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- **Revenue resilience**: Flat Q3 2025 revenue ($210M) with FPD strength offsetting IC challenges, driven by Korea/China demand.
- **Strategic investments**: $200M+ annual CapEx for U.S. expansion (Texas/Idaho) and Asian 6-8nm node capabilities, targeting 2027+ growth.
- **FPD upside**: G8.6 AMOLED ASPs poised to rise 50%+, with strong customer traction in Korea and China.
- **Geopolitical tailwind**: U.S. semiconductor reshoring and Intel support could boost demand for trusted photomask solutions.
- **Cash discipline**: $576M cash balance with cautious 2026 buyback approach, prioritizing growth investments.

**【CEO Summary Section】**
- Q3 2025 revenue of $210 million was flat year-over-year, with Non-GAAP EPS of $0.51 exceeding guidance. FPD revenue ($63 million) offset IC challenges, driven by strong demand in Korea and China.
- **Geographic diversification strategy**: U.S. expansion in Texas for midrange nodes and Idaho for leading-edge capabilities (new multi-beam mask writer). Evaluating 6-8nm extensions in Asia, targeting 2027-2028 contributions.
- **Cash management**: $576 million in cash, $21 million in Q3 stock buybacks, and $97 million YTD. Capital allocation prioritizes growth investments over buybacks in 2026.
- **Operational focus**: Enhancing global sales leadership and optimizing cost structure for efficiency, with no major organizational changes.

**【CFO Financial Commentary】**
- Gross margin of 34% and operating margin of 23% exceeded expectations, driven by U.S. and Korea operations. IC revenue ($148 million) saw high-end recovery in the U.S., offsetting 12% decline in Asia. FPD growth of 14% year-over-year.
- Q3 operating cash flow of $15 million (24% of revenue) and CapEx of $25 million. FY2025 CapEx guidance of $200 million for capacity and capability upgrades.
- Q4 2025 guidance: Revenue $201-209 million, EPS $0.42-0.48, reflecting cautious outlook amid geopolitical uncertainty.

**【Q&A Highlights】**
- **IC market dynamics**: U.S. high-end recovery, stable mainstream in U.S./Europe, but muted demand in Asia due to trade restrictions.
- **CapEx outlook**: Elevated levels ($200 million+ annually) for 3+ years due to end-of-life tool replacements and strategic investments.
- **FPD growth**: G8.6 AMOLED ASPs expected to rise 50%+ due to layer count increases, with strong positioning in Korea and China.
- **U.S. government support**: Intel's U.S. manufacturing expansion could boost demand for trusted photomask solutions.
- **Multi-beam adoption**: 3-5 customers qualified in Boise, with U.S. customers showing strong interest in leading-edge capabilities.

Photronics, Inc. (PLAB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PLAB

PLAB fundamentals

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