Israeli chipmaker Tower eported revenue of $ 362 million in the second quarter - 17% increase

Israeli chipmaker Tower, which is traded on NASDAQ, reported revenue of $ 362 million in the second quarter, compared to analysts' expectations of revenue of $ 360 million, compared to $ 310 million in the same quarter last year. Revenue for the quarter increased 17% compared to the same quarter last year.
The company reports earnings per share on a non-GAAP basis of 34 cents a share, compared to 33 cents a share analysts had expected. Gross profit in the second quarter of 2021 totaled $ 74 million, an increase of 28% compared to $ 58 million in the corresponding quarter. Operating profit was $ 34 million, up 54% from $ 22 million last year.
The company expects $ 385 million in the third quarter, above analysts' expectations for revenue of $ 364.77 million. The forecast for the third quarter of 2021 represents an overall growth of 24% compared to the corresponding quarter last year.
This is a significant increase in the forecast and against this background, it seems that the company's share is expected to rise, although it has been gaining momentum in recent months amid the growing demand for chips and the uniqueness of Tower as a chip supplier to specific requirements. On the other hand, it is important to note that the stock has already risen in the last 12 months by 28% and 87% from the bottom in Corona, so it is possible that the rise is already reflected in the share price.
Russell Elwanger, CEO of the company, said in the wake of the reports: “We have announced a forecast for continued growth in the third quarter of 2021, which represents an annual sales rate of over $ 1.5 billion. We are confident that we are positioned in the right place in terms of the markets in which we operate and the customers we serve. "
Elwanger added: "Production capacity expansion plans are well advanced and allow for continued growth in the fourth quarter of 2021. Both in terms of sales and profitability. 300 mm, and will continue to position the company as a leader in advanced 300 mm technologies in the fields of RF, power platforms, sensors and other technologies. "
Tower expects to triple its production capacity on the 300mm platforms
In June 2021, Tower and ST Microelectronics announced a collaboration to accelerate the expansion of production capacity at the 300mm plant in Agrata. Tower R will install its equipment across one-third of the plant surfaces in Agrata. -Power, the sensors and other technologies and as a result of the deal Tower will triple its total production capacity on the 300mm platforms.
The company continues to implement a $ 150 million production capacity expansion plan it reported in February 2021 and is now announcing an additional $ 100 million expansion plan as a result of growing future demand for its various 200mm platforms, which exceed its production capacity.
Cash flow from operating activities in the second quarter of 2021 amounted to $ 93 million and investments in fixed assets amounted to $ 56 million, net. In addition, in the second quarter of 2021, the Company repaid debts in the amount of $ 20 million and invested a total of $ 17 million in deposits and marketable securities.