TEL AVIV, Oct 29 (Reuters) - Israeli chip manufacturer TowerJazz on Monday reported lower quarterly net profit and forecast fourth quarter revenue below expectations, citing overall market weakness.
TowerJazz, which specialises in analogue chips used in cars, medical sensors and power management, reported diluted earnings per share of 37 cents excluding one-time items in the third quarter, down from 59 cents a year earlier. Revenue fell to $323 million from $355 million.
It was forecast to earn adjusted EPS of 40 cents on revenue of $335 million, according to I/B/E/S data from Refinitiv.
It expects fourth-quarter revenue in a range of 5 percent above or below $340 million. In July it said it was targeting fourth quarter revenue of $360-$380 million.
Analysts forecast revenue of $364.5 million in the fourth quarter.
"The present overall market softness has had a recent notable impact across our business units, with a fourth quarter revenue roll-up lower than previous expectations," Chief Executive Russell Ellwanger said in a statement. "However, we expect to see fourth quarter margins increase as a result of this much richer products mix." (Reporting by Tova Cohen, Editing by Ari Rabinovitch)