Tower Semiconductor Ltd. (TSEM) has reported a 30.99 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $45.51 million, or $0.45 a share in the quarter, compared with $65.94 million, or $0.69 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $49.94 million, or $0.50 a share compared with $31.58 million or $0.34 a share, a year ago.
Revenue during the quarter grew 18.72 percent to $330.08 million from $278.04 million in the previous year period. Gross margin for the quarter expanded 362 basis points over the previous year period to 25.68 percent. Total expenses were 84.02 percent of quarterly revenues, down from 88.92 percent for the same period last year. This has led to an improvement of 490 basis points in operating margin to 15.98 percent.
Operating income for the quarter was $52.76 million, compared with $30.81 million in the previous year period.
Mr. Russell Ellwanger, chief executive officer of TowerJazz, commented, "The first quarter demonstrated a strong year over year growth. We are executing well within each of our targeted analog application markets. During the quarter, we received higher than expected demand for high margin businesses such as RF SiGe optical infrastructure and CMOS Image Sensor business, specifically industrial applications. These orders, which will be shipped throughout the next quarters, further strengthen our belief for revenue and margin growth in the year, with our second quarter guidance reflecting the Company's highest revenue ever."
For the second-quarter, Tower Semiconductor Ltd. forecasts revenue to be $345 million.
Operating cash flow improves
Tower Semiconductor Ltd. has generated cash of $82.14 million from operating activities during the quarter, up 6.07 percent or $4.70 million, when compared with the last year period.
The company has spent $45.47 million cash to meet investing activities during the quarter as against cash outgo of $47.53 million in the last year period.
The company has spent $3.43 million cash to carry out financing activities during the quarter as against cash inflow of $10.06 million in the last year period.
Cash and cash equivalents stood at $392.90 million as on Mar. 31, 2017, up 74.95 percent or $168.32 million from $224.58 million on Mar. 31, 2016.
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