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TowerJazz Presents Strong Revenue And Margins Growth In Second Quarter 2012 Financial Results: Revenues Of $168.6 Million, Up 21% Year-over-Year With An EBITDA Of $52 Million

MIGDAL HAEMEK, Israel, August 9, 2012 /PRNewswire/ --

TowerJazz, the global specialty foundry leader, today announced financial results for the second quarter ended June 30, 2012.

Second Quarter 2012 Highlights
  • Revenues of $168.6 million, up 21 percent year-over-year compared with $139.7 million;
  • Revenues for the first half of 2012 are $76 million higher, or 29% as compared to the first half of 2011;
  • EBITDA of $52 million, $11 million up or 28 percent quarter over quarter and 42% up year-over-year excluding the onetime acquisition gain last year;
  • Non-GAAP gross and operating margins at 40% and 31% respectively as compared to 36% and 26% in the second quarter of 2011, respectively;
  • Non-GAAP net profit of $45 million and net margin of 27% as compared to $28 million and 20% net margin in the second quarter of 2011;
  • End of quarter cash balance of $171 million as compared to $101 million as of December 31, 2011 and $158 million as of March 31, 2012;
  • In accordance with its acquisition plan, executed a cost reduction plan to increase efficiency of the Japanese facility, including a reduction in force, and additional cost reduction measures, enabling it to improve its margins by greater than $30 million on an annual basis;
  • Net cash from operating activities of $33 million, or $42 million excluding one-time reorganization payments of $9 million.

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CEO Perspective

"We are pleased with our results demonstrating strong first half year-over-year revenue growth coupled with much better margins in the second quarter of 2012," said Russell Ellwanger, Chief Executive Officer. "In this quarter we finished our one year plan post acquisition of the Nishiwaki facility. The first year realized an outperformance of board committed and trailing-twelve-month financial metrics through consolidations and synergies and the planned headcount reduction which should enable an approximate 10 point increase in the gross margins produced in this factory as compared to the previous operating expense baseline. 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. This confidence is demonstrated by another quarter of extremely high products and new mask sets introduction into our fabs, which activities have a one to three years peak revenue horizon from the point of fab introduction."

Ellwanger concluded: "Considering the actions that drove the improved margins as demonstrated in the second quarter and the fact that third quarter and forward looking mix are higher margin products, we expect the third quarter to follow the second quarter margin trend."

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