MIGDAL HAEMEK, Israel -- Tower Semiconductor Ltd. here today reported silicon foundry revenues fell 40.5% to $12.5 million in the second quarter compared to $21.1 million in the first quarter of 2001. Tower's revenues were 51% below $25.6 million in the second quarter of 2000.
The Israeli foundry company posted a net loss of $9.7 million in the second quarter vs. a net loss of $7.1 million in Q1. A year ago, Tower's net income was $400,000.
"We expect our next quarter results to continue to decline, though at a reduced rate," said Yoav Nissan-Cohen, chief executive officer at Tower. "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."
Tower recently began installing equipment in the pilot line portion of a new 200-mm wafer fab. Process transfer and development in Fab 2 is now set to begin in December, Nissan-Cohen said.