EXHIBIT 99.1
TOWER SEMICONDUCTOR LTD. ANNOUNCES FIRST QUARTER 2004 RESULTS
Wednesday April 28, 8:00 am ET
REVENUES INCREASED BY 116 PERCENT YEAR OVER YEAR AND 37 PERCENT QUARTER TO
QUARTER
MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--April 28, 2004--Tower Semiconductor Ltd.
(NASDAQ: TSEM; TASE: TSEM) today announced results for the first quarter ended
March 31, 2004.
Revenues for the first fiscal quarter were $27.2 million, an increase of 116
percent over revenues of $12.6 million in the first quarter of 2003, and an
increase of 37 percent over prior-quarter revenues of $19.8 million.
Loss for the quarter was $38.5 million, or $0.61 per share. That compares with a
loss of $46.0 million, or $0.91 per share, sequentially and a loss of $14.4
million, or $0.33 per share in the same quarter last year. The increase in loss,
as compared with the first quarter of 2003, is primarily attributed to the
commencement of Fab 2 depreciation and amortization on Q-3 2003.
The company expects the current quarter's revenues to be in the range of $33
million and $36 million.
"I am very pleased with our performance, which is in line with our plans," said
Carmel Vernia, Tower's chairman and chief executive officer. "Fab 2 is
demonstrating rapid revenues growth and we begin to see the results of its prior
years' heavy investments. Fab 1's utilization is on the rise as well, and I'm
glad to report it returned to profitability in Q-1 2004. Both fabs are winning
new designs in prototyping and early-production activities for new and existing
customers. Overall I am confident we have the infrastructure and organization in
place to leverage the global upturn in the semiconductor industry into a
successful business."
Tower will host a conference call to discuss these results on Wednesday, April
28, 2004 at 11:00 a.m. Eastern time / 18:00 Israel time. To participate, call
1-800-289-0543 (U.S. toll-free number) or 1-913-981-5526 (international) and
mention ID code: TOWER. Callers in Israel are invited to call locally, at
03-925-5910. The conference call also will be Web cast live at
www.companyboardroom.com and at www.towersemi.com. The call will be available on
both Web sites for replay for 90 days.
About Tower Semiconductor Ltd.
Tower Semiconductor Ltd. is a pure-play independent wafer foundry established in
1993. The company manufactures integrated circuits with geometries ranging from
1.0 to 0.18 micron; it also provides complementary technical services and design
support. In addition to digital CMOS process technology, Tower offers advanced
non-volatile memory solutions, mixed-signal and CMOS image-sensor technologies.
To provide world-class customer service, the company maintains two manufacturing
facilities: Fab 1 has process technologies from 1.0 to 0.35 micron and can
produce up to 16,000 150mm wafers per month. Fab 2 features 0.18-micron and
below process technologies, including foundry-standard technology. When
complete, Fab 2 is expected to offer full production capacity of 33,000 200mm
wafers per month. The Tower Web site is located at www.towersemi.com.
Safe Harbor
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. Potential risks and uncertainties include,
without limitation, risks and uncertainties associated with: (i) the completion
of the equipment installation, technology transfer and ramp-up of production in
Fab 2, (ii) having sufficient funds to complete the Fab 2 project, (iii) the
cyclical nature of the semiconductor industry and the resulting periodic
overcapacity, (iv) operating our facilities at satisfactory utilization rates,
(v) our ability to capitalize on increases in demand for foundry services, (vi)
meeting the conditions to receive Israeli government grants and tax benefits
approved for Fab 2 and obtaining the approval of the Israeli Investment Center
to extend the five-year investment period under our Fab 2 approved enterprise
program and of amendments to our modified business plan, (vii) attracting
additional customers, (viii) not receiving orders from our wafer partners and
technology providers, (ix) failing to maintain and develop our technology
processes and services, (x) competing effectively, (xi) our large amount of debt
and our satisfying the covenants set forth in our amended facility agreement,
and (xii) achieving acceptable device yields, product performance and delivery
times (xiii) the completion of the documentation for the Siliconix agreement. 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
our most recent Annual Report on Form 20-F and in our Form F-3, as amended, as
were filed with the Securities and Exchange Commission and the Israel Securities
Authority.
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data and per share data)
March 31, December 31,
--------- ------------
ASSETS 2004 2003
--------- ---------
CURRENT ASSETS
Cash and cash equivalents $ 11,346 $ 12,448
Short-term interest-bearing deposits 3,000 --
Cash and short-term interest-bearing
deposits designated for investments
relating to Fab 2 78,265 44,042
Trade accounts receivable 15,555 11,631
Other receivables 14,852 11,073
Inventories 21,584 19,382
Other current assets 2,342 1,729
--------- ---------
Total current assets 146,944 100,305
--------- ---------
LONG-TERM INVESTMENTS
Long-term interest-bearing deposits
designated for investments relating to Fab 2 4,734 4,848
Other long-term investment 6,000 6,000
--------- ---------
10,734 10,848
--------- ---------
PROPERTY AND EQUIPMENT, NET 566,821 568,412
--------- ---------
OTHER ASSETS, NET 105,397 108,770
--------- ---------
TOTAL ASSETS $ 829,896 $ 788,335
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 45,051 $ 40,249
Other current liabilities 8,198 9,564
--------- ---------
Total current liabilities 53,249 49,813
LONG-TERM DEBT 431,000 431,000
CONVERTIBLE DEBENTURES 24,933 25,783
OTHER LONG-TERM LIABILITIES 8,167 5,935
LONG-TERM LIABILITY IN RESPECT
OF CUSTOMERS' ADVANCES 45,830 46,347
--------- ---------
Total liabilities 563,179 558,878
--------- ---------
SHAREHOLDERS' EQUITY
Ordinary shares 16,248 13,150
Additional paid-in capital 516,962 427,881
Proceeds on account of share capital -- 16,428
Shareholder receivables and unearned
compensation (26) (26)
Accumulated deficit (257,395) (218,904)
--------- ---------
275,789 238,529
Treasury stock, at cost (9,072) (9,072)
--------- ---------
Total shareholders' equity 266,717 229,457
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 829,896 $ 788,335
========= =========
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data and per share data)
Three months ended
March 31,
----------------------
2004 2003
-------- --------
(unaudited)
----------------------
SALES $ 27,247 $ 12,592
COST OF SALES 50,149 17,934
-------- --------
GROSS LOSS (22,902) (5,342)
-------- --------
OPERATING COSTS AND EXPENSES
Research and development 3,505 3,857
Marketing, general and administrative 5,591 5,644
-------- --------
9,096 9,501
-------- --------
OPERATING LOSS (31,998) (14,843)
FINANCING INCOME (EXPENSE), NET (6,531) 493
OTHER INCOME (EXPENSE), NET 38 --
-------- --------
LOSS FOR THE PERIOD $(38,491) $(14,350)
======== ========
BASIC LOSS PER ORDINARY SHARE
Loss per share (a) $ (0.61) $ (0.33)
======== ========
(a) Basic and diluted loss per share in accordance with U.S. GAAP would be
$(0.62) for the three months ended March 31, 2004 ($(0.33) for the three
months ended March 31, 2003).
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Contact:
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or
Investor Relations Contact:
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Sheldon Lutch, +1 212-268 1816
sheldon@fusionir.com
or
Corporate Contact
Tower Semiconductor USA
Michael Axelrod, +1 408-330-6871
pr@towersemi.com