It’s official – TowerJazz is a Giant
11 November, 2015
"We are on track of this year to achieve our previously announced milestone of breaking a $1 billion annualized."
“We are on track of this year to achieve our previously announced milestone of breaking a $1 billion annualized.”
The semiconductor’s specialty foundry TowerJazz from Migdal-haemeq, Israel is about to reach historical goal of $1 billion annual sales. During third quarter 2015 record revenues of $244 million with year over year organic growth of 23%. This is compared with $235.6 million in the prior quarter and $226.0 million in the third quarter of 2014.
For the nine months ended September 30, 2015, revenues were $706.0 million, as compared to $592.7 million in the nine months ended September 30, 2014, representing 28% organic growth. During the quarter, the Company invested $40 million in property and equipment. This is above the typical quarterly average level, resulting from the execution of its plan to invest primarily in Fab2 and Fab3 manufacturing facilities in order to increase its capacity and capabilities.
TowerJazz expects revenues for the fourth quarter ending December 31, 2015 to increase to $252 million with an upward or downward range of 5%, reflecting 21% organic growth and 7% overall growth as compared with the fourth quarter of 2014. This means that 2015 annual sales will be around $960 million.
Russell Ellwanger, Chief Executive Officer of TowerJazz, said: “We are leading the foundry market in year to date revenue growth as compared to the same period in 2014, both overall with 19% and most especially organic (excluding Micron and Panasonic) with 28%. Both masks entering the factories and design wins were at record levels year-to-date with increases of 13%, vs. the previous record for this same period in 2014.
“Three strategic customers have recently reserved future capacity for 2016 and beyond, for a present total of $45 million in reservation fees. The ongoing increase in midterm to long term indicators of record mask sets and design wins, provide us confidence in a very strong 2016 and beyond. We are on track of this year to achieve our previously announced milestone of breaking a $1 billion annualized.”