Specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) today published its financial report for the second quarter of 2009, and provided guidance for the third quarter.
Tower posted $60.6 million revenue for the second quarter, compared with $58.1 million for the corresponding quarter of 2008. The result was near the upper end of the company's guidance.
GAAP-based net loss was $30.9 million ($0.19 per share) for the second quarter, compared with a net loss of $31.3 million for the corresponding quarter. Non-GAAP net profit was $5.4 million for the second quarter, compared with a non-GAAP net loss of $36.3 million for the corresponding quarter.
In its guidance for the third quarter, Tower predicts $73-77 million revenue, representing 24% growth compared with the preceding quarter and 28% growth compared with the corresponding quarter of 2008.
Tower CEO Russell Ellwanger noted that the company had a record 83 design wins and new collaborations during the second quarter, and that more were underway. Part of this was due to the successful merger with Jazz Semiconductor Inc.
Ellwanger said, "I am very confident with regard to the coming quarters." He added, "I am extremely optimistic and see Tower as most probably the single foundry that will exit 2009 with year over year growth."
Tower also announced an agreement with Yorkville Advisors LLC fund YA Global Master SPV Ltd. for an equity line of up to $25 million over the next two years. Tower will allot shares to the fund at a 3% discount on their market price as it draws on the equity line. Tower has not yet drawn any money.
Yorkville has been busy in Israel of late. Two weeks ago, it announced that it would invest $17 million in Pangaea Real Estate Ltd. (TASE:PNGD) over the next three years. It also has a stake in Brainsway Ltd. (TASE:BRIN).
Israel Corporation (TASE: ILCO) owns 8.9% of Tower. Tower's share closed at $0.98 on Nasdaq yesterday. The share rose 5.9% by mid-afternoon on the TASE today to NIS 4.13.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2009
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