Chipmaker TowerJazz Q2 profit rise beats estimates

JERUSALEM, Aug 5 (Reuters) - Israeli chipmaker TowerJazz reported higher quarterly profit that beat estimates, boosted by lower costs due to a drop in the company's debt level.

TowerJazz said on Wednesday it earned 70 cents a share in the second quarter excluding one-time items, compared with 62 cents a year earlier. Revenue edged up to $236 million from $234 million.

The company was forecast to earn 52 cents on revenue of $235 million, according to Thomson Reuters I/B/E/S.

Earlier this year, shareholders converted $162 million of bonds to equity, leading to financial expenses of $3.6 million in the second quarter, versus $8.8 million a year ago.

TowerJazz, which makes chips for smartphones, battery chargers, AC/DC adapters and image sensors, forecast third-quarter revenue of $244 million, plus or minus 5 percent, a figure which would represent growth of 8 percent year-on-year.

(Reporting by Steven Scheer; Editing by Jon Boyle)