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

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details