Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, stock rose 6.10% (As on December 14, 11:27:38 AM UTC-4, Source: Google Finance) after the company reported robust fourth-quarter earnings, surpassing analysts’ expectations. Non-GAAP net income attributable to Photronics, Inc. shareholders was $37.2 million, compared with $31.2 million, in the fourth quarter 2022 and $31.6 million, or $0.51 per diluted share in the third quarter of 2023 IC revenue was $164.5 million, up 5% year-over-year and 1% sequentially. FPD revenue was a record at $63.0 million, up 17% from the same quarter last year and 3% sequentially. Cash generated from operating activities was $106.6 million, and cash invested in organic growth through capital expenditures was $52.5 million. Cash balance at the end of the quarter was $499.3 million, with $12.9 million in short-term investments and $24.6 million in debt.

For the fiscal year 2023, Non-GAAP net income attributable to Photronics, Inc. shareholders was $126.0 million, or $2.04 per diluted share, compared with $101.7 million, or $1.66 per diluted share in 2022. Revenue was $892.1 million, up 8% over the previous year. IC revenue was $651.3 million, up 10% and FPD revenue was $240.8 million, up 4%. During the year 2023, Cash generated from operating activities was $302.2 million, and cash invested in organic growth through capital expenditures was $131.3 million. According to the company, strong cash generation and the disciplined strategy of investing in growth strengthened the balance sheet.

PLAB in the fourth quarter of FY 23 has reported the adjusted earnings per share of 60 cents, beating the analysts’ estimates for the adjusted earnings per share of 53 cents. The company had reported the adjusted revenue growth of 8 percent to $227.5 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $224 million. Both IC and FPD increased, as demand for our design-driven products remained strong. Operating expenses were lower sequentially, partially offsetting lower gross profit, resulting in operating margins of 28.5% for the fourth quarter and 28.4% for the year.

For the first quarter of fiscal 2024, Photronics expects revenue to be between $217 million and $225 million and non-GAAP net income attributable to Photronics, Inc. shareholders to be between $0.45 and $0.53 per diluted share. An analyst polled by Capital IQ expected adjusted diluted EPS of $0.49 on revenue of $220 million.