Tower Semiconductor's Q3 Revenue Falls, But Still Focuses on Growth, Tech Advancements Despite Challenges

Tower Semiconductor Ltd TSEM reported a third-quarter FY23 revenue decline of 16.1% year-on-year to $358.2 million, missing the consensus of $358.6 million.

The high-value analog semiconductor solutions foundry's EPS of $0.54 beat the consensus of $0.50.

Gross profit was $86.9 million, down by 30.2% Y/Y.

Adjusted operating profit of $48.7 million compared to $83.2 million a year ago.

It generated $402.0 million in operating cash flow and held $1.2 billion in cash and equivalents.

"This past period has been most significant putting in place (1) added capacity, capable to drive substantial revenue growth at accretive margins across the board; (2) additional premier end and direct customers in very high-capacity demand growth markets; and (3) with associated state-of-the-art advancements in critical technology platforms," CEO Russell Ellwanger said.

Outlook: Tower Semiconductor expects fourth-quarter revenue of $350 million, with an upward or downward range of 5% versus $359.63 million consensus.

In August, Intel Corporation INTC and Tower Semiconductor agreed to terminate its takeover of the latter by the former, pending regulatory approval from China.​ 

Tower Semiconductor stock lost 43% YTD.

TSEM Price Action: Tower Semiconductor shares traded up 0.20% at $24.58 at publication Monday. 

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