Tower Semiconductor (TSEM) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $352 million and net profit was $54 million; FY 2023 revenue was $1.423 billion and net profit was $518.5 million, including a $290 million after-tax Intel termination contribution.

• FY 2023 adjusted net profit was $247.1 million versus $283.8 million in FY 2022.

• Renesas SiGe beamforming IC collaboration targets Tier 1 customers in satcom, 5G, and aerospace and defense markets.

• RF SOI roadmap spans 200mm and 300mm wafers and 180nm to 65nm nodes; four factories are in high-volume production, with Agrate qualifying.

Financial highlights

• Q4 revenue was $352 million, down from $358 million QoQ and $403 million YoY; gross profit was $84 million, versus $87 million QoQ and $125 million YoY.

• Q4 operating profit was $45 million, net profit was $54 million, and diluted EPS was $0.48, compared with $3.07 QoQ including the Intel termination fee and $0.75 in Q4 2022.

• FY 2023 revenue was $1.423 billion, gross profit $353.5 million, operating profit $547.3 million, and net profit $518.5 million; FY 2022 figures were $1.678 billion, $466.3 million, $311.7 million, and $264.6 million, respectively.

• FY 2023 diluted EPS was $4.66, including the Intel fee and restructuring income; FY 2022 diluted EPS was $2.39 and included restructuring income.

Segment performance

• FY 2023 revenue by technology: Power IC 24%, RF Mobile 22%, Sensors & Displays 20%, Discrete 15%, RF Infrastructure 10%, MS/CMOS 7%, and Misc. 2%.

• FY 2022 technology mix was Power IC 20%, RF Mobile 23%, Sensors & Displays 19%, Discrete 14%, RF Infrastructure 14%, MS/CMOS 8%, and Misc. 2%.

• FY 2023 revenue by end market: Wireless 22%, Automotive 17%, Consumer 13%, Infrastructure 11%, Image Sensors 7%, Industrial 7%, A&D 4%, Other 3%, MS/CMOS 2%, and Power-device applications 14%.