Tower Semiconductor Reports First-Quarter 2005 Results

Tower Semiconductor Ltd. (Migdal Haemek, Israel) reported that both revenue and losses grew in the first quarter, both sequentially and year-over-year. Tower posted first-quarter revenue of $23.2 million and a loss of $55.3 million, or $0.84 per share. In the prior quarter it posted revenue of $30.1 million and a loss of $23.3 million, or $0.36 per share, which included $32 million, or $0.49 per share, of net capital gain. In the year-ago period, it posted revenue of $27.2 million and a loss of $38.5 million, or $0.61 per share.

For the current quarter, Tower forecasts revenues to be in the range of $26 million to $28 million, including $8 million from a previously announced technology-related agreement. Tower also reported that it, along with some of its shareholders and banks, are holding discussions for additional funding to the company in the amount of approximately $60 million. This month, the foundry signed a Letter of Intent with its banks stating that the banks will provide up to $30 million in funding, provided Tower raises a similar amount from investors. To date, certain shareholders have indicated their willingness to invest $23.5 million towards such funding, the foundry said.

"Despite the apparent short-term difficulties in our market, our pipeline of new customers, products and value-added technology projects is encouraging," stated CEO Russell Ellwanger. "It is especially encouraging to hear from our customers that the added value in several of these tape-outs is significant, and hence will continue to position Tower as a leading specialty foundry for years to come."