Tower Semiconductor Ltd. today announced sales for the second quarter ended June 30 decreased by 51% to $12.5 million,from $25.6 million in the second quarter of 2000, and by 40.5% from $21.1 million in the immediately preceding quarter, ended March 31, 2001.
The company reported a loss for the second quarter of 2001 of $10.1 million, excluding $3.3 million of non-capitalized Fab 2 expenses (net) and $3.7 million capital gain.
Including the non-capitalized Fab 2 expenses (net) and the capital gain, the Company reported a loss of $9.7 million or 46 cents loss per share, compared with a net income of $400,000, or 4 cents earnings per share, in the second quarter of 2000, and a loss of $7.1 million, or 45 cents loss per share, in the preceding quarter ended March 31, 2001.
"Our second quarter results reflect the continued weakness of the market, similar to that being experienced by other foundries. We expect our next quarter results to continue to decline, though at a reduced rate," the company said.
"We now believe that our fourth quarter results will reflect a positive change in that trend, based on new business we
are receiving from a new key customer, additional forecasted orders from other new and existing customers, and market forecasts. This positive trend is expected to continue into 2002.
"We are implementing extensive cost cutting and cash conservation measures, including optimizing our work force in Fab 1 to fit its current utilization. Fab 2 staffing continues, benefiting from experienced personnel made available from Fab 1, as well as new recruits in selective areas."
Tower recently began the installation of equipment in its 200mm pilot line, which will enable the commencement of the process transfer and development for Fab 2 in December 2001, it said.