SAN JOSE, Calif. - Mask maker Photronics Inc. raised its capital spending again amid strong results.
Sales for the third quarter were $112.3 million, an increase of 18 percent compared with $95.4 million for the third quarter of fiscal year 2009. Sales for the second quarter were $105.1 million.
GAAP net income for the third quarter of fiscal year 2010 was $7.7 million, or $0.13 earnings per diluted share, compared to a net loss of $22.8 million, or minus $0.55 loss per share, for the third quarter of fiscal 2009. GAAP net income attributable to Photronics for the second quarter of fiscal year 2010 was $7.9 million, or $0.14 earnings per diluted share.
Sales of semiconductor photomasks were $86.0 million, or 77 percent of revenues, during the third quarter of fiscal 2010, and sales of flat panel display (FPD) photomasks were $26.3 million, or 23 percent of revenues.
The company's 65-nm mask business jumped by 137 percent in the quarter, said Constantine Macricostas, Photronics’ chairman and chief executive. The 45-nm mask business is expected to be over $25 million in fiscal 2010, compared to $14 million in fiscal 2009.
Photronics also raised its capital spending. Capital spending is expected to hit $70-to-$75 million in 2010. Capital spending is expected to hit $60-to-$100 million in 2011. Rival mask vendors Toppan and DNP have also expanded their capacities.
Amid strong results in Q2, Photronics in May raised its capital spending to $60-to-$65 million for the year, up from $55 million. The company also completed the sale of its former photomask manufacturing facility in Shanghai, China for $12.9 million.The company had previously announced the closure of the facility in 2009.
The company has invested in capacity in Korea, Taiwan and Boise, Ida. In Boise, Photronics has a joint mask venture With Micron Technology Inc. At the venture, the companies are devising 32-nm mask technology.
For Q4, Photronics expects to have sales from $112-to-$115 million.