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Tower Semiconductor Ltd. (TSEM)

- NASDAQ
  • Wed, May 13, 2:08 PM
    • On top of beating Q1 estimates, TowerJazz (NASDAQ:TSEM) has guided for Q2 revenue of $235M (+/- 5%), above a $233.2M consensus at the midpoint. With shares up 90% from their October low going into earnings and major client Skyworks having provided strong results/guidance, expectations were somewhat high.
    • Q1 organic Y/Y revenue growth (takes the Panasonic JV deal into account) was 33%; it was 71% overall. Photomasks entering the Israeli specialty foundry's fabs rose 37% (45% inc. the Panasonic JV). Gross margin rose to 36% from 34% a year ago, and operating expenses 73% to $29.4M. Net debt stood at $162M at quarter's end.
    • Q1 results, PR
    | 8 Comments
  • Wed, May 13, 5:42 AM
    • Tower Semiconductor (NASDAQ:TSEM): Q1 EPS of $0.78 beats by $0.29.
    • Revenue of $226.22M (+70.5% Y/Y) beats by $1.02M.
    • Shares +3.11% PM.
    • Press Release
    | Comment!
  • Fri, May 1, 2:56 PM
    • TowerJazz (NASDAQ:TSEM) is turning in a good day after major foundry client Skyworks beat calendar Q1 estimates with the help of strong iPhone 6/Galaxy S6-related sales, and offered above-consensus Q2 guidance.
    • The gains come ahead of TowerJazz's May 13 Q1 report. Shares sold off hard yesterday amid a broad market rout.
    | Comment!
  • Thu, Apr. 30, 3:35 PM
    | Comment!
  • Tue, Apr. 14, 2:01 PM
    • TowerJazz (NASDAQ:TSEM) has begun ramping production for several new product families offered by analog/mixed-signal chipmaker Semtech (SMTC -2.2%). The chips are being made at TowerJazz's Fab 2 (uses 200mm wafers).
    • TowerJazz is less than a dollar away from a 52-week high of $18.29. Semtech is off on what has been a moderately weak day for chip stocks.
    | Comment!
  • Wed, Mar. 25, 12:03 PM
    • Chip stocks are particularly hard-hit  (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
    • AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
    • Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
    • Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
    • TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | 19 Comments
  • Thu, Mar. 19, 9:16 AM
    • Nine days after offering to convert $40M of the $120M in Series F convertible bonds it has outstanding ahead of schedule, TowerJazz (NASDAQ:TSEM) has upped the offer to $80M.
    • As previously stated, the bonds carry a 7.8% interest rate and $10 conversion price, and have $15M worth of coupon payments remaining in 2015 and 2016. Holders have until March 25 to decide whether to accept TowerJazz's offer.
    • TSEM -1% premarket to $17.64.
    | 5 Comments
  • Tue, Mar. 10, 6:36 PM
    • TowerJazz (NASDAQ:TSEM) plans (through a public offer) to convert $40M of the $120M in Series F convertible bonds it has outstanding ahead of schedule. The bonds, issued in 2010 and 2012, have a conversion price of $10 - 39% below current levels - and a coupon of 7.8%. They have $15M worth of coupon payments remaining in 2015 and 2016.
    • The specialty foundry says the move aims to "increase the Company's operating and financial flexibility, reduce interest expenses, increase profitability, strengthen the balance sheet and associated financial ratios and simplify the Company's capital structure."
    • The underlying shares for the convertible debt are already factored into TowerJazz's diluted share count. The company had $187M in cash at the end of 2014, and $387M in debt.
    • Shares fell 3.6% in regular trading on a rough day for high-beta stocks.
    | Comment!
  • Tue, Mar. 3, 10:02 AM
    • TowerJazz (NASDAQ:TSEM) is at its highest levels since 2011 after announcing it has begun producing an IR sensor that Intel will use in one of its 3D depth-sensing camera solutions (presumably involving Intel's RealSense platform).
    • The specialty foundry notes it developed a unique sensor pixel for Intel that "allows high quantum efficiency at near infrared light, specifically at the scanning laser wavelength with high sensor resolution," and that its proximity to Intel's Israeli ops (responsible for its 3D sensing efforts) also helped.
    • Shares are adding to the gains they saw yesterday amid a chip stock rally.
    | 1 Comment
  • Tue, Mar. 3, 9:16 AM
    | 7 Comments
  • Mon, Mar. 2, 1:41 PM
    • The Philadelphia Semi Index (SOXX +2.4%) has rallied to new highs after NXP announced it's buying microcontroller, network processor, and RF amplifier supplier Freescale for $16.7B after factoring net cash/debt, the biggest deal yet in the chip industry's ongoing consolidation wave. The Nasdaq is up 0.5%.
    • Microcontroller makers are among today's big gainers - NXP/Freescale assert they'll be the world's biggest supplier of general-purpose microcontrollers. Standouts include Atmel (ATML +6%) and STMicroelectronics (STM +3.4%), as well as Cypress (CY +3.1%) and merger partner Spansion (CODE +3.2%).
    • Other notable gainers include InvenSense (INVN +3.4%), Ambarella (AMBA +6.3%), Audience (ADNC +5.5%), Cirrus Logic (CRUS +3.7%), Cavium (CAVM +4.2%), ON Semi (ONNN +3.5%), Silicon Motion (SIMO +3.5%), InPhi (IPHI +3.8%), and TowerJazz (TSEM +5.5%).
    • With the Mobile World Congress as a backdrop, InvenSense has unveiled a 6-axis SoC that pairs a gyroscope and acceleromoter with a motion processor and related software/algorithms; the company claims 25%-50% better power consumption than rival solutions. It has also launched a software library meant to "provide sensor-assisted positioning in places where GNSS alone cannot provide desired accuracy."
    • Cavium has announced its OCTEON Fusion-M processor line for mobile base stations. The chips support up to 16 custom CPU cores running at 2GHz., and are declared by Cavium to enable "Smart Radio Heads" that can adapt to network conditions. They begin sampling in Q3.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    • Previously: Chip product launches: ARMH, EZCH, BRCM, NXPI, XLNX, IDTI
    | 3 Comments
  • Mon, Feb. 23, 12:44 PM
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  • Mon, Feb. 23, 9:43 AM
    • In addition to soundly beating Q4 EPS estimates (and slightly beating on revenue), TowerJazz (TSEM +13.1%) is guiding for Q1 revenue of $225M (+/- 5%), good for 70% Y/Y growth and above a $224M consensus at the midpoint. The specialty foundry also says it aims to "achieve annualized non-GAAP gross profit in [Q4 2015] of about $400 million."
    • Driving the EPS beat: Gross margin rose to 36% from 30% in Q3 and 34% a year ago. R&D spend rose 76% Y/Y to $13.7M, and MG&A spend 40% to $14.6M (compares with 75% revenue growth).
    • Organic revenue growth was 23%. Revenue from "organic" top-10 customers (excludes Micron and Panasonic) rose 32% Y/Y. TowerJazz ended 2014 with $187M in cash, and $387M in debt.
    • Shares are back withing $2 of a 52-week high of $16.59.
    • Q4 results, PR
    | Comment!
  • Mon, Feb. 23, 9:14 AM
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  • Mon, Feb. 23, 5:50 AM
    • Tower Semiconductor (NASDAQ:TSEM): Q4 EPS of $0.83 beats by $0.25.
    • Revenue of $235.29M (+74.8% Y/Y) beats by $0.31M.
    • Shares +6.87% PM.
    • Press Release
    | 18 Comments
  • Mon, Feb. 2, 2:50 PM
    • Tech companies posting major gains today include fiber access equipment vendor Zhone (ZHNE +5.3%), wireless charging tech developer Energous (WATT +4.6%), 4G infrastructure software vendor Mavenir (MVNR +5.8%), online content provider Demand Media (DMD +6.2%), and online health insurance seller eHealth (EHTH +3.9%).
    • Major tech decliners include several Chinese Internet names. Specifically, online retailers Vipshop (VIPS -4.9%) and Dangdang (DANG -4.1%), auto site Bitauto (BITA -6.4%), mobile game publisher Sky-Mobi (MOBI -4%), and social media/gaming platform YY (YY -6.3%).
    • Other notable decliners include cybersecurity hardware firm KEYW (KEYW -4.9%), telecom/ARM server chipmaker AppliedMicro (AMCC -10.1%), specialty foundry TowerJazz (TSEM -4.7%), cloud healthcare software firm Castlight (CSLT -4.1%), cloud marketing software firm Marketo (MKTO -4.5%), online coupon code platform RetailMeNot (SALE -4.7%), optical component vendor NeoPhotonics (NPTN -6%), and supply chain software firm Manhattan Associates (MANH -5.1%). The Nasdaq is down 0.3%.
    • Previously: Solar stocks jump amid oil/energy stock rally
    | Comment!
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Company Description
Tower Semiconductor Ltd is apure-play independent specialty foundry dedicated to the manufacture of semiconductors.Itmanufactures ICs on silicon wafers, using the customer's proprietary circuit designs.