The company issued its third-quarter preliminary results after the market closed, saying revenues would also fall short of previous expectations.

Shares of Photronics fell 31 cents, more than 8 percent, to $3.48 in aftermarket trading. The stock closed the regular session Wednesday down 18 cents, or 4.5 percent, to $3.79.

The company is due to announce third quarter results on Aug. 13. Photronics said it expects revenues for the quarter ending July 27 will be between $105 million and $106 million, down from previous estimates of between $112 million and $118 million.

It said demand for its products has dropped as customers cut costs, especially for its high-end products.

The company expects a net loss per share ranging from $4.75 to $5.23, up from previous estimates that it gain a penny or lose as much as a 11 cents per share.

Analysts had been expecting revenue of nearly $115.2, according to a poll by Thomson Financial. They expected a loss of 5 cents per share.

Photronics said because of sustained decline drops in market capitalization for the company and its industry, it will incur a non-cash, goodwill and long-lived asset impairment charge in the quarter. It said it expected the charge to be in a range of $190 million to $210 million after taxes.

The company will also record a $1 million cash charge related to severance and benefits for former chief executive officer, Michael Luttati, who announced his resignation from the company late last month.

The company makes so-called photomasks that semiconductor companies use to transfer the image of a circuit onto a wafer, a critical part of the chip-making process.

It has lost $5.4 million over the first six months of its fiscal year, after making $24.5 million profit last year.

Luttati has been replaced by chairman Constantine Macricostas until a permanent replacement is found.

Story Source: Associated Press/AP Online