Photronics Results Miss Estimate, Sales Tops View - Update

(RTTNews) - Imaging technology solutions provider Photronics Inc (PLAB), Tuesday reported a steeper-than-expected decline in third-quarter profit, notwithstanding an increase in sales that topped expectations.

Moving ahead, Photronics indicated optimism about its growth prospects.

Commenting on the strong sales performance, CEO Constantine Macricostas said: "This quarter represents the first full quarter including our PDMC joint venture and the results reflect the strength in that business."

Photronics makes photomasks that are used in the manufacture of semiconductors and flat panel displays.

The Brookfield, Connecticut-based company posted quarterly net earnings to stockholders of $4.2 million or $0.07 per share, and included $3.2 million in profit attributable to non-controlling interests. This compares with earnings of $5.9 million or $0.10 per share last year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed about 14 percent to $124.9 million from $109.7 million last year, topping analysts' expectations of $122.5 million.

Sales of semiconductor photomasks formed 81 percent of revenue, and the rest by panel display photomasks.

Cost of sales for the quarter increased by $14 million, and selling and general expenses and research costs were slightly up.

Photronics stock closed Tuesday at $8.51, up $0.07 or 0.83%, on a volume of 256k shares on the Nasdaq.