Israeli chip maker TowerJazz Q2 profit beats estimates

TEL AVIV Mon Aug 4, 2014 3:35am EDT

TEL AVIV Aug 4 (Reuters) - Israeli chipmaker TowerJazz on Monday beat estimates with strong second-quarter net profit due to revenue from its joint venture in Japan with Panasonic Corp.

It earned 62 cents per share excluding one-time items, compared with EPS of 47 cents per share a year earlier. Revenue grew 87 percent to $234.1 million.

The company was forecast to earn 42 cents a share excluding items on revenue of $228.8 million, according to Thomson Reuters I/B/E/S.

TowerJazz has lost money for years following heavy investment in a second chip plant in Israel.

Chief Executive Russell Ellwanger said the company closed negotiations with third party customers, which should reach annual revenue beyond $100 million within the next three years.

"We expect these first contracts and agreements to begin volume production ramp in the second half of 2015," he said in a statement.

The company said it expects third quarter revenue to be $225 million with an upward or downward range of 5 percent. Mid-range guidance represents 70 percent year over year growth, it said. (Reporting by Tova Cohen and Ari Rabinovitch; Editing by Steven Scheer)

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