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.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.