Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) has reported lower revenue and profit for the first quarter of 2019 but beaten the analysts' estimates on revenue and profit.
The Migdal Ha'Emek company had revenue of $310 million in the first quarter of 2019, down slightly from $313 million in the corresponding quarter of 2018. Net profit for the first quarter of 2019 was $26 million ($0.25 per share), compared with $26 million ($0.26 per share) in the first quarter of 2018.
Tower expects revenue for the second quarter of 2019 to reach $306 million, with an upward or downward range of 5%. Considering a roughly $20 million announced reduction in Panasonic revenue for the second quarter, this mid-range revenue guidance represents about 10% of sequential organic growth (define as total revenue excluding revenues from Panasonic in the TPSCo fabs and revenues from Maxim in the San Antonio fab).
Tower CEO Russell Ellwanger said, "We entered 2019 in the strongest financial position we have ever been in, with open doors being explored that were not available in years past. Despite macroeconomic uncertainties that have led to tighter market inventory management, the indications we see in the wide market as well as from our specific customers, are for a stronger second half."
He added, "We see a broad set of growth drivers, especially for the analog sectors of the semiconductor market that we are focused on, including the global 5G rollout, with increased demand of wireless and infrastructure content, ongoing increases in automotive analog content - including sensors, sensor system and battery management; along with IoT and AI applications. While there is short-term caution, we are encouraged with our second quarter organic growth and optimistic that we will emerge from current market conditions very well positioned for accelerated and sustained growth on both the top and bottom line."
Published by Globes, Israel business news - en.globes.co.il - on May 15, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019