Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) predicts revenue growth for the fourth quarter, after reporting sequential growth, but sharply lower net profits during the third quarter. Revenue fell to $132.6 million for the third quarter from $154 million for the corresponding quarter. Tower attributed the drop to the reduction in orders from Micron Technology Inc. (NYSE: MU) from the company's Nishiwaki fab, and said that excluding this factor, revenue actually rose by $4 million. Tower also stressed that third quarter revenue was 6% higher than in the preceding quarter and 18% higher than in the first quarter.

GAAP-based net loss widened to $32 million ($0.68 per share) for the third quarter from $18 million for the corresponding quarter, and non-GAAP net profit fell to $12 million ($0.26 per share) from $32 million.

In its guidance for the fourth quarter, Tower forecasts $133-143 million revenue. The mid-range guidance reflects 4% growth over the third quarter, 10% growth over the second quarter, and 23% growth over the first quarter.

“The sequential growth we have demonstrated in the first quarter through the third quarter was in line with our expectations based on strong alignment to customer forecast and project execution. The increase in new masks entering the fab amounted to about a 35% year to date increase compared with 2012. This is the base for core business growth, a precursor of which is our guidance for the fourth quarter revenue, reflecting quarterly growth nicely above the foundry market trend," said Tower CEO Russell Ellwanger.

By: DocMemory
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