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Photronics Inc. (PLAB+3.40%) has submitted its 10-Q filing for the quarterly period ended February 2, 2025.
The filing includes financial statements for the quarter, showing a decrease in revenue to $212.1 million from $216.3 million in the same quarter the previous year. The decrease is attributed to mainstream weakness in Asia and Europe.
Cost of goods sold for the quarter was $136.6 million, representing 64.4% of revenue, compared to 63.4% in the same quarter of the previous year. This increase in cost ratio is due to a decrease in revenue, partially offset by decreases in material costs and equipment and other costs of goods sold.
The company reported a gross profit of $75.5 million for the quarter, compared to $79.3 million in the previous year, with the decline attributed to reduced revenue.
Selling, general, and administrative expenses were $19.1 million, compared to $18.3 million in the previous year. The increase was primarily due to increased professional fees.
Research and development expenses decreased to $4.3 million from $5.3 million in the previous quarter, primarily due to reduced qualification activities in Asia. However, these expenses increased by $0.8 million from the previous year, due to increased development activities in the U.S.
Net income for the quarter was $58.3 million, up from $39.1 million in the previous year. Net income attributable to noncontrolling interests was $15.4 million, compared to $12,902 in the previous year, with the increase attributed to increased net income at the company’s Taiwan-based IC facilities.
Cash provided by operating activities was $78.5 million, while cash provided by investing activities was $6.8 million. Cash used in financing activities was $20.5 million.
Photronics had cash and cash equivalents of $642.2 million as of February 2, 2025. The company believes its liquidity, including available financing, is sufficient to meet its requirements for the next twelve months and beyond.
The company repurchased 195,079 shares for $4.6 million during the quarter, with $95.4 million remaining available under the share repurchase program authorized in August 2024.
The filing also details various financial agreements, including a joint venture with Dai Nippon Printing Co., Ltd. in Xiamen, China, where Photronics holds a 50.01% interest. The joint venture's financial results have been consolidated with Photronics' financial statements.
The company is subject to various claims arising in the ordinary course of business, which it believes will not have a material effect on its consolidated financial statements.
Photronics is currently evaluating the effect of several Accounting Standards Updates issued by the Financial Accounting Standards Board on its disclosures, which will be effective in future fiscal years.
The filing also includes forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from those expressed.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Photronics Inc. quarterly 10-Q report dated March 13, 2025. To report an error, please email earnings@qz.com.