Tower Semiconductor Ltd. today reported second-quarter sales increased 38% from the first quarter to $11.6 million, though expenses associated with furnishing a new state-of-the-art wafer fab contributed to another sequential net loss.
Net loss for the quarter was $11.3 million, or 39 cents a share, including non-capitalized Fab 2 expenses of $8.1 million. The loss was a slight improvement from the first quarter's $12 million net loss.
"Tower's increased sales this past quarter are due to increased demand from most of its customers for both established and new products," said Yoav Nissan-Cohen, co-chief executive of Tower in a released statement. "However, our customers continue to report lack of visibility and therefore at this point we cannot give firm indications for the fourth quarter and beyond. Despite these uncertainties, we currently foresee moderate growth in the second half of 2002."
Tower, based in Migdal Haemek, Israel, said cost cutting helped the company return operations of its older Fab 1 to a positive cash flow. Meanwhile, the pure-play foundry continued to gain financial support for Fab 2 from strategic partners. During the quarter, Tower secured a commitment for a $15 million investment from the Ontario Teachers' Pension Plan. The company said it is planning to raise additional funds by the end of September through a proposed rights offering.
Also in second quarter, Tower signed an agreement with a leading Japanese semiconductor manufacturer, not identified, to develop process technology for flash memory.