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Photronics beats fiscal Q3 expectations and raises guidance on AI demand
Revenue rose 2.7% in fiscal Q3, with strength in its Integrated Circuit segment and high-end products making up 44% of that business.
Photronics, which makes photomasks used in semiconductor manufacturing, topped fiscal Q3 estimates and raised guidance as demand for photomasks recovers, according to MarketBeat Ratings. The company said it is seeing a recovery of some temporarily delayed semiconductor design releases that were pushed out after fiscal Q2.
MarketBeat Ratings reports that revenue grew 2.7% in fiscal Q3, about 350 basis points better than expected, driven by strength in the Integrated Circuit segment. Within that segment, high-end products represented 44% of business and are expected to remain strong based on demand metrics and expansion plans.
The outlet also noted that Flat Panel Display revenue, about 28.4% of total, declined 2% year-over-year and declined sequentially. GAAP profitability improved at the gross and operating levels, while operating profit was roughly flat year-over-year due to increased spending.
Photronics attributed the recent momentum to orders returning after earlier design timing delays, and CEO George Macricostas said the recovery reflects the return of previously delayed releases. MarketBeat Ratings added that photomasks for extreme ultraviolet lithography wear out faster, setting up an accelerated upgrade cycle as foundries expand capacity for advanced chips and AI.