Independent foundry TowerJazz Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM)) , has revised upwards its guidance for fourth quarter revenue.
Migdal Ha'Emek-based TowerJazz now expects fourth-quarter revenue to be between $98 million and $102 million, which is higher than the previous guidance of $90 million to $94 million, with a mid-range representing a 26% increase from previous quarter revenues and a 29% increase year over year and representing company record revenue.
The company said its changed its earlier guidance figures, which were given on November 9th, due to successful completion of the first milestone in its Asian project announced on November 23, 2009, in which TowerJazz is providing know-how, training and turnkey manufacturing solutions.
At the end of November, executives of TowerJazz signed a large deal, estimated at $130 million, in which TowerJazz will upgrade the production facility of a government company to boost its output.
TowerJazz will offer the Asian company a comprehensive production solution, from the upgrade of clean rooms and the construction of new ones, through equipment procurement, and the design of all merger, cooling, and computerization infrastructures. Later, TowerJazz will provide management, training, and maintenance services for the fab.
That deal was heralded as a breakthrough for the company, since it marked the first time TowerJazz contracted for operations other than producing chips.
TowerJazz CEO Russell Ellwanger said, "To be in the guidance range of $100 million is a significant achievement for the company. We foresee the following quarters in 2010 to continue to grow on top of this new baseline performance."
TowerJazz shares ended last week at $0.94, giving a market cap of $157.18 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2009
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