Specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), which markets as TowerJazz, today reported higher net profits on double-digit revenue growth for the first quarter of 2012, but predicts little revenue change in its guidance for the second quarter.
Revenue rose 39% to $168 million for the first quarter from $120.6 million for the corresponding quarter of 2011. GAAP-based net loss more than tripled to $19.3 million ($0.06 per share) for the first quarter from $5.4 million for the corresponding quarter, while non-GAAP net profit rose to $32 million ($0.10 per share) from $30.4 million. The company missed the analysts' revenue consensus of $172.1 million, but beat the earnings per share consensus of $0.02.
Tower predicts $163-173 million revenue for the second quarter, reflecting no change over the first quarter, but 20% growth, at the midpoint, over the corresponding quarter of 2011.
Cash flow from operations was $34 million, helping boost the cash and short-term deposits to $158 million at the end of March from $101 million at the end of 2011. The company also raised $80 million in debt, and repaid $27 million in principle and interest debt payments, and made $30 million in capital expenditures.
Tower CEO Russell Ellwanger said, "We are encouraged by many signs of strong second half industry growth. We continue to see increases in market share, as evidenced by significantly outperforming the foundry industry in first quarter year over year growth - in Korea alone we have grown from one image sensor customer in 2010 to over 40 active engagements. We are well positioned to take major benefit from an industry uptick, as far as market share and doubled capacity, as compared to first quarter 2011, to meet demand."
Trading in Tower's share on the TASE was halted at NIS 3.72, following the publication of the financial report, and was due to resume at 10:26. The share price fell 1% on Nasdaq yesterday to $0.95, giving a market cap of $302 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2012
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