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Tower Semiconductor Ltd. (TSEM)

  • Wed, Aug. 5, 6:10 PM
    • TowerJazz (NASDAQ:TSEM) rallied to $13.93 today after beating Q2 estimates with the help of strong demand from RF front-end module (e.g. Skyworks), image sensor (e.g. Himax), and power management IC clients. Q3 revenue guidance of $244M is below a $247.5M consensus, but a soft forecast was expected after a long list of chipmakers provided light guidance in recent weeks.
    • Q2 Y/Y organic growth (excludes Micron and Panasonic) was 35%. Gross margin (non-GAAP) rose to 37% from Q1's 36% and Q2 2014's 27%. The Israeli specialty foundry ended Q2 with $150M in net debt.
    • Q2 results, PR
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  • Wed, Aug. 5, 9:19 AM
  • Wed, Aug. 5, 5:37 AM
    • Tower Semiconductor (NASDAQ:TSEM): Q2 EPS of $0.70 beats by $0.18.
    • Revenue of $235.56M (+0.6% Y/Y) beats by $0.86M.
    • Press Release
    | Comment!
  • Wed, Jul. 8, 11:37 AM
    • Chip stocks are underperforming as the Nasdaq registers a 1.2% decline. The Philadelphia Semi Index (SOXX -2.6%) is now down 13% from a June 1 peak of $101.80, and 4% YTD; it's still up 87% from a Nov. 2012 low of $47.58.
    • Plunging Chinese equity markets could be weighing on the group. With retail Chinese investors having set up brokerage accounts en masse over the last year, there are plenty of concerns about the reverse wealth effect of a crash. The Economist reccently downplayed those worries, noting a relatively modest 15% of Chinese household assets are invested in stocks.
    • Major decliners among chip developers include Skyworks (SWKS -4.9%), Qorvo (QRVO -5.6%), InvenSense (INVN -5.6%), NXP (NXPI -4.7%), Freescale (FSL -4%), MoSys (MOSY -9.4%), AppliedMicro (AMCC -5.1%), Cavium (CAVM -3.8%), and Silicon Motion (SIMO -6.4%). SIMO also fell yesterday after favorably adjusting its Q2 sales guidance. Skyworks and Qorvo sold off yesterday morning before rebounding in afternoon trading.
    • Other names tied to the industry that are seeing heavy selling pressure include ARM (ARMH -4%), TowerJazz (TSEM -5.1%), UMC (UMC -4.4%), Veeco (VECO -4.3%), and Axcelis (ACLS -4.6%).
  • Mon, Jun. 22, 1:24 PM
    • TowerJazz (NASDAQ:TSEM) states automotive driver-assistance system supplier BrightWay Vision has hired it to manufacture CMOS (silicon) image sensors going into BrightWay's automotive cameras.
    • TowerJazz adds the companies have "developed a unique gated pixel" said to have never been produced before on silicon due to its fast-charge transfer requirements, and that the solution both offers better performance and is cheaper than infrared vision alternatives.
    • On its Q1 CC (transcript), TowerJazz stated its image sensor foundry business remains strong, and has been able to expand into new markets thanks to the Panasonic JV (TPSco). Taiwan's Himax (NASDAQ:HIMX) is a client.
  • Fri, Jun. 19, 5:36 PM
  • 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
  • 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
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  • 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.
  • 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.
  • 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
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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.