Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), which trades as TowerJazz, reported a record year today, with revenue of $1.25 billion in 2016, up 30% over the previous year. The company switched to a net profit of $204 million, from a net loss of $30 million in 2015. Adjusted net profit for 2016 was $175 million, compared with $49 million for 2015, representing a $126 million increase.
Cash from operations totaled $327 million in 2016, and free cash flow $118 million. Cash and short term deposits at the end of 2016 were $389 million.
In the fourth quarter of 2016, Tower posted a 34% increase in sales in comparison with the corresponding quarter to $340 million, which is in line with analysts' estimates. EBITDA for the quarter was a record $105 million, up 39% year over year.
Net profit for the fourth quarter of 2016 was $48 million, up 119% in comparison with the fourth quarter of 2015. Adjusted net profit for the fourth quarter of 2016 was $53 million, compared with $26 million for the fourth quarter of 2015 and $49 million in the immediately preceding quarter.
Tower expects revenue for the first quarter of 2017 to be $330 million with an upward or downward range of 5%, representing approximately 19% year over year revenue growth in comparison with the first quarter of 2016.
Tower Semiconductor chairman and CEO Russell Ellwanger said, “2016 was on all fronts, business, financial, operational and technological, the best year TowerJazz has posted. The year began with a successful acquisition of the San Antonio facility, increasing our capacity and operational flexibility, and ended achieving our stated target in the fourth quarter of $100 million annualized third party revenue at TPSCo.
“Entering 2017, we focus on utilizing the capacity of the acquired Panasonic and Maxim fabs to meet the increasing customers’ demand within our strong advanced analog offerings. Present customer forecast indicates growth throughout the year with each quarter being significantly higher year over year. We are excited with our business and financial position that allows us to capitalize upon new initiatives to continue value creation.”
Tower Semiconductor's share price is up 0.53% on the Tel Aviv Stock Exchange.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017ed net profit derived from the $289 million higher revenues.