--- Revenue Increased by 6% and 18% Over Second and First Quarter, Respectively ---
--- Cash and Deposits Up For Nine Months; Record Mask Programs Entering Production ---
MIGDAL HAEMEK, Israel — (BUSINESS WIRE) — November 5, 2013 — TowerJazz (Nasdaq: TSEM and Tase:TSEM) today reported results for its 2013 third quarter and nine months ended September 30, 2013 reflecting 6 percent sequential revenue growth with a 10 percent increase in masks entering the factories and leveraging chip level design wins to support future margins and profitability increases.
Revenues for the 2013 third quarter continued an increased trajectory that began in the first quarter of the year, amounting to $132.6 million -- 6 percent higher than $125.3 million in revenues reported in the previous quarter and 18 percent higher than the revenues of $112.6 million, in the first quarter of 2013. As compared to the same period last year, revenues were $22 million lower solely as a result of the Micron volume agreement at the Nishiwaki facility in Japan. Excluding this Micron reduction, revenues were $4 million higher.
Net loss for the quarter was $32 million, or $0.68 per share, compared with $18 million, or $0.82 per share, in the third quarter of 2012. On an adjusted Non-GAAP basis, net income for the quarter was $12 million, or $0.26 basic earnings per share, compared with $32 million, or $1.43 per share, a year earlier.
On an adjusted Non-GAAP basis, gross profit and operating profit for the third quarter of 2013 were $39 million and $21 million, respectively, compared with $57 million and $40 million in the same quarter a year earlier.
For the 2013 nine-month period, revenues were $370 million and net loss was $78 million. On an adjusted Non-GAAP basis, net income for nine month-period was $37 million, or $1.00 basic earnings per share, while gross profit and operating profit for the 2013 nine-month period were $117 million and $62 million, respectively.
During the nine months of 2013, the company generated positive cash flow from operations of $52 million, excluding interest payment, or $31 million, net of interest payments.
Cash and deposits at September 30, 2013 were $141 million compared with $117 million in the prior quarter and $133 million at December 31, 2012.
During the third quarter of 2013, the company completed a successful rights offering, raising approximately $40 million, out of which approximately $19 million was raised following the exercise of Warrant 8 in July 2013.
Shareholders' equity at September 31, 2013 was $172 million and the current ratio was 2.1:1 compared with 1.8:1 at the end of 2012.
The sequential growth we have demonstrated in Q1 through Q3 was in line with our expectations based on strong alignment to customer forecast and project execution. The increase in new masks entering the fab amounted to about a 35% year to date increase as compared to 2012. This is the base for core business growth, a precursor of which is our guidance for Q4 revenue, reflecting quarterly growth nicely above the foundry market trend," said Russell Ellwanger, chief executive officer of TowerJazz.
TowerJazz expects to report revenues for its 2013 fourth quarter ending December 31, 2013 between $133 million and $143 million. Mid-range guidance is reflecting 23%, 10% and 4% as compared to the first, second and third quarter of 2013, respectively.
As previously announced, beginning with the first quarter of 2007,
the Company has been presenting its financial statements in accordance
with U.S. GAAP. This release, including the financial tables
below, presents other financial information that may be considered
"non-GAAP financial measures" under Regulation G and related reporting
requirements promulgated by the Securities and Exchange Commission as
they apply to our company. These non-GAAP financial measures exclude (1)
depreciation and amortization, (2) compensation expenses in respect of
options granted to directors, officers and employees, (3) reorganization
costs, (4) amortization related to a lease agreement early termination,
(5) financing expenses, net other than interest accrued, such that
non-GAAP interest expenses and other financial expenses, net include
only interest accrued during the reported period, whether paid or
payable and (6) income tax expense, such that non-GAAP income tax
expense include only taxes paid during the reported period. Non-GAAP
financial measures should be evaluated in conjunction with, and are not
a substitute for, GAAP financial measures. The tables also present the
GAAP financial measures, which are most comparable to the non-GAAP
financial measures as well as reconciliation between the non-GAAP
financial measures and the most comparable GAAP financial measures. As
applied in this release, the term Earnings Before Interest Tax
Depreciation and Amortization (EBITDA) consists of loss, according to
U.S. GAAP, excluding amortization related to a lease agreement early
termination, reorganization costs, interest and financing expenses
(net), tax, depreciation and amortization and stock based compensation
expenses. EBITDA is not a required GAAP financial measure and may not be
comparable to a similarly titled measure employed by other companies .
EBITDA and the non-GAAP financial information presented herein should
not be considered in isolation or as a substitute for operating income,
net income or loss, cash flows provided by operating, investing and
financing activities, per share data or other income or cash flow
statement data prepared in accordance with GAAP and is not necessarily
consistent with the non-GAAP data presented in previous filings.