Tower Semiconductor Ltd (NASDAQ:TSEM) stock fell 2.10% (As on May 16, 10:18:40 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Net profit for the first quarter of 2023 was $71 million.  Net profit in the first quarter of 2022 was $54 million, or $0.50 basic and $0.49 diluted earnings per share. This increase includes the restructuring income, net from the previously disclosed reorganization and restructure of our Japan operations during 2022, as in the breakdown in the statement of operations table below.  Net profit for the fourth quarter of 2022 was $83 million, or $0.76 basic and $0.75 diluted earnings per share. Cash flow generated from operating activities in the first quarter of 2023 was $73 million, as compared to $133 million in the fourth quarter of 2022.  The decrease is attributed mainly to purchase of starting material against a present reduction in shipment.  Investment in fixed assets for the first quarter of 2023 was $105 million, net.  During the first quarter of 2023, the Company repaid $29 million of its debt, resulting in full bonds’ redemption.

TSEM in the first quarter of FY 23 has reported the adjusted earnings per share of 64 cents, beating the analysts’ estimates for the adjusted earnings per share of 47 cents. The company had reported the adjusted revenue of $356 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $352.73 million. Revenue for the first quarter of 2022 was $421 million, and for the fourth quarter of 2022 was $403 million. Gross profit for the first quarter of 2023 was $96 million.  Gross profit for the first quarter of 2022 was $105 million, and for the fourth quarter of 2022 was $125 million.  Operating profit for the first quarter of 2023 was $89 million.  Operating profit for the first quarter of 2022 was $63 million.

On the other hand, TSEM and Teramount, the leader in scalable solutions for connecting optical fibers to silicon chips, has announced a collaboration based on Teramount’s ‘PhotonicPlug’ technology and Tower’s silicon photonic ‘Bump-ready’ wafers. ‘Bump-ready’ wafers combine Tower’s high-volume PH18 silicon photonic technology with features that allow the simultaneous connection of a large number of fibers to the chip dramatically simplifying assembly into a final high-speed data transport solution for datacenters and telecom networks, as well as new emerging applications in artificial intelligence (AI) and sensors.