Tower doubles revenue

Net profit rose to $36 million.

Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) reported second quarter revenue of $125.7 million, 107% more than the $60.6n million recorded in the corresponding quarter.

Net profit on a non-GAAP basis was $36 million ($0.15 per share), compared with only $5 million ($0.03 per share) in the corresponding quarter. Nonetheless, the figure was slightly below analysts' earnings per share estimate of $0.16. The forecast is the average of only two analysts.

On the basis of GAAP (generally accepted accounting principles), Tower recorded a net loss of $9 million ($0.04 per share), compared to a net loss of $31 million (loss of $0.19 per share) for the second quarter of 2009.

The company’s cash balance, as of June 30 was $85 million, up from the $38 million as of June 30, 2009.

Tower does business as TowerJazz since acquiring Jazz in 2008.

The company said it was another record quarter of design wins with more than 120, 50% higher than the second quarter of 2009.

The company provided third quarter guidance of $132-137 million revenue, with mid range guidance representing 69% and 7% growth compared to the third quarter of 2009 and the second quarter of this year, respectively

Tower CEO Russell Ellwanger said, “2010 began strongly for TowerJazz and our momentum continues to grow. To our best visibility, we foresee continued best ever revenue and EBIDTA throughout this year and into 2011. We have now surpassed a revenue run rate that would achieve $500 annual revenue, which we consider as a major milestone achievement. This quarter was by far the best in TowerJazz’s history, nicely surpassing the combined, best single pro-forma revenue quarters ever achieved by either Tower or Jazz."

Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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