In This Article:
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Revenue: $371 million for Q3 2024, a 6% quarter-over-quarter and 3.5% year-over-year growth.
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Net Profit: $55 million, representing a net margin of 15%.
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Gross Profit: $93 million for Q3 2024.
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Operating Profit: $56 million for Q3 2024.
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RF Infrastructure Revenue: Approximately 18% of corporate revenues in Q3 2024, nearly doubling year-over-year.
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Silicon Photonics Revenue: Expected $100 million for 2024, with a forecasted annualized Q4 2024 run rate of over $150 million.
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RF Mobile Market Revenue: Approximately 26% of corporate revenues in Q3 2024.
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Power Business Revenue: 17% of corporate revenues in Q3 2024.
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Sensors and Displays Revenue: 14% of corporate revenues in Q3 2024.
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Balance Sheet Assets: $3.1 billion as of September 2024.
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Shareholders' Equity: $2.6 billion at the end of September 2024.
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CapEx Investments: $500 million for Agrate fab, $300 million for Intel's New Mexico fab, and $350 million for SiPho and SiGe capacity expansion.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tower Semiconductor Ltd (NASDAQ:TSEM) reported a strong financial performance for Q3 2024, with revenue reaching $371 million, marking a 6% quarter-over-quarter and 3.5% year-over-year growth.
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The company achieved a net profit of approximately $55 million, representing a net margin of about 15%.
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Tower Semiconductor Ltd (NASDAQ:TSEM) continues to experience strong growth in its RF infrastructure business, which represented approximately 18% of corporate revenues in Q3 2024.
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The company is leading in the silicon photonics market, with expected revenue of approximately $100 million for 2024 and a forecasted annualized Q4 2024 run rate of over $150 million.
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Tower Semiconductor Ltd (NASDAQ:TSEM) is expanding its production capabilities, including a production ramp of 1.6-terabit products and investments in new capacity and technology, such as the 300-millimeter PDKs using a 65-nanometer CMOS.
Negative Points
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The imaging business remained stable rather than growing as expected, particularly in the machine vision sector.
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Fab utilization rates for some facilities were below optimal levels, with Fab 2 and Fab 9 at about 60% each.
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The RF mobile market, although representing 26% of corporate revenues, is not overly strong, with demand outpacing capacity in some areas.
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There are no long-term take-or-pay agreements in place for RFSOI capacity, which could pose a risk if customer demand fluctuates.
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The company faces potential challenges in the mobile market, with some major players not optimistic about 2025, which could impact growth in the RF mobile segment.