Photronics to streamline singapore manufacturing
Brookfield, conn.--(business wire)--photronics, 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 positions. 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 company." photronics 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. 20-2011
