Photronics Inc. Files 2024 10-K

TL;DR

PHOT 10-K filed for FY24. All systems go.

AI Summary

Photronics Inc. filed its 10-K for the fiscal year ending October 31, 2024, reporting on its operations in the semiconductors and related devices industry. The company is incorporated in Connecticut and headquartered in Brookfield, CT. This filing provides a comprehensive overview of its financial performance and business activities for the period.

Why It Matters

This 10-K filing provides investors and stakeholders with a detailed look at Photronics Inc.'s financial health and operational performance for the fiscal year 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — The filing is a standard annual report and does not indicate any immediate or unusual risks.

Key Numbers

• 2024-10-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-12-19 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• PHOTRONICS INC (company) — Filer
• 2024-10-31 (date) — Fiscal Year End
• Brookfield, CT (location) — Company Headquarters
• 0000810136 (company_id) — Central Index Key
• 3674 (industry_code) — Standard Industrial Classification

FAQ

Key Financial Figures

• $28.28 — 53,783 (based upon the closing price of $28.28 per share as reported by the NASDAQ Glo
• $16.6 m — ed research and development expenses of $16.6 million, $13.7 million, and $18.3 million
• $13.7 m — development expenses of $16.6 million, $13.7 million, and $18.3 million in 2024, 2023
• $18.3 million — es of $16.6 million, $13.7 million, and $18.3 million in 2024, 2023 and 2022, respectively. I

Filing Documents

• ef20035608_10k.htm (10-K) — 2793KB
• ef20035608_ex21.htm (EX-21) — 12KB
• ef20035608_ex23-1.htm (EX-23.1) — 3KB
• ef20035608_ex31-1.htm (EX-31.1) — 15KB
• ef20035608_ex31-2.htm (EX-31.2) — 15KB
• ef20035608_ex32-1.htm (EX-32.1) — 6KB
• ef20035608_ex32-2.htm (EX-32.2) — 5KB
• image00002.jpg (GRAPHIC) — 123KB
• image00003.jpg (GRAPHIC) — 32KB
• 0001140361-24-049881.txt ( ) — 13468KB
• plab-20241031.xsd (EX-101.SCH) — 72KB
• plab-20241031_cal.xml (EX-101.CAL) — 113KB
• plab-20241031_def.xml (EX-101.DEF) — 320KB
• plab-20241031_lab.xml (EX-101.LAB) — 1016KB
• plab-20241031_pre.xml (EX-101.PRE) — 624KB
• ef20035608_10k_htm.xml (XML) — 2534KB

BUSINESS

ITEM 1. BUSINESS 5

RISK FACTORS

ITEM 1A. RISK FACTORS 11

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 20

CYBERSECURITY

ITEM 1C. CYBERSECURITY 20

PROPERTIES

ITEM 2. PROPERTIES 22

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 22

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 22 PART II:

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23

[RESERVED]

ITEM 6. [RESERVED] 24

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 37

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 72

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 72

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 74

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 74 PART III:

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 74

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 74

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 75

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 75

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 75 PART IV:

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 76

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 80 2 Table of Contents Glossary of Terms and Acronyms Definitions of certain terms and acronyms that may appear in this report are provided below. AMOLED Active-matrix organic light-emitting diode. A technology used in mobile devices. Application-specific IC An integrated circuit customized for a particular use, rather than intended for general-purpose use ASC Accounting Standards Codification ASP Average Selling Price ASU Accounting Standards Update CHIPS Act U.S. CHIPS and Science Act of 2022 DNP Dai Nippon Printing Co., Ltd. EUV A wafer lithography technology using the industry standard extreme ultraviolet (EUV) wavelength. EUV photomasks function by selectively reflecting or blocking light, in contrast to conventional photomasks which function by selectively transmitting or blocking light Exchange Act The Securities Exchange Act of 1934 (as amended) FASB Financial Accounting Standards Board Form 10-K Annual Report on Form 10-K Form 10-Q Quarterly Report on Form 10-Q FPDs Flat-panel displays, or "displays" Generation In reference to flat panel displays, refers to the size range of the underlying substrate to which a photomask is applied. Higher generation (or "G") numbers represent larger substrates High-end (photomasks) For IC, photomasks that are 28nm or smaller; for FPD, AMOLED, G10.5+, and LTPS photomasks ICs Integrated circuits, or semiconductors LTPS Low-Temperature Poly Silicon, a polycrystalline silicon synthesized at relatively low temperatures; polycrystalline silicon in thin-film transistors (TFTs) are used in liquid-crystal display (LCD) flat panels and to drive organic light-emitting diode (OLED) displays Optical proximity correction A photolithography enhancement technique applied to compensate for the limitations of light to maintain the edge placement integrity of an original design, imaged onto a silicon wafer, for further processing to an etched pattern. PDMCX Xiamen Ameri

BUSINESS

BUSINESS Specific industry and technical terms used in this section are defined in the subsection entitled "Glossary of Terms and Acronyms," found below the Table of Contents. Business Overview Photronics, Inc. (and its subsidiaries, collectively referred to herein as "Photronics", the "Company", "we", "our", or "us") is one of the world's leading manufacturers of photomasks, which are high precision photographic quartz or glass plates containing microscopic images of electronic circuits. Photomasks are a key element in the manufacture of ICs and FPDs and are used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication of ICs, a variety of FPDs and, to a lesser extent, other types of electrical and optical components. We have eleven manufacturing facilities, which are located in Taiwan (3), China (2), Korea (1), the United States (3), and Europe (2). Our principal executive offices are located at 15 Secor Road, Brookfield, Connecticut, 06804, telephone (203) 775-9000. Our website address is http://www.photronics.com. We make available, free of charge through our website, our Forms 10-K, Definitive Proxy Statements on Schedule 14A, Forms 10-Q, Current Reports on Form 8-K, and any amendments to these reports as soon as reasonably practicable after such materials are electronically filed with or furnished to the SEC. The information found on, or incorporated into, our website is not part of this or any other report we file with or furnish to the SEC. The SEC also maintains a website at http://www.sec.gov that contains reports, proxy statements and other information regarding SEC registrants, including Photronics. Segment We operate as a single reporting segment as a manufacturer of photomasks, which are high precision quartz or glass plates containing microscopic images of electronic circuits for use in the fabrication of IC's and FPDs. In accordance with ASC 280 – "Segment Reporting" Topic of the ASC, the Compa

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