Tower reports revenue of $ 345 million with a forecast range of 5% up or down

Tower reports earnings of 28 cents a share compared to analysts' earnings of 33 cents a share. On the top line, the company reports revenue of $ 345 million compared to expectations of $ 340.9 million.
Tower provides a sales forecast for the first quarter of 2021 of $ 345 million, with a forecast range of 5% up or down, reflecting 15% growth over the first quarter of 2020 and organic growth of 20%, and anticipates sales growth in each of the following quarters of 2021 The forecast for the first quarter significantly exceeds analysts' expectations for revenue of $ 330 million.
Operating income in the fourth quarter of 2020 was $ 33 million, an increase of $ 14 million compared to $ 19 million in the previous quarter and the fourth quarter of 2019. Net income in the fourth quarter of 2020 was $ 31 million - 28 cents per share, compared to earnings Net of $ 15 million, which represents a basic and diluted earnings per share of 14 cents in the previous quarter and compared to $ 21 million, which represents a basic and diluted earnings per share of 19 cents in the corresponding quarter last year.
EBITDA in the fourth quarter of 2020 totaled $ 96 million, an increase of $ 17 million compared to $ 79 million in the previous quarter, and an increase of $ 21 million compared to $ 75 million in the fourth quarter of 2019.
Cash flow from operating activities in the fourth quarter of 2020 amounted to $ 73 million. During the fourth quarter of 2020, the company invested $ 64 million in fixed assets, including payments for expanding production capacity at the company's plant in Japan that produces 300mm technology. In addition, in the fourth quarter of 2020, the company repaid debts of $ 8 million.
On an annual basis, earnings per share decreased compared to last year and stood at 94 cents per share, compared to earnings per share of $ 1 in 2019. Revenue in 2020 totaled about $ 1.27 billion, compared to about $ 1.23 billion last year. This is a 3% growth in sales compared to 2019, but a 6% decrease in earnings per share.
Through growth in sales and streamlining measures taken by the company during the year, the company compensated for part of the effect of the decrease in sales to Panasonic (resulting from the terms of the binding agreement between the companies) on gross and operating profit. For details on the deal in question and its impact on the company - click here.
Russell Elwanger, CEO of Tower Semiconductor, said in the wake of the publication of the results: “We are starting 2021 from a great place, after announcing sales of $ 345 million in the fourth quarter of 2020, reflecting 20% ​​organic growth compared to third quarter 2020 sales. "We anticipate an increase in sales in each of the next quarters of 2021. The customer forecasts we see point to growth in 2021 compared to 2020 in each of the company's business units, and therefore we feel confident that by 2021 as a whole we will reach a sales record in the company's history."
Tower shares have completed a 33% jump from the beginning of the year. This increase is explained by the surge in technology stocks including the chip sector. Tower is traded at a record value of NIS 12 billion (about $ 3.7 billion). The company is engaged in the production of semiconductors and integrated circuits (chips) for electronic consumer products, personal computers, communications products, automotive products, industrial products and medical products. Tower also provides engineering support services and complementary manufacturing services.