Tower turns in record sales, strong growth in 2011

LONDON – For the full year of 2011 specialist foundry Tower Semiconductor Ltd. has reported record revenues of $611 million, up 20 percent over revenues of 2010 and well ahead of the overall semiconductor industry's annual growth of 0.4 percent.

Tower (Migdal, Haemek), which trades as TowerJazz, has forecasted that 1Q12 revenue will be down slightly in a range between $165 million and $175 million, which represents 40 percent year-on-year growth for the company. The company said it is preparing operationally for a strong second half to 2012.

The company also disclosed it had signed a memorandum of understanding to work in consortium bidding for government support to build a 300-mm wafer fab India (see Tower bids to build 300-mm wafer fab in India).

Fourth quarter revenue at Tower was $174.6 million, in the middle of the previously predicted range of between $170 million and $180 million. This was slightly down compared with $176.1 million of revenue in the prior quarter, but up by 29 percent compared with 4Q10.

Tower reported a net loss on a GAAP basis of $16.7 million in 4Q11 compared with a GAAP net profit of $1.8 million in 3Q11. For the full year Tower reported a net loss on a GAAP basis of $18.5 million compared with a GAAP net loss of $42.4 million in 2010 and a GAAP net loss of $120.5 million in 2009.

Tower said it has reduced its debt burden from $482 million as of Dec. 31, 2010 to $350 million as of the end of 2011.

"From both strategic and business standpoints, 2011 was a very strong year in performance and a catalyst for the future. Fueled by a long-term business relationship with a new customer, Micron Technologies, we were able to achieve 20 percent year-over-year growth, multiples above our peer group. In addition, we doubled our wafer capacity as compared to 2010, in a most cost effective manner," said Russell Ellwanger, CEO of Tower Semiconductor, in a statement. "Driven by performance and an ability to provide capacity commitments, we have strong engagements with market leaders in all of our business segments. We are operationally preparing for a strong second half, having received such indications from lead customers."


Related links and articles:

www.towersemi.com

News articles:

Tower bids to build 300-mm wafer fab in India

Tower to transfer European IC processes to India, Brazil

Tower's Japanese fab drives Q3 outlook

TowerJazz finally gets fab grant