Chipmaker TowerJazz Q3 profit slightly tops forecast

TEL AVIV, Nov 13 (Reuters) - Israeli chip manufacturer TowerJazz beat earnings forecasts by a cent in the third quarter and said its plan to expand production capacity at a plant in Japan was on track.

TowerJazz, which specialises in analogue chips used in cars, medical sensors and power management, posted on Wednesday diluted earnings per share excluding one-time items of 25 cents in the quarter, down from 37 cents a year earlier. Revenue slipped to $312 million from $323 million.

It was forecast to earn adjusted EPS of 24 cents on revenue of $312 million, according to I/B/E/S data from Refinitiv.

TowerJazz expects fourth-quarter revenue in a range of 5 percent above or below $312 million. Analysts are forecasting $316 million in revenue.

Due to forecasted customer demand exceeding capacity at its joint venture with Panasonic in Japan, TowerJazz last quarter decided to expand capacity for power management and image sensor platforms. The company said the plan is on track and together with other initiatives should result “in growing financials” in 2020. (Reporting by Tova Cohen Editing by Steven Scheer)