Photronics, Inc. (NASDAQ:PLAB) Q3 2023 Earnings Conference Call September 6, 2023 8:30 AM ET

Company Participants

Richelle Burr - EVP and CAO

Frank Lee - CEO

John P. Jordan - EVP and CFO

Christopher J. Progler - EVP and CTO, Strategic Planning

Conference Call Participants

Linda Umwali - D.A. Davidson

Operator

Good day and thank you for standing by. Welcome to the Photronics Third Quarter Fiscal Year 2023 Earnings Call. At this time all participants are in a listen-only mode. After the speaker’s presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded on Wednesday, September 6, 2023. I would now like to turn the conference over to Richelle Burr, Chief Administrative Officer. Please go ahead.

Richelle Burr

Thank you, Michelle. Good morning, everyone. Welcome to our review of Photronics fiscal 2023 third 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 Chief Accounting Officer and Corporate Controller.

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 web page. 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. Our team did a great job in the third quarter maintaining margin and improving cash flow even while we experienced slightly softer demand. Revenue during the quarter was $224 million, 2% better than last year's third quarter, sequentially 2% lower than the record of $229 million set in our previous quarter.

Looking at the full year-to-date, revenues are up 8% compared to last year. At the midpoint of the revenue range in our Q4 guidance, we are on track to achieve our sixth consecutive year of record revenue. We continue to deliver consistent financial performance against the backdrop of an extended semiconductor downturn. Profitability has improved year-to-date with gross margins up 3% from last year and operation margins up nearly 4%.