Photronics, Inc. (NASDAQ: PLAB) shares were shaken up by a reported stock buyback plan.
The company, based in Brookfield, Conn., announced Friday that its Board of Directors had authorized the repurchase of up to $20 million of its common stock. The purchases will occur in open market transactions from time to time depending on market conditions or in accordance with a repurchase plan under SEC Rule 10b5-1.
Said CEO Peter Kirlin, "We are pleased that our strong cash flow and balance sheet enable us to begin to return cash to our shareholders.
"Our growing confidence in the successful execution of our long-term growth strategy, including our China projects, and the sustainable ability to generate free cash flow after our facilities are operational, positions us to initiate this program now without jeopardizing our ongoing investments."
This authorization does not obligate the Company to repurchase any dollar amount or number of shares of common stock. The repurchase program may be suspended or discontinued at any time.
Photronics makes photomasks, which 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 display 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.
Photronics shares gained 30 cents, or 3.6%, to $8.60 Monday morning, within a 52-week trading of $7.20 to $10.60.
