UPDATE: TowerJazz Posts Upbeat Q2 Earnings

TowerJazz TSEM reported better-than-expected second-quarter net profit. The Israeli chipmaker posted a non-GAAP net profit of $31 million, a 70% rise from $18 million in the year-ago quarter. The company's per-share earnings climbed to $0.62 from $0.47. Its revenue climbed 87% to $234.1 million. However, analysts were expecting earnings of $0.42 per share on revenue of $228.8 million. On a GAAP basis, TowerJazz posted a quarterly net loss of $16 million, or $0.31 per share, versus a year-ago net loss of $23 million, or $0.59 per share. Its operating profit climbed 26% y/y to $33 million, from $26 million. As of June 30, 2014, cash and short-term deposits were $192 million, up from $183 million as of March 31, 2014. TowerJazz projects Q3 of $225 million with an upward or downward range of 5%. Russell Ellwanger, Chief Executive Officer of TowerJazz, said, “The second quarter was our first integrating TPSCo activities and consolidating the revenues. There were no operational surprises against our plans and better than expected business activities. We closed negotiations with 3rd party customers, including high end CIS and top-tier IDM transfers, which should reach annual revenues of well beyond $100 million within the next 3 years. We expect these first contracts and agreements to begin volume production ramp in the second half of 2015.” TowerJazz shares gained 1.98% to close at $10.31 on Friday.