Tower raises Q3 guidance

Trading in its shares was halted on the TASE. Revenue is expected to hit a company record.

Chip maker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) today announced it expects third quarter revenue to exceed the company’s previous guidance given on August 12, due to increased customer demand. The company now expects third quarter revenue to be between $77 million and $80 million, which is higher than the previous guidance.

With the announcement, Tel Aviv Stock Exchange trading in its shares was halted.

The mid-range represents a 30% increase from previous quarter revenues of $60.6 million and a 34% increase year over year, representing record revenue for Migdal Ha'emek-based Tower.

Tower CEO Russell Ellwanger said: “We are experiencing increased customer demand in most all product segments and increased utilization rates in all three of our fabs (fab1, fab2, Newport Beach). The new mid-range guidance of $78.5 million would be the highest revenue in the company's history, coupled with greatly improved EBITDA performance. The fourth quarter promises continued strong quarter over quarter and year over year growth.”

Tower has recently reported several new deals, including in Korea, China, and elsewhere.

With its share steady above the $1 level, Tower recently said that it regained compliance with Nasdaq Global Market listing rules, under which it needed to close at a price of at least $1 per share for 10 consecutive trading days. Tower completed the requirement on August 25.

Tower shares closed yesterday at $1.04, giving a market cap of $166.4 million.

Published by Globes [online], Israel business news - - on September 2, 2009

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

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