Tower returns employees to full work week

Several new orders recently led the foundry to boost output.

Sources inform ''Globes'' that specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) has notified employees that it was resuming a full five-day work week, beginning on October 1. The company cut the work week to four days during the crisis, but recently signed a slew of new contracts and raised its third quarter guidance.

Tower's management stated, "We thank you for your contribution to the company's efforts in recent months through the salary cuts, and we wish to thank you for your comprehension, cooperation, and confidence in the company."

In the past couple of months, Tower has signed a number of new contracts, mostly with South Korean companies, which will boost the company's revenue beginning in 2010. Tower raised its third quarter revenue guidance to $77-80 million from $73-77 million. The numerous orders led Tower to boost output at its Migdal Ha'Emek Fab2, and prompted the return to a full work week.

Tower's share closed at $0.93 on Nasdaq yesterday. The share rose 3% in morning trading on the TASE to NIS 3.50.

Published by Globes [online], Israel business news - www.globes-online.com - on September 17, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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