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We would like to highlight Tower Semiconductor Ltd. (NASDAQ: TSEM). The company is a pure-play independent wafer foundry dedicated to the manufacture of semiconductors. Pure-play foundries do not offer products of their own, but focus on producing integrated circuits (ICs) based on the design specifications of their customers. The Company manufactures semiconductors using advanced production processes for customers primarily based on third-party designs and its own.
In the company’s news yesterday,
Tower Semiconductor (NASDAQ: TSEM) released its second quarter financial results, showing high revenues, a plan for debt reduction and reflecting the company’s purchase of Jazz Technologies. Tower achieved revenue of $58.1 million in the second quarter, slightly above company projections. That compares to $57.6 in the 1st quarter and $57.1 million in the same quarter last year.
Tower is also aggressively pursuing ways to restructure cash flow and debt. These moves include:
- A cost reduction plan expected to result in about $40 million annual savings
- Decreased net loss in the first six months of 2008 by $13 million, year-over-year
- The signing of a Memorandum of Understanding to significantly improve balance sheet and financial position, by lowering debt $250 million and increasing shareholders equity by a similar amount
“Over the past few years, Tower has substantially improved its revenue and operational results as evidenced by becoming the number one revenue growth foundry for 2007 over 2005,” said Russell Ellwanger, Tower’s chief executive officer. “Today’s announcement of a memorandum of understanding signed with our banks and Israel Corporation provides a much stronger corporate capital structure from which we can continue this momentum. We expect that these financial improvements combined with the expected closing of the Jazz merger will maintain our growth trajectory.”
Jazz will hold a special meeting for shareholders on Sept. 17 to vote on, adopt and approve the proposed transaction, with the closing of the transaction expected to occur prior to the end of the third quarter of 2008.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
