Chipmaker TowerJazz Q1 profit drop meets expectations

TEL AVIV, May 15 (Reuters) - Israeli chip manufacturer TowerJazz reported lower quarterly net profit that met estimates and forecast second-quarter revenue also in-line with expectations.

TowerJazz, which specialises in analogue chips used in cars, medical sensors and power management, posted on Wednesday diluted earnings per share excluding one-time items of 29 cents in the first quarter, down from 31 cents a year earlier. Revenue slipped to $310 million from $313 million.

It was forecast to earn adjusted EPS of 29 cents on revenue of $309 million, according to I/B/E/S data from Refinitiv.

TowerJazz expects second-quarter revenue in a range of 5 percent above or below $306 million. Analysts are forecasting $308.8 million in revenue.

“Despite macroeconomic uncertainties that have led to tighter market inventory management, the indications we see in the wide market as well as from our specific customers, are for a stronger second half,” CEO Russell Ellwanger said. (Reporting by Tova Cohen Editing by Steven Scheer)