Creditman,
[TSEMF] TOWER SEMICONDUCTOR Q2 LOSS OF 55 CENTS VS 38 CENTS YEAR-AGO.
Tower Semiconductor Ltd. Announces Second Quarter and Six Months Results
Business Wire - July 21, 1999 16:48
MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--July 21, 1999--Tower Semiconductor Ltd. (NASDAQ: TSEMF) today announced results for the second quarter and six
months ended June 30, 1999.
Sales for the second quarter of 1999 were $14.8 million, compared with $14.6 million in the second quarter of 1998, and $14.3 million in the immediately preceding quarter ended
March 31, 1999. The Company's operating loss was $8.0 million, compared with $7.4 million in the second quarter of 1998 and $8.8 million in the immediately preceding quarter.
The Company had a net loss for the second quarter of 1999 of $6.9 million, or $0.55 loss per share, compared with a net loss of $5.0 million, or $0.38 loss per share, in the
second quarter of 1998, and a net loss of $6.0 million, or $0.50 loss per share, in the immediately preceding quarter.
Sales for the six months ended June 30, 1999 were $29.1 million compared with $37.8 million for the six months ended June 30, 1998. The Company's operating loss was $16.7
million, compared with $10.5 million in the six months ended June 30, 1998. Net loss for the six months ended June 30, 1999 was $12.9 million, or $1.02 loss per share, compared
with a net loss of $6.4 million, or $0.48 loss per share in 1998.
"The decrease in operating loss as compared to the previous quarter was a result of a 25% improvement in utilization, as well as cost reduction measures taken by the Company,"
said Dr. Yoav Nissan-Cohen, Tower's Co-Chief Executive Officer. "Much of this improvement was offset by continued reduction in our foundry wafer prices, as well as the fact
that during Q2 we stopped accruing tax benefits resulting from our operating losses. However, I am pleased that the increased utilization comes mostly from our specialized
technologies, strategically developed to offer a differentiated product to our customers. While we believe that these technologies will allow Tower better financial performance in the
future, in the short-term reduced prices for our standard CMOS processes will continue to have a negative impact. We are continuing to advance the development of our
microFLASH(R) process, and have delivered product prototypes to customers in Europe and the Far East. We expect to introduce these products to production later this year."
TOWER SEMICONDUCTOR LTD. is an independent manufacturer and service provider of semiconductor integrated circuits ("ICs") on silicon wafers. As a foundry, Tower
provides IC design, manufacturing and turn-key services, using advanced production capabilities and the proprietary IC designs of its customers, and is specializing in providing
solutions for embedded non-volatile memory devices and CMOS image sensors. ICs manufactured by Tower are incorporated into a wide range of products in diverse and rapidly
growing markets, including computer and office equipment, communication products and consumer electronics.
microFLASH(R) is a registered trademark of Tower Semiconductor Ltd.
This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such
forward-looking statements. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with (i) successful completion of the development and
introduction to production of the Company's microFLASH process and other advanced CMOS technologies which are currently under development and/or being introduced to
production, (ii) market acceptance and competitiveness of the products to be manufactured by Tower for customers using these technologies, and (iii) conditions in the market for
semiconductor products generally. A more complete discussion of risks and uncertainties which may affect the accuracy of these statements and Tower's business generally, is
included at "Item 1. Business -- Factors Which May Influence Future Results and Accuracy of Forward-Looking Statements" in Tower's most recent Annual Report on Form 20-F
as filed by Tower with the Securities and Exchange Commission.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except per share data)
Six months ended Three months ended
June 30, June 30,
--------------------- --------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
SALES $ 29,142 $ 37,759 $ 14,825 $ 14,572
COST OF SALES 37,018 40,007 18,453 17,810
---------- ---------- --------- --------
GROSS LOSS (7,876) (2,248) (3,628) (3,238)
---------- ---------- --------- --------
OPERATING COSTS
AND EXPENSES
Research and
development, net 4,825 4,210 2,499 2,070
Marketing, general
and administrative 4,032 4,038 1,841 2,091
---------- ----------- ---------- ---------
8,857 8,248 4,340 4,161
========== ========== ========== =========
OPERATING LOSS (16,733) (10,496) (7,968) (7,399)
FINANCING INCOME, NET 1,464 1,789 478 830
---------- ---------- ---------- --------
LOSS BEFORE
INCOME TAX BENEFIT (15,269) (8,707) (7,490) (6,569)
INCOME TAX BENEFIT 2,405 2,321 605 1,578
---------- ---------- --------- ----------
NET LOSS $ (12,864) $ (6,386) $ (6,885) $ (4,991)
========== ========== ========= ==========
BASIC LOSS PER
ORDINARY SHARE
(a) Loss per share $ (1.02) $ (0.48) $ (0.55) $ (0.38)
========== ========== ========= ==========
Net loss used to
compute basic
loss per share $ (12,815) $ (6,386) $ (6,860) $ (4,991)
========== ========== ========= ==========
Weighted average
number of ordinary
shares outstanding
- in thousands 12,601 13,240 12,558 13,240
========== ========== ========= ==========
(a) Basic and diluted loss per share in accordance with U.S. GAAP
would be $1.07 and $0.58 for the six months and three months
ended June 30, 1999, respectively.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
INTERIM CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 30, December 31,
1999 1998
--------------- ---------------
ASSETS (unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 8,851 $ 7,320
Short-term
interest-bearing deposits 23,214 31,962
Marketable debt securities 25,151 25,160
Trade accounts receivable
(net of allowance for
doubtful accounts of $360
and $530, respectively) 6,295 5,249
Other receivables 1,470 3,792
Inventories 8,890 9,839
Other current assets 1,685 1,963
----------- -----------
Total current assets 75,556 85,285
----------- -----------
LONG-TERM INVESTMENTS 6,000 6,000
----------- -----------
PROPERTY AND EQUIPMENT, NET 78,403 88,429
----------- -----------
OTHER ASSETS 1,363 333
----------- -----------
----------- -----------
TOTAL ASSETS $ 161,322 $ 180,047
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt $ 82 $ 21
Trade accounts payable 9,491 11,713
Current portion of
long-term liability
in respect of customer advances 3,040 4,560
Due to related parties 51 42
Other current liabilities 4,941 2,912
----------- -----------
Total current liabilities 17,605 19,248
LONG-TERM DEBT 12,117 12,127
LONG-TERM LIABILITY IN RESPECT
OF CUSTOMER ADVANCES -- 1,076
OTHER LIABILITIES 2,065 4,271
----------- -----------
Total liabilities 31,787 36,722
----------- -----------
SHAREHOLDERS' EQUITY
Ordinary shares, NIS 1 par value
- authorized 30,000,000 shares;
issued 13,244,744 and
13,241,502 shares, respectively 4,325 4,324
Additional paid-in capital 138,380 138,354
Shareholder receivables
and unearned compensation (971) (981)
Retained earnings (deficit) (3,127) 9,737
----------- -----------
138,607 151,434
Treasury stock, at cost -
1,300,000 and 1,157,500 shares,
respectively (9,072) (8,109)
----------- -----------
Total shareholders' equity 129,535 143,325
----------- -----------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 161,322 $ 180,047
=========== ===========
-Tables Follow-
CONTACT: Tower Semiconductor Ltd.
Yoav Nissan-Cohen, Ph.D., Co-CEO
Rafael M. Levin, Ph.D., Co-CEO
Amir Harel, Vice President & CFO
011-972-6-650-6611; 011-972-6-654-7788 (fax)
Home page: towersemi.com
or
Wolfe Axelrod Associates
Stephen D. Axelrod, CFA
Allen Salzberg (Media)
212-370-4500; 212-370-4505 (fax)
E-mail: steve@wolfeaxelrod.com
Dave |
