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REVENUE
 6 Months Ended
May 03, 2026
REVENUE [Abstract]  
REVENUE
NOTE 8 - REVENUE

The Company recognizes revenue when, or as, control of a good or service transfers to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those goods or services. The Company accounts for an arrangement as a revenue contract when each party has approved and is committed to perform under the contract, the rights of the contracting parties regarding the goods or services to be transferred and the payment terms are identifiable, the arrangement has commercial substance, and collection of consideration is probable. Substantially all of the Company’s revenue comes from the sales of photomasks. The Company typically contracts with its customers to sell sets of photomasks, which are comprised of multiple layers, the predominance of which the Company invoices as they ship to customers. As the photomasks are manufactured to customer specifications, they have no alternative use to the Company and, as the Company’s contracts generally provide it with the right to payment for work completed to date, the Company recognizes revenue as it performs, or “over time,” on most of its contracts. The Company measures its performance to date using an input method, which is based on the Company’s estimated costs to complete the various manufacturing phases of a photomask. At the end of a reporting period, there are a number of uncompleted revenue contracts on which the Company has performed; for any such contracts under which the Company is entitled to be compensated for its costs incurred plus a reasonable profit, the Company recognizes revenue and a corresponding contract asset for such performance. The Company accounts for shipping and handling activities that it performs after a customer obtains control of a good as being activities to fulfill the Company’s promise to transfer the good to the customer, rather than as promised services, or performance obligations, under the contract. The Company reports its revenue net of any sales or similar taxes the Company collects on behalf of governmental entities.
As stated above, photomasks are manufactured to customer specifications in accordance with their proprietary designs; thus, they are individually unique. Due to their uniqueness and other factors, their transaction prices are individually established through negotiations with customers; consequently, the Company’s photomasks do not have standard or “list” prices. The transaction prices of the vast majority of the Company’s revenue contracts include only fixed amounts of consideration. In certain instances, such as when the Company offers a customer an early payment discount, an estimate of variable consideration would be included in the transaction price, but only to the extent that a significant reversal of revenue would not occur when the uncertainty related to the variability was resolved.

Contract Assets, Contract Liabilities, and Accounts Receivable

The Company recognizes a contract asset when its performance under a contract precedes the Company’s receipt of consideration from a customer, or before payment is due, and the right to receive consideration is conditional upon factors other than the passage of time. Contract assets reflect the Company’s transfer of control to customers of photomasks that are in process or completed but not yet shipped to customers. A receivable is recognized when the Company has an unconditional right to payment, which generally occurs upon the shipment of the photomasks. The Company’s contract assets primarily consist of in-process production orders and fully manufactured photomasks which have not yet shipped, for which the Company has an enforceable right to consideration (including a reasonable profit) in the event the in-process orders are cancelled by customers. On an individual contract basis, the Company nets contract assets with contract liabilities for financial reporting purposes. The Company did not identify impairment indicators for any outstanding contract assets during the three-month and six-month periods ended May 3, 2026, or May 4, 2025.

The following table provides information about the Company’s contract balances at the balance sheet dates.

 
May 3,
    
October 31,
  
Classification
  
2026
    
2025
  
Contract Assets
            
Other current assets
  
$
14,592
    
$
12,670
  
                 
Contract Liabilities
                
Accrued liabilities
  
$
13,373
    
$
9,491
  
Other liabilities
    
12,233
      
5,041
  
   
$
25,606
    
$
14,532
  

The Company did not recognize any revenue from performance obligations satisfied in the previous periods. The following table presents revenue recognized from contract liabilities that existed at the beginning of the reporting periods.

   
Three Months Ended
    
Six Months Ended
  
   
May 3,
    
May 4,
    
May 3,
    
May 4,
  
   
2026
    
2025
    
2026
    
2025
  
Revenue recognized from beginning liability
  
$
2,327
    
$
2,589
    
$
3,010
    
$
5,745
  

The Company generally records accounts receivable at their billed amounts. All outstanding past due customer invoices are reviewed for collectability during, and at the end of, every reporting period. To the extent the Company believes a loss on the collection of a customer invoice is probable, the Company would record the loss and credit an allowance for credit losses. In the event that an amount is determined to be uncollectible, the Company charges the allowance for credit losses and derecognizes the related receivable. The amount of credit losses recorded for the three-month or six-month periods ended May 3, 2026, and May 4, 2025 were not material.
The Company’s invoice terms generally range from net thirty to ninety days, depending on both the geographic market in which the transaction occurs and the Company’s payment agreements with specific customers. In the event that the Company’s evaluation of a customer’s business prospects, and financial conditions indicate that the customer presents a collectability risk, the Company will modify terms of sale, which may require payment in advance of performance. At the time of adoption, the Company elected the practical expedient allowed under ASC Topic 606 “Revenue from Contracts with Customers” (“Topic 606”) that permits the Company not to adjust a contract’s promised amount of consideration to reflect a financing component when the period between when the Company transfers control of goods or services to customers and when the Company is paid is one year or less.

In instances when the Company is paid in advance of the Company’s performance, the Company records a contract liability and, as allowed under the practical expedient in Topic 606, recognizes interest expense only if the period between when the Company receives payment from the customer and the date when the Company expects to be entitled to the payment is greater than one year. Historically, advance payments the Company has received from customers have generally not preceded the completion of the Company’s performance obligations by more than one year.

Disaggregation of Revenue

The following tables present the Company’s revenue for the three-month and six-month periods ended May 3, 2026, and May 4, 2025, disaggregated by product type, geographic origin, and timing of recognition.

   
Three Months Ended
    
Six Months Ended
  
   
May 3,
    
May 4,
    
May 3,
    
May 4,
  
Revenue by Product Type
  
2026
    
2025
    
2026
    
2025
  
IC
                        
High-end
  
$
56,655
    
$
59,299
    
$
127,937
    
$
119,405
  
Mainstream
    
90,852
      
96,578
      
184,861
      
190,429
  
Total IC
  
$
147,507
    
$
155,877
    
$
312,798
    
$
309,834
  
                                 
                                 
FPD
                                
High-end
  
$
52,828
    
$
43,613
    
$
99,777
    
$
93,292
  
Mainstream
    
9,605
      
11,502
      
22,431
      
20,004
  
Total FPD
  
$
62,433
    
$
55,115
    
$
122,208
    
$
113,296
  
                                 
   
$
209,940
    
$
210,992
    
$
435,006
    
$
423,130
  


 
Three Months Ended
    
Six Months Ended
  
   
May 3,
    
May 4,
    
May 3,
    
May 4,
  
Revenue by Geographic Origin*
  
2026
    
2025
    
2026
    
2025
  
Taiwan
  
$
65,047
    
$
75,060
    
$
139,366
    
$
148,094
  
China
    
60,598
      
58,742
      
123,317
      
112,300
  
South Korea
    
40,033
      
37,594
      
81,113
      
77,831
  
United States
    
34,156
      
30,727
      
71,558
      
67,626
  
Europe
    
9,048
      
8,153
      
17,829
      
16,094
  
Other
    
1,058
      
716
      
1,823
      
1,185
  
   
$
209,940
    
$
210,992
    
$
435,006
    
$
423,130
  
* This table disaggregates revenue by the location in which it was earned.
   
Three Months Ended
    
Six Months Ended
  
   
May 3,
    
May 4,
    
May 3,
    
May 4,
  
Revenue by Timing of Recognition
  
2026
    
2025
    
2026
    
2025
  
Over time
  
$
203,667
    
$
200,188
    
$
421,864
    
$
405,264
  
At a point in time
    
6,273
      
10,804
      
13,142
      
17,866
  
   
$
209,940
    
$
210,992
    
$
435,006
    
$
423,130
  

Contract Costs

The Company pays commissions to third-party sales agents for certain sales they procure on the Company’s behalf. However, the bases of the commissions are the transaction prices of the sales, which are completed in less than one year; thus, no relationship is established with a customer that will result in future business. Therefore, the Company would not recognize any portion of these sales commissions as costs of obtaining a contract, nor does the Company currently foresee other circumstances under which the Company would recognize such assets.

Remaining Performance Obligations

As the Company is typically required to fulfill customer orders within a short time period, the Company’s backlog of orders is generally not in excess of one to two weeks for IC photomasks and two to three weeks for FPD photomasks. As allowed under ASC 606 – Revenue Contracts with Customers, the Company has elected not to disclose the Company’s remaining performance obligations, which represent the costs associated with the completion of the manufacturing process of in-process photomasks related to contracts that have an original duration of one year or less.

Product Warranties

The Company’s photomasks are sold under warranties that generally range from one to twenty-four months. The Company warrants that the Company’s photomasks conform to customer specifications, and the Company will typically repair, replace, or issue a refund for any photomasks that fail to do so. The warranties do not represent separate performance obligations in the Company’s revenue contracts. Historically, customer claims under warranties have been immaterial.