TowerJazz approach its $1 Billion Target
4 August, 2014
Russell Ellwanger, Chief Executive Officer of TowerJazz: "Strong market demand from customers is enabling us to exceed our $1 billion annual revenue target.”
Russell Ellwanger, Chief Executive Officer of TowerJazz: “Strong market demand from customers is enabling us to exceed our $1 billion annual revenue target.”
TowerJazz from Migdal-Haemeq, Israel reported today that its Second quarter revenues has reached $234 million, up 76% quarter over quarter and 87% year over year; this quarter’s results includes Tower Panasonic Semiconductor Co. (TPSC) results for the first time. First half revenues of $367 million, up 54% year over year.
Organic business growth of approximately 40% year over year for Company’s top 10 customers and 50% for its top 5 customers (excluding Micron and Panasonic) representing 20% and 11% quarter over quarter growth, respectively.
The cash balance totaled $192 million with $41 million cash from operations generated during the second quarter and strong balance sheet ratios.
Russell Ellwanger, Chief Executive Officer of TowerJazz, commented, “The second quarter was our first integrating TPSCo activities and consolidating the revenues. There were no operational surprises against our plans and better than expected business activities. We closed negotiations with 3rd party customers, including high end CIS and top-tier IDM transfers, which should reach annual revenues of well beyond $100 million within the next 3 years. We expect these first contracts and agreements to begin volume production ramp in the second half of 2015.
“The core TowerJazz business grew significantly at 50% and 40%, for our top 5 and top 10 customers, respectively, when comparing their revenues in the second quarter of 2014 to the same period of last year. For these top customers, we expect continuous growth throughout the year, with already 11% and 20%, respectively, comparing the second quarter revenues to the first quarter of 2014.
“Second quarter saw a record number of masks full sets entering our Israeli and US fabs of over 240 vs. 130 for the same period of 2013. The first half of 2014 increase in new masks of 62% vs. the first half of 2013 is a definite indication that we are providing customers’ satisfaction in growing market segments, enabling continued significant growth in 2015 and 2016, as these products reach peak volume production.
“We are seeing strong market demand from customers being served by all of our business units, which we are well poised to serve both organically and with the newly added operational and technical capabilities of TPSCo, enabling us to exceed our $1 billion annual revenue target.”
Posted in tags: featured