Israeli chipmaker TowerJazz sees recovery in revenue

JERUSALEM Thu Aug 8, 2013 4:02am EDT

JERUSALEM Aug 8 (Reuters) - Israeli chipmaker TowerJazz reported a sharp drop in quarterly revenue and profit, hurt by a decline in sales to Micron Technology, but forecast an improvement for the rest of the year.

TowerJazz said on Thursday it earned $18.2 million in the second quarter, down from $44.8 million a year earlier. Revenue slid 26 percent to $125.2 million.

The company attributed the declines to a contractual decrease in sales to Micron of $40 million, which weighed on profit by $25 million.

TowerJazz had previously forecast second-quarter revenue of between $122 million and $132 million.

For the third quarter, it projects a revenue range of $130-$140 million.

"Each and every of our business units is realising notable market share growth," said Russell Ellwanger, TowerJazz's chief executive.

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