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Israeli chipmaker TowerJazz sees recovery in revenue

TEL AVIV, Nov 6 (Reuters) - Israeli chipmaker TowerJazz reported a sharp drop in third-quarter revenue and profit due to a decline in sales to Micron Technology but revenue was up from the second quarter.

TowerJazz said on Wednesday adjusted net income was $12.2 million, down from $31.6 million a year earlier. Revenue fell to $132.6 million from $154.6 million a year earlier but was up 6 percent from the second quarter.

The company attributed the declines to a contractual decrease in sales to Micron at its plant in Japan. Excluding the Micron reduction, revenue rose by $4 million.

Chardan Capital Markets had estimated revenue of $135.3 million, according to Thomson Reuters I/B/E/S. TowerJazz itself had forecast third-quarter revenue of between $130 million and $140 million.

For the fourth quarter, it projects revenue of $133-$143 million, compared with Chardan's forecast of $142 million.

"The sequential growth we have demonstrated in the first quarter through the third quarter was in line with our expectations based on strong alignment to customer forecast and project execution," TowerJazz Chief Executive Russell Ellwanger said.