LONDON – Foundry chip maker Tower Semiconductor Ltd. (Migdal Haemek, Israel), which trades as TowerJazz, reported second quarter financial results that were much as expected. The company made a reduced net loss on sales that were flat with those of the first quarter.
Revenues came in at $168.6 million in the middle of the range forecast in April, up 21 percent year over year compared with $139.7 million but essentially flat with sales of $168.0 million in 1Q12. Tower reported a GAAP net loss of $9.4 million down from the GAAP net loss of $19.3 million in 1Q12.
However, Tower forecast a decline in revenues in 3Q12 to between $152 and $162 million in 3Q12.
The company continues to increase its long-term debt which stood at $402 million on June 30, 2012 but the end of quarter cash balance was improved at $171 million as compared $158 million as of March 31, 2012.
During the second quarter of 2012, in accordance with its acquisition plan and the Japanese notification laws, the Company executed a cost reduction plan to increase its efficiency of its recently acquired Nishiwaki, wafer fab in Japan, including the laying off of 280 employees.
"We are seeing some fluctuations in the market with several of our largest customers down in their revenue and their revenue guidance quarter-over-quarter; whilst we remain very confident in our strategic direction and tactical activities," said Russell Ellwanger, CEO of Tower, in a statement.
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