY17, the company is expecting to spend approximately $100 million in cash CapEx including the balance of its FPD investment and China IC investment.

Outlook

For Q1 FY17, Photronics is projecting revenues to be in the range of $104 million and $112 million. The company is anticipating seasonal trends in demand [shipments] and also noted that both Christmas and Chinese New Year fall will fall within its Q1 FY17. Based on this revenue expectation and its current operating model, Photronics is estimating net income attributed to Photronics' shareholders to be between $0.01 and $0.06 per diluted share for Q1 FY17.

Stock Performance

At the closing bell, on Monday, December 12, 2016, Photronics' stock closed the trading session at $11.60, slightly up 0.43% from its previous closing price of $11.55. A total volume of 460.22 thousand shares have exchanged hands, which was higher than the 3-month average volume of 439.16 thousand shares. The Company's stock price advanced 7.91% in the last month, 16.12% in the past three months, and 25.00% in the previous six months. Shares of the company have a PE ratio of 18.27.

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SOURCE: Active Wall Street