Photronics to Streamline Singapore Manufacturing
BROOKFIELD, Conn.--(BUSINESS WIRE)--
Inc. (NASDAQ:PLAB), a worldwide leader in supplying innovative
imaging technology solutions for the global electronics industry,
announced today it is streamlining its operating infrastructure in Asia
by ceasing the manufacture of semiconductor photomasks at its Singapore
facility. Manufacturing activities for those customers previously
serviced at Photronics' Singapore facility will be serviced at the
Company's other global photomask fabrication facilities, including Korea
and Taiwan. The Company will maintain customer service, data preparation
and photomask repel services at the Singapore facility. Photronics
estimates that this action will result in an annualized cost savings of
approximately $3 to $4 million, the majority of which will be cash.
The Company expects this restructuring will have a minimal effect on
revenues and that it will record a charge in Fiscal 2012 not to exceed
$2.5 million. Photronics will provide further financial details relating
to the manufacturing change during its Fourth Quarter conference call on
Wednesday, December 7, 2011. The Company estimates that the
manufacturing streamlining will reduce headcount by approximately 60
Constantine S. Macricostas, Founder, Chairman and Chief Executive
Officer, said, "The Asian semiconductor landscape continues to change
and we are aligning our manufacturing facilities to meet current demand
and improve our cost structure. In addition to improving consolidated
margins, this streamlining will continue to position us as highly
competitive in the market."
"We are maintaining a strong customer focus in Singapore," continued
Macricostas. "Photronics is fully committed to providing high quality
photomasks and services at the best value to our customers through the
efficient utilization of our manufacturing locations across Asia, the
U.S. and Europe. We intend to maintain a customer support, data
preparation and repel services center in Singapore to ensure seamless
customer service and strategic access to the Photronics global network.
Finally, we would like to acknowledge the dedication and efforts of our
Singapore employees and thank them for their contributions to the
is a leading worldwide manufacturer of photomasks.
Photomasks are high precision quartz plates that contain microscopic
images of electronic circuits. A key element in the manufacture of
semiconductors and flat panel displays, photomasks are used to transfer
circuit patterns onto semiconductor wafers and flat panel substrates
during the fabrication of integrated circuits, a variety of flat panel
displays and, to a lesser extent, other types of electrical and optical
components. They are produced in accordance with product designs
provided by customers at strategically located manufacturing
facilities in Asia, Europe, and North America. Additional
information on the Company can be accessed at www.photronics.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements made by or on behalf of
Photronics, Inc. and its subsidiaries (the Company). The forward-looking
statements contained in this press release and other parts of
Photronics' web site involve risks and uncertainties that may affect the
Company's operations, markets, products, services, prices, and other
factors. These risks and uncertainties include, but are not limited to,
economic, competitive, legal, governmental, and technological factors.
Accordingly, there is no assurance that the Company's expectations will
be realized. For a fuller discussion of the factors that may affect the
Company's operations, see "Forward Looking Statements" in the Company's
Quarterly and Annual Reports to the Securities and Exchange Commission
on Forms 10-Q and 10-K. The Company assumes no obligation to provide
revisions to any forward-looking statements.
Sean T. Smith, 203-775-9000
Chief Financial Officer
Source: Photronics, Inc.
News Provided by Acquire Media
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