Lisa Thompson
Growth at reasonable price, research analyst, tech, small-cap

TowerJazz-Panasonic Joint Venture Boosts Revenues 80%

Today, TowerJazz (NASDAQ:TSEM) closed its joint venture agreement with Panasonic (OTCPK:PCRFY) by issuing 870,454 shares ($7.5 million in value) in exchange for 51% of a joint venture that is expected to add $400 million in annual revenues. The agreement has Panasonic contributing enough in revenues for manufacturing its own chips to have the joint venture breakeven. So, by itself, the agreement will not add to earnings. However, the company also announced that due to the capacity afforded by this agreement, TowerJazz would now be able to close its Nishiwaki fab, and transfer production to the fabs owned by the joint venture. As a result, TowerJazz will be able to save as much as $130 million a

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