Jazz Technologies Inc., the parent of Newport Beach based contract chipmaker Jazz Semiconductor, narrowed its losses in the second quarter.
In May, Israel’s Tower Semiconductor Ltd. said it’s set to pay $40 million plus an additional $129 million in debt for Jazz.
Including charges of $1.5 million for the buyout, the company narrowed its loss to $5 million during the second quarter, down from $13 million it lost during the same period a year earlier.
Analysts were expecting Jazz to lose about $6 million.
Jazz saw sales of $48 million, down 8% from a year earlier but beating analysts’ expected $46 million.
Jazz said it landed five design wins during the quarter but didn’t name the customers.
The company ended the quarter with about $10 million in cash and short-term assets. It has roughly $137 million in debt.
Its second-quarter results are likely the last it will report as a stand-alone company.
The deal with Tower Semiconductor is expected to close by the end of the year. Jazz’s shareholders are set to vote on the deal next month.
The company didn’t give an outlook for the current quarter due to the pending sale.
For the third quarter, analysts are expecting the company to lose $5 million and post sales of $50 million.
Jazz had a recent market value of about $20 million.
Tower Chief Executive Russell Ellwanger is set to take over running Jazz as a subsidiary.
He plans to travel between Newport Beach and Tower’s headquarters near Haifa, Israel.
