Tower Semiconductor Ltd., Migdal Haemek, Israel, today announced sales for the fourth quarter ended December 31, 2000,increased by 30.1% to $29.2 million from $22.5 million in the fourth quarter of 1999.
That represented an increase of 5.9% over sales of $27.6 million in the quarter ended September 30, 2000. The company also reported net income for the fourth quarter of $1.4 million, excluding $1.0 million of primarily
non-capitalized Fab 2 expenses.
Including the non-capitalized Fab 2 expenses, the company reported a net income of $0.4 million or 3 cents per share, compared with a loss of $2.9 million, or 21 cents per share, in the fourth quarter of 1999, and a loss of $0.8 million, or 4 cents per share, in the preceding quarter ended September
Sales for the twelve months ended December 31, 2000 were $104.8 million, an increase of 50.1% over sales of $69.8 million in the twelve months ended December 31, 1999. The company reported a loss for the year of $0.1 million, excluding $3.9 million of non-capitalized Fab 2 expenses and other non-recurring expenses. Including the non-capitalized Fab 2 expenses and the non-recurring expenses, the loss was $4 million or 26 cents per share, compared with a loss of $20.5 million, or $1.54 loss per
share, for the twelve months ended December 31, 1999.
"In 2000 we began to realize our specialty foundry business model, as we started selling commercial quantities of products using our specialized technologies," said Yoav Nissan-Cohen, Tower's co-chief executive officer, in a released statement. "The substantially-improved performance was a result of the growing volume of microFLASH process-based and CMOS image sensor products, while our analog and core CMOS business was
stable. It also reflects the development of our customer base in Asia.
"As a result of the current softness in the market we
expect reduced sales in the first half of 2001. However, the growth in our specialized technologies sales, as exhibited throughout last year, is expected to drive our overall
sales in 2001 to meet or exceed those of 2000. Our earnings in 2001 will also reflect the long-term investment in Fab 2 which will result in increased R&D and other non-capitalized expenses."