Tower Semiconductor Ltd (NASDAQ: TSEM) reported fiscal first-quarter results on Wednesday. The company reported a quarterly revenue growth of 9% year-on-year to $358.17 million, compared to the analyst consensus estimate of $358.15 million.
The Israel-based contract chipmaker’s adjusted EPS of 45 cents beat the analyst consensus estimate of 38 cents.
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Gross profit was $73.17 million, up 0.8% Y/Y. The margin declined to 20.4% from 22.2% Y/Y. Operating profit of $32.9 million decreased 3.2% Y/Y.
Gross and operating profits remained similar since the positive impact of the $31 million revenue increase was offset by the fixed costs of the new 300mm Agrate facility, as previously disclosed. During the fourth quarter of 2024, the company discontinued the lower margin legacy of 150mm flows in Fab1, with the last Fab-outs occurring in January 2025.
During the quarter, the company generated $93.92 million in operating cash flow and held $1.18 billion in cash and equivalents.
CEO Russell Ellwanger said, “Tower Semiconductor delivered continued record revenue in RF infrastructure, including SiPho and SiGe. Throughout the year, it targeted further revenue growth of these technologies, increases in its high-voltage 200mm power management business, and higher revenue levels in its sensors business. Additionally, it entered a new market for Tower, namely envelope trackers, using its 300mm technology platform.”
Outlook: Tower Semiconductor expects second-quarter revenue of $353.4 million to $390.6 million compared to the $371.3 million analyst consensus estimate.
TSEM Price Action: TSEM stock is down 1.37% to $39.54 at the last check on Wednesday.
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