Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) reported financial results for the second quarter of 2020 today in line with expectations. Nevertheless, the company's share price was down 9% on Nasdaq today at $20.88, giving a market cap of $2.24 billion.
Revenue in the second quarter of 2020 was $310 million, up 1.3% from the corresponding quarter of 2019 and up 3.3% from the preceding quarter. Tower forecasts third quarter revenue of $320 million, with a 5% possible variation in each direction, compared with revenue of $312 million in the third quarter of 2019.
Net profit for the second quarter of 2020 was $19 million ($0.18 per share), up from $17 million ($0.16 per share) in the preceding quarter, but down from $21 million ($0.20 per share) in the corresponding quarter of 2019.
Tower Semiconductor CEO Russell Ellwanger said, "Entering the second half of 2020, we are pleased that in the midst of certain market pullbacks, we continue to guide quarter over quarter and year over year growth. This is strong affirmation of our offerings, our increasing market share in RF SOI, and the high value our customers assign to our SiGe platform enablers. Our expansion into additional served markets for power management is well received, which business is seeing significant growth this year. Strengthening our diversification through entering newly served market applications and increased market share has enabled notable performance in this challenging environment."
He added, "We are motivated with the degree of customer interaction and acceptance of our recent developments, namely in advanced SiPho, very high-speed silicon germanium, the entire BSI and stacked wafer sensor offerings, as well as our newly served markets in display. These activities, in addition to our present strong and growing core business, back our confidence in our strategy and roadmap, and will be additionally accretive when all end markets revive to previous patterns."
Published by Globes, Israel business news - en.globes.co.il - on July 29, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020