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, S-8 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
Consolidated Balance Sheets
(dollars in thousands)
March 31, December 31,
2009 2008
Unaudited
------------ -------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 40,315 $ 34,905
Trade accounts receivable 32,537 45,860
Other receivables 1,230 2,320
Inventories 27,736 38,729
Other current assets 8,481 7,657
------------ -------------
Total current assets 110,299 129,471
LONG-TERM INVESTMENTS 28,140 29,499
PROPERTY AND EQUIPMENT, NET 428,781 449,697
INTANGIBLE ASSETS, NET 77,688 81,034
GOODWILL 7,000 7,000
OTHER ASSETS, NET 8,629 8,802
----------- ------------
TOTAL ASSETS $ 660,537 $ 705,503
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of
convertible debenture $ -- $ 8,330
Short term bank loan 7,000 7,000
Trade accounts payable 33,058 49,462
Deferred revenue and
short -term customers' advances 5,686 6,634
Other current liabilities 28,411 35,202
----------- ------------
Total current liabilities 74,155 106,628
LONG-TERM LOANS FROM BANKS 226,465 222,989
DEBENTURES 201,563 208,512
LONG-TERM CUSTOMERS' ADVANCES 11,348 11,138
OTHER LONG-TERM LIABILITIES 45,855 45,959
----------- ------------
Total liabilities 559,386 595,226
SHAREHOLDERS' EQUITY 101,151 110,277
----------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 660,537 $ 705,503
=========== ============
Tower Semiconductor Ltd. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(dollars in thousands, except share data and per share data)
Three months ended
March 31,
------------------------
2009 2008
----------- -----------
GAAP GAAP
------------------------
REVENUES $ 58,059 $ 57,607
COST OF REVENUES 74,911 68,255
----------- -----------
GROSS LOSS (16,852) (10,648)
OPERATING COSTS AND EXPENSES
Research and development 4,356 2,976
Marketing, general and administrative 6,735 7,768
----------- -----------
11,091 10,744
OPERATING LOSS (27,943) (21,392)
FINANCING EXPENSE, NET (978) (7,800)
OTHER EXPENSE, NET -- (428)
----------- -----------
LOSS BEFORE INCOME TAX BENEFIT (28,921) (29,620)
INCOME TAX BENEFIT RELATED TO JAZZ 1,277 --
----------- -----------
LOSS FOR THE PERIOD $ (27,644) $ (29,620)
=========== ===========
BASIC AND DILUTED LOSS
PER ORDINARY SHARE
loss per share $ (0.17) $ (0.24)
=========== ===========
Weighted average number of ordinary
shares outstanding - in thousands 160,026 124,228
=========== ===========
Tower Semiconductor Ltd. and Subsidiaries
Reconciliation of Reported GAAP to Non-GAAP Consolidated Statements of
Operations (Unaudited)
(dollars in thousands)
Three months ended
March 31, December 31,
----------- -----------
2009 2008
----------- -----------
Non-GAAP
---------------------------
REVENUES $ 58,059 $ 77,453
COST OF REVENUES 45,749 61,894
----------- -----------
GROSS PROFIT (LOSS) 12,310 15,559
OPERATING COSTS AND EXPENSES
Research and Development 3,793 4,625
Marketing, general and
administrative 6,933 9,186
Write-off of in-process
research and development -- --
----------- -----------
10,726 13,811
----------- -----------
OPERATING PROFIT (LOSS) 1,584 1,748
FINANCING INCOME (EXPENSE), NET 1,507 3,338
OTHER EXPENSE, NET -- (280)
----------- -----------
PROFIT (LOSS) BEFORE INCOME TAX
BENEFIT (PROVISION) 3,091 4,806
INCOME TAX BENEFIT (PROVISION)
RELATED TO JAZZ 1,277 (575)
----------- -----------
NET PROFIT (LOSS) FOR THE PERIOD $ 4,368 $ 4,231
=========== ===========
NON-GAAP GROSS MARGINS 21% 20%
=========== ===========
NON-GAAP NET MARGINS 8% 5%
=========== ===========
- Table Continued -
Tower Semiconductor Ltd. and Subsidiaries
Reconciliation of Reported GAAP to Non-GAAP Consolidated Statements of
Operations (Unaudited)
(dollars in thousands)
Three months ended
March 31, December 31,
----------- -----------
2009 2008
----------- -----------
Adjustments (see a, b, c, d below)
------------------------------------
REVENUES $ -- $ --
COST OF REVENUES 29,162 (a) 26,346 (a)
----------- -----------
GROSS PROFIT (LOSS) (29,162) (26,346)
OPERATING COSTS AND EXPENSES
Research and Development 563 (b) 654 (b)
Marketing, general and
administrative (198) (c) 1,352 (c)
Write-off of in-process
research and development -- (500)
----------- -----------
365 1,506
----------- -----------
OPERATING PROFIT (LOSS) (29,527) (27,852)
FINANCING INCOME (EXPENSE), NET (2,485) (d) (530) (d)
OTHER EXPENSE, NET -- --
----------- -----------
PROFIT (LOSS) BEFORE INCOME TAX
BENEFIT (PROVISION) (32,012) (28,382)
INCOME TAX BENEFIT(PROVISION)
RELATED TO JAZZ -- --
NET PROFIT(LOSS) FOR THE PERIOD $ (32,012) $ (28,382)
=========== ===========
- Table Continued -
Three months ended
March December
31, 31,
----------- -----------
2009 2008
----------- -----------
GAAP
---------------------------
REVENUES $ 58,059 $ 77,453
COST OF REVENUES 74,911 88,240
----------- -----------
GROSS PROFIT (LOSS) (16,852) (10,787)
OPERATING COSTS AND EXPENSES
Research and development 4,356 5,279
Marketing, general and administrative 6,735 10,538
Write-off of in-process
research and development -- (500)
----------- -----------
11,091 15,317
----------- -----------
OPERATING PROFIT (LOSS) (27,943) (26,104)
FINANCING INCOME (EXPENSE), NET (978) 2,808
OTHER EXPENSE, NET -- (280)
----------- -----------
PROFIT (LOSS) BEFORE
INCOME TAX BENEFIT (PROVISION) (28,921) (23,576)
INCOME TAX BENEFIT (PROVISION)
RELATED TO JAZZ 1,277 (575)
----------- -----------
NET PROFIT (LOSS) FOR THE PERIOD $ (27,644) $ (24,151)
=========== ===========
(a) Includes depreciation and amortization expenses in the amounts of
$29,009 and $26,150 and stock based compensation expenses in the
amounts of $153 and $196 for the three months ended March 31, 2009
and December 31, 2008, respectively.
(b) Includes depreciation and amortization expenses in the amounts of
$403 and $532 and stock based compensation expenses in the amounts of
$160 and $122 for the three months ended March 31, 2009 and December
31, 2008, respectively.
(c) Includes depreciation and amortization expenses in the amounts of
$335 and $325 and stock based compensation expenses in the amounts of
-$533 and $1,027 for the three months ended March 31, 2009 and
December 31, 2008, respectively.
(d) Includes amortization expense of debt related vehicles in the amounts
of $2,485 and $530 for the three months ended March 31, 2009 and
December 31, 2008, respectively.
Contact:
Tower Semiconductor
Noit Levi, +972-4-604-7066
noitle@towersemi.com
or:
Shelton Group
Ryan Bright, +972-239-5119 ext. 159
rbright@sheltongroup.com
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