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Israeli chipmaker TowerJazz beats estimates with first-quarter profits

(Adds CEO comments, share reaction)

JERUSALEM, May 9 (Reuters) - Israeli chipmaker TowerJazz swung to a profit in the first quarter, boosted by the acquisition of a U.S. plant, and said it expects revenue to increase further in the next three quarters.

The company, which makes chips for smartphones, battery chargers, AC/DC adapters and image sensors, easily beat forecasts, reporting earnings of 78 cents a share for the first quarter on Monday. That reversed a $1.15 loss per share a year earlier, which was mainly due to non-cash financing expenses of an accelerated bond conversion.

Net profit for the first three months of 2016 included a 49 cent-a-share gain from the acquisition of a plant in San Antonio in February. Revenue rose 23 percent to a record $278 million.

The company was forecast to earn 27 cents a share on revenue of $276 million, according to Thomson Reuters I/B/E/S.

TowerJazz said it expects second-quarter revenue of $300 million, plus or minus 5 percent, representing year-on-year growth of about 27 percent.

"We see Q3 and Q4 each being larger in revenue than Q2," Chief Executive Russell Ellwanger told Reuters.

TowerJazz's shares were up 3.6 percent at $12.18 in premarket trade on Nasdaq.

Ellwanger said his company "got an asset at a very good valuation" when it purchased the San Antonio wafer manufacturing plant from Maxim Integrated Products.

The deal strengthened TowerJazz's business relationship with Maxim, an existing customer, he said, and the company will be able to utilise the facility's unused capacity to further boost revenue in the future.

(Reporting by Ari Rabinovitch and Tova Cohen; Editing by Susan Fenton)

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