Photronics to halt mask making in Singapore

SAN FRANCISCO—Photomask vendor Photronics Inc. said this week it would cease manufacturing operations at its Singapore facility in an effort to streamline its mask building infrastructure.

Photronics (Brookfield, Conn.) said manufacturing for customers previously serviced from its Singapore facility would be handled by the company's other manufacturing facilities, included sites in South Korea and Taiwan.

Customer service, data preparation and photomask repel services will continue to be handled at the Singapore facility, Photronics said. The company estimates that the action will save $3 million to $4 million per year. Photronics will take a restructuring charge for fiscal 2012 of no more than $2.5 million, the company said.

"The Asian semiconductor landscape continues to change and we are aligning our manufacturing facilities to meet current demand and improve our cost structure," said Constantine Macricostas, founder, chairman and CEO of Photronics, in a statement.

Also this week, Photronics reported record sales of semiconductor and flat-panel display photomasks for its fiscal year 2011, which closed Oct. 30.

Photronics reported sales of $122.2 million for the fiscal fourth quarter, which also closed Oct. 30, down 10 percent compared to the previous quarter but up 11 percent compared to the year-ago quarter. Sales of semiconductor photomasks in the quarter totaled $96.5 million, or 79 percent of revenues, while sales of flat-panel display photomasks totaled $25.7 million, or 21 percent of revenues, Photronics said.

The company posted a net income in accordance with generally accepted accounting principles for the quarter of $9.3 million, or 14 cents per diluted share, down 18 percent from the previous quarter and up 15 percent from the year-ago quarter.

For the fiscal year, Photronics reported record sales of $512 million, up 20 percent from fiscal 2010.

Sales of semiconductor photomasks were $391.2 million, or 76 percent of revenues for the fiscal year, while sales of flat-panel display photomasks totaled $120.8 million, or 24 percent of revenues. The company posted a GAAP net income for the year of $16.2 million, or 28 cents per share, including a debt extinguishment loss of $35.3 million. GAAP net income slipped from fiscal 2010, when it was $23.9 million, or 43 cents per share.

"Though weakness in the global semiconductor and flat panel markets may continue in the short term, we believe that demand at the leading edge is in our favor for future growth and share gains," Macricostas said.
Photronics to halt mask making in Singapore