Photronics Inc. (NASDAQ:PLAB) Q2 2020 Earnings Conference Call - Final Transcript

May 27, 2020 • 08:30 am ET

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Photronics Inc. (NASDAQ:PLAB) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Photronics Second Quarter Fiscal Year 2020 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to Troy Dewar, Vice President of Investor Relations. Please go ahead.

Executive
R. Troy Dewar

Thank you, Sarah. Good morning, everyone. Welcome to our review of Photronics' 2020 second quarter financial results. Joining me this morning are Peter Kirlin, our Chief Executive Officer; John Jordan, our Chief Financial Officer; and Chris Progler, our Chief Technology Officer. The press release we issued earlier this morning, along with the presentation material which accompanies our remarks, are available on the Investor Relations section of our webpage.

Comments made by any participants on today's call, may include forward-looking statements that include such words as anticipate, believe, estimate, expect, forecast, in our view. These forward-looking statements are based upon a number of risks, uncertainties and other factors that are difficult to predict. Actual results may differ materially from those expressed or implied and we assume no obligation to update any forward-looking information.

At this time, I will turn the call over to Peter.

Executive
Peter S. Kirlin

Thank you, Troy, and good morning everyone. Before beginning our discussion of second quarter results and third quarter outlook, I would like to take a few moments to recognize our global workforce for their outstanding response to recent challenges. Beginning in February with our operations in China and extending globally over the last three months, our employees have displayed dedication, commitment, and real customer-centric attitude that has enabled us to continue operating to meet customer expectation.

As events started to evolve, we quickly developed implemented a game plan to focus on four key areas; employee health, raw material supply, customer support and tool maintenance. All these are critical for sustaining our global operations. Across our sites, with newly implemented policies to protect our employees through health monitoring, the adoption of known best practices to [Indecipherable] the virus, including the use of personal protective equipment and a comprehensive global visitor policy and enabling small segments of our workforce to work from home, in accordance with local requirement. We initiated regular internal meetings to monitor a global supply chain and address any issues, and continue to be in direct contact with our raw material suppliers, logistics partners and OEM equipment service groups to minimize any impact on our operations. Because of these actions, we've been able to meet all our customers' photomask with the same quality and delivery performance, to which they are accustomed. Effectively business as usual, it has been a true team effort and I'm very proud of our response.

Moving on to second quarter results, revenue was higher year-over-year driven by FPD, as we benefited from stronger global demand, as well as more capacity from our new Chinese factory this enabled us to achieve year-over-year revenue growth for the 11th consecutive quarter; to the first half of this year, revenues are 18% ahead of last year's pace, which was a record year for Photronics.