A FILE PHOTO of the logo of The Israeli chipmaker TowerJazz is to be seen at their offices in Migdal HaEmek, northern Israel, September 13, 2017. REUTERS/Ronen Zvulun
TEL AVIV (Reuters) – Israeli chip manufacturer TowerJazz, reported a less-than-expected drop in second-quarter profit and said it would invest $100 million to expand production capacity at a plant in Japan to meet growing global demand.
TowerJazz, which specializes in analog chips, which are used in automobiles, medical sensors, and power management, it is placed on a Monday, the diluted earnings per share, excluding one-time items, of 24 cents in the quarter, down from 42 cents a year earlier. Sales slipped to $306 million, up from $335 million.
It had been forecast to earn adjusted earnings per share of 22 cents on revenue of $ 303 million, according to I/B/E/S data from the Refinitiv.
TowerJazz expects third-quarter revenue in a range of 5 percent above or below the $312-million. Analysts are predicting $307 million in revenue.
Due to the anticipated future needs of the customer in excess of the capacity of its joint venture with Panasonic in Japan, TowerJazz said it will expand the capacity of the power, and the image sensor are enabled. It will allocate about $100 million on this plan, with capacity targeted to be installed in the first half, by the year 2020.
Reporting by Tova Cohen, Editing by Ari Rabinovitch