Third quarter revenue at independent foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) was $58.5 million, the second highest quarterly figure in its history.
Revenue rose 3.35% compared with the $56.6 million recorded in the third quarter of 2007. In the fourth quarter of 2007, Tower recorded $61.6 million revenue.
On the basis of generally accepted accounting principles (GAAP), Tower reduced its quarterly net loss to $21 million, or $0.17 per share, from $35 million, or $0.28 per share, in the corresponding quarter.
During the quarter, the company completed its merger with Newport Beach, California-based Jazz Technologies (AMEX:JAZ-U). Tower now expects that the merger will lead to even greater cost reductions than previously thought. According to CEO Russell Ellwanger, using current figures and projecting them to the coming year, Tower is targeting $60 million in cost reductions for 2009, up from a May, 2008 estimate of $40 million. The firms are also actively seeking to cross-sell their technology to existing customers.
Ellwanger said, "We will enter 2009 as a dramatically improved company both financially and operationally. We now have enhanced revenue and growth opportunities driven by the synergies and cross-selling opportunities available through Tower and Jazz's expanded process portfolio and diverse customer base."
In August, Tower reached a deal with some of its lender banks to convert their debt into equity, which reduced Tower's debt by $250 million.
Shares in Tower fell 8.8% yesterday on Nasdaq to close at $0.30, giving it a market cap of $37.6 million. On the Tel Aviv Stock Exchange (TASE), Tower shares are down 0.17%, after falling 4.07% yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2008
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