Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM)
CAPS Rating:
The Company is a pure-play independent specialty foundry dedicated to the manufacture of semiconductors.
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The Company is a pure-play independent specialty foundry dedicated to the manufacture of semiconductors.
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Tower has basically been on a non-stop share issuance, cash burning, money losing spree for years now. Look below for some stats (all numbers in millions):
(Year / Shares / Income)
(2000 / 13.6 / -3.9)
(2001 / 26.3 / -38.5)
(2002 / 44.7 / -51.4)
(2003 / 53.0 / -114.2)
(2004 / 67.0 / -137.8)
(2005 / 68.2 / -203.0)
Keep in mind absolutely all of this share count growth is from share issuance to keep the company funded, not stock splits. To top it off, the company recently settled on another 258 million dollar capital injection in exchange for capital notes that are convertible into roughly 118 million shares, which would TRIPLE the share count
This stock is garbage.
check again!
Okay, so their stock grew like 400%. These guys are still HEMMORRHAGING money, and they have a LTD-equity ratio of 7 to top it off. There's no way they can sustain this growth. Unfortunately, a lot of people are going to get sucked in to their massive revenue stream and think it's a well run company. I could be wrong, but I can't help but feel bad for people investing in this house of cards, especially after it's massive growth spurt is over.
Second Quarter 2011 Highlights
-- Record revenues of $139.7 million, up 11 percent year-over-year and sequential increase of 16 percent;
-- EBITDA of $54 million, up 30 percent year-over-year;
-- GAAP net profit of $1.7 million compared to a loss of $8.7 million in the second quarter of last year;
-- Net profit on a non-GAAP basis at $46 million, up 40 percent year-over-year and representing a net margin of 33 percent;
-- Acquired Micron's manufacturing facility in Nishiwaki, Japan, nearly doubling TowerJazz's production capacity; Micron has become a 6% long-term strategic shareholder of TowerJazz.
-- Cash balance at quarter-end of $139 million as compared to $85 million as of June 30, 2010
-- Expects to achieve revenues of $173 to $183 million in the third quarter of 2011, representing a mid range growth of 32 percent year-over-year and 27 percent growth quarter-over-quarter.