Ben Taxdahl

Ben Taxdahl from Craig-Hallum inquired about the factors contributing to the slight sequential decrease in revenue and operating margin beyond the Chinese New Year, and what conditions are necessary to achieve the higher end of the guided range. He also asked about the Allen facility's role in conjunction with the high-end Boise facility, the future trajectory of high-end IC revenue, and the market opportunity for G8.6 AMOLED technology in flat panel displays.

Answer

Frank Lee, Head of Asia Operations, explained that the Chinese New Year holiday in mid-February temporarily slowed output and customer tape-out forecasts, impacting Q2 revenue. He clarified that the Allen facility will support mainstream production, freeing Boise for high-end business, and mentioned CapEx expansion for Boise's high-end capacity using multi-beam mask writers. Regarding G8.6 AMOLED, Mr. Lee noted it's in its infancy, with initial orders from Korean customers and development by Chinese customers, positioning Photronics as a leader with its new advanced mask writer. Eric Rivera, President and Chief Financial Officer, had no further additions on FPD.