Tower CEO: We're targeting $1b annual sales in 2015

Russell Ellwanger told "Reuters" that, "our biggest focus is on sustainable GAAP net profit."

Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) CEO Russell Ellwanger told "Reuters" that the specialty foundry is targeting an annual run rate of $1 billion in 2015. "We would have to accelerate growth (to reach this goal)," he said. "Our biggest focus is on sustainable GAAP net profit," adding that will be achieved when the company reaches quarterly revenue of $190-200 million.

Tower posted $639 million revenue in 2012, and it posted a GAAP-based net loss of $23 million in the second quarter of 2013. It forecasts $130-140 million revenue for the third quarter, compared with $125 million for the second quarter.

Commenting on Tower's win with IBM Corporation (NYSE: IBM) and India's Jaiprakash Associates Ltd (BSE:) to build a fab near New Delhi, Ellwanger said that he expects a formal government notification regarding a contract will be made in the next few weeks. He added that groundbreaking on the plant could be about six months later and it would take two years for silicon to start and three years to begin shipping revenue wafers.

Published by Globes [online], Israel business news - - on October 13, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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