A record quarter for Israeli chipmaker TowerJazz

17 November, 2016

The company reported record quarterly revenues of 326$ million. TowerJazz expects 2016 revenues to top 1.5$ billion. IC Insights: TowerJazz is the 5th largest chip producer worldwide

The company reported record quarterly revenues of 326$ million.  TowerJazz expects 2016 revenues to top 1.5$ billion. IC Insights: TowerJazz is the 5th largest chip producer worldwidetowerjazzstock

Israeli chipmaker TowerJazz continues to break revenue records and strengthen its position as one of the worls leading foundries. The Israeli company reported record revenues of 326$ million in Q3 2016, a 34% increase compared to the same quarter last year.

This is the second consecutive quarter in which TowerJazz breaks revenue records, and the eleventh consecutive month in which the company reports a growth in sales compared to last year. 2016 have reached 909$ million by now, a 29% increase compared to the first three quarters of 2015.

TowerJazz’s gross profit for Q32016 war 81$ million, a 47% increase compared with a $55 million gross profit the same quarter last year. The net profit in Q3 amounted to $51 million, compared to 14$ million in Q3 2015.

The company expects to positive momentum to continue in Q4, expecting yet another record quarter with sales exceeding 340$ million – a 34% increase form Q4 2016. According to the company’s forecast, yearly revenues are expected to exceed 1.25$ billion, a 30% increase compared to 2015.

Mr. Russell Ellwanger, CEO of TowerJazz, commented, “Our third quarter is our eleven consecutive quarter of year over year revenue and EBITDA growth and yielded approximately $400 million, $340 million and $200 million of annualized EBITDA, cash from operations and net profit, respectively. These results speak loudly to our business model and execution, including acquisitions that provide immediate ROI with long term revenue and margin guarantees from our seller partners and incremental growth against fully covered fixed costs. We have developed a customer base from which we continue to see strong demand across our different business units for our leading edge forefront differentiated technology. In addition, our worldwide operational model allows us to optimize product mix according to utilization rates, as demonstrated with significant increase in margins and EPS.”

A report published by IC Insights placed Israeli TowerJazz in the 5th place amongst the world 10 leading foundries in terms of revenues. The report noted that TworJazz is expected to be amongst the two fastest growing foundries in 2016.

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