MIGDAL HAEMEK, Israel, May 09, 2024 (GLOBE NEWSWIRE) -- Tower Semiconductor (NASDAQ: TSEM & TASE: TSEM) reports today its results for the first quarter ended March 31, 2024.
First Quarter of 2024 Results Overview
Revenue for the first quarter of 2024 was $327 million as compared to $352 million for the fourth quarter of 2023. Revenue for the first quarter of 2023 was $356 million.
Gross profit for the first quarter of 2024 was $73 million as compared to $84 million for the fourth quarter of 2023. Gross profit for the first quarter of 2023 was $96 million.
Operating profit for the first quarter of 2024 was $34 million, as compared to $45 million in the fourth quarter of 2023. Operating profit for the first quarter of 2023 was $89 million and included $32 million restructuring income, net from the previously disclosed reorganization and restructure of our Japan operations during 2022.
Net profit for the first quarter of 2024 was $45 million, or $0.40 basic and diluted earnings per share, as compared to net profit of $54 million, or $0.49 basic and $0.48 diluted earnings per share for the fourth quarter of 2023. Net profit in the first quarter of 2023 was $71 million, or $0.65 basic and $0.64 diluted earnings per share and included $11 million restructuring income, net.
Cash flow generated from operating activities in the first quarter of 2024 was $110 million. Investments in equipment and other fixed assets were $98 million, net and debt payments totaled $8 million, net.
In the fourth quarter of 2023, cash flow generated from operating activities was $126 million, investments in equipment and other fixed assets were $136 million, net and debt payments totaled $9 million, net.
Corporate Credit Rating
In May 2024, Standard & Poor’s Maalot (an Israeli rating company that is fully owned by S&P Global Ratings) completed its annual rating review for the Company and re-affirmed its corporate credit rating as “ilAA“/ stable.
Business Outlook
Tower Semiconductor guides revenue for the second quarter of 2024 to be $350 million, with an upward or downward range of 5%.
Mr. Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, stated: “As we move through the year, we remain focused on and confident about continuous growth, driven by the performance of several of our differentiated technologies, critical to present market needs with market leader customers who are true partners. This growth is against the landscape of a not yet robust market. Recent customer forecasts give reason to believe market recovery is forthcoming.”
Teleconference and Webcast
Tower Semiconductor will host an investor conference call today, Thursday, May 9, 2024, at 10:00 a.m. Eastern time (9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and 5:00 p.m. Israel time) to discuss the Company’s financial results for the first quarter of 2024 and its business outlook.
This call will be webcast and can be accessed via Tower Semiconductor’s website at www.towersemi.com or by calling 1-888-281-1167 (U.S. Toll-Free), 03-918-0610 (Israel), +972-3-918-0610 (International). For those who are not available to listen to the live broadcast, the call will be archived on Tower Semiconductor’s website for 90 days.
The Company presents its financial statements in accordance with U.S. GAAP. The financial information included in the tables below includes unaudited condensed financial data. Some of the financial information, which may be used and/ or presented in this release and/ or prior earnings related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, which we may describe as adjusted financial measures and/ or reconciled financial measures, are non-GAAP financial measures as defined in Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission as they apply to our Company. These adjusted financial measures are calculated excluding the following: (1) amortization of acquired intangible assets as included in our operating costs and expenses, (2) compensation expenses in respect of equity grants to directors, officers, and employees as included in our operating costs and expenses, (3) merger contract termination fees received from Intel, net of associated cost and taxes following the previously announced Intel contract termination as included in net profit and (4) restructuring income, net, which includes income, net of cost and taxes associated with the cessation of operations of the Arai facility in Japan which occurred during 2022 as included in net profit. These adjusted financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables may also present the GAAP financial measures, which are most comparable to the adjusted financial measures, as well as a reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used and/ or presented in this release and/ or prior earnings related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, as well as may be included and calculated in the tables herein, the term Earnings Before Interest Tax Depreciation and Amortization which we define as EBITDA consists of operating profit in accordance with GAAP, excluding (i) depreciation expenses, which include depreciation recorded in cost of revenues and in operating cost and expenses lines (e.g, research and development related equipment and/ or fixed other assets depreciation), (ii) stock-based compensation expense, (iii) amortization of acquired intangible assets, (iv) merger contract termination fees received from Intel, net of associated cost following the previously announced Intel contract termination, as included in operating profit and (v) restructuring income, net in relation to the Arai facility in Japan, as included in operating profit. EBITDA is reconciled in the tables below and/or in prior earnings-related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company from GAAP operating profit. EBITDA and the adjusted financial information presented herein and/ or prior earnings-related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, are not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA and the adjusted financial information presented herein and/ or prior earnings-related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Net Cash, as may be used and/ or presented in this release and/ or prior earnings-related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, is comprised of cash, cash equivalents, short-term deposits, and marketable securities less debt amounts as presented in the balance sheets included herein. The term Net Cash is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for cash, debt, operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Free Cash Flow, as used and/ or presented in this release and/ or prior earnings related filings and/ or in related public disclosures or filings with respect to the financial statements and/ or results of the Company, is calculated to be net cash provided by operating activities (in the amounts of $110 million, $126 million and $73 million for the three months periods ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively ( less cash used for investments in property and equipment, net (in the amounts of $98 million, $136 million and $105 million for the three months periods ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively) . The term Free Cash Flow is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing, and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP.
