TowerJazz Reports Second Quarter 2014 Results
Exceeded
MIGDAL HAEMEK,
Highlights
-
Second quarter revenues of
$234 million , up 76% quarter over quarter and 87% year over year; this quarter’s statement of operations report includesTower Panasonic Semiconductor Co. (“TPSCo”) results for the first time. First half revenues of$367 million , up 54% year over year; -
Building upon the base
Panasonic business annual demand of$360-420 million , first quarter post TPSCo formation evidenced strong new 3rd party customer engagements with potential to reach incremental annual revenue run rate of beyond$100 million at high incremental margin; -
EBITDA of
$33 million for the second quarter of 2014 as compared to$26 million in the second quarter 2013; -
Organic business growth of approximately 40% year over year for
Company’s top 10 customers and 50% for its top 5 customers (excluding
Micron and
Panasonic ) representing 20% and 11% quarter over quarter growth, respectively; -
End of quarter cash balance of
$192 million with$41 million (excluding interest payments) cash from operations generated during the second quarter and strong balance sheet ratios.
Financial Results Overview
Second quarter 2014 revenues were
Revenues for the first half of 2014 were
On a non-GAAP basis, as described and reconciled in the tables below,
2014 second quarter gross profit was
On a non-GAAP basis, 2014 second quarter operating profit was
On a non-GAAP basis, 2014 second quarter net profit was
On a GAAP basis, net loss in the second quarter of 2014 was
On a GAAP basis, net profit in the first half of 2014 was
Cash and short-term deposits as of
The increase in cash balance during the first half of 2014 was
attributed mainly to
Shareholders' equity as of
Outlook
TowerJazz expects revenues for its 2014 third quarter ending
During the quarter, the Company received and is now evaluating offers and opportunities to strengthen its balance sheet by exchanging its existing debt with longer term, non-equity debt vehicles.
Management Remarks
“The core TowerJazz business grew significantly at 50% and 40%, for our top 5 and top 10 customers, respectively, when comparing their revenues in the second quarter of 2014 to the same period of last year. For these top customers, we expect continuous growth throughout the year, with already 11% and 20%, respectively, comparing the second quarter revenues to the first quarter of 2014.
“Second quarter saw a record number of masks full sets entering our Israeli and US fabs of over 240 vs. 130 for the same period of 2013. The first half of 2014 increase in new masks of 62% vs. the first half of 2013 is a definite indication that we are providing customers’ satisfaction in growing market segments, enabling continued significant growth in 2015 and 2016, as these products reach peak volume production.
“We are seeing strong market demand from customers being served by all
of our business units, which we are well poised to serve both
organically and with the newly added operational and technical
capabilities of TPSCo, enabling us to exceed our
Teleconference and Webcast
TowerJazz will host an investor conference call today,
This call will be webcast and can be accessed via TowerJazz’s website at www.towerjazz.com,
or by calling: 1-888-668-9141 (U.S. Toll-Free), 03-918-0609 (
As previously announced, beginning with the second quarter of 2007,
the Company has been presenting its financial statements in accordance
with U.S. GAAP. This release, including the financial tables
below, presents other financial information that may be considered
"non-GAAP financial measures" under Regulation G and related reporting
requirements promulgated by the
About TowerJazz
This press release includes forward-looking statements, which are
subject to risks and uncertainties. Actual results may vary from those
projected or implied by such forward-looking statements and you should
not place any undue reliance on such forward-looking statements.
Potential risks and uncertainties include, without limitation, risks and
uncertainties associated with: (i) maintaining existing customers and
attracting additional customers, (ii) cancellation of orders, (iii)
failure to receive orders currently expected, (iv) the cyclical nature
of the semiconductor industry and the resulting periodic overcapacity,
fluctuations in operating results and future average selling price
erosion, (v) material amount of fixed costs, debt and other liabilities
and having sufficient funds to satisfy our fixed costs, debt obligations
and other short-term and long-term liabilities on a timely basis, or to
execute debt re-financing, restructuring and/or fundraising to enable
the service of these debt and other liabilities, (vi) operating our
facilities at high utilization rates which is critical in order to cover
a portion or all of the high level of fixed costs associated with
operating a foundry and our debt and in order to improve our results,
(vii) our ability to satisfy the covenants stipulated in our agreements
with our lenders, banks and bond holders, (viii) our ability to
capitalize on the demand for our foundry services, including the ability
to operate our fabs at very high utilization rates, (ix) meeting the
conditions set in the approval certificates received from the Israeli
Investment Center under which we received a significant amount of grants
in past years, (x) our ability to accurately forecast financial
performance, which is affected by limited order backlog and lengthy
sales cycles, (xi) the purchase of equipment to increase capacity, the
completion of the equipment installation, technology transfer and
raising the funds therefor, (xii) the concentration of our business in
the semiconductor industry, (xiii) product returns, (xiv) our ability to
maintain and develop our technology processes and services to keep pace
with new technology, evolving standards, changing customer and end-user
requirements, new product introductions and short product life cycles,
(xv) competing effectively, (xvi) achieving acceptable device yields,
product performance and delivery times, (xvii) possible production or
yield problems in our wafer fabrication facilities, (xviii) our ability
to manufacture products on a timely basis, (xix) our dependence on
intellectual property rights of others, our ability to operate our
business without infringing others’ intellectual property rights and our
ability to enforce our intellectual property against infringement, (xx)
our ability to fulfill our obligations and meet performance milestones
under our agreements, including successful execution of our agreement
with an Asian entity signed in 2009, (xxi) retention of key employees
and recruitment and retention of skilled qualified personnel, (xxii)
exposure to inflation, currency exchange and interest rate fluctuations
and risks associated with doing business locally and internationally,
(xxiii) fluctuations in the market price of our traded securities may
adversely affect our reported GAAP non-cash financing expenses, (xxiv)
issuance of ordinary shares as a result of conversion and/or exercise of
any of our convertible securities may dilute the shareholdings of
current and future shareholders, (xxv) successfully executing our
acquisitions and integrating them into our business, utilizing our
expanded capacity and finding new business, including successfully
operating
A more complete discussion of risks and uncertainties that may affect
the accuracy of forward-looking statements included in this press
release or which may otherwise affect our business is included under the
heading "Risk Factors" in Tower’s most recent filings on Forms 20-F,
F-3, F-4, S-8 and 6-K, as were filed with the
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(dollars in thousands) | ||||||||||||||
June 30, | March 31, | December 31, | ||||||||||||
2014 | 2014 | 2013 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
A S S E T S | ||||||||||||||
CURRENT ASSETS | ||||||||||||||
Cash and designated short-term interest bearing deposits |
$ | 192,220 | $ | 182,831 | $ | 122,871 | ||||||||
Trade accounts receivable | 106,569 | 82,679 | 80,316 | |||||||||||
Other receivables | 8,450 | 12,928 | 10,943 | |||||||||||
Inventories | 83,689 | 94,453 | 64,804 | |||||||||||
Other current assets | 38,305 | 60,279 | 11,480 | |||||||||||
Total current assets | 429,233 | 433,170 | 290,414 | |||||||||||
LONG-TERM INVESTMENTS | 14,386 | 14,132 | 14,494 | |||||||||||
PROPERTY AND EQUIPMENT, NET | 485,177 | 483,525 | 350,039 | |||||||||||
INTANGIBLE ASSETS, NET | 49,603 | 26,868 | 32,393 | |||||||||||
GOODWILL | 7,000 | 7,000 | 7,000 | |||||||||||
OTHER ASSETS, NET | 10,847 | 10,909 | 11,547 | |||||||||||
TOTAL ASSETS | $ | 996,246 | $ | 975,604 | $ | 705,887 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||
Short term debt | $ | 97,128 | $ | 46,364 | $ | 36,441 | ||||||||
Trade accounts payable | 100,456 | 73,604 | 66,358 | |||||||||||
Deferred revenue | 3,752 | 1,372 | 3,166 | |||||||||||
Employee related liabilities, including Nishiwaki retirement allowance |
80,423 | 80,356 | 25,957 | |||||||||||
Deferred tax | -- | 17,006 | -- | |||||||||||
Other current liabilities | 26,548 | 27,895 | 7,994 | |||||||||||
Total current liabilities | 308,307 | 246,597 | 139,916 | |||||||||||
LONG-TERM DEBT | 339,436 | 386,761 | 316,885 | |||||||||||
LONG-TERM CUSTOMERS' ADVANCES | 6,572 | 6,924 | 7,187 | |||||||||||
EMPLOYEE RELATED LIABILITIES |
16,406 | 15,706 | 65,337 | |||||||||||
DEFERRED TAX LIABILITY | 100,135 | 73,262 | 13,611 | |||||||||||
OTHER LONG-TERM LIABILITIES | 33,925 | 39,244 | 21,703 | |||||||||||
Total liabilities | 804,781 | 768,494 | 564,639 | |||||||||||
TOTAL EQUITY | 191,465 | 207,110 | 141,248 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 996,246 | $ | 975,604 | $ | 705,887 | ||||||||
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||
Six months ended | Three months ended | ||||||||||||||||||||||
June 30, |
June 30, |
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2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
GAAP | GAAP | GAAP | GAAP | ||||||||||||||||||||
REVENUES | $ | 366,725 | $ | 237,883 | $ | 234,072 | $ | 125,236 | |||||||||||||||
COST OF REVENUES | 355,750 | 223,086 | 227,347 | 113,014 | |||||||||||||||||||
GROSS PROFIT |
10,975 | 14,797 | 6,725 | 12,222 | |||||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||
Research and development | 21,605 | 16,891 | 14,162 | 7,396 | |||||||||||||||||||
Marketing, general and administrative | 27,343 | 20,987 | 16,527 | 10,942 | |||||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | 75,728 | -- | 4,269 | -- | |||||||||||||||||||
Amortization related to a lease agreement early termination | -- | 3,732 | -- | 1,866 | |||||||||||||||||||
Merger related costs | 1,229 | -- | -- | -- | |||||||||||||||||||
125,905 | 41,610 | 34,958 | 20,204 | ||||||||||||||||||||
OPERATING LOSS |
(114,930 | ) | (26,813 | ) | (28,233 | ) | (7,982 | ) | |||||||||||||||
INTEREST EXPENSES, NET | (16,931 | ) | (16,332 | ) | (8,818 | ) | (8,305 | ) | |||||||||||||||
OTHER FINANCING EXPENSE, NET |
(32,393 | ) | (7,227 | ) | (12,276 | ) | (8,213 | ) | |||||||||||||||
GAIN FROM ACQUISITION |
166,404 | -- | 15,249 | -- | |||||||||||||||||||
OTHER INCOME (EXPENSE), NET | 203 | (59 | ) | 64 | 201 | ||||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 2,353 | (50,431 | ) | (34,014 | ) | (24,299 | ) | ||||||||||||||||
INCOME TAX BENEFIT |
14,020 | 4,393 | 11,566 | 1,412 | |||||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 16,373 | (46,038 | ) | (22,448 | ) | (22,887 | ) | ||||||||||||||||
NON CONTROLLING INTEREST | 6,702 | -- | 6,702 | -- | |||||||||||||||||||
NET PROFIT (LOSS) | $ | 23,075 | $ | (46,038 | ) | $ | (15,746 | ) | $ | (22,887 | ) | ||||||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 0.47 | $ | (1.44 | ) | $ | (0.31 | ) | $ | (0.59 | ) | ||||||||||||
DILUTED EARNINGS PER ORDINARY SHARE | $ | 0.39 | |||||||||||||||||||||
Net profit used for diluted earnings per share | $ | 23,075 | |||||||||||||||||||||
Weighted average number of ordinary shares outstanding - in thousands, used for diluted earnings per share |
59,815 | ||||||||||||||||||||||
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||
(dollars in thousands, except share data and per share data) | ||||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | ||||||||||||||||||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | March 31, | |||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e, below) | GAAP | ||||||||||||||||||||||||
REVENUES | $ | 234,072 | $ | 132,653 | $ | -- | $ | -- | $ | 234,072 | $ |
132,653 |
||||||||||||||
COST OF REVENUES | 171,672 | 88,162 | 55,675 | (a) | 40,241 | (a) | 227,347 | 128,403 | ||||||||||||||||||
GROSS PROFIT (LOSS) | 62,400 | 44,491 | (55,675 | ) | (40,241 | ) | 6,725 | 4,250 | ||||||||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||||||||||||
Research and development | 13,734 | 7,155 | 428 | (b) | 288 | (b) | 14,162 | 7,443 | ||||||||||||||||||
Marketing, general and administrative | 15,556 | 9,866 | 971 | (c) | 950 | (c) | 16,527 | 10,816 | ||||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | -- | -- | 4,269 | 71,459 | 4,269 | 71,459 | ||||||||||||||||||||
Merger related costs | -- | -- | -- | 1,229 | -- | 1,229 | ||||||||||||||||||||
29,290 | 17,021 | 5,668 | 73,926 | 34,958 | 90,947 | |||||||||||||||||||||
OPERATING PROFIT (LOSS) | 33,110 | 27,470 | (61,343 | ) | (114,167 | ) | (28,233 | ) | (86,697 | ) | ||||||||||||||||
INTEREST EXPENSES, NET | (8,818 | ) | (8,113 | ) | -- | (d) | -- | (d) | (8,818 | ) | (8,113 | ) | ||||||||||||||
OTHER FINANCING INCOME (EXPENSE), NET | -- | -- | (12,276 | ) | (d) | (20,117 | ) | (d) | (12,276 | ) | (20,117 | ) | ||||||||||||||
GAIN FROM ACQUISITION |
-- | -- | 15,249 | 151,155 | 15,249 | 151,155 | ||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | 64 | 139 | -- | -- | 64 | 139 | ||||||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 24,356 | 19,496 | (58,370 | ) | 16,871 | (34,014 | ) | 36,367 | ||||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | (66 | ) | (37 | ) | 11,632 | (e) | 2,491 | (e) | 11,566 | 2,454 | ||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 24,290 | 19,459 | (46,738 | ) | 19,362 | (22,448 | ) | 38,821 | ||||||||||||||||||
NON CONTROLLING INTEREST | 6,702 | -- | -- | -- | 6,702 | -- | ||||||||||||||||||||
NET PROFIT (LOSS) | $ | 30,992 | $ | 19,459 | $ | (46,738 | ) | $ | 19,362 | $ | (15,746 | ) | $ | 38,821 | ||||||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 0.62 | $ | 0.40 | $ | (0.31 | ) | $ | 0.81 | |||||||||||||||||
Weighted average number of ordinary shares outstanding - in thousands |
50,146 | 48,142 | 50,146 | 48,142 | ||||||||||||||||||||||
DILUTED EARNINGS PER ORDINARY SHARE (*) | $ | 0.41 | $ | 0.30 | ||||||||||||||||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $55,460 and $39,944 and stock based compensation expenses in the amounts of $215 and $297 for the three months ended June 30, 2014 and March 31, 2014, respectively. | |||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $203 and $29 and stock based compensation expenses in the amounts of $225 and $259 for the three months ended June 30, 2014 and March 31, 2014, respectively. | |||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $213 and $200 and stock based compensation expenses in the amounts of $758 and $750 for the three months ended June 30, 2014 and March 31, 2014, respectively. | |||||||||||||||||||||||||
(d) | Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis; GAAP financing expense, net for the three months ended March 31, 2014 included one-time non-cash cost of $9.8 million resulted from the Jazz Notes exchange deal dated March 2014. | |||||||||||||||||||||||||
(e) | Non-GAAP income tax expense include taxes paid during the period. | |||||||||||||||||||||||||
(*) |
Fully diluted earnings per share calculation and presentation are not required under GAAP for the second quarter of 2014, since the company did not have net profit. Hence, fully diluted earnings per share is not different than basic earnings per share for the second quarter of 2014. Had fully diluted earnings per share calculation and presentation been required for the second quarter of 2014, the company would have added 7 million shares underlying its capital notes, 4 million shares underlying options and warrants, 11 million possible shares underlying notes series F due December 2015 (unless repayable with cash), 11 million possible shares underlying notes series F due December 2016 (unless repayable with cash) and 6 million possible shares underlying Jazz notes due December 2018 (unless repayable with cash). |
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TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||||||||||||||||
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||
June 30, |
June 30, |
June 30, |
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2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e, f below) | GAAP | |||||||||||||||||||||||
REVENUES | $ | 234,072 | $ | 125,236 | $ | -- | $ | -- | $ | 234,072 | $ | 125,236 | |||||||||||||
COST OF REVENUES | 171,672 | 81,204 | 55,675 | (a) | 31,810 | (a) | 227,347 | 113,014 | |||||||||||||||||
GROSS PROFIT | 62,400 | 44,032 | (55,675 | ) | (31,810 | ) | 6,725 | 12,222 | |||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||||||||
Research and development | 13,734 | 7,256 | 428 | (b) | 140 | (b) | 14,162 | 7,396 | |||||||||||||||||
Marketing, general and administrative | 15,556 | 10,471 | 971 | (c) | 471 | (c) | 16,527 | 10,942 | |||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | -- | -- | 4,269 |
|
-- | 4,269 | -- | ||||||||||||||||||
Amortization related to a lease agreement early termination | -- | -- | -- | 1,866 |
(d) |
-- | 1,866 | ||||||||||||||||||
29,290 | 17,727 | 5,668 | 2,477 | 34,958 | 20,204 | ||||||||||||||||||||
OPERATING PROFIT (LOSS) | 33,110 | 26,305 | (61,343 | ) | (34,287 | ) | (28,233 | ) | (7,982 | ) | |||||||||||||||
INTEREST EXPENSES, NET | (8,818 | ) | (8,305 | ) | -- | (e) | -- | (e) | (8,818 | ) | (8,305 | ) | |||||||||||||
OTHER FINANCING EXPENSE, NET | -- | -- | (12,276 | ) | (e) | (8,213 | ) | (e) | (12,276 | ) | (8,213 | ) | |||||||||||||
GAIN FROM ACQUISITION |
-- | -- | 15,249 | -- | 15,249 | -- | |||||||||||||||||||
OTHER INCOME, NET | 64 | 201 | -- | -- | 64 | 201 | |||||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 24,356 | 18,201 | (58,370 | ) | (42,500 | ) | (34,014 | ) | (24,299 | ) | |||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | (66 | ) | 11,632 | (f) | 1,412 | (f) | 11,566 | 1,412 | |||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 24,290 | 18,201 | (46,738 | ) | (41,088 | ) | (22,448 | ) | (22,887 | ) | |||||||||||||||
NON CONTROLLING INTEREST | 6,702 | -- | -- | -- | 6,702 | -- | |||||||||||||||||||
NET PROFIT (LOSS) | $ | 30,992 | $ | 18,201 | $ | (46,738 | ) | $ | (41,088 | ) | $ | (15,746 | ) | $ | (22,887 | ) | |||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 0.62 | $ | 0.47 | $ | (0.31 | ) | $ | (0.59 | ) | |||||||||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $55,460 and $31,735 and stock based compensation expenses in the amounts of $215 and $75 for the three months ended June 30, 2014 and June 30, 2013, respectively. | ||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $203 and $75 and stock based compensation expenses in the amounts of $225 and $65 for the three months ended June 30, 2014 and June 30, 2013, respectively. | ||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $213 and $160 and stock based compensation expenses in the amounts of $758 and $311 for the three months ended June 30, 2014 and June 30, 2013, respectively. | ||||||||||||||||||||||||
(d) | Non cash amortization recorded in 2013 as a result of an early termination of an office building lease contract. | ||||||||||||||||||||||||
(e) | Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis. | ||||||||||||||||||||||||
(f) | Non-GAAP income tax expense include taxes paid during the period. | ||||||||||||||||||||||||
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||||||
Six months ended | Six months ended | Six months ended | ||||||||||||||||||||||||
June 30, |
June 30, |
June 30, |
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2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
non-GAAP | Adjustments (see a, b, c, d, e, f below) | GAAP | ||||||||||||||||||||||||
REVENUES | $ | 366,725 | $ | 237,883 | $ | -- | $ | -- | $ | 366,725 | $ | 237,883 | ||||||||||||||
COST OF REVENUES | 259,834 | 160,151 | 95,916 | (a) | 62,935 | (a) | 355,750 | 223,086 | ||||||||||||||||||
GROSS PROFIT | 106,891 | 77,732 | (95,916 | ) | (62,935 | ) | 10,975 | 14,797 | ||||||||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||||||||||||
Research and development | 20,889 | 16,603 | 716 | (b) | 288 | (b) | 21,605 | 16,891 | ||||||||||||||||||
Marketing, general and administrative | 25,422 | 19,874 | 1,921 | (c) | 1,113 | (c) | 27,343 | 20,987 | ||||||||||||||||||
Nishiwaki Fab restructuring costs and impairment | -- | -- | 75,728 |
|
-- | 75,728 | -- | |||||||||||||||||||
Amortization related to a lease agreement early termination | -- | -- | -- | 3,732 |
(d) |
-- | 3,732 | |||||||||||||||||||
Merger related costs | -- | -- | 1,229 | -- | 1,229 | -- | ||||||||||||||||||||
46,311 | 36,477 | 79,594 | 5,133 | 125,905 | 41,610 | |||||||||||||||||||||
OPERATING PROFIT (LOSS) | 60,580 | 41,255 | (175,510 | ) | (68,068 | ) | (114,930 | ) | (26,813 | ) | ||||||||||||||||
INTEREST EXPENSES, NET | (16,931 | ) | (16,332 | ) | -- | (e) | -- | (e) | (16,931 | ) | (16,332 | ) | ||||||||||||||
OTHER FINANCING EXPENSE, NET | -- | -- | (32,393 | ) | (e) | (7,227 | ) | (e) | (32,393 | ) | (7,227 | ) | ||||||||||||||
GAIN FROM ACQUISITION |
-- | -- | 166,404 | -- | 166,404 | -- | ||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | 203 | (59 | ) | -- | -- | 203 | (59 | ) | ||||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX | 43,852 | 24,864 | (41,499 | ) | (75,295 | ) | 2,353 | (50,431 | ) | |||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | (103 | ) | (190 | ) | 14,123 | (f) | 4,583 |
(f) |
14,020 | 4,393 | ||||||||||||||||
PROFIT (LOSS) BEFORE NON CONTROLLING INTEREST | 43,749 | 24,674 | (27,376 | ) | (70,712 | ) | 16,373 | (46,038 | ) | |||||||||||||||||
NON CONTROLLING INTEREST | 6,702 | -- | -- | -- | 6,702 | -- | ||||||||||||||||||||
NET PROFIT (LOSS) | $ | 50,451 | $ | 24,674 | $ | (27,376 | ) | $ | (70,712 | ) | $ | 23,075 | $ | (46,038 | ) | |||||||||||
BASIC EARNINGS (LOSS) PER ORDINARY SHARE | $ | 1.03 | $ | 0.77 | $ | 0.47 | $ | (1.44 | ) | |||||||||||||||||
(a) | Includes depreciation and amortization expenses in the amounts of $95,404 and $62,701 and stock based compensation expenses in the amounts of $512 and $234 for the six months ended June 30, 2014 and June 30, 2013, respectively. | |||||||||||||||||||||||||
(b) | Includes depreciation and amortization expenses in the amounts of $232 and $105 and stock based compensation expenses in the amounts of $484 and $183 for the six months ended June 30, 2014 and June 30, 2013, respectively. | |||||||||||||||||||||||||
(c) | Includes depreciation and amortization expenses in the amounts of $413 and $364 and stock based compensation expenses in the amounts of $1,508 and $749 for the six months ended June 30, 2014 and June 30, 2013, respectively. | |||||||||||||||||||||||||
(d) | Non cash amortization related to an early termination of an office building lease contract. | |||||||||||||||||||||||||
(e) | Non-GAAP interest expenses and other financing expense, net include only interest on an accrual basis; GAAP financing expense, net, includes (i) in 2014 - one-time non-cash cost of $9.8 million resulted from the Jazz Notes exchange deal dated March 2014; and (ii) in 2013 - one-time non-cash income of $6.5 million from the banks' extension contract signed in March 2013. | |||||||||||||||||||||||||
(f) | Non-GAAP income tax expenses include taxes paid during the period |
Source: TowerJazz
TowerJazz
Noit Levi, +972 4 604 7066
Noit.levi@towerjazz.com
or
GK
Investor Relations
Kenny Green, 646-201-9246
towerjazz@gkir.com