Photronics Q3 2025 Earnings Call Transcript

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Provided by Quartr
August 27, 2025

Key Takeaways

  • Positive Sentiment: Photronics reported Q3 revenue of $210 million and non-GAAP EPS of $0.51, both exceeding expectations, and generated operating cash flow equal to 25% of sales.
  • Positive Sentiment: The company is expanding its U.S. footprint with a cleanroom extension in Texas and a new multi-beam mask writer in Idaho to serve mid-range and leading-edge nodes amid semiconductor reshoring.
  • Positive Sentiment: Photronics is evaluating capability extensions at its Asia facilities to support 14 nm down to 6–8 nm nodes, targeting new revenue contributions in late 2027 or 2028 to diversify its geographic base.
  • Negative Sentiment: Q4 guidance of $200–209 million in revenue and $0.42–0.48 non-GAAP EPS reflects caution on near-term demand amid geopolitical uncertainties and uneven market visibility.
  • Neutral Sentiment: Fiscal 2025 CapEx is set at approximately $200 million for capacity expansion, capability upgrades and end-of-life tool replacements, with elevated investments expected over the next three years.
AI Generated. May Contain Errors.
Earnings Conference Call
Photronics Q3 2025
00:00 / 00:00

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Operator

Good day and thank you for standing by, and welcome to the Medtronic's Fiscal Third Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Ted Marrow, Vice President of Investor Relations. Please go ahead.

Ted Moreau
Ted Moreau
VP - IR at Photronics

Thank you, operator. Good morning, everyone. Welcome to our review of Photronics' fiscal third quarter twenty twenty five financial results. Joining me this morning are George Mekratkasas, Chairman and CEO Eric Rivera, CFO Frank Lee, Head of our Asia Operations and Chris Pragler, CTO. 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 website.

Ted Moreau
Ted Moreau
VP - IR at Photronics

This call will include forward looking statements that involve risks and uncertainties that could cause Photronics' results to differ materially from management's current expectations. We encourage you to review the notice regarding forward looking statements contained both in today's earnings release as well as our most recent SEC filings. In the coming weeks, we will be participating in the Singular Research Investor Conference and we'll be meeting with investors at the SEMICON West Trade Show which will occur in Phoenix this year. I will now turn the call over to George.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Thank you, Ted and good morning everyone. We had another solid quarter with sales of $210,000,000 ahead expectations and flat both year over year and sequentially. Our flat panel display business continues to perform well to offset more challenging demand in IC. Non GAAP diluted EPS was also well ahead of guidance at $0.51 At Photronics, we leverage our legacy as an efficient photomask provider, critical to the manufacture of semiconductors to drive profitability and cash flow. In fiscal twenty twenty five to date, operating cash flow has been 25% of revenue, which has enabled a strong balance sheet with $576,000,000 of consolidated cash and short term investments.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

We also continued to return cash to shareholders by repurchasing $21,000,000 of stock in the quarter bringing the total year to date to $97,000,000 After taking over as CEO three months ago, we have been evaluating opportunities, our positioning in the market and our internal operational execution. With the market driving geographic diversity of semiconductor production, we have identified excellent opportunities that we are looking to capitalize on. We are leveraging our strong balance sheet to reinvest in our business, driving competitive advantages, revenue and earnings growth in the future. As part of the strategy back in December, we communicated our initial step to geographically diversify our revenue with the announced U. S.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Expansion plans. We have been expanding our clean room facility in Texas for capacity and capability extensions to service increased demand for U. S. Mid range nodes. We're also elevating our leading edge production capabilities in Idaho with the installation of a new multi beam mask writer to enable the highest end of our product portfolio.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

These U. S. Projects coincide with a significant number of semiconductor industry announcements over the past year regarding major manufacturing reshoring of semiconductor production to The United States. As a merchant market leader in The U. S, we are further strengthening our position to benefit from this reshoring of semiconductor production.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Expanding our geographic revenue diversification strategy within our existing footprint for the past several quarters, we have been assessing and closely collaborating with customers in various geographic regions to further strengthen our existing manufacturing capabilities. More specifically, we are evaluating capability extensions at Photronics facility in Asia to extend from 14 down to six nanometer and eight production. We would expect these new capabilities to contribute to revenue in the latter half of 2027 or 2028. We also continue to invest prudently in great opportunities and evaluate our optimal geographic footprint by collaborating with our customers to support their growth initiatives. Over time, our internal investments are expected to deliver a more diversified and robust geographic revenue base than we recognize today, which we expect to offset the growing competitive environment in the China IC market.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Regarding China, since Frank led the establishment of our operation there over five years ago, we have achieved many close customer relationships that have contributed to meaningful revenue growth and cash flow for the company. We will continue to optimize our product mix there to maintain our business performance. As we expand our global capabilities, it becomes more critical than ever that we execute a fully integrated and world class global sales program. Toward that, we have recently hired a new Head of Global Sales who will drive a coordinated global sales strategy designed to capture market share in this continuously evolving global semiconductor landscape. Further, as we prepare for the next stage of Photronics growth and continue to invest for the future, we will leverage our unparalleled operational leadership that forms the basis of our fifty six year legacy.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

We remain relentless in our efforts to improve efficiencies across the organization, further optimizing our cost structure and maximizing profit potential. This is an area that we have closely evaluated over the past three months. We're not making nor do we anticipate making drastic wholesale changes, rather we periodically make strategic and targeted organizational improvements within information technology, operations and sales to best deliver business performance within our expanding network. Returning to our results for the third quarter. In our Integrated Circuits end market, revenue of 148,000,000 reflects the continued headwinds experienced through 2025 including the uncertainty associated with geopolitical trade restrictions, particularly in the Asia region that are muting demand.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Similarly, unresolved tariff negotiations have temporarily influenced design release from our customers in Asia. Turning to our flat panel display market, revenue of $63,000,000 was a result of strong demand from our customers in Korea and China driven by the timing of major smartphone, tablet and laptop design releases. The display market continues to prioritize development of panel products with enhanced capabilities such as faster refresh rates and enhanced energy efficiency of mobile devices that must have thinner, lighter and more flexible displays. As a result, flat panel makers are actively developing new technologies for advanced backplanes and touch panels that require more high end mask layers. Utilization of these higher value masks along with the increasing adoption of foldable consumer electronics and scaling to larger form factors are favorable demand drivers that we expect to capitalize on over the next several years.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

I now turn the call over to Eric to review our third quarter results and provide fourth quarter guidance.

Eric Rivera
Eric Rivera
CFO at Photronics

Thank you, George. Good morning, everyone. Third quarter revenue was above expectations at $210,000,000 which was relatively flat both sequentially and year over year. IC revenue of $148,000,000 declined 5% year over year. High end IC revenue represented 36% of total IC revenue and increased 8% year over year.

Eric Rivera
Eric Rivera
CFO at Photronics

We recognize a recovery in our high end business resulting from strong order patterns in The United States. Our mainstream IC revenue declined 12% year over year with the majority of the decline having occurred in Asia, while mainstream in The U. S. And Europe were stable. Turning to FPD, revenue of $63,000,000 increased 14% year over year led by strength in Korea.

Eric Rivera
Eric Rivera
CFO at Photronics

FPD continued to benefit from the uplift in seasonal demand particularly for higher end applications utilizing our advanced AMOLED technologies. Geographically during the quarter, our Taiwan facilities generated 33% of total revenue with China at 24% and Korea at 21%. The U. S. And Europe together accounted for 22% of total revenue.

Eric Rivera
Eric Rivera
CFO at Photronics

Keep in mind, the IC market is only a portion of our China revenue. We have built a strong and stable FPD business in China and our IC operations there are generated out of our 50% joint venture in Xiamen. We reported gross margin of 34%, which was higher than expectations and our operating margin of 23% was above our guidance range. Diluted GAAP EPS attributable to Photronics shareholders was $0.39 per share. After removing the impact of foreign exchange, fully diluted non GAAP EPS attributable to Photronics shareholders was $0.51 per share.

Eric Rivera
Eric Rivera
CFO at Photronics

Our overall profitability reflects a greater contributions from our operations in The U. S. And Korea. During the third quarter, we generated $50,000,000 in operating cash flow, which represented 24% of total revenue. CapEx was $25,000,000 in the quarter.

Eric Rivera
Eric Rivera
CFO at Photronics

We remain on track to spend $200,000,000 in CapEx in fiscal twenty twenty five on a combination of capacity, expansion, capability improvements and end of life tool replacements. Total cash and short term investments increased by $17,000,000 in the quarter to $576,000,000 which includes $397,000,000 of cash in the joint ventures. We have three elements to our capital allocation strategy, including organic growth, strategic investments and returning cash to shareholders. During the quarter, we repurchased 1,200,000.0 shares for $21,000,000 and received approval from our Board to increase the repurchase authorization by an additional $25,000,000 We now have $28,000,000 available under our share repurchase authorization. As communicated throughout our prepared remarks, our fiscal twenty twenty six capital allocation priority will lean towards investing in our existing business to deliver geographic revenue diversification in the future, while we remain strategic with respect to future stock repurchases.

Eric Rivera
Eric Rivera
CFO at Photronics

Before providing guidance, I'll remind you that demand for our products is inherently uneven and difficult to predict with limited visibility and typical backlog of one to three weeks. In addition, ASPs for high end mass sets are high, meaning a relatively low number of high end orders can have a significant impact on our quarterly revenue and earnings. Additionally, and as we have highlighted previously, our business is influenced by IC and display design activity and to a lesser degree by wafer and panel capacity dynamics. Given current market conditions and continued geopolitical uncertainty, we remain cautious about the near term demand environment. We expect fourth quarter revenue to be in the range of $2.00 1,000,000 and $2.00 $9,000,000 Keep in mind, we have two fewer days in Q4 than last quarter and six fewer days than Q4 last year.

Eric Rivera
Eric Rivera
CFO at Photronics

Based on those revenue expectations in our current operating model, we estimate our fiscal Q4 operating margin to be between 2022%. Our non GAAP earnings per share for the fourth quarter are expected to be in the range of $0.42 to $0.48 per diluted share. I'll now turn the call over to the operator for your questions.

Operator

Thank you. And our first question coming from the line of Tom Diffely with D. A. Davidson. Your line is now open.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Yeah. Good morning. Appreciate the chance to ask a couple of questions. First, I just wanted to ask a quick question about the fourth quarter. Do you see the mix being very similar to the third quarter? Are there any changes in what's driving the revenue?

Eric Rivera
Eric Rivera
CFO at Photronics

Hello, Tom. Eric here. Yes, we see the mix in the fourth quarter to be similar to that of the third quarter. Correct.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Okay. And then you've made some comments about tariffs and trade restrictions. I assume those don't impact you directly, but impacts your customers, which impacts just your revenue as opposed to a direct restriction on what you can and can't do?

Eric Rivera
Eric Rivera
CFO at Photronics

That is correct to some extent. So the trade restrictions as you know, we have manufacturing facilities at different locations in throughout the world. So it doesn't impact us directly. It does impact our customers, as you suggested. From a lesser extent, it does impact perhaps our material purchases and any equipment purchases we may have. But to date those impacts haven't been material.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Okay. And you are fairly regionalized where you may take most of your equipment and most of your I guess most of your materials from the region that you're serving?

Eric Rivera
Eric Rivera
CFO at Photronics

Well, no. So from a material perspective, as I mentioned that does impact us. We have a lot of material purchases from Japan for example and those would incur some tariffs if we bring them to United States.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Okay. And maybe just a quick question on the investments you're about to make. When you look at the multi beam to go to the higher end, is that for essentially serving Samsung and TSMC at the higher end nodes? Or is that for your other independent customers that are actually moving to those nodes?

Eric Rivera
Eric Rivera
CFO at Photronics

So it would be for the higher end nodes or the yes, the higher end nodes for customers similar to what you mentioned there, including Samsung, which we've talked about that in the past. I won't go into more detail as to what the other customers are, but they are for that level of customer.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Okay. And then last question. When you look at the potential to move down to the six, eight nanometer node in Asia, does there is there anything has to happen as far as getting okay or the permission to have that level of technology? Or is that already clear and it's really just a pure investment thesis at this point?

Eric Rivera
Eric Rivera
CFO at Photronics

All right. So our restrictions for those type of nodes would be in China. And these are if we were to invest in Asia, it would be in a non China location. We would be looking at anywhere else. As you know, we have Taiwan, we have Korea footprints there. So it could be at any of those sites.

Tom Diffely
Director - Institutional Research at D.A. Davidson Companies

Okay. I appreciate the time.

Eric Rivera
Eric Rivera
CFO at Photronics

Thank

Operator

you. And our next question coming from the line of Christian Schwab with Craig Hallum Capital. Your line is now open.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Thanks for taking my questions. Congrats on the great quarter and guide. Just a follow-up on the six nanometer to eight nanometer product expansion. Can you give us an idea of what end market products that those chips would be going into? I assume you're working with your customers.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

If could give any clarity regarding that, that would be great.

Eric Rivera
Eric Rivera
CFO at Photronics

Chris, you can take perhaps take that one or Frank or Chris you can take.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Yes. Hi, Christian. This is Chris. It's mostly high end processors. We're starting to see edge AI devices that are driving some things, EVs and AI embedded into cars, these sorts of things.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

So higher end processors, mobile communications, a little bit of memory as well, DRAM in particular. So it's fairly broad most of the higher end use cases the industry has for these nodes.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Fantastic. Thank you. Then regarding your CapEx which go ahead.

Frank Lee
Frank Lee
President - PDMC at Photronics

Yeah. This is Frank. I'd like to add a few more comments. For this high end technology, very often, we are working with our customer. Most of them have their own captive master.

Frank Lee
Frank Lee
President - PDMC at Photronics

So it's a customer oriented. It depends on the customer demand. And I think our investment will be in combined with customer captive outsource in future demand. So I think the product mix are very complicated, and it's a mix with different kind of product, including logic and memory.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Great. And following up on that, do you see your move to smaller IC nodes, which is smaller than you historically have operated in? Does that represent a potential market share gain opportunity for you over a multiyear timeframe? Is that the way we should be thinking about it?

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Yes. Hi, this is Chris. We do see that opportunity for market share gain. Right now those nodes say six, eight nanometer, the commercial mask makers, merchant mask makers are fairly recent entries into those nodes. So to some degree, it's still kind of a jump ball because those nodes are ramping in the commercial space.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

By making these investments and also what we should point out in our site in Idaho, we are already capable of servicing nodes to the six, eight nanometer level. We do believe we'll have a good multi region solution to take advantage of merchant growth, for these sorts of IC nodes.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Fantastic. And then regarding your CapEx at $200,000,000 elevated above your historical percentage range of aggregate revenue, if you will. And these investments not only in Asia as you highlighted, but also in Texas and Idaho. Is when would you anticipate CapEx to potentially normalize back to historical level? Is that as we exit next calendar year?

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Or do you think CapEx investments given the growth opportunities will be elevated at current levels for multiple years past this?

George Macricostas
George Macricostas
Chairman & CEO at Photronics

Yes, this is George. Basically, we're looking at about a three year higher than normal CapEx. Part of it is end of life tools, which also give us more capability. We've been able to extend the life of many tools for much longer than normal. So part of it is end of life tool replacement, which again gives us extra capability, but also its investments, strategic investments in Asia for increased technology ability more advanced nodes. Those are probably the two big categories. Of course, know about the expansion in The U.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

S. In Allen, Texas that's already in the budget. But basically that's the what we're looking at is future higher nodes and end of life tool replacement, but also giving us some more capability with those replacement tools.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Great. And then as far as capital intensity at end of life tools, I would think that maybe by the end of next calendar year, your end of life tool replacement work should be finalized and additional slightly higher CapEx ranges would be more due to advanced technology spending. Am I thinking about that right? Or will end of life tools linger a little bit longer than that?

George Macricostas
George Macricostas
Chairman & CEO at Photronics

No, it will linger a little bit longer than that. We're basically not trying to do it all in one year. We're obviously trying to balance investing future advanced technology nodes like we mentioned in Asia and here in Allen. That's more mid range investment because we have Boise for the high end. But it's more of combined end of life and future investment for the next few years.

George Macricostas
George Macricostas
Chairman & CEO at Photronics

I think after three years will be more normalized because that end of life tool cycle will be behind us. It's not something we would want to do in one year anyway because it is it can be disruptive to some degree.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Correct. Understand. All right. Thank you. And then as we think about the flat panel display business, there's pretty optimistic third party research talking about the migration to Gen 8.6 for obvious reasons of thinner, lighter, flexible, etcetera, of around a 15% CAGR for many years to come.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Is that a market that as far as a growth rate where you think that you are extremely well positioned to capitalize on and and actually maybe outperform the aggregate growth rate of the industry?

Frank Lee
Frank Lee
President - PDMC at Photronics

Yes. You are correct. We are we have the technology for g 8.6 AMOLED, and our customer in Korea has been working with us. And, also, we are working closely with two important customer in China. So our growth in APD in the coming years, will grow, with the tremendous contribution from g 8.6, Emily.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Right. And and then our work in in directionally probably accurate, but probably not an exact percentage. But our work suggests that, you know, the ASP given the increased layer count for photo masks at that strong growth market are probably as much as 50% higher. Would you agree that that's directionally accurate or how should we be thinking about not only is the growth rate great, but the prices are materially higher. I understand you can't make a comment for competitive reasons, but directionally is that the way we should be thinking about it?

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

We don't usually comment directly on ASPs for this. I assume you're talking about the kind of blended ASP for an AMOLED G6 set, which is the current high volume manufacturing versus the same kind of asset build at G8.6. Yes, for sure we expect to see ASP lift between those two products. Also, frankly speaking, the materials costs also will go up because the substrates are larger. But generally, we do expect ASP to be higher.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

We expect margins to be better. But we really don't think we should comment on specific numbers and percents at this point.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Great. And then my very last question here has to do with capital allocation. Congratulations on taking advantage of your stock being mispriced and stepping up and buying a material amount. Have you guys, unlike many of your peers, focused in this market or call it mainstream semiconductors as a meaningful percentage of revenue, your profitability and cash flow profile consistency is materially different. Have you guys ever considered beginning to introduce, say, a modest dividend to return more cash to shareholders as another metric?

Eric Rivera
Eric Rivera
CFO at Photronics

We've evaluated ways to give back cash back to our shareholders. At the moment, we still believe that share repurchases is the best tool for us. We've evaluated that internally and externally as well with some advisors. Having said that, I would say that over the as mentioned in the prepared remarks, over the next few years, we're going to be focusing more on internal investments. We're going to focus more our attention and prioritize that than share repurchases necessarily.

Eric Rivera
Eric Rivera
CFO at Photronics

Although as mentioned, of course, we will be opportunistic or I should say rather continue to be opportunistic in doing so. And that's why we have the authorization expanded by the Board. But we will continue to be opportunistic. We have evaluated dividends. We still believe that share repurchases is our best tool at the moment. Does that answer your question?

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

That does. No other questions. Thank you guys.

Eric Rivera
Eric Rivera
CFO at Photronics

Fantastic. Thank you.

Christian Schwab
Senior Research Analyst at Craig-Hallum Capital Group LLC

Thank

Operator

you. Our next question coming from the line of Ghoshiya Stray with Singular Research. Your line is now open.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Good morning. Can you hear me?

Frank Lee
Frank Lee
President - PDMC at Photronics

We can.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Yes. Thank you. My first question is looking at the sequential change in gross margins between Q2 and Q3, is that entirely due to mix shift within the IT segment? Or is there some ongoing cost inefficiencies associated with the recent build out?

Eric Rivera
Eric Rivera
CFO at Photronics

It will be a combination of everything, but the biggest factors would be just a mix overall business mix primarily in Asia that's causing that.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Okay. And the new technology ramp with the multi beam mass writer in Boise, can you give us any update on customer adaptation, qualification timelines, whether this new capacity is translating to tangible order visibility for customers?

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Sure. I can make a couple of comments. Yes, Kashy, the qualifications are well underway there. We have let's say three to five customers already qualified on it. We're ramping the utilization of that. It's a nice mix of customers on that tool.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Some are very, very leading edge products, EUV that sort of thing. Others are customers we have qualified on our single beam tools and we're providing additional capacity to them and capability to them with the multi beam particularly in right speed and cycle time. So, the adoption has been good. We're continuing to work on it. I think we have probably another six months or so to get all of our first pass of customers qualified, but progress is good and the customer reaction has been positive.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

And we should point out it's the only multi beam in commercial mask maker hands in The U. S. So, the mix in The U. S. Is going higher end.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

So we're getting a lot of interest in the use of this tool, particularly from U. S. Customers.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Got it. And given that your comments on elevated CapEx for the next couple of years, A significant portion of your cash is tied up in JVs. How much flexibility do you have to allocate or redeploy those funds for strategic needs or buybacks in The U. S?

Eric Rivera
Eric Rivera
CFO at Photronics

So we have well, we control the cash for sure. That's why we consolidated in accordance with U. S. GAAP. We can certainly use that at the joint venture regions.

Eric Rivera
Eric Rivera
CFO at Photronics

And if needed, we can certainly dividend it out to The U. S. To the corporate office here in The U. S. Of course, if we were to dividend that out, we'd have to give our share to our minority share partner there.

Eric Rivera
Eric Rivera
CFO at Photronics

But we do control the cash, we control when when and if we do dividends. And when we do so, we get our share.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Awesome. And then just my last question. With the U. S. Government involvement with Intel does that affect or have any effect on your business or potential in The U. S. Market?

Eric Rivera
Eric Rivera
CFO at Photronics

Maybe you want to talk about that? I'll make a few comments and then I'll share it. I'll pass it over to Chris for his comments. I think if the government helps Intel that strengthens Intel, Intel is a customer of ours. If our customer of ours is stronger, that can only be better for merchants like Photronics.

Eric Rivera
Eric Rivera
CFO at Photronics

But I'll pass it on to Chris for additional comments.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Yes. I mean we have a pretty strong product portfolio in The U. S. That's used by U. S.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Government entities so called full trusted products in both Allen and Boise. To the extent the government investment pushes Intel in the direction of supplying more government related ICs and things like that, that's helpful for us because we're qualified to build those. So it could lead to some more outsourcing. But generally, just echo Eric's comments, anything that helps Intel to be stronger and also more committed to designs in The U. S.

Christopher Progler
Christopher Progler
EVP, Chief Technology Officer & Strategic Planning at Photronics

Region is going to be beneficial for us because we're the only high end commercial mask maker in The U. S. Today. So that will be generally beneficial for us.

Gowshihan Sriharan
Gowshihan Sriharan
Equity Research Analyst at Singular Research

Awesome. That's all I had. I'll take the rest offline. Thank you guys.

Eric Rivera
Eric Rivera
CFO at Photronics

Thank you, Ghoshie. Good talking

Operator

you. And I'm showing there are no further questions in queue at this time. I will now turn the call back over to Ted Varr for any closing remarks.

Ted Moreau
Ted Moreau
VP - IR at Photronics

Thank you, Olivia. Really appreciate everybody joining the call today. And we appreciate your interest in Fortronics. I look forward to connecting with everybody throughout the quarter. And have a great afternoon. Thank you.

Eric Rivera
Eric Rivera
CFO at Photronics

Thank you everyone. Thank you.

Operator

This concludes today's conference. Thank you for your participation and you may now disconnect.

Executives
    • Ted Moreau
      Ted Moreau
      VP - IR
    • George Macricostas
      George Macricostas
      Chairman & CEO
    • Eric Rivera
      Eric Rivera
      CFO
    • Christopher Progler
      Christopher Progler
      EVP, Chief Technology Officer & Strategic Planning
    • Frank Lee
      Frank Lee
      President - PDMC
Analysts
    • Tom Diffely
      Director - Institutional Research at D.A. Davidson Companies
    • Christian Schwab
      Senior Research Analyst at Craig-Hallum Capital Group LLC
    • Gowshihan Sriharan
      Equity Research Analyst at Singular Research
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