Photronics Reports Record Revenues in Third Quarter of Fiscal 2011

Third Quarter Highlights:

Record sales of $135.9 million; exceeds guidance of $128 - $133 million

High-end IC photomask sales increase 24% sequentially

Record non-GAAP net income of $16 million

Non-GAAP EPS of $0.23; exceeds guidance of $0.17 - $0.21 per diluted share

GAAP net income increases to $11.3 million, or $0.16 per diluted share

Operating margin improves 90 bps sequentially

Balance Sheet continues to strengthen




Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative imaging technology solutions for the global electronics industry, reported results for the third quarter ended July 31, 2011.

Constantine (“Deno”) Macricostas, Photronics’ chairman and chief executive officer, commented: “We exceeded our guidance range and reported record revenue of $135.9 million, while also achieving a new quarterly sales record for IC photomasks. Demonstrating the success of our high-end strategy, advanced IC sales grew 24% sequentially to $34.9 million.”

“We also continued to perform exceptionally well on the bottom-line, demonstrating the excellent leverage in our business model,” said Macricostas. “We increased operating margin by 90 basis points sequentially to 16.8%, achieved record non-GAAP net income of $16 million, or $0.23 per diluted share, exceeding our guidance range. We also continued to strengthen our balance sheet, improve working capital and increase net cash. The continued improvement in our balance sheet gives us the flexibility to execute on our strategic growth initiatives. Looking forward, we are encouraged by our prospects for growth and plan to make continued investments to gain further high-end market share.”

Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components. They are produced in accordance with product designs provided by customers at strategically located manufacturing facilities in Asia, Europe, and North America.

Additional information on the Company can be accessed at www.photronics.com.

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