SOURCE: Photon Dynamics, Inc.

October 22, 2007 16:05 ET

Photon Dynamics Announces Analyst Event

Company Also Provides Corporate Update Including Selected Financial Highlights and Issues Letter to Its Shareholders

SAN JOSE, CA--(Marketwire - October 22, 2007) - Photon Dynamics, Inc. (NASDAQ: PHTN), a leading global supplier of integrated yield management solutions for the flat panel display market, today announced that key executives will present at a Company sponsored Analyst Event, which is being held at corporate headquarters on November 7, 2007 from 2:00 p.m. - 4:00 p.m. PST.

The event will include a tour of the Company's manufacturing facility, followed by a presentation by executive management and a Q & A session. Executives will provide insight into Photon Dynamics' strategic initiatives and its product roadmap, including its recent investment into Salvador Imaging that expands the Company's opportunities in additional growth markets.

Jeffrey Hawthorne, President and Chief Executive Officer, said, "We look forward to the Photon Analyst Event. It presents an opportunity for analysts to better understand the Company's operations and strategic direction, and provides a forum in which the professional investment community may interact with corporate executives."

The presentation will be broadcast live via the Web. The live web cast may be found on the Investor Relations page of the Photon Dynamics corporate site at www.photondynamics.com. The presentation will be archived for a period of ninety days following the event on Photon Dynamics' website at www.photondynamics.com under "Calendar of Events" in the "Investors" section of the website. For further details on the Analyst Event, please contact Laura Guerrant of Guerrant Associates at (808) 882-1467 or via email at lguerrant@guerrantir.com.

Company Update as of October 22, 2007

Photon Dynamics also noted that it has provided a corporate update to the Company's shareholders and the investment community.

As previously announced, Photon Dynamics will restate historical financial statements, which has resulted in the delay of its SEC filings. The Company is in the process of preparing restated financial statements to correct historical underreporting of customs duties with respect to the shipment of warranty parts; and plans to file restated audited financial statements as soon as practicable.

The following information with respect to the quarter ended September 30, 2007 is preliminary and unaudited.

Highlights for the Quarter ended September 30, 2007

 -- Revenue (unaudited) for the quarter ended September 30, 2007 was
    approximately $24 million.

 -- Bookings for the quarters ended June 30, 2007 and September 30, 2007
    were approximately $10 million and $29 million respectively.
    Backlog at the end of the fourth quarter was approximately
    $45 million.

 -- As of September 30, 2007, the Company had $85 million in cash and
    short-term and long-term investments.

 -- The Company's strategic technological investments are resulting in
    increased market share in its core markets.  In the fourth quarter,
    for example, Photon Dynamics won over 90% of available unit
    opportunities for test system bookings.  While this percentage may
    fluctuate from quarter to quarter, the Company is confident that
    it is in a strong competitive position.

 -- Key wins during the September 2007 quarter included:
     - Generation 7.5 expansions in Taiwan.
     - Generation 5 and Generation 7.5 testers with a Taiwan customer who
       previously had exclusively used full contact probing testers.
     - Replacement of Generation 5 e-beam tester for a Taiwan customer.
     - Replacement of Generation-4 full contact probe testers for a Taiwan
       customer.

Letter to Shareholders Dated October 22, 2007

Photon Dynamics has also published a Letter to Shareholders dated October 22, 2007, which provides an update on the Flat Panel Display (FPD) market and the progress of the Company's strategic initiatives, and elaborates on the initial steps taken to expand opportunities in additional growth markets. A copy of the letter can be accessed on the Company's website at www.photondynamics.com.

About Photon Dynamics, Inc.

Photon Dynamics, Inc. is a global supplier utilizing advanced machine vision technology for market leading flat panel display test and repair systems and for high performance digital imaging systems for defense, surveillance, industrial inspection and medical imaging applications. For more information about Photon Dynamics (NASDAQ: PHTN), visit its website at www.photondynamics.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This press release and the shareholder letter contain forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Photon Dynamics may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements, other than those of historical fact, could be deemed forward-looking statements, including, but not limited to, any financial projections; any statements of the plans, strategies, and objectives of management for future operations, including execution of cost reduction programs; any statements concerning the expected development of, or the performance or market share relating to, products or services; any statements of expectation or belief; any statements of assumptions underlying any of the forgoing; the difficulty of aligning expense levels with revenue changes; expectations and assumptions relating to the execution and timing of cost reduction programs; the resolution of internal reviews; the ability to file restated financial statements in a timely fashion; and other risks that are described in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the caption "Factors Affecting Operating Results" in Photon Dynamics' Annual Report on Form 10-K for the year ended September 30, 2006 as filed with the Securities and Exchange Commission. As a result, actual results may differ substantially from expectations. Photon Dynamics undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Contact Information

  • Contacts:

    Corporation:
    Photon Dynamics
    Jeffrey Hawthorne
    (408) 360-3561
    Email Contact

    Investors and Media:
    Guerrant Associates
    Laura Guerrant
    (808) 882-1467
    Email Contact