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TowerJazz Q1 revenue increased

Staff writer ▼ | May 16, 2014
TowerJazz reports resulted for the first quarter of 2014 ended March 31, 2014. First quarter 2014 revenues were $132.7 million as compared with $112.6 million in the first quarter of 2013.
TowerJazz
TowerJazzTowerJazz reports resulted for the first quarter of 2014 ended March 31, 2014. First quarter 2014 revenues were $132.7 million as compared with $112.6 million in the first quarter of 2013.


This is an increase of 18% and an organic growth (excluding Micron long term contract revenues) of 27%.

On a GAAP basis, net profit in the first quarter of 2014 was $39 million, representing $0.81 earnings per share, as compared with a net loss of $23 million in the first quarter of 2013. Net profit for the first quarter of 2014 included $150 million one-time net acquisition gain derived from the high value assigned to Tower’s stake in TowerJazz Panasonic Semiconductor Company (TPSC), the new company established in Japan.

In addition, the company recorded a one-time allowance of $71 million resulting from our decision to cease Nishiwaki fab operations in Japan, reflecting mainly non-cash fixed-assets impairment; and a one-time non cash charge of $7 million, net, resulting from the restructuring of the Jazz’s bonds.

On a non-GAAP basis 2014 first quarter gross profit was $44.5 million, an increase of 32% compared to $34 million in the first quarter of 2013.

On a non-GAAP basis, 2014 first quarter operating profit, which is akin to EBITDA, was $27.5 million, an increase of 84% as compared to $15 million in the first quarter of 2013, and the operating margin improved from 13% in the first quarter of 2013 to 21% in the first quarter of 2014.

On a non-GAAP basis, 2014 first quarter net profit was $19.5 million, three times higher than the net income of $6.5 million reported in the first quarter of 2013. The net margin improved from 6% of revenues in the first quarter of 2013 to 15% in the first quarter of 2014.

On a GAAP basis, financing expenses, net, in the first quarter of 2014 include a one-time non-cash cost of $10 million resulting from the Jazz bonds exchange deal from March 2014.

Cash, short-term deposits and designated deposits as of March 31, 2014 were $183 million compared with $123 million as of December 31, 2013. During the quarter, the company generated $25 million in positive cash flow from operating activities, excluding interest payments, and increased our consolidated cash balance by $58 million as a result of the TPSC venture. In addition, the company invested $9 million, net, in fixed assets, repaid $7 million, net, of debts and paid $6 million of interest payments to our debtholders.

Shareholders' equity as of March 31, 2014 was $200 million as compared with $141 million as of December 31, 2013. The net current assets (current assets net of current liabilities) increased from $150 million as of December 31, 2013 to $187 million as of March 31, 2014.


 

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