Photronics Inc (NASDAQ:PLAB)
Photronics, Inc. (PLAB), a global company that sells photomasks yesterday reported their fiscal third quarter 2017 financial results.
The company reported adjusted third quarter earnings of $0.06 per share which fell short of analyst expectations of $0.09 per share along with revenues of $111.6 million which fell short of analyst expectations of $115.2 million.
Photronics, Inc. CEO’s Comments
“Third quarter sales improved sequentially as we were able to achieve moderate growth in both IC and FPD,” said Peter Kirlin, chief executive officer. “IC sales were generally in line with our expectations, as high-end memory grew and high-end logic remained flat. FPD sales were also higher, although slightly below our expectations due to unfavorable product mix. Operating income was modestly lower as an increase in gross profit was offset mostly by higher R&D, as qualification activity remained robust. As we ramped up capex during the quarter, primarily to complete our FPD investment, our cash balance declined slightly. However, we still have tremendous financial strength and flexibility to fund strategic growth initiatives.” Market Wired
PLAB Technical Analysis
PLAB opened trading yesterday at $9.60 which was up from the previous day’s trading close of $9.50. PLAB closed trading yesterday at $9.85 and spiked down after market to $8.25, equivalent to a 16% decrease from the closing price. Taking a look at the daily chart we can see the last time PLAB traded below these levels we have to go back to August 18th, 2015 when it traded at $7.75.
Taking a closer look at the daily chart we can see that before the spike down PLAB had already been in an overall downward trend dating back to May 16th when it traded at $11.55. PLAB has a float of 67.62 million shares and traded below the normal daily trading volume on Monday.
For trading purposes, I would like to see PLAB open trading on Tuesday below $8.75 and if it does I would be looking to take a short position at the bell. My stop order would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally. The company offers photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits for use in the manufacture of semiconductors and flat panel displays (FPDs), as well as that are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, FPDs, and other types of electrical and optical components. It sells its products to semiconductor or FPD designers, manufacturers, and foundries, as well as to other high performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was founded in 1969 and is based in Brookfield, Connecticut.