Israeli chip company Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), managed by CEO Russell Ellwanger, today reported its financial results for the fourth quarter of 2018 and for 2018 as a whole. Revenue was down 7% to $1.3 billion in 2018, EBITDA totaled $362 million, and profit per share reached $1.35. Operating profit dropped 29% to $155 million, while net profit plummeted 54% to $136 million, although the company posted $95 million in one-time profits. Tower Semiconductor's share price responded with a 3.5% rise on the Tel Aviv Stock Exchange (TASE).
Tower Semiconductor reported $313 million cash flow from current activity and $143 million in free cash flow, after deducting $170 million in investments in fixed assets.
Revenue totaled $334 million in the fourth quarter of 2018, 6.7% less than in the fourth quarter of 2017 and $2 million lower than expected by the analysts covering the company. Net profit per share amounted to $0.37 in the quarter, compared with $0.34 per share in the fourth quarter of 2017, but $0.05 less than the average of the analysts' forecasts.
Tower Semiconductor's revenue guidance for the first quarter of 2019 gives a range of 5% in either direction from $310 million. Market analysts predicted revenue of $306-322 million in the first quarter.
Ellwanger said today, "As always, we are confident in the correctness and viability of our business model, and in the creation of value that comes with it. We recently won orders for new projects from our customers in each of our main fields of business, especially in data centers, which is part of the infrastructure sector; 5G technologies; a breakthrough area that is part of our power management; and image sensors developments with global uniqueness in cost-cutting designed for the medical and industrial sectors. These areas are strategic for us, and constitute our growth engines in the medium and long term. The combination of these activities, together with the company's global human capital and the strong financial structure we have created for the company, will facilitate significant achievements in the coming year."
Published by Globes, Israel business news - en.globes.co.il - on February 19, 2019
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