Tower revenue rises 33 per cent while capacity investment continues
Third-quarter revenue at analog chip manufacturer Tower reached 526 million dollars, up 33 per cent from a year earlier. The company also increased gross profit and operating cash generation while spending on manufacturing capacity. Management forecast fourth-quarter revenue around a midpoint of 600 million dollars and highlighted its expansion plans in Japan.
Economics & Markets··Night
Revenue and gross profit expand
Israel-based analog chip manufacturer Tower Semiconductor reported third-quarter results with revenue growth from a year earlier.[1], [2]
Israel-based analog chip manufacturer Tower Semiconductor reported third-quarter revenue of 526 million dollars, an increase of 33 per cent from a year earlier. Gross profit rose 92 per cent to 179 million dollars from 93 million dollars. The company reported operating profit excluding non-recurring items of 127 million dollars, in the quarter.[1]
Investment alongside cash generation
Operating cash generation reached 185 million dollars in the quarter, for the period. Net property and equipment investment reached 191 million dollars. Tower said it was continuing to expand manufacturing capacity. Net profit excluding non-recurring items was 120 million dollars, for the period. Adjusted measures exclude items including acquired intangible asset amortisation and share-based compensation expenses.[1]
Fourth-quarter outlook and Japan
Management forecast fourth-quarter revenue with a midpoint of 600 million dollars and a range of plus or minus 5 per cent. That midpoint implies growth of 36 per cent from a year earlier and 14 per cent from the third quarter. Chief executive Russell Ellwanger said the outlook pointed to annual revenue of 2 billion dollars. Management highlighted capacity investment in Japan and said customer contracts had been extended through 2029.[1]
