Chipmaker TowerJazz Q2 profit down, targets record Q4 revenue

TEL AVIV, July 26 (Reuters) - Israeli chip manufacturer TowerJazz on Thursday reported lower quarterly net profit and forecast continued weakness in mobile customer demand in the third quarter but is targeting record fourth quarter revenue.

TowerJazz, which specialises in analogue chips used in cars, medical sensors and power management, reported diluted earnings per share of 41 cents excluding one-time items in the second quarter, down from 53 cents a year earlier. Revenue fell to $335 million from $345 million.

The company was forecast to earn an adjusted EPS of 40 cents on revenue of $335 million, according to Thomson Reuters I/B/E/S.

It expects third-quarter revenue within a range of 5 percent above or below $335 million and is targeting record fourth quarter revenue of about $360-$380 million.

Analysts forecast revenue of $360.5 million in the third quarter, according to Thomson Reuters I/B/E/S.

“For the third quarter, we continue to see weakness in the mobile sector with recent reductions in customer demand,” Chief Executive Russell Ellwanger said in a statement. (Reporting by Tova Cohen, Editing by Ari Rabinovitch)