SAN FRANCISCO Blaming a shortfall in flat panel display (FPD) photomask orders, U.S. mask maker Photronics Inc. Monday (July 31) said it has revised its quarterly guidance downward. The company said it expects to report quarterly revenue of $106 million to $107 million for the three-month period ended July 30, down from original expectations of $119 million to $124 million.
Photronics (Brookfield, Conn.) said fiscal third quarter earnings are expected to be between 9 and 11 cents per diluted share. The company said its revised earnings-per-share guidance excludes the impact of previously announced restructuring charges associated with the consolidation of its operations in North America.
Photronics said it experienced a slower-than-expected demand for FPD mask technology and services in both the Korean and Taiwanese regions. The company said believes that the impact of current market dynamics will short-term, and that FPD design activity continues to be focused on leveraging new manufacturing capability coming on line from Generation 7 and Generation 8 facilities in Korea and Taiwan.
"The revenue shortfall equates to an overall market reduction of FPD designs that were not released as we had originally forecasted," said Michael Luttati, Photronics CEO. "The reduced number of designs, coupled with the average selling prices for these mask sets precipitated a revenue shortfall that was disruptive in the current quarter."
Photronics plans to release its fiscal third quarter earnings after the market closes on Tuesday, Aug. 15.