{"success":true,"data":{"pressRelease":{"id":"127957","rtpr_id":"nGNX8s8dVq","ticker":"PLAB","exchange":"NASDAQ","all_tickers":["PLAB"],"title":"Photronics Reports Third Quarter 2026 Results","author":"Globe Newswire","published_at":"2026-08-26T11:00:02.266Z","article_body":"BROOKFIELD, Conn., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc.\n(https://www.globenewswire.com/Tracker?data=hxFPsAACR0G1PLBiKv-ZbBX7Vjvn5yl6iZPHlVNlLLBt9HrFsuP268qNg3P1EWHmB-LSjxMW_7LMRS3bNX0ZVBKu4NM9HUV9cu1Zlto-_CexkGwjg_tEjlk1TVsWd_L7)\n(NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions,\ntoday reported financial results for its third quarter of fiscal year 2026\nended August 2, 2026.\n\nCommenting on the third quarter performance, Chairman and CEO George\nMacricostas said, “We are pleased to recognize a recovery of some of the\ntemporarily delayed semiconductor design releases that occurred back in our\nfiscal Q2. Continued high fab utilization rates throughout the industry have\nbeen a positive influence toward node migration trends, resulting in a record\npercentage for our high-end I.C. business at 44% of total I.C. revenue. Our\ninvestments in the U.S. and Korea remain on track as we continue to strengthen\nour position at the high end of the market over the coming years.”\n\nThird Quarter Fiscal 2026 Results\n* Revenue was $216.0 million, an increase of 2.7% year-over-year and 2.9%\nsequentially.\n* GAAP Net income attributable to Photronics, Inc. shareholders was $28.9\nmillion, or $0.49 per diluted share, compared with $22.9 million, or $0.39 per\ndiluted share, in the third quarter of 2025 and $31.4 million, or $0.54 per\ndiluted share, in the second quarter of 2026.\n* Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4\nmillion, or $0.50 per diluted share, compared with $29.4 million, or $0.51 per\ndiluted share in the third quarter of 2025 and $24.9 million, or $0.42 per\ndiluted share, in the second quarter of 2026.\n* IC revenue was $154.7 million, an increase of 5% both year-over-year and\nsequentially.\n* FPD revenue was $61.4 million, a decrease of 2% both year-over-year and\nsequentially.\n* Cash, cash equivalents and short-term investments at the end of the quarter\nwere $672.8 million, of which $503.5 million was associated with our Joint\nVentures, of which we own 50.01%.\n* Cash generated from operating activities was $76.3 million, and cash\ninvested in organic growth through capital expenditures was $37.0 million.\nFourth Quarter Fiscal 2026 Guidance\n\nFor the fourth quarter of fiscal 2026, Photronics expects:\n* Revenue to be between $207 million and $227 million,\n* Operating margin to be between 19% and 24%, and\n* Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be\nbetween $0.40 and $0.56 per share.\nEstimated Non-GAAP diluted earnings per share attributable to Photronics, Inc.\nshareholders is a Non-GAAP financial measure. Please refer to “Non-GAAP\nFinancial Measures” below for details regarding this measure, as well as the\ntables providing a reconciliation of historical non-GAAP financial measures to\nthe most comparable U.S. GAAP measures.\n\nEarnings Conference Call and Webcast\n\nAn earnings conference call and webcast to discuss these results is scheduled\nfor 8:30 a.m. Eastern time on August 26, 2026. The call will be broadcast live\nand on-demand on the Events and Presentations\n(https://www.globenewswire.com/Tracker?data=R3L9NSw5ygDZ9ECIjES9h8-9Iql0OzEThHXyciXhF7Sq7woDG92YmaXx038ZgHIlH-_7uSYxAn_hvDclO3t_mFe4hPvFNGYu46HeBzDEBLuwjP_nWgCPJlQj8WhQVLoLGBMod_Ax2UHQ5pz6MRuBtw==)\nlink on the Photronics website. Analysts and investors who wish to participate\nin the Q&A portion of the call should click Conference Registration\n(https://www.globenewswire.com/Tracker?data=gruYw4y9fDgKP1_Anw60VkSdpyRgkjbAP6vJf7Xi6hv8nOJehyQC0x1h7w7aCg7VkgLgLwM7vujVKAzpJ5kWw8lZ7efzbQsG7i67Wjx5MoL4t3g186x-WabUjfnhID9ohTm-0oiQgdxvfaU3j0k0-_OrjH306hLa-tKil9FWIZUj7-LpSxYX-FtNXipY5KNi).\nIt is suggested that participants register fifteen minutes prior to the call's\nscheduled start time.\n\nAbout Photronics\n\nPhotronics\n(https://www.globenewswire.com/Tracker?data=hxFPsAACR0G1PLBiKv-ZbJ1fQ7xt_D2ioMRh56XBPdm9Myr-No16Yaw_gByFd4bBVRIXArCfZ3_TwSUcbkmYNRd_iBYIPJYfzNU7zY6-PpU=)\nis a leading worldwide manufacturer of integrated circuit (IC) and flat panel\ndisplay (FPD) photomasks\n(https://www.globenewswire.com/Tracker?data=PcTJR-a3VGdNx-MvShD983dBV25A4P4eSnd_oj5kJfB-QfTZ_PPk34u5LWjl2kSvEQhjIV4O_DQzF0LdT901qUTo80Yr7SyYjXusnn58ayzT0jcWl8sSxRPRVt58gE0SLIByqoYCYEBiNqLJiJ5rFpadOLWawl1saJsXaKLixeg=),\nwhich are high precision photographic quartz or glass plates that contain\nmicroscopic images of electronic circuits. Photomasks are a key element in the\nmanufacture of ICs and FPDs and are used as masters to transfer circuit\npatterns onto semiconductor wafers and FPD substrates. Founded in 1969,\nPhotronics has been a trusted photomask supplier for over 56 years. The\ncompany operates 11 strategically located manufacturing facilities\n(https://www.globenewswire.com/Tracker?data=IA8UZIohlUEd3HoUmv4Mn6_RqcA0jhtpjAXHm-4yeNYQu1NwIsdvLh0jllyFsQaj7ape5CYEzBGYW9PBpo4SIGbGT0XgZsBtX-f8i5g6Zgkh6DTCLBfbzYQEBikYQiGvT7X6zMWrSnxaswmVAI2owQ==)\nin Asia, Europe, and North America. Additional information on the company can\nbe accessed at www.photronics.com.\n\nForward-Looking Statements\n\nCertain statements in this press release constitute “forward-looking\nstatements” regarding our industry, our strategic position, and our\nfinancial and operating results. These forward-looking statements are subject\nto a number of risks and uncertainties that could cause actual results,\nperformance or achievements to differ materially. Please refer to Item 1A\n“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended\nOctober 31, 2025 and other subsequent filings with the Securities and Exchange\nCommission. These documents contain and identify important factors that could\ncause our actual results to differ materially from those contained in these\nforward-looking statements. Although we believe that the expectations\nreflected in the forward-looking statements are reasonable, we cannot\nguarantee future results, levels of activity, performance, or achievements. We\nare under no duty to update any of the forward-looking statements after the\ndate of this release to conform these statements to actual results.\n\nNon-GAAP Financial Measures\n\nNon-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP\ndiluted earnings per share attributable to Photronics, Inc. shareholders are\n\"non-GAAP financial measures\" as such term is defined by Regulation G of the\nSecurities and Exchange Commission, and may differ from similarly named\nnon-GAAP financial measures used by other companies. The attached financial\nsupplement reconciles Photronics, Inc. historical financial results under GAAP\nto non-GAAP financial information. We believe these non-GAAP financial\nmeasures that exclude certain items are useful for analysts and investors to\nevaluate our on-going performance because they enable a more meaningful\ncomparison of our projected performance with our historical results. These\nnon-GAAP metrics are not a measure of consolidated operating results under\nU.S. GAAP and should not be considered as an alternative to Net income (loss),\nNet income (loss) per share, or any other measure of consolidated results\nunder U.S. GAAP. The items excluded from these non-GAAP metrics, but included\nin the calculation of their closest GAAP equivalent, are significant\ncomponents of the condensed consolidated statements of income and must be\nconsidered in performing a comprehensive assessment of overall financial\nperformance. Please refer to the non-GAAP reconciliations below.\n\nPhotronics, Inc. does not provide a quantitative reconciliation of the\nCompany’s projected range of Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders, which is the most\ndirectly comparable GAAP measure, in reliance on the unreasonable efforts\nexception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The\nCompany’s Non-GAAP diluted earnings per share attributable to Photronics,\nInc. shareholders guidance for the fiscal quarter ending October 31, 2026\nexcludes certain items that are inherently uncertain and difficult to predict,\nincluding certain unpredictable charges and benefits such as foreign exchange\n(gain) loss; estimated tax effects of foreign exchange (gain) loss; and\nestimated noncontrolling interest effects of the foregoing. Due to the\nuncertainty of the amount or timing of these future excluded items, management\ndoes not forecast them for internal use and therefore cannot create a\nquantitative Non-GAAP diluted earnings per share attributable to Photronics,\nInc. shareholders to U.S. GAAP diluted earnings per share attributable to\nPhotronics, Inc. shareholders reconciliation without unreasonable efforts. A\nquantitative reconciliation of Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders would imply a degree\nof precision and certainty as to these future items that does not exist and\ncould be confusing to investors. From a qualitative perspective, it is\nanticipated that the differences between Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders will consist of items\nsimilar to those described in the financial tables later in this release,\nincluding, for example and without limitation, foreign exchange (gain) loss;\nestimated tax effects of foreign exchange (gain) loss; and estimated\nnoncontrolling interest effects of the foregoing. The timing and amount of any\nof these excluded items could significantly impact the Company’s U.S. GAAP\ndiluted earnings per share attributable to Photronics, Inc. shareholders for a\nparticular period.\n\nTotals presented may not sum due to rounding.\n\nFor Further Information:\nTed Moreau\nVP, Investor Relations\ntmoreau@photronics.com\n\n                                                                                                                                                                                        \n PHOTRONICS, INC.                                                                                                                                                                       \n Condensed Consolidated Statements of Income                                                                                                                                            \n (in thousands, except per share amounts)                                                                                                                                               \n (Unaudited)                                                                                                                                                                            \n                                                                                                                                                                                        \n                                                                                                                                                                                        \n                                                                  Three Months Ended                                                     Nine Months Ended                              \n                                                                  August 2,                May 3,                 August 3,              August 2,                 August 3,            \n                                                                  2026                     2026                   2025                   2026                      2025                 \n                                                                                                                                                                                        \n Revenue                                                          $     216,047            $    209,940           $     210,394          $     651,054             $     633,524        \n                                                                                                                                                                                        \n Cost of goods sold                                                     144,313                 144,183                 139,539                434,862                   409,228        \n                                                                                                                                                                                        \n Gross profit                                                           71,734                  65,757                  70,855                 216,192                   224,296        \n Gross margin %                                                         33.2     %              31.3     %              33.7     %             33.2     %                35.4     %     \n                                                                                                                                                                                        \n Operating expenses:                                                                                                                                                                    \n                                                                                                                                                                                        \n Selling, general and administrative                                    22,543                  20,756                  18,423                 64,610                    55,624         \n                                                                                                                                                                                        \n Research and development                                               3,707                   2,822                   4,271                  9,116                     12,618         \n                                                                                                                                                                                        \n Total operating expenses                                               26,250                  23,578                  22,694                 73,726                    68,242         \n                                                                                                                                                                                        \n Other operating Income                                                 20                      -                       -                      76                        -              \n                                                                                                                                                                                        \n Operating income                                                       45,504                  42,179                  48,161                 142,542                   156,054        \n Operating margin %                                                     21.1     %              20.1     %              22.9     %             21.9     %                24.6     %     \n                                                                                                                                                                                        \n Other income (expense), net                                            9,368                   11,677                  (9,428   )             40,718                    (10,232  )     \n                                                                                                                                                                                        \n Income before income tax provision                                     54,872                  53,856                  38,733                 183,260                   145,822        \n                                                                                                                                                                                        \n Income tax provision                                                   10,989                  10,606                  9,594                  35,950                    34,209         \n                                                                                                                                                                                        \n Net income                                                             43,883                  43,250                  29,139                 147,310                   111,613        \n                                                                                                                                                                                        \n Net income attributable to noncontrolling interests                    14,967                  11,821                  6,248                  44,026                    37,009         \n                                                                                                                                                                                        \n Net income attributable to Photronics, Inc. shareholders         $     28,916             $    31,429            $     22,891           $     103,284             $     74,604         \n                                                                                                                                                                                        \n Earnings per share attributed to Photronics, Inc. shareholders:                                                                                                                        \n                                                                                                                                                                                        \n Basic                                                            $     0.50               $    0.54              $     0.40             $     1.78                $     1.24           \n                                                                                                                                                                                        \n Diluted                                                          $     0.49               $    0.54              $     0.39             $     1.76                $     1.23           \n                                                                                                                                                                                        \n Weighted-average number of common shares outstanding:                                                                                                                                  \n                                                                                                                                                                                        \n Basic                                                                  58,181                  58,123                  57,937                 58,033                    60,274         \n                                                                                                                                                                                        \n Diluted                                                                58,718                  58,745                  58,068                 58,618                    60,567         \n                                                                                                                                                                                        \n\n\n\n PHOTRONICS, INC.                                                                          \n Condensed Consolidated Balance Sheets                                                     \n (in thousands)                                                                            \n (Unaudited)                                                                               \n                                                                                           \n                                                                                           \n                                           August 2,                October 31,            \n                                           2026                     2025                   \n                                                                                           \n Assets                                                                                    \n                                                                                           \n Current assets:                                                                           \n Cash and cash equivalents                 $     549,513            $     492,256          \n Short-term investments                          123,298                  95,909           \n Accounts receivable                             187,730                  195,921          \n Inventories                                     64,748                   61,767           \n Other current assets                            49,567                   44,199           \n                                                                                           \n Total current assets                            974,856                  890,052          \n                                                                                           \n Property, plant and equipment, net              955,038                  854,436          \n Other assets                                    60,849                   60,046           \n                                                                                           \n Total assets                              $     1,990,743          $     1,804,534        \n                                                                                           \n                                                                                           \n                                                                                           \n Liabilities and Equity                                                                    \n                                                                                           \n Current liabilities:                                                                      \n Current portion of long-term debt         $     3,889              $     11               \n Accounts payable and accrued liabilities        193,394                  165,862          \n                                                                                           \n Total current liabilities                       197,283                  165,873          \n                                                                                           \n Long-term debt                                  4                        13               \n Other liabilities                               49,754                   41,341           \n                                                                                           \n Equity:                                                                                   \n Photronics, Inc. shareholders' equity           1,280,694                1,173,589        \n Noncontrolling interests                        463,008                  423,718          \n Total equity                                    1,743,702                1,597,307        \n                                                                                           \n Total liabilities and equity              $     1,990,743          $     1,804,534        \n                                                                                           \n\n\n\n PHOTRONICS, INC.                                                                                                                    \n Condensed Consolidated Statements of Cash Flows                                                                                     \n (in thousands)                                                                                                                      \n (Unaudited)                                                                                                                         \n                                                                                                                                     \n                                                                                    Nine Months Ended                                \n                                                                                    August 2,                  August 3,             \n                                                                                    2026                       2025                  \n                                                                                                                                     \n Cash flows from operating activities:                                                                                               \n Net income                                                                         $     147,310              $     111,613         \n Adjustments to reconcile net income to net cash provided by operating activities:                                                   \n Depreciation and amortization                                                            60,818                     59,234          \n Share-based compensation                                                                 10,437                     10,003          \n Changes in operating assets, liabilities and other                                       2,045                      (20,876   )     \n                                                                                                                                     \n Net cash provided by operating activities                                                220,610                    159,974         \n                                                                                                                                     \n Cash flows from investing activities:                                                                                               \n Purchases of property, plant and equipment                                               (130,410  )                (120,588  )     \n Purchases of short-term investments                                                      (178,654  )                (96,571   )     \n Proceeds from maturities of short-term investments                                       135,571                    42,148          \n Proceeds from sales of short-term investments                                            20,233                     -               \n Government incentives                                                                    2,567                      1,469           \n Other                                                                                    (56       )                (57       )     \n                                                                                                                                     \n Net cash used in investing activities                                                    (150,749  )                (173,599  )     \n                                                                                                                                     \n Cash flows from financing activities:                                                                                               \n Repayments of debt                                                                       (8        )                (17,969   )     \n Common stock repurchases                                                                 -                          (97,422   )     \n Proceeds from share-based arrangements                                                   1,337                      2,120           \n Net settlements of restricted stock awards                                               (1,673    )                (2,013    )     \n                                                                                                                                     \n Net cash used in financing activities                                                    (344      )                (115,284  )     \n                                                                                                                                     \n Effects of exchange rate changes on cash, cash equivalents, and restricted cash          (12,306   )                10,129          \n                                                                                                                                     \n Net increase (decrease) in cash, cash equivalents, and restricted cash                   57,211                     (118,780  )     \n Cash, cash equivalents, and restricted cash, beginning of period                         495,113                    601,243         \n                                                                                                                                     \n Cash, cash equivalents, and restricted cash, end of period                               552,324                    482,463         \n                                                                                                                                     \n Less: Ending restricted cash                                                             2,811                      2,942           \n                                                                                                                                     \n Cash and cash equivalents at end of period                                         $     549,513              $     479,521         \n                                                                                                                                     \n\n\n\n PHOTRONICS, INC.                                                                                                                                      \n Reconciliation of U.S. GAAP to non-GAAP: Net income and diluted earnings per share attributable to Photronics, Inc. shareholders                      \n (in thousands, except per share amounts)                                                                                                              \n (Unaudited)                                                                                                                                           \n                                                                                                                                                       \n                                                                                     Three Months ended                                                \n                                                                                     August 2,               May 3,                August 3,           \n                                                                                     2026                    2026                  2025                \n                                                                                                                                                       \n                                                                                                                                                       \n U.S. GAAP net income attributable to Photronics, Inc. shareholders                  $     28,916            $    31,429           $     22,891        \n FX (gain) loss                                                                            (4,776  )              (7,869  )              14,258        \n Estimated tax effects of FX (gain) loss                                                   2,055                  629                    (3,663  )     \n Estimated noncontrolling interest effects of above                                        3,233                  739                    (4,130  )     \n                                                                                                                                                       \n Non-GAAP net income attributable to Photronics, Inc. shareholders                   $     29,428            $    24,928           $     29,356        \n                                                                                                                                                       \n Weighted-average number of common shares outstanding - Diluted                            58,718                 58,745                 58,068        \n                                                                                                                                                       \n                                                                                                                                                       \n U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders  $     0.49              $    0.54             $     0.39          \n Effects of non-GAAP adjustments above                                                     0.01                   (0.12   )              0.12          \n Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders   $     0.50              $    0.42             $     0.51          \n                                                                                                                                                       \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/e86c74df-a4da-4051-8007-617cf34b7c61)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX8s8dVq","title":"Photronics Reports Third Quarter 2026 Results","author":"Globe Newswire","ticker":"PLAB","created":"2026-08-26T11:00:02.266Z","tickers":["PLAB"],"exchange":"NASDAQ","article_body":"BROOKFIELD, Conn., Aug. 26, 2026 (GLOBE NEWSWIRE) -- Photronics, Inc.\n(https://www.globenewswire.com/Tracker?data=hxFPsAACR0G1PLBiKv-ZbBX7Vjvn5yl6iZPHlVNlLLBt9HrFsuP268qNg3P1EWHmB-LSjxMW_7LMRS3bNX0ZVBKu4NM9HUV9cu1Zlto-_CexkGwjg_tEjlk1TVsWd_L7)\n(NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions,\ntoday reported financial results for its third quarter of fiscal year 2026\nended August 2, 2026.\n\nCommenting on the third quarter performance, Chairman and CEO George\nMacricostas said, “We are pleased to recognize a recovery of some of the\ntemporarily delayed semiconductor design releases that occurred back in our\nfiscal Q2. Continued high fab utilization rates throughout the industry have\nbeen a positive influence toward node migration trends, resulting in a record\npercentage for our high-end I.C. business at 44% of total I.C. revenue. Our\ninvestments in the U.S. and Korea remain on track as we continue to strengthen\nour position at the high end of the market over the coming years.”\n\nThird Quarter Fiscal 2026 Results\n* Revenue was $216.0 million, an increase of 2.7% year-over-year and 2.9%\nsequentially.\n* GAAP Net income attributable to Photronics, Inc. shareholders was $28.9\nmillion, or $0.49 per diluted share, compared with $22.9 million, or $0.39 per\ndiluted share, in the third quarter of 2025 and $31.4 million, or $0.54 per\ndiluted share, in the second quarter of 2026.\n* Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4\nmillion, or $0.50 per diluted share, compared with $29.4 million, or $0.51 per\ndiluted share in the third quarter of 2025 and $24.9 million, or $0.42 per\ndiluted share, in the second quarter of 2026.\n* IC revenue was $154.7 million, an increase of 5% both year-over-year and\nsequentially.\n* FPD revenue was $61.4 million, a decrease of 2% both year-over-year and\nsequentially.\n* Cash, cash equivalents and short-term investments at the end of the quarter\nwere $672.8 million, of which $503.5 million was associated with our Joint\nVentures, of which we own 50.01%.\n* Cash generated from operating activities was $76.3 million, and cash\ninvested in organic growth through capital expenditures was $37.0 million.\nFourth Quarter Fiscal 2026 Guidance\n\nFor the fourth quarter of fiscal 2026, Photronics expects:\n* Revenue to be between $207 million and $227 million,\n* Operating margin to be between 19% and 24%, and\n* Non-GAAP diluted EPS attributable to Photronics, Inc. shareholders to be\nbetween $0.40 and $0.56 per share.\nEstimated Non-GAAP diluted earnings per share attributable to Photronics, Inc.\nshareholders is a Non-GAAP financial measure. Please refer to “Non-GAAP\nFinancial Measures” below for details regarding this measure, as well as the\ntables providing a reconciliation of historical non-GAAP financial measures to\nthe most comparable U.S. GAAP measures.\n\nEarnings Conference Call and Webcast\n\nAn earnings conference call and webcast to discuss these results is scheduled\nfor 8:30 a.m. Eastern time on August 26, 2026. The call will be broadcast live\nand on-demand on the Events and Presentations\n(https://www.globenewswire.com/Tracker?data=R3L9NSw5ygDZ9ECIjES9h8-9Iql0OzEThHXyciXhF7Sq7woDG92YmaXx038ZgHIlH-_7uSYxAn_hvDclO3t_mFe4hPvFNGYu46HeBzDEBLuwjP_nWgCPJlQj8WhQVLoLGBMod_Ax2UHQ5pz6MRuBtw==)\nlink on the Photronics website. Analysts and investors who wish to participate\nin the Q&A portion of the call should click Conference Registration\n(https://www.globenewswire.com/Tracker?data=gruYw4y9fDgKP1_Anw60VkSdpyRgkjbAP6vJf7Xi6hv8nOJehyQC0x1h7w7aCg7VkgLgLwM7vujVKAzpJ5kWw8lZ7efzbQsG7i67Wjx5MoL4t3g186x-WabUjfnhID9ohTm-0oiQgdxvfaU3j0k0-_OrjH306hLa-tKil9FWIZUj7-LpSxYX-FtNXipY5KNi).\nIt is suggested that participants register fifteen minutes prior to the call's\nscheduled start time.\n\nAbout Photronics\n\nPhotronics\n(https://www.globenewswire.com/Tracker?data=hxFPsAACR0G1PLBiKv-ZbJ1fQ7xt_D2ioMRh56XBPdm9Myr-No16Yaw_gByFd4bBVRIXArCfZ3_TwSUcbkmYNRd_iBYIPJYfzNU7zY6-PpU=)\nis a leading worldwide manufacturer of integrated circuit (IC) and flat panel\ndisplay (FPD) photomasks\n(https://www.globenewswire.com/Tracker?data=PcTJR-a3VGdNx-MvShD983dBV25A4P4eSnd_oj5kJfB-QfTZ_PPk34u5LWjl2kSvEQhjIV4O_DQzF0LdT901qUTo80Yr7SyYjXusnn58ayzT0jcWl8sSxRPRVt58gE0SLIByqoYCYEBiNqLJiJ5rFpadOLWawl1saJsXaKLixeg=),\nwhich are high precision photographic quartz or glass plates that contain\nmicroscopic images of electronic circuits. Photomasks are a key element in the\nmanufacture of ICs and FPDs and are used as masters to transfer circuit\npatterns onto semiconductor wafers and FPD substrates. Founded in 1969,\nPhotronics has been a trusted photomask supplier for over 56 years. The\ncompany operates 11 strategically located manufacturing facilities\n(https://www.globenewswire.com/Tracker?data=IA8UZIohlUEd3HoUmv4Mn6_RqcA0jhtpjAXHm-4yeNYQu1NwIsdvLh0jllyFsQaj7ape5CYEzBGYW9PBpo4SIGbGT0XgZsBtX-f8i5g6Zgkh6DTCLBfbzYQEBikYQiGvT7X6zMWrSnxaswmVAI2owQ==)\nin Asia, Europe, and North America. Additional information on the company can\nbe accessed at www.photronics.com.\n\nForward-Looking Statements\n\nCertain statements in this press release constitute “forward-looking\nstatements” regarding our industry, our strategic position, and our\nfinancial and operating results. These forward-looking statements are subject\nto a number of risks and uncertainties that could cause actual results,\nperformance or achievements to differ materially. Please refer to Item 1A\n“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended\nOctober 31, 2025 and other subsequent filings with the Securities and Exchange\nCommission. These documents contain and identify important factors that could\ncause our actual results to differ materially from those contained in these\nforward-looking statements. Although we believe that the expectations\nreflected in the forward-looking statements are reasonable, we cannot\nguarantee future results, levels of activity, performance, or achievements. We\nare under no duty to update any of the forward-looking statements after the\ndate of this release to conform these statements to actual results.\n\nNon-GAAP Financial Measures\n\nNon-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP\ndiluted earnings per share attributable to Photronics, Inc. shareholders are\n\"non-GAAP financial measures\" as such term is defined by Regulation G of the\nSecurities and Exchange Commission, and may differ from similarly named\nnon-GAAP financial measures used by other companies. The attached financial\nsupplement reconciles Photronics, Inc. historical financial results under GAAP\nto non-GAAP financial information. We believe these non-GAAP financial\nmeasures that exclude certain items are useful for analysts and investors to\nevaluate our on-going performance because they enable a more meaningful\ncomparison of our projected performance with our historical results. These\nnon-GAAP metrics are not a measure of consolidated operating results under\nU.S. GAAP and should not be considered as an alternative to Net income (loss),\nNet income (loss) per share, or any other measure of consolidated results\nunder U.S. GAAP. The items excluded from these non-GAAP metrics, but included\nin the calculation of their closest GAAP equivalent, are significant\ncomponents of the condensed consolidated statements of income and must be\nconsidered in performing a comprehensive assessment of overall financial\nperformance. Please refer to the non-GAAP reconciliations below.\n\nPhotronics, Inc. does not provide a quantitative reconciliation of the\nCompany’s projected range of Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders, which is the most\ndirectly comparable GAAP measure, in reliance on the unreasonable efforts\nexception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The\nCompany’s Non-GAAP diluted earnings per share attributable to Photronics,\nInc. shareholders guidance for the fiscal quarter ending October 31, 2026\nexcludes certain items that are inherently uncertain and difficult to predict,\nincluding certain unpredictable charges and benefits such as foreign exchange\n(gain) loss; estimated tax effects of foreign exchange (gain) loss; and\nestimated noncontrolling interest effects of the foregoing. Due to the\nuncertainty of the amount or timing of these future excluded items, management\ndoes not forecast them for internal use and therefore cannot create a\nquantitative Non-GAAP diluted earnings per share attributable to Photronics,\nInc. shareholders to U.S. GAAP diluted earnings per share attributable to\nPhotronics, Inc. shareholders reconciliation without unreasonable efforts. A\nquantitative reconciliation of Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders would imply a degree\nof precision and certainty as to these future items that does not exist and\ncould be confusing to investors. From a qualitative perspective, it is\nanticipated that the differences between Non-GAAP diluted earnings per share\nattributable to Photronics, Inc. shareholders to U.S. GAAP diluted earnings\nper share attributable to Photronics, Inc. shareholders will consist of items\nsimilar to those described in the financial tables later in this release,\nincluding, for example and without limitation, foreign exchange (gain) loss;\nestimated tax effects of foreign exchange (gain) loss; and estimated\nnoncontrolling interest effects of the foregoing. The timing and amount of any\nof these excluded items could significantly impact the Company’s U.S. GAAP\ndiluted earnings per share attributable to Photronics, Inc. shareholders for a\nparticular period.\n\nTotals presented may not sum due to rounding.\n\nFor Further Information:\nTed Moreau\nVP, Investor Relations\ntmoreau@photronics.com\n\n                                                                                                                                                                                        \n PHOTRONICS, INC.                                                                                                                                                                       \n Condensed Consolidated Statements of Income                                                                                                                                            \n (in thousands, except per share amounts)                                                                                                                                               \n (Unaudited)                                                                                                                                                                            \n                                                                                                                                                                                        \n                                                                                                                                                                                        \n                                                                  Three Months Ended                                                     Nine Months Ended                              \n                                                                  August 2,                May 3,                 August 3,              August 2,                 August 3,            \n                                                                  2026                     2026                   2025                   2026                      2025                 \n                                                                                                                                                                                        \n Revenue                                                          $     216,047            $    209,940           $     210,394          $     651,054             $     633,524        \n                                                                                                                                                                                        \n Cost of goods sold                                                     144,313                 144,183                 139,539                434,862                   409,228        \n                                                                                                                                                                                        \n Gross profit                                                           71,734                  65,757                  70,855                 216,192                   224,296        \n Gross margin %                                                         33.2     %              31.3     %              33.7     %             33.2     %                35.4     %     \n                                                                                                                                                                                        \n Operating expenses:                                                                                                                                                                    \n                                                                                                                                                                                        \n Selling, general and administrative                                    22,543                  20,756                  18,423                 64,610                    55,624         \n                                                                                                                                                                                        \n Research and development                                               3,707                   2,822                   4,271                  9,116                     12,618         \n                                                                                                                                                                                        \n Total operating expenses                                               26,250                  23,578                  22,694                 73,726                    68,242         \n                                                                                                                                                                                        \n Other operating Income                                                 20                      -                       -                      76                        -              \n                                                                                                                                                                                        \n Operating income                                                       45,504                  42,179                  48,161                 142,542                   156,054        \n Operating margin %                                                     21.1     %              20.1     %              22.9     %             21.9     %                24.6     %     \n                                                                                                                                                                                        \n Other income (expense), net                                            9,368                   11,677                  (9,428   )             40,718                    (10,232  )     \n                                                                                                                                                                                        \n Income before income tax provision                                     54,872                  53,856                  38,733                 183,260                   145,822        \n                                                                                                                                                                                        \n Income tax provision                                                   10,989                  10,606                  9,594                  35,950                    34,209         \n                                                                                                                                                                                        \n Net income                                                             43,883                  43,250                  29,139                 147,310                   111,613        \n                                                                                                                                                                                        \n Net income attributable to noncontrolling interests                    14,967                  11,821                  6,248                  44,026                    37,009         \n                                                                                                                                                                                        \n Net income attributable to Photronics, Inc. shareholders         $     28,916             $    31,429            $     22,891           $     103,284             $     74,604         \n                                                                                                                                                                                        \n Earnings per share attributed to Photronics, Inc. shareholders:                                                                                                                        \n                                                                                                                                                                                        \n Basic                                                            $     0.50               $    0.54              $     0.40             $     1.78                $     1.24           \n                                                                                                                                                                                        \n Diluted                                                          $     0.49               $    0.54              $     0.39             $     1.76                $     1.23           \n                                                                                                                                                                                        \n Weighted-average number of common shares outstanding:                                                                                                                                  \n                                                                                                                                                                                        \n Basic                                                                  58,181                  58,123                  57,937                 58,033                    60,274         \n                                                                                                                                                                                        \n Diluted                                                                58,718                  58,745                  58,068                 58,618                    60,567         \n                                                                                                                                                                                        \n\n\n\n PHOTRONICS, INC.                                                                          \n Condensed Consolidated Balance Sheets                                                     \n (in thousands)                                                                            \n (Unaudited)                                                                               \n                                                                                           \n                                                                                           \n                                           August 2,                October 31,            \n                                           2026                     2025                   \n                                                                                           \n Assets                                                                                    \n                                                                                           \n Current assets:                                                                           \n Cash and cash equivalents                 $     549,513            $     492,256          \n Short-term investments                          123,298                  95,909           \n Accounts receivable                             187,730                  195,921          \n Inventories                                     64,748                   61,767           \n Other current assets                            49,567                   44,199           \n                                                                                           \n Total current assets                            974,856                  890,052          \n                                                                                           \n Property, plant and equipment, net              955,038                  854,436          \n Other assets                                    60,849                   60,046           \n                                                                                           \n Total assets                              $     1,990,743          $     1,804,534        \n                                                                                           \n                                                                                           \n                                                                                           \n Liabilities and Equity                                                                    \n                                                                                           \n Current liabilities:                                                                      \n Current portion of long-term debt         $     3,889              $     11               \n Accounts payable and accrued liabilities        193,394                  165,862          \n                                                                                           \n Total current liabilities                       197,283                  165,873          \n                                                                                           \n Long-term debt                                  4                        13               \n Other liabilities                               49,754                   41,341           \n                                                                                           \n Equity:                                                                                   \n Photronics, Inc. shareholders' equity           1,280,694                1,173,589        \n Noncontrolling interests                        463,008                  423,718          \n Total equity                                    1,743,702                1,597,307        \n                                                                                           \n Total liabilities and equity              $     1,990,743          $     1,804,534        \n                                                                                           \n\n\n\n PHOTRONICS, INC.                                                                                                                    \n Condensed Consolidated Statements of Cash Flows                                                                                     \n (in thousands)                                                                                                                      \n (Unaudited)                                                                                                                         \n                                                                                                                                     \n                                                                                    Nine Months Ended                                \n                                                                                    August 2,                  August 3,             \n                                                                                    2026                       2025                  \n                                                                                                                                     \n Cash flows from operating activities:                                                                                               \n Net income                                                                         $     147,310              $     111,613         \n Adjustments to reconcile net income to net cash provided by operating activities:                                                   \n Depreciation and amortization                                                            60,818                     59,234          \n Share-based compensation                                                                 10,437                     10,003          \n Changes in operating assets, liabilities and other                                       2,045                      (20,876   )     \n                                                                                                                                     \n Net cash provided by operating activities                                                220,610                    159,974         \n                                                                                                                                     \n Cash flows from investing activities:                                                                                               \n Purchases of property, plant and equipment                                               (130,410  )                (120,588  )     \n Purchases of short-term investments                                                      (178,654  )                (96,571   )     \n Proceeds from maturities of short-term investments                                       135,571                    42,148          \n Proceeds from sales of short-term investments                                            20,233                     -               \n Government incentives                                                                    2,567                      1,469           \n Other                                                                                    (56       )                (57       )     \n                                                                                                                                     \n Net cash used in investing activities                                                    (150,749  )                (173,599  )     \n                                                                                                                                     \n Cash flows from financing activities:                                                                                               \n Repayments of debt                                                                       (8        )                (17,969   )     \n Common stock repurchases                                                                 -                          (97,422   )     \n Proceeds from share-based arrangements                                                   1,337                      2,120           \n Net settlements of restricted stock awards                                               (1,673    )                (2,013    )     \n                                                                                                                                     \n Net cash used in financing activities                                                    (344      )                (115,284  )     \n                                                                                                                                     \n Effects of exchange rate changes on cash, cash equivalents, and restricted cash          (12,306   )                10,129          \n                                                                                                                                     \n Net increase (decrease) in cash, cash equivalents, and restricted cash                   57,211                     (118,780  )     \n Cash, cash equivalents, and restricted cash, beginning of period                         495,113                    601,243         \n                                                                                                                                     \n Cash, cash equivalents, and restricted cash, end of period                               552,324                    482,463         \n                                                                                                                                     \n Less: Ending restricted cash                                                             2,811                      2,942           \n                                                                                                                                     \n Cash and cash equivalents at end of period                                         $     549,513              $     479,521         \n                                                                                                                                     \n\n\n\n PHOTRONICS, INC.                                                                                                                                      \n Reconciliation of U.S. GAAP to non-GAAP: Net income and diluted earnings per share attributable to Photronics, Inc. shareholders                      \n (in thousands, except per share amounts)                                                                                                              \n (Unaudited)                                                                                                                                           \n                                                                                                                                                       \n                                                                                     Three Months ended                                                \n                                                                                     August 2,               May 3,                August 3,           \n                                                                                     2026                    2026                  2025                \n                                                                                                                                                       \n                                                                                                                                                       \n U.S. GAAP net income attributable to Photronics, Inc. shareholders                  $     28,916            $    31,429           $     22,891        \n FX (gain) loss                                                                            (4,776  )              (7,869  )              14,258        \n Estimated tax effects of FX (gain) loss                                                   2,055                  629                    (3,663  )     \n Estimated noncontrolling interest effects of above                                        3,233                  739                    (4,130  )     \n                                                                                                                                                       \n Non-GAAP net income attributable to Photronics, Inc. shareholders                   $     29,428            $    24,928           $     29,356        \n                                                                                                                                                       \n Weighted-average number of common shares outstanding - Diluted                            58,718                 58,745                 58,068        \n                                                                                                                                                       \n                                                                                                                                                       \n U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders  $     0.49              $    0.54             $     0.39          \n Effects of non-GAAP adjustments above                                                     0.01                   (0.12   )              0.12          \n Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders   $     0.50              $    0.42             $     0.51          \n                                                                                                                                                       \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/e86c74df-a4da-4051-8007-617cf34b7c61)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-26T11:00:02.506246249Z","server_sent_at_ms":1787742002506},"received_at":"2026-08-26T11:00:02.655Z","source_url":"https://www.globenewswire.com/news-release/2026/08/26/3351192/0/en/photronics-reports-third-quarter-2026-results.html"},"analysis":{"id":"116879","press_release_id":"127957","analysis_json":{"industry":{"label":"Semiconductors & Semiconductor Equipment","sector":"Information Technology"},"redFlags":["Wide Q4 Non-GAAP EPS guidance range ($0.40-$0.56)","FPD revenue declined 2% year-over-year and sequentially"],"eventType":"earnings","narrative":"Photronics reported Q3 revenue of $216.0 million, up 2.7% year-over-year and 2.9% sequentially, with GAAP EPS of $0.49.\n\nIC revenue increased 5% to $154.7 million, driving a record high-end mix of 44%, while FPD revenue declined 2% to $61.4 million.\n\nFor Q4, the company expects revenue between $207 million and $227 million and Non-GAAP EPS between $0.40 and $0.56, citing a recovery in delayed semiconductor design releases.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":"Recovery in IC design drives high-end mix to record levels, offsetting FPD softness."},"keyFigures":{"eps":0.49,"revenue":216000000,"guidance":"Q4 revenue $207M-$227M; Non-GAAP EPS $0.40-$0.56","revenueYoy":2.7,"customDimensions":{"capex":37000000,"ic_revenue":154700000,"fpd_revenue":61400000,"high_end_ic_mix_pct":44,"cash_from_operations":76300000}},"quotedText":"We are pleased to recognize a recovery of some of the temporarily delayed semiconductor design releases that occurred back in our fiscal Q2.","namedEntities":{"people":[{"name":"George Macricostas","role":"Chairman and CEO"},{"name":"Ted Moreau","role":"VP, Investor Relations"}],"products":[],"companies":[{"name":"Photronics, Inc.","ticker":"PLAB"}],"dollarAmounts":[{"amount":"$216.0 million","context":"Q3 revenue"},{"amount":"$28.9 million","context":"GAAP net income attributable to 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sequentially, with GAAP EPS of $0.49.\n\nIC revenue increased 5% to $154.7 million, driving a record high-end mix of 44%, while FPD revenue declined 2% to $61.4 million.\n\nFor Q4, the company expects revenue between $207 million and $227 million and Non-GAAP EPS between $0.40 and $0.56, citing a recovery in delayed semiconductor design releases.","key_figures":{"eps":0.49,"revenue":216000000,"guidance":"Q4 revenue $207M-$227M; Non-GAAP EPS $0.40-$0.56","revenueYoy":2.7,"customDimensions":{"capex":37000000,"ic_revenue":154700000,"fpd_revenue":61400000,"high_end_ic_mix_pct":44,"cash_from_operations":76300000}},"named_entities":{"people":[{"name":"George Macricostas","role":"Chairman and CEO"},{"name":"Ted Moreau","role":"VP, Investor Relations"}],"products":[],"companies":[{"name":"Photronics, Inc.","ticker":"PLAB"}],"dollarAmounts":[{"amount":"$216.0 million","context":"Q3 revenue"},{"amount":"$28.9 million","context":"GAAP net income attributable to shareholders"},{"amount":"$154.7 million","context":"Q3 IC revenue"},{"amount":"$61.4 million","context":"Q3 FPD revenue"},{"amount":"$672.8 million","context":"Total cash, cash equivalents and short-term investments"},{"amount":"$76.3 million","context":"Cash generated from operating activities"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-26T11:14:53.478Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"mid-cap","eventGravity":"quarterly-earnings","sectorWeight":"semiconductors"}},"durationMs":85688,"modelName":"glm-4.7"}}