Ongoing soft demand for microcircuits cut into Photronics Inc.’s fiscal first-quarter profit and sales but the Brookfield maker of photo masks for engraving tiny electronic pathways onto silicon wafers and flat-panel displays is confident enough about its prospects to invest $30 million on new equipment.
For three months ended Jan. 27, Photronics netted $2.9 million, or 4 cents a share, down from $4.8 million, or 7 cents a share, earned the comparable period a year ago.
First-quarter sales fell 11 percent to $99.8 million from $112.2 million.
On Tuesday, the company signed a five-year, $30 million capital lease agreement with TD Equipment Finance to fund the purchase of a lithography tool, according to Photronics latest 8-K filing with the Securities and Exchange Commission.
The interest rate will be set once the tool is delivered, the filing said. It will be a fixed rate based on a spread, plus a five-year fixed swap rate.
