Exhibit 99.1
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Press release dated May 9, 2013
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TOWER SEMICONDUCTOR LTD.
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Date: May 9, 2013
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By: |
/s/ Nati Somekh
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Name: Nati Somekh
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Title: Corporate Secretary
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·
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First quarter revenues of $113 million;
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·
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Forecasts revenues of $122 to $132 million in the second quarter of 2013, representing 13 percent mid-range growth;
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·
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Quarterly record numbers of full mask tape outs;
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·
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Reduced 2013 and 2014 principal payments from $105 million to $30 million, extending a low interest of LIBOR+3.5 percent bank loan ($131 million) to final maturity in 2016;
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·
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End of quarter cash balance of $120 million, shareholders’ equity at $190 million and strong balance sheet ratios.
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TowerJazz Investor Relations
Noit Levi, +972 4 604 7066
noitle@towersemi.com
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CCG Investor Relations
Ehud Helft / Kenny Green, (646) 201 9246
towersemi@ccgisrael.com
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TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(dollars in thousands)
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March 31,
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December 31,
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March 31,
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2013
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2012
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2012
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(Unaudited)
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(Unaudited)
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A S S E T S
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CURRENT ASSETS
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Cash, short-term deposits and designated deposits
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$ | 119,707 | $ | 133,398 | $ | 158,226 | ||||||
Trade accounts receivable
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79,957 | 79,354 | 87,892 | |||||||||
Other receivables
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8,084 | 5,379 | 4,385 | |||||||||
Inventories
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61,575 | 65,570 | 62,450 | |||||||||
Other current assets
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16,756 | 14,804 | 16,575 | |||||||||
Total current assets
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286,079 | 298,505 | 329,528 | |||||||||
LONG-TERM INVESTMENTS
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13,306 | 12,963 | 12,895 | |||||||||
PROPERTY AND EQUIPMENT, NET
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407,991 | 434,468 | 477,463 | |||||||||
INTANGIBLE ASSETS, NET
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43,692 | 47,936 | 53,850 | |||||||||
GOODWILL
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7,000 | 7,000 | 7,000 | |||||||||
OTHER ASSETS, NET
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13,088 | 13,768 | 16,532 | |||||||||
TOTAL ASSETS
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$ | 771,156 | $ | 814,640 | $ | 897,268 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
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Short term debt
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$ | 30,086 | $ | 49,923 | $ | 42,031 | ||||||
Trade accounts payable
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68,132 | 81,372 | 94,997 | |||||||||
Deferred revenue
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5,795 | 1,784 | 5,745 | |||||||||
Other current liabilities
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40,628 | 36,240 | 62,053 | |||||||||
Total current liabilities
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144,641 | 169,319 | 204,826 | |||||||||
LONG-TERM DEBT
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305,574 | 288,954 | 385,107 | |||||||||
LONG-TERM CUSTOMERS' ADVANCES
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7,347 | 7,407 | 7,813 | |||||||||
EMPLOYEE RELATED LIABILITES
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73,397 | 77,963 | 97,198 | |||||||||
DEFERRED TAX LIABILITY
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27,219 | 26,804 | 19,375 | |||||||||
OTHER LONG-TERM LIABILITIES
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22,596 | 24,168 | 25,882 | |||||||||
Total liabilities
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580,774 | 594,615 | 740,201 | |||||||||
SHAREHOLDERS' EQUITY
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190,382 | 220,025 | 157,067 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 771,156 | $ | 814,640 | $ | 897,268 |
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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(dollars in thousands, except per share data)
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Three months ended
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March 31,
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December 31,
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March 31,
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2013
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2012
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2012
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GAAP
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GAAP
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GAAP
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REVENUES
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$ | 112,647 | $ | 147,587 | $ | 168,013 | ||||||
COST OF REVENUES
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110,072 | 139,017 | 145,265 | |||||||||
GROSS PROFIT
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2,575 | 8,570 | 22,748 | |||||||||
OPERATING COSTS AND EXPENSES
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Research and development
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9,495 | 7,332 | 8,000 | |||||||||
Marketing, general and administrative
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10,045 | 10,755 | 12,500 | |||||||||
Amortization related to a lease agreement early termination
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1,866 | -- | -- | |||||||||
21,406 | 18,087 | 20,500 | ||||||||||
OPERATING PROFIT (LOSS)
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(18,831 | ) | (9,517 | ) | 2,248 | |||||||
INTEREST EXPENSES, NET
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(8,027 | ) | (8,647 | ) | (8,163 | ) | ||||||
OTHER FINANCING INCOME (EXPENSE), NET
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986 | (7,614 | ) | (10,366 | ) | |||||||
OTHER INCOME (EXPENSE), NET
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(260 | ) | 78 | -- | ||||||||
LOSS BEFORE INCOME TAX
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(26,132 | ) | (25,700 | ) | (16,281 | ) | ||||||
INCOME TAX BENEFIT (EXPENSE)
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2,981 | 2,311 | (3,036 | ) | ||||||||
NET LOSS FOR THE PERIOD
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$ | (23,151 | ) | $ | (23,389 | ) | $ | (19,317 | ) | |||
Basic loss per ordinary share
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$ | (0.96 | ) | $ | (1.05 | ) | $ | (0.91 | ) |
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
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RECONCILIATION OF REPORTED GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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(dollars in thousands, except per share data)
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Three months ended
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Three months ended
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Three months ended
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March 31,
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December 31,
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March 31,
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December 31,
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March 31,
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December 31,
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2013
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2012
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2013
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2012
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2013
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2012
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non-GAAP
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Adjustments (see a, b, c, d, e, f below)
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GAAP
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REVENUES
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$ | 112,647 | $ | 147,587 | $ | -- | $ | -- | $ | 112,647 | $ | 147,587 | ||||||||||||
COST OF REVENUES
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78,947 | 98,279 | 31,125 | (a) | 40,738 | (a) | 110,072 | 139,017 | ||||||||||||||||
GROSS PROFIT
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33,700 | 49,308 | (31,125 | ) | (40,738 | ) | 2,575 | 8,570 | ||||||||||||||||
OPERATING COSTS AND EXPENSES
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Research and development
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9,347 | 7,138 | 148 | (b) | 194 | (b) | 9,495 | 7,332 | ||||||||||||||||
Marketing, general and administrative
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9,403 | 9,737 | 642 | (c) | 1,018 | (c) | 10,045 | 10,755 | ||||||||||||||||
Amortization related to a lease agreement early termination
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-- | -- | 1,866 | (d) | -- | 1,866 | -- | |||||||||||||||||
18,750 | 16,875 | 2,656 | 1,212 | 21,406 | 18,087 | |||||||||||||||||||
OPERATING PROFIT (LOSS)
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14,950 | 32,433 | (33,781 | ) | (41,950 | ) | (18,831 | ) | (9,517 | ) | ||||||||||||||
INTEREST EXPENSES, NET
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(8,027 | ) | (8,647 | ) | -- | (e) | -- | (e) | (8,027 | ) | (8,647 | ) | ||||||||||||
OTHER FINANCING INCOME (EXPENSE), NET
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-- | -- | 986 | (e) | (7,614 | )(e) | 986 | (7,614 | ) | |||||||||||||||
OTHER INCOME (EXPENSE), NET
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(260 | ) | 78 | -- | -- | (260 | ) | 78 | ||||||||||||||||
PROFIT (LOSS) BEFORE INCOME TAX
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6,663 | 23,864 | (32,795 | ) | (49,564 | ) | (26,132 | ) | (25,700 | ) | ||||||||||||||
INCOME TAX BENEFIT (EXPENSE)
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(190 | ) | (1,937 | ) | 3,171 | (f) | 4,248 | (f) | 2,981 | 2,311 | ||||||||||||||
NET PROFIT (LOSS) FOR THE PERIOD
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$ | 6,473 | $ | 21,927 | $ | (29,624 | ) | $ | (45,316 | ) | $ | (23,151 | ) | $ | (23,389 | ) |
(a)
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Includes depreciation and amortization expenses in the amounts of $30,966 and $40,539 and stock based compensation expenses in the amounts of $159 and $199 for the three months ended March 31,2013 and December 31, 2012 respectively.
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(b)
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Includes depreciation and amortization expenses in the amounts of $30 and $33 and stock based compensation expenses in the amounts of $118 and $161 for the three months ended March 31,2013 and December 31, 2012 respectively.
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(c)
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Includes depreciation and amortization expenses in the amounts of $204 and $208 and stock based compensation expenses in the amounts of $438 and $810 for the three months ended March 31,2013 and December 31, 2012 respectively.
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(d)
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Non cash amortization related to an early termination of an office building lease contract
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(e)
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Non-GAAP financing expense, net includes only interest on an accrual basis.
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(f)
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Non-GAAP income tax expenses include taxes paid during the period.
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(*)
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Basic earnings per ordinary share according to non-GAAP results is $0.27 and $0.99 for the three months ended march 31, 2013 and December 31, 2012, respectively and the weighted average number of ordinary shares outstanding is 24.1 million and 22.2 million for these periods.
Fully diluted earnings per share according to non-GAAP results would be $0.13 and $0.45 for the three months ended March 31, 2013 and December 31, 2012, respectively, and the weighted average number of shares outstanding would be 48.9 million and 48.9 million for these periods. Fully diluted earnings results and quantities of number of shares outstanding exclude $22.0 million and 22.7 million for the three months ended March 31, 2013 and December 31, 2012, respectively, of securities that carry exercise price or conversion ratios, which are above the average price of the company’s stock.
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