A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect our business is included under the heading "Risk Factors" in our most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the "SEC") and the Israel Securities Authority and Jazz's most recent filings on Forms 10-K and 10-Q, as were filed with the SEC. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, December 31,
2008 2007
---------- ---------
A S S E T S
CURRENT ASSETS
Cash and cash equivalents $ 34,905 $ 44,536
Trade accounts receivable 45,860 44,977
Other receivables 2,320 4,748
Inventories 38,729 27,806
Other current assets 7,657 1,580
---------- ---------
Total current assets 129,471 123,647
LONG-TERM INVESTMENTS 29,499 15,093
PROPERTY AND EQUIPMENT, NET 449,697 502,287
INTANGIBLE ASSETS, NET 81,034 34,711
GOODWILL 7,000 --
OTHER ASSETS, NET 8,802 11,044
---------- ---------
TOTAL ASSETS $ 705,503 $ 686,782
---------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of convertible
debenture $ 8,330 $ 7,887
Short term debt 7,000 --
Trade accounts payable 49,462 49,025
Deferred revenue and short-term
customers' advances 6,634 1,915
Other current liabilities 35,202 18,109
---------- ---------
Total current liabilities 106,628 76,936
LONG-TERM DEBT FROM BANKS 222,989 379,314
DEBENTURES 208,512 117,460
LONG-TERM CUSTOMERS' ADVANCES 11,138 27,983
OTHER LONG-TERM LIABILITIES 45,959 40,380
---------- ---------
Total liabilities 595,226 642,073
---------- ---------
SHAREHOLDERS' EQUITY 110,277 44,709
---------- ---------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 705,503 $ 686,782
---------- ---------
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data and per share data)
Year ended December 31,
-----------------------------------
2008 2007 2006
-----------------------------------
GAAP GAAP GAAP
-----------------------------------
REVENUES $ 251,659 $ 230,853 $ 187,438
COST OF SALES 298,683 284,771 267,520
------------ ----------- --------
GROSS LOSS (47,024) (53,918) (80,082)
------------ ----------- --------
OPERATING COSTS AND EXPENSES
Research and development 14,969 13,790 15,048
Marketing, general and
administrative 33,223 31,604 25,831
Write-off of in-process
research and development 1,800 -- --
Merger related costs 520 -- --
Fixed assets impairment 120,538 -- --
------------ ----------- --------
171,050 45,394 40,879
------------ ----------- --------
OPERATING LOSS (218,074) (99,312) (120,961)
FINANCING INCOME(EXPENSE), NET (17,566) (34,976) (47,563)
GAIN ON DEBT RESTRUCTURING 130,698 -- --
OTHER INCOME (EXPENSE), NET (918) 92 597
------------ ----------- --------
LOSS BEFORE TAX PROVISION (105,860) (134,196) (167,927)
TAX PROVISION RELATED TO JAZZ (575) -- --
------------ ----------- --------
LOSS FOR THE PERIOD $ (106,435) $ (134,196) $ (167,927)
------------ ----------- --------
BASIC LOSS PER
ORDINARY SHARE
Loss per share $ (0.79) $ (1.13) $ (2.03)
------------ ----------- --------
Weighted average number
of ordinary shares outstanding
- in thousands 134,749 118,857 82,581
------------ ----------- --------
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data and per share data)
Three months ended December 31,
----------------------------------
2008 2007 2006
----------------------------------
GAAP GAAP GAAP
----------------------------------
(unaudited)
----------------------------------
REVENUES $ 77,453 $ 61,618 $ 55,505
COST OF SALES 88,240 73,563 72,756
---------- ---------- -------
GROSS LOSS (10,787) (11,945) (17,251)
---------- ---------- -------
OPERATING COSTS AND EXPENSES
Research and development 5,279 3,499 3,893
Marketing, general and administrative 10,538 7,884 6,732
Write-off of in-process
research and development (500) -- --
---------- ---------- -------
15,317 11,383 10,625
---------- ---------- -------
OPERATING LOSS (26,104) (23,328) (27,876)
FINANCING INCOME (EXPENSE), NET 2,808 (1,942) (8,450)
OTHER INCOME (EXPENSE), NET (280) 19 --
---------- ---------- -------
LOSS BEFORE TAX PROVISION (23,576) (25,251) (36,326)
TAX PROVISION
RELATED TO JAZZ (575) -- --
---------- ---------- -------
LOSS FOR THE PERIOD $ (24,151) $ (25,251) $(36,326)
---------- ---------- -------
BASIC LOSS PER ORDINARY SHARE
Loss per share $ (0.15) $ (0.20) $ (0.38)
---------- ---------- -------
Weighted average number of
ordinary
shares outstanding in thousands 159,747 124,120 94,373
---------- ---------- -------
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands)
Year ended December 31, 2008
-------------------------------------------
Non-GAAP Adjustments GAAP
(see a, b, c below)
-------------------------------------------
REVENUES $ 251,659 $ -- $ 251,659
COST OF SALES 174,222 124,461 (a) 298,683
-------------- --------------- ----------
GROSS PROFIT (LOSS) 77,437 124,461 (47,024)
-------------- --------------- ----------
OPERATING COSTS AND EXPENSES
Research and development 13,212 1,757 (b) 14,969
Marketing, general
and administrative 28,148 5,075 (c) 33,223
Write-off of in-process
research and development -- 1,800 1,800
Merger related costs -- 520 520
Fixed assets impairment -- 120,538 120,538
-------------- --------------- ----------
41,360 129,690 171,050
-------------- --------------- ----------
OPERATING PROFIT
(LOSS) $ 36,077 $ 254,151 $ (218,074)
-------------- --------------- ----------
NON-GAAP GROSS
MARGINS 31%
--------------
NON-GAAP
OPERATING MARGINS 14%
--------------
(a) Includes depreciation and amortization expenses in the amount of
$123,632 and stock based compensation expenses in the amount of $829.
(b) Includes depreciation and amortization expenses in the amount of
$1,157 and stock based compensation expenses in the amount of $600.
(c) Includes depreciation and amortization expenses in the amount of $377
and stock based compensation expenses in the amount of $4,698.
Contact:
Tower Semiconductor
Noit Levi,
+972-52-457-8266
noitle@towersemi.com
or:
Shelton Group
Ryan Bright,
+972-239-5119 ext. 159
rbright@sheltongroup.com
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