2024 Fourth Quarter Revenue Guidance Completes Year of Quarter Over Quarter Growth Announces Additional SiPho and SiGe Capacity Build Out, Strategically Serving Expansive Customer Demand MIGDAL HAEMEK, Israel, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reports today its results for the third quarter ended September 30, 2024. Third Quarter of 2024 Results Overview Revenue for the third quarter of 2024 was $371 million as compared to $351 million for the second quarter o ...

Tower Semiconductor Ltd. TSEM will release earnings results for its third quarter, before the opening bell on Wednesday, Nov. 13.Analysts expect the Migdal Haemek, Israel-based company to report quarterly earnings at 53 cents per share, down from 54 cents per share in the year-ago period. Tower Semiconductor projects to report revenue of $370.32 million for the quarter, compared to $358.17 million a year earlier, according to data from Benzinga Pro.On July 24, Tower Semiconductor reported a fiscal second-qu ...

MIGDAL HAEMEK, Israel – October 21, 2024 – Tower Semiconductor (NASDAQ/ TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, will issue its third quarter 2024 earnings release on Wednesday, November 13, 2024. The Company will hold a conference call to discuss its third-quarter 2024 financial results and fourth-quarter 2024 guidance on Wednesday, November 13, 2024, at 10:00 a.m. Eastern Time (09:00 a.m. Central, 08:00 a.m. Mountain, 07:00 a.m. Pacific and 05:00 p.m. Israel time). Th ...

Company Overview - Tower Semiconductor Ltd. is a semiconductor company with a market capitalization of $4.8 billion [1] - The company is currently in the early stages of a growth phase, driven by increasing demand for computational power due to the rise of AI applications [1] Industry Insights - The semiconductor industry is experiencing exponential growth, particularly in relation to AI applications, which is significantly boosting demand for computational power [1]

Core Insights - Tower Semiconductor is hosting its annual Technical Global Symposium (TGS) for 2024, focusing on "Empowering the Future: Analog Technology Innovations Shaping Our World" [1][2] Event Details - The TGS will take place in two locations: Shanghai, China on September 24, 2024, and Santa Clara, California on November 20, 2024 [5] - The event will feature a keynote session by CEO Russell Ellwanger and technology sessions led by company experts [3] Key Topics - The symposium will cover AI's impact on industries, technology megatrends, and Tower's solutions in connectivity, power applications, and digital imaging [2] - Invited talks will be presented by industry leaders such as Innolight and Nvidia, focusing on optical communication and AI innovations [4] Networking Opportunities - TGS events will provide opportunities for in-person networking and engagement between current and prospective customers and Tower's executives and technical experts [5] Company Overview - Tower Semiconductor is a leading foundry for high-value analog semiconductor solutions, serving markets like consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace [6] - The company operates multiple facilities globally, including two in Israel, two in the U.S., and two in Japan, with access to additional capacity in Italy and New Mexico [6]

Financial Performance - Net profit for the six months ended June 30, 2024, was $99,797 thousand, a decrease from $130,074 thousand for the same period in 2023[20] - Comprehensive income attributable to the company for the six months ended June 30, 2024, was $78,228 thousand, down from $107,232 thousand for the same period in 2023[20] - Revenues for the six months ended June 30, 2024, were $678,419, down 4.8% from $712,802 in the same period of 2023[28] - Gross profit for the six months ended June 30, 2024, was $159,528, representing a gross margin of 23.5%, compared to $182,234 and a margin of 25.6% in 2023[28] - Operating profit decreased to $89,133 for the six months ended June 30, 2024, from $139,941 in the same period of 2023, reflecting a decline of 36.2%[28] - Basic earnings per share for the six months ended June 30, 2024, were $0.88, down from $1.11 in the same period of 2023, a decrease of 20.7%[28] - The company reported a restructuring expense of $6,270 for the six months ended June 30, 2024, compared to a gain of $17,776 in the same period of 2023[28] Assets and Liabilities - Total current assets as of June 30, 2024, increased slightly to $1,710,702 thousand from $1,709,158 thousand as of December 31, 2023[3] - Total liabilities decreased to $449,454 thousand as of June 30, 2024, from $491,478 thousand as of December 31, 2023[3] - Total shareholders' equity increased to $2,512,713 thousand as of June 30, 2024, compared to $2,427,039 thousand as of December 31, 2023[3] - Long-term debt decreased significantly to $126,715 thousand as of June 30, 2024, from $172,611 thousand as of December 31, 2023[3] Cash Flow - Cash provided by operating activities increased to $223,123 for the six months ended June 30, 2024, compared to $148,221 in the same period of 2023, marking a significant increase of 50.5%[22] - Net cash used in investing activities was $194,303 for the six months ended June 30, 2024, compared to $127,869 in the same period of 2023, indicating an increase of 52.0%[22] - Cash and cash equivalents increased to $265,313 thousand as of June 30, 2024, from $260,664 thousand as of December 31, 2023[3] - Cash and cash equivalents at the end of the period were $265,313, a decrease from $318,195 at the end of June 30, 2023[22] Inventory and Receivables - Trade accounts receivable increased to $165,161 thousand as of June 30, 2024, from $154,067 thousand as of December 31, 2023[3] - Inventories decreased slightly to $276,082 thousand as of June 30, 2024, from $282,688 thousand as of December 31, 2023[3] - Deferred revenue and customers' advances increased to $23,988 thousand as of June 30, 2024, from $18,418 thousand as of December 31, 2023[3] Investment Activities - The company invested $68,901 in property and equipment during the six months ended June 30, 2024, compared to $67,967 in the same period of 2023[23]

Financial Data and Key Metrics Changes - Revenue for Q2 2024 reached $351 million, a $24 million increase from the previous quarter, with a net profit of approximately $53 million, resulting in a net margin of about 15% [10][41] - Gross profit for Q2 was $87 million, up $14 million compared to the prior quarter's gross profit of $73 million [41] - Operating profit was $55 million, which included $6 million in restructuring income, marking a $21 million increase from the previous quarter [42][43] - Shareholders' equity reached $2.5 billion at the end of Q2 2024, compared to $2 billion at the same period last year [44] Business Line Data and Key Metrics Changes - RF Infrastructure revenue increased by 50% year-over-year, representing 14% of total quarterly revenue [11] - Silicon Photonics revenue is expected to grow from $30 million in 2023 to above $80 million in 2024, with projections to more than double in 2025 [14] - RF mobile revenue, predominantly RF-SOI, increased approximately 60% year-over-year, representing 31% of total revenue during the quarter [34] - Power IC business revenue increased 60% from Q1, representing 14% of total revenue during the quarter [35] Market Data and Key Metrics Changes - The demand for Silicon Germanium Technology is strongly linked to the growth of AI applications, with expectations for continued high increases in Silicon Photonics revenue due to rising data traffic from AI, cloud computing, and IoT [12][14] - Fab utilization rates for Q2 showed Fab 1 at 75%, Fab 2 at 67%, Fab 3 at 55%, and Fab 7 at 85%, with expectations for substantial increases in Q3 [37] Company Strategy and Development Direction - The company remains focused on driving innovation and enhancing market leadership to deliver sustainable growth [10][11] - Investments are planned for strategic opportunities aligned with the company's vision, including $500 million for the 12-inch factory in Agrate, Italy, and $300 million for equipment in Intel's Fab in New Mexico [53][54] - The company aims to achieve a revenue target of $2.66 billion per annum by optimizing existing facilities and ramping up capacity at new sites [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sequential quarterly revenue growth throughout 2024, supported by strong demand in the optical space and recovery in mobile [130] - The company anticipates continued growth in Silicon Photonics and RF-SOI, with a robust demand outlook driven by AI and data center needs [12][14][130] Other Important Information - The company released its updated Corporate Sustainability, Environmental, Social, and Governance (ESG) report, highlighting its commitment to environmental stewardship and social responsibility [38] - The company is actively qualifying its Silicon Photonics platform at its San Antonio facility to meet customer demand [32] Q&A Session Summary Question: What is the company's exposure to AI demand? - Management estimates that approximately 50% of current shipments are driven by AI demand, particularly in the context of increased speeds and data center requirements [58][59] Question: How is the transition to 300mm technology progressing? - The transition is going well, with successful sample shipments and ongoing qualification efforts at the Uozu factory in Japan [68] Question: What are the dynamics in the RF-SOI market? - Management noted strong demand for RF-SOI, particularly for advanced platforms, and does not anticipate being impacted by inventory corrections [96][98] Question: What is the expected growth trajectory for the Power IC business? - Management expects to surpass previous revenue levels, with significant growth anticipated from the 300mm platform [90][91] Question: How does the company view its market share in Silicon Photonics? - Management indicated that the company is gaining market share in Silicon Photonics, which is a new market for them, while also maintaining strong relationships with existing customers [72][73]

Safe Harbor For example, statements regarding expected (i) customer demand, (ii) utilization and cross utilization of our Fabs, (iii) demand from our end markets, (iv) market and technology trends, and (v) results regarding revenues, cash flow, margins and net profits are all forward-looking statements. Actual results may differ materially from those projected or implied by such forward-looking statements due to various risks and uncertainties applicable to Tower Semiconductor's business as described in the ...

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $327 million, a decrease from $352 million in Q4 2023, but within the upper range of guidance [5][19] - Net profit was $45 million, reflecting a net margin of 14%, down from a net profit of $54 million and a margin of 15% in the previous quarter [33] - Gross profit for Q1 was $73 million, compared to $84 million in the prior quarter [41] Business Line Data and Key Metrics Changes - RF Mobile, predominantly RF SOI, represented 37% of revenue in Q1 2024, showing strong demand and capacity utilization [9] - RF Infrastructure business increased to 14% of revenue from 10% in Q4 2023, driven by strong performance in optical transceiver components [27] - Power IC business, excluding Power Discrete, represented 10% of revenue, with expectations for substantial increases in Q2 [15] - Power Discrete business remained stable at 14% of revenue, while Mixed Digital CMOS business accounted for 8% [17] Market Data and Key Metrics Changes - Silicon Photonics currently represents 5% of revenue, with strong momentum driven by AI adoption [29] - The company is experiencing renewed demand in the Silicon Germanium segment due to new high data rate products [30] - Sensors and Displays accounted for 15% of total revenue in Q1, with ongoing development and manufacturing activities [31] Company Strategy and Development Direction - The company plans to invest up to $300 million over the next two and a half years to enhance capacity and capabilities in its New Mexico facility [21] - A revenue target of $2.66 billion per annum is outlined, achievable by loading existing facilities at 85% utilization [22] - The company is focusing on expanding its 5G and Silicon Photonics capabilities to enhance flexibility and support customer needs [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about quarter-over-quarter growth for the remainder of 2024, with guidance for Q2 revenue set at $350 million, plus or minus 5% [5] - The company anticipates a notable increase in imaging revenue from Q1 to Q2, maintaining strong levels throughout the year [15] - Management noted that Q1 was viewed as the low point for the Power business, with expectations for long-term growth thereafter [15][64] Other Important Information - The company received an updated corporate credit rating from Standard & Poor's, reaffirming its rating at ilAA with a stable outlook [34] - As of the end of Q1 2024, total assets reached $2.98 billion, up from $2.58 billion a year earlier [20] Q&A Session Summary Question: Clarification on CapEx expectations - Management indicated that CapEx for 2024 is expected to be around $40 million to $50 million per quarter for Agrate, with additional spending on SiPho and 5G [46][48] Question: Impact of customer forecasts on orders - Management confirmed that customer forecasts have translated into improving orders, particularly in data centers and RF SOI markets [62] Question: Pricing pressure and market recovery - Management noted that while pricing pressure exists, it is manageable through technological advancements and partnerships with customers [131] Question: Contribution of Silicon Photonics to revenue - Management stated that Silicon Photonics is expected to contribute significantly to revenue growth, particularly as the market for 800G and 1.6T systems expands [86][97] Question: Expectations for revenue growth in 2024 - Management expressed confidence in achieving notable growth throughout 2024, with Q2 expected to show substantial increases compared to Q1 [105][171]

MIGDAL HAEMEK, Israel, May 02, 2024 – Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, today announced that its President, Dr. Marco Racanelli, will attend the 52nd Annual TD Cowen Technology, Media & Telecom Conference on Wednesday, May 29 and Thursday May 30, 2024. The conference will take place at the InterContinental New York Barclay Hotel in New York. At the conference, there will be an opportunity for investors to meet one-on-one with managemen ...