Tower Semiconductor has released its financial results today for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Overview
During the fourth quarter of 2023, Tower Semiconductor reported revenue of $352 million, a slight decrease from $358 million in the previous quarter and a significant decline from $403 million in the fourth quarter of 2022.
Gross profit for the quarter was $84 million, down from $87 million in the third quarter of 2023 and significantly lower than the $125 million reported in the same quarter of the previous year.
Operating profit for the fourth quarter of 2023 was $45 million, notably lower than the $362 million reported in the third quarter, which included $314 million from the termination of the Intel merger contract. In the fourth quarter of 2022, operating profit was $99 million, including $14 million from restructuring activities.
Net profit for the fourth quarter of 2023 was $54 million, with basic and diluted earnings per share of $0.49 and $0.48 respectively. This is a decrease from the third quarter of 2023, which reported a net profit of $342 million, or $3.10 basic and $3.07 diluted earnings per share, including $290 million from the Intel merger contract termination. In the fourth quarter of 2022, net profit was $83 million, with basic and diluted earnings per share of $0.76 and $0.75 respectively, including $9 million from restructuring.
Full Year 2023 Results
For the full year 2023, Tower Semiconductor reported revenue of $1.42 billion, with gross profit of $354 million and operating profit of $547 million. Net profit for the year was $518 million, with basic and diluted earnings per share of $4.70 and $4.66 respectively. These figures include $314 million from the termination of the Intel merger contract and $33 million from restructuring activities in Japan.
In comparison, for the full year 2022, revenue was $1.68 billion, with gross profit of $466 million and operating profit of $312 million. Net profit for 2022 was $265 million, with basic and diluted earnings per share of $2.42 and $2.39 respectively, including $10 million from restructuring activities.
Business Outlook
Tower Semiconductor forecasts revenue of $325 million for the first quarter of 2024, with a range of 5 percent in either direction. The company aims for significant quarter-over-quarter growth throughout the year.
Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, expressed optimism about the company’s future, citing financial strength, technical offerings, operational performance, and strategic partnerships as key factors.
Anticipating market dynamics and customer demand, Tower Semiconductor announced the strategic consolidation of its 6” Fab 1 activities into its 8” Fab 2 operations. This move aims to enhance operational efficiency and align with long-term financial goals. Certain lower-margin products will be phased out as part of this optimization strategy.
