Photronics, Inc. (NASDAQ: PLAB) reported Q1 EPS of $0.08, $0.03 better than the analyst estimate of $0.05. Revenue for the quarter came in at $124.7 million versus the consensus estimate of $125.1 million.

• First quarter 2019 revenue was $124.7 million, up 1% year-over-year and down 14% sequentially
• Net income attributable to Photronics, Inc. shareholders was $5.3 million, or $0.08 per diluted share
• Cash balance was $232 million, with capital expenditures of $107 million as China investments peaked
• Repurchased 1.1 million shares for $10.7 million; cumulative repurchase of 3.7 million shares for $33.8 million since July 20181
• Second quarter 2019 guidance: revenue between $125 and $135 million with diluted EPS between $0.03 and $0.10

"First quarter revenue met our expectations as strong results in AMOLED displays in China were somewhat offset by anticipated impact of seasonal softness, macroeconomic headwinds, and six fewer days than the fourth quarter of 2018,” said Peter Kirlin, chief executive officer. “We saw weaker demand in IC, for both high-end and mainstream, due to semiconductor industry macro headwinds and seasonal softness. For FPD, AMOLED demand was solid once again as new product development and introduction continues. Pressure from lower revenue and startup expenses in China resulted in overall gross and operating margin of 20.9% and 6.5%, respectively. Cash balance at the end of the quarter was $232 million as we invested $107 million in capital expenditures, primarily for China. Work on our new China facilities is progressing and we anticipate production to begin in Hefei during the second quarter.”

GUIDANCE:

Photronics, Inc. sees Q2 2019 EPS of $0.03-$0.10, versus the consensus of $0.10. Photronics, Inc. sees Q2 2019 revenue of $125-135 million, versus the consensus of $134.35 million.

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