Q3 2020 Tower Semiconductor Ltd Earnings Call
We took immediate actions to prevent damage closing our Israeli and us it systems hence halting those facilities in less than a week.
All factors were returned to operational capability.
Due to the effect of procedures there was no damage to the functional quality of the work in progress with company and customer data protected activities further securing the name, is it environment were put in place?
The impact of this event on our operations was between eight and twelve days of new wafer stars. And as the incident occurred during the last month of the quarter during Adam know we lost multiple weeks of full-fat activity levels. This impacted utilization levels for the third quarter, which will I will address later in this call.
Third-quarter revenues were within our guidance range at 310 million resulting in the death of $79 and net profit of $15 off orange Rosie. Our CFO will provide an in-depth review of our third quarter financials later in the call.
We are guiding the fourth quarter to a mid range of 340 million dollars representing 10% quarter-over-quarter and 11% year-over-year growth or inorganic growth 17% quarter-over-quarter and 14% year-over-year looking at our activities in our different business units within our analog business unit are still a germanium Optical business has grown throughout the year and is again expected to increase in the fourth quarter up to our third quarter growth was driven primarily by demand for 5G wage structure.
Now additionally we see growth and data center demand.
In both markets, we built Optical transceivers operating at $25 you get paid per second for 5G infrastructure and predominantly at 100 gigabit-per-second for data centers using high-speed silicon germanium technology.
Gross and silicon germanium is supported today by increased utilization of our Newport Beach facility. And in the future will be further supported by increased utilization of our San Antonio facility. We continue to see a good flow of new designs in our most advanced technology is targeting 200 400 and even 800 gigabit-per-second products to maintain our Market as these new standards ramp at these higher data rates. We also anticipate increased adoption of our silicon photonics platform am presently and low-volume production. That's 100 gigabit-per-second node with silicon photonics and expect the technology to be adopted more widely in the 400 and 800 gigabit-per-second wage and severs.
mobile business is experiencing Search growth both in immediate orders and very
and longer-term customer forecasts
this strength is broad-based and includes Advanced products running in our 300 millimeter facility in Japan and 200 millimeter facility in Israel.
And also mid-range products running in our San Antonio facility last quarter, we provide an estimate of year-over-year growth in this market of ten to fifteen percent, but based on the strength, we see now we are increasing our growth expectation for 2020 / 2019 to about 25%
Considering that 2019 was reported at over 40% year-over-year growth in RFS. These high sequential numbers can only be achieved by very strong increases in market share.
Growth in this market will continue as 5G handsets are expected to proliferate over the next several years and which handsets requires substantially namely 30 to 50% off or RS content.
Or power I see business is also seeing renewed broad-based strength both in consumer and Industrial Products with Automotive demand now stabilized.
We anticipate exceeding the expectation. We had set last quarter of 20% year-over-year growth for our power icy business.
The strong growth is primarily a result of market share gains due to strong technology platforms, which offer industry-leading performance across a broad range of voltages and applications this along updated high-voltage 200 millimeter reserv and SLI Technologies and industry-leading sixty-five nanometer BCD 300 millimeter offering has driven the present market share growth and enable a healthy funnel of new design activity for future increases.
Our power discrete business predominantly tier-one mosfet customers has shown a year-over-year decline that is consistent with what has been published for the discrete Market New Order levels stabilized with customer forecasts now increasing which signals a recovery for this Market.
Moving to our sensors and displays business unit first looking at non Imaging sensors. We are steadily growing our manufacturing volume of men's microphone products expecting continued wage increase throughout the next year while in parallel code developing new platform offerings.
We have several customer products and platform development stages such as men's speakers radiation sensors and remote infrared thermal sensors are magnetic sensor team or activity with crocus technology the expected to wrap to mass production in the first half of next year with numerous state-of-the-art sensors.
On the display front or development program with Lydia has accelerated and is expected to capture a large market share with their unique 3D micro LED technology package are also working on micro OLED screens for the VR Market.
Moving to Imaging sensors. We have achieved very good results and expect manufacturing to start shortly for lens type fingerprint sensors.
On time of flight sensor front we also receive very good results from our lead customer sensors and are moving according to the plan to production the first half of next year. This would be our first choice product moving to mass production using our 300 millimeter stacked wafer backside illumination pixel level bonding platform. We continue to see weakness into markets Chapman's the X-ray Dental sensor market and the industrial sensor Market. However, we begin to see a rebounding customer band forecast for industrial sensors.
Third-quarter twenty-twenty utilization levels are impacted by the Cyber event as mentioned in migdal haemek are six and Factory. We had 50% off station Fab to the 8-inch Factory was at 60% through Port Beach California that three was about seventy percent San Antonio Factory fab9 was at 60% off our GPS go factories in Japan Foundry business was at about 60% rate in our 12-inch Factory. We had a 10-point increase in layers processed foods versus the second quarter. We also increased our photolayer capability by 25% as a result of the previously-announced capacity expansion. And hence. The resulted utilization is 70% allowing for Q4 and continued in 2021 Revenue growth against a high customer demand.
With that I'd like to turn the call over to our CFO or foreign, please.
Welcome everyone to our call and thank you for joining us today. We released our set water 20/20 results today and provided a strong you for twenty twenty-five guidance before and I really think that the end result balance sheet and cash flow report. I wish to comment on the table event.
That's what I said since Russell already described the event and its impact on the business and utilization. I will only relate to the financial implications of it. Obviously this quarter results were impacted by the manufacturing destruction, which caused lower utilization and reduced thoughts and moves in the factories and resulted in lower Revenue than we could have achieved lower wage work in progress week and hence higher costs and lower oil derived mounting. The event had no impact on our cash flow report or balance sheet safe from its impact on having lower lip as an 8:15 the balance sheet.
I will not provide the p&l highlights for the third quarter and then discuss our cash flow and balance sheet financial statement revenues for the third quarter of 2020 will 310 million dollars as compared to the same figure in the hotel and 312 million in the third quarter of 2019 costs and operating profit for the third quarter of 2020 with 53 million dollars. Ninety million dollars respectively as compared to $58 and $22 respectively in the pre-owned quarter and as compared to fifty-eight million dollar and $23 respectively in the third quarter of 2019.
fees for the third quarter of 2020 was fifteen million dollar or 14
since Bill show basic and deal with it as compared to net profit of $19 or $0.18 basic and diluted earnings per share in the quarter and $22,000.21 basic and diluted earnings per share in the third quarter of 2019.
I know I think income tax p.m. Deadline. I will three million dollar increase in income tax expense in the nine months ended.