Photronics, Inc. (NASDAQ:PLAB) Q2 2023 Earnings Conference Call May 24, 2023 8:30 AM ET

Company Participants

Richelle Burr - Chief Administrative Officer

Frank Lee - Chief Executive Officer

John Jordan - Chief Financial Officer

Chris Progler - Chief Technology Officer

Eric Rivera - Corporate Controller and Chief Accounting Officer

Conference Call Participants

Linda Umwali - D.A. Davidson

Gus Richard - Northland

Operator

Good day and thank you for standing by. Welcome to Photronics Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, May 24, 2023. I would now like to turn the conference over to Richelle Burr, Chief Administrative Officer. Please go ahead.

Richelle Burr

Thank you, Kevin. Good morning, everyone. Welcome to our review of Photronics’ fiscal 2023 second quarter results. Joining me this morning are Frank Lee, our Chief Executive Officer; John Jordan, our Chief Financial Officer; Chris Progler, our Chief Technology Officer; and Eric Rivera, our Corporate Controller and Chief Accounting Officer.

The press release we issued earlier this morning, together with the presentation material that accompanies our remarks, are available on the Investor Relations section of our webpage. Comments made by any participants on today’s call may include forward-looking statements that include such words as anticipate, believe, estimate, expect, forecast and in our view. These forward-looking statements are based upon a number of risks, uncertainties and other factors that are difficult to predict. Actual results may differ materially from those expressed or implied and we assume no obligation to update any forward-looking information. During the course of our discussion, we will refer to certain non-GAAP financial metrics. These numbers are useful for analysts, investors and management to evaluate ongoing performance. A reconciliation of these metrics to GAAP financial results is provided in our presentation materials.

At this time, I will turn the call over to Frank.

Frank Lee

Thank you, Richelle and good morning everyone. Second quarter results were strong as we achieved record revenue and profit. Demand for our products grew in both IC and FPD with sequential revenue growth in all regions. Our position as the largest merchant photomask supplier provides us broad exposure to global markets and make us less dependent on any single – any one sector or region.

In addition, we have a talent and dedicated global team. Their performance has enabled Photronics to deliver record results in Q2. IC demand was strong again this quarter, especially for mainstream. This sector has been growing for the last several quarters. Demand for the advanced portion of mainstream in the 40 to 55-nanometer range is especially strong. On the other hand, we observed some softness in high-end. However, we expect this to recover in the next one to two quarters and to reserve a growth trend.