TowerJazz, the combination of Tower Semiconductor Ltd. and its wholly owned U.S. subsidiary, Jazz Semiconductor, reported its third quarter revenues of $226 million, up 70 percent from the $133 million generated in the third quarter of 2013.
Third quarter gross profit was $68 million, a 30 percent gross margin on a non-GAAP basis. TowerJazz said this was an increase of 72 percent compared to $39 million in the third quarter of 2013 and an increase of 3 percentage points from the 27 percent report in the second quarter.
For the nine month period of 2014, the pure-play foundry has generated $593 million, up 60 percent year-over-year. Gross and operating profit were $175 million and $98 million, respectively, for the nine month period on a non-GAAP basis, an increase of 49 percent and 57 percent, compared to the first nine months of last year.
Russell Ellwanger, CEO of TowerJazz, said in a statement the company continues to see strong demand in the mask sets entering its factories as evident of a 30 percent increase year-over-year. Ellwanger added TowerJazz is “well poised” to accept increased demand through its facilities going forward.
As for the fourth quarter, TowerJazz said it expects revenues to reach $235 million, give or take 5 percent. If the company reaches this number, it will represent a 75 percent year-over-year growth.