Tower Semi Reports Q4 and Year-End 2003 Results

Tower Semiconductor Ltd. (Migdal Haemek, Israel) announced results for the fourth quarter and 12 months ended December 31, 2003. Revenues for the fourth quarter of 2003 were $19.8 million, an increase of 23 percent over revenues of $16.1 million in the prior quarter. In the fourth quarter of 2002, the company reported revenues of $15.6 million, including $4.0 million from a technology-related agreement.

Total fourth-quarter loss was $46.0 million, or $0.91 per share, compared with a loss of $37.1 million, or $0.77 per share, for the third quarter of 2003, and a loss of $13.6 million, or $0.33 per share, in the fourth quarter of 2002. The increased loss in the fourth and third quarters of 2003, as compared to the respective period of 2002, results mainly from the commencement of Fab 2 depreciation and amortization expenses, which were $20.0 million and $17.3 million for the fourth and third quarters of 2003, respectively.

Revenues for the 12 months ended December 31, 2003, were $61.4 million, compared with revenues of $51.8 million for the 12 months ended December 31, 2002, which included $8.1 million from a technology-related agreement. The company reported a loss of $114.3 million, or $2.40 per share, for the 12 months ended December 31, 2003, compared with a loss of $51.4 million, or $1.63 per share, in the 12 months ended December 31, 2002. The increased loss resulted primarily from the commencement of Fab 2 depreciation and amortization expenses, which totaled $37.3 million for the 12 months ended December 31, 2003.