TowerJazz Q1 revenue, profit fall; sees better quarters ahead
TEL AVIV May 9 (Reuters) - Israeli chipmaker TowerJazz reported lower revenue and net profit in the first quarter due to a contractual decrease in sales to Micron Technology at its Japanese plant but expects improvement in each of the next quarters of 2013.
TowerJazz on Thursday posted quarterly net profit excluding one-time items of $6.5 million, down from $32 million a year earlier as revenue fell to $113 million from $168 million. The company itself had forecast revenue of $110 million to $120 million in the first quarter.
"We view this as a short term decline, realised by the announced contractual decrease of Micron volume agreement," the company said. "The upward quarterly guidance demonstrates our ability to fill this gap."
TowerJazz forecast revenue of $122 to $132 million in the second quarter, with the mid-range of this outlook representing 13 percent growth over the first quarter.
Russell Ellwanger, chief executive officer of TowerJazz, said the company projects quarter-over-quarter growth throughout the year.