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TowerJazz Presents Q1 Results

MIGDAL HAEMEK, Israel — TowerJazz, the global specialty foundry leader, today announced financial results for the first quarter ended March 31, 2011.

First Quarter 2011 Highlights

  • Revenues of $120.6 million, up 6 percent year-over-year
  • EBITDA of $40 million, up 13 percent year-over-year
  • Cash and short-term deposits balance at quarter-end of $184 million
  • Net profit on a non-GAAP basis at $31.5 million, up 19 percent year-over-year and representing a net margin of 26 percent; GAAP net loss of $5 million, an improvement of $31 million year-over-year
  • Received during the quarter the official approval certificate from the Israeli Investment Centre for the receipt of up to 150 million NIS (approximately $42 million)
  • Signed a non-binding term-sheet to purchase Micron’s manufacturing facility in Japan, with production capacity of 60,000 wafers per month.
  • Micron to become a 6% long-term strategic shareholder with holdings of 20 million ordinary shares. CEO Perspective
    Russell Ellwanger, Chief Executive Officer, commented: “Q1 was a significant quarter for TowerJazz, with much progress towards realization of multiple strategic milestones and business opportunities. We signed a non-binding term-sheet with Micron Technologies to acquire the 60,000 wafers per month fab in Nishiwaki with a multi-year loading agreement. Considering that in Q1 we continued the 2010 momentum of triple digit per quarter design wins, the substantial added capacity of the Nishiwaki factory will be required as these design wins enter into volume production ramps. In Q1 we reached business understandings for new and expanded opportunities with multiple existing customers for state-of-the-art RF and Power Management platforms, which promise to reach revenue levels of multiple tens of millions of dollars per customer within the next years. Additionally, we completed installation and qualification of the first tools for our internal Epi center, hence expanding our strategic relationship with a very large volume long-term customer. We’re additionally pleased and excited to have Micron as a long-term strategic shareholder, expecting to close the aforementioned deal within the next few months.”

    Read the full press release.

    {complink 12974|Tower Semiconductor Ltd.}

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