Tower builds record revenues

Edited by the Electronicstalk editorial team Jun 6, 2006

Tower Semiconductor has announced first quarter 2006 results with record revenues of $35.9 million.

Tower Semiconductor has announced first quarter 2006 results with record revenues of $35.9 million.

These revenues represent an increase of 55% over the $23.2 million reported in the first quarter of 2005 and an increase of 15% over the $31.1 million reported in the fourth quarter of 2005.

The 2006 first quarter loss was $45.1 million, or $0.63 per share, which included depreciation and amortisation expenses of $38.1 million, compared with a loss of $55.3 million, or $0.84 per share, in the first quarter of 2005, which included depreciation and amortisation expenses of $34.6 million.

Tower expects further growth in revenues for the second quarter of 2006 over the first quarter of 17% to 25%, and guides revenues of $42 to $45 million.

"We are continuing to execute according to our growth plan and are pleased with both the Q1 revenues, which are the highest in the company's history, and the EBITDA growth", said Russell Ellwanger, Chief Executive Officer, Tower Semiconductor.

"We have increased our Fab 2 customers in production base line by a factor of greater than 2 in the past year and are facing strong demand from both the new and existing customers".

"This quarter demonstrates the strength and realisation of our customers' pipeline".

"The board approved plan to increase Fab 2 capacity by an additional 50%, the partnership with our banks in restructuring Tower's debt, and The Israel Corporation commitment to invest $100 million provide very encouraging outlook for a strong 2006, where we will continue to focus on best serving our customers and contributing to their market success".