TowerJazz (Nasdaq: TSEM; TASE: TSEM) again broke a quarterly revenue record in the first quarter, beating the analysts' consensus, and the foundry predicts a strong second quarter. The company also reported record earnings before interest, taxes, depreciation and amortization (EBITDA).
TowerJazz's revenue rose 96% to $113.8 million for the first quarter from $58.1 million for the corresponding quarter of 2009. The increase was in line with CEO Russell Ellwanger's prediction of 100% growth in the first half.
Ellwanger told "Globes", "As I said in the previous quarter, we're in serious talks to acquire an asset with short-term impact. Nothing has happened yet, but if a deal is reached, we'll announce it. I believe that if it happens, it will happen in late June or early July."
EBITDA rose to $35 million for the first quarter from $2 million for the corresponding quarter and $23 million for the preceding quarter.
Non-GAAP net profit was $29 million ($0.14 per share), compared with the non-GAAP net loss of $3 million for the corresponding quarter and non-GAAP net profit of $9 million for the preceding quarter.
TowerJazz beat the average estimate of the two analysts covering the company of $112.3 million revenue and non-GAAP earnings per share of $0.03.
GAAP-based net loss rose to $36 million ($0.18 per share) from $28 million for the corresponding quarter and a loss of $31 million for the preceding quarter. The first quarter GAAP net loss included non-cash financing expenses.
In its second quarter guidance, TowerJazz predicts $123-128 million revenue, reflecting mid-point growth of 10% compared with the first quarter and 107% compared with the second quarter of 2009. The analysts forecast $120.8 million revenue.
TowerJazz doubled its cash to $83 million at the end of March from $40 million a year earlier.
For the first time since 2000, TowerJazz achieved a GAAP-based operating profit, with $155,000, compared with a GAAP-based operating loss of $28 million for the corresponding quarter.
Ellwanger said, "Our first quarter propelled us to be the number one specialty foundry by revenue and placed us among the top five foundries worldwide. In January we referred to a 2010 revenue target of a half billion dollars with $160 million EBITDA. Our second quarter guidance will have already attained the $500M run-rate, upon which we presently see indications of continued growth in the second half of the year."
Tower's share price rose 4.3% in premarket trading from yesterday's close on Nasdaq of $1.63, giving a market cap of $324 million. The share price rose 3.9% by early afternoon on the TASE to NIS 6.17.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2010
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