Bloomberg News

Tower’s Ellwanger Sees ‘Definite’ Revenue Growth in 2013

November 15, 2012

Tower Semiconductor Ltd. (TSEM), the Israeli maker of customized chips, will see a “definite” rise in revenue next year as it starts production of recent design orders, the company’s chief executive officer Russell Ellwanger said.

“We will see a definite revenue increase versus 2012 as the execution of design wins into prototypes enter into production in 2013,” Ellwanger said in a telephone interview with Bloomberg today.

The company reported a 12 percent drop in third quarter revenue to $154.6 million and a loss of $18m compared with a profit of 1.84 million in the same quarter a year earlier. The mean estimate of three analysts surveyed by Bloomberg was $157 million. Tower forecast sales of $147 million to $157 million for the fourth quarter. Shares closed 0.4 percent lower in Tel Aviv and were trading 2.4 percent higher at 10 a.m. in New York.

“The results were weak but in line with expectations. They continue to be affected by the global economic situation,” Sabina Podval, an analyst at Leader Capital Markets (LDRC) Ltd. in Tel Aviv said today by phone.

As concern about Europe’s debt persists and growth in the U.S. and China slows, companies from Intel Corp. to International Business Machines Corp. (IBM:US) have released guidance and revenues that have fallen short of projections. Intel, the world’s largest chipmaker, forecast on Oct. 16 fourth-quarter gross margins that missed analysts’ estimates, while IBM, the biggest computer-services provider, reported on the same day third-quarter revenue that fell short of projections.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net


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