Tower Semiconductor(US:TSEM)2025-02-27 21:09Financial Performance - Revenues for Q4 2024 were $387 million, a 5% increase quarter-over-quarter and a 10% increase year-over-year[3]. - Gross profit for Q4 2024 was $87 million, compared to $84 million in Q4 2023[4]. - Operating profit for Q4 2024 was $46 million, slightly up from $45 million in Q4 2023[5]. - Net profit for Q4 2024 was $55 million, with earnings per share of $0.49, consistent with Q4 2023[5]. - Full year 2024 revenues reached $1.44 billion, with a net profit of $208 million, down from $518 million in 2023[6]. - Revenues for Q4 2024 reached $387.2 million, a 10% increase from $351.7 million in Q4 2023[22]. - Gross profit for Q4 2024 was $86.9 million, with a gross margin of approximately 22.4%[22]. - Net profit attributable to the company for Q4 2024 was $55.1 million, compared to $53.8 million in Q4 2023, reflecting a 2.4% increase[22]. - Operating profit for the year ended December 31, 2024, was $191.3 million, down from $547.3 million in 2023, primarily due to restructuring costs[23]. - The company reported a basic earnings per share of $1.87 for the year ended December 31, 2024, compared to $4.70 in 2023[23]. - Adjusted net profit attributable to the company for the year ended December 31, 2024, was $240,985, while for the year ended December 31, 2023, it was $247,136[25]. - Basic adjusted earnings per share for the year ended December 31, 2024, was $2.17, compared to $2.24 for the year ended December 31, 2023[25]. Cash Flow and Investments - Cash flow from operating activities for 2024 was $449 million, with net investments in property and equipment totaling $432 million[7]. - Net cash provided by operating activities for the year ended December 31, 2024, was $448,682, down from $676,561 in 2023[29]. - Cash and cash equivalents at the end of the period for December 31, 2024, were $271,894, compared to $260,664 for December 31, 2023[29]. - The merger-contract termination fee received from Intel during the third quarter of 2023 amounted to $313,501, included in net cash provided by operating activities for the year ended December 31, 2023[30]. - Investments in property and equipment for the year ended December 31, 2024, were $(431,653), similar to $(432,184) in 2023[29]. - The net cash used in investing activities for the year ended December 31, 2024, was $(400,239), compared to $(720,847) in 2023[29]. Assets and Liabilities - Total assets increased to $3.08 billion as of December 31, 2024, up from $2.92 billion a year earlier[21]. - Total liabilities decreased to $440.3 million as of December 31, 2024, from $491.5 million a year earlier[21]. - Total debt repaid, net, for the year ended December 31, 2024, was $(32,455), slightly higher than $(32,346) in 2023[29]. Future Outlook - The company expects Q1 2025 revenues to be $358 million, reflecting approximately 10% year-over-year growth[9]. - The company aims for year-over-year revenue growth in 2025, with an acceleration expected in the second half of the year[10]. - The strategic integration of production processes has been initiated by transferring flows to the Fab2 200mm factory[8]. - Tower Semiconductor continues to focus on customer-partnered innovation to meet evolving market needs and expand market share[10]. Risks and Challenges - The company is facing risks related to global economic conditions, including potential impacts from the ongoing war in Israel and supply chain disruptions[18]. - The effect of Japanese Yen exchange rate change over cash balance for the three months ended December 31, 2024, was $(4,972), compared to $5,537 for the previous quarter[28].