Ladies and gentlemen, thank you for standing by. Welcome to the TowerJazz's First Quarter and 2015 Results Conference Call. All participants are currently present in a listen-mode. Following management's prepared statements, instructions will be given for the question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, May 13, 2015. Joining us today are Mr. Russell Ellwanger, TowerJazz's CEO and Mr. Oren Shirazi, CFO. I would now like to turn the call over to Ms. Noit Levi. Vice President of Investor Relations and Corporation Communications. Ms. Levi, please begin.

Thank you and welcome all to TowerJazz's financial results conference call for the first quarter of 2015. Before we begin, I would like to remind you that some statements made during this call may be forward-looking and are subjected to uncertainties and risk factors that could cause actual results to be different from those currently expected. These uncertainties and risk factors are fully disclosed in our Forms 20-F, F-4, F-3 and 6-K filed with the Securities and Exchange Commission as well as filings with the Israeli Securities Authorities. They are also available on our website. TowerJazz assumes no obligation to update any such forward-looking statements. Now I would like to turn the call to our CEO, Mr. Russell Ellwanger. Russell, please go ahead.

Thank you, Noit. And welcome all for joining our call today. This is a very significant quarter for me personally. This month marks my 10th year anniversary at Tower now TowerJazz. In today's conference call I would like to take a look back over the past decade and what we have achieved and how these achievements will springboard us into the future. In joining the company in May 2005, the status was as follows. Operationally one 6-inch factory at partially utilization and new 8-inch factory of low capacity and that at low utilization. There was an annual run rate for revenue of approximately $100 million, EBITDA was negative $20 million, and cash from operations was negative $55 million and a net debt of $550 million. In my interview rounds I saw motivated and capable workforce and in particular felt an immediate bond with Oren Shirazi, at that time Acting CFO now CFO and Senior Vice President of Finance. Dr. Itzhak Edrei, at that time Vice President, R&D and now President. And Ms. Dalit Dahan, at that time Vice President, Human Resources, now Senior Vice President, Worldwide Human Resources and Information Technology. As well as I had strong interactions with Mr. Idon Ofer, at that time Chairman of Israel Corporation, Tower's largest shareholder. Mr. Ofer and I aligned quickly given mutual long-term commitments which we have both strongly held to. I took the job and our journey began. The first step was to correct the base financials. To do this, firstly we structured the organization from essential R&D and essential sales and marketing into business units. Each was its own general manager, research and development headcount, product marketing and customer support. Secondly, now with the structure that allowed group by group financial accountability, we gave each business group targets and communicated…

Thank you, Russell. And welcome everyone. Earlier today we announced our result for the first quarter of 2015. The first quarter demonstrated a significant turning point on all our balance sheet metrics and other financial indicators including our total gross debt reduction by $293 million year-over-year, our net debt reduction by $244 million and net debt to EBITDA ratio reduction to below 1x. This coupled with shareholder equity increase to its record level since inception. In addition, we achieved very good P&L performance with non-GAAP gross margin of 36% and EBITDA run rate exceeding $200 million on an annual base. I'd start with the detail analysis of P&L report. On the revenue side we achieved revenue of $226 million for the quarter reflecting 71% year-over-year growth as compared to $133 million for the first quarter of 2014. The strong organic growth of 33% which excludes revenues from micro and Panasonic and 31% growth from the Top 10 customers. Non-GAAP gross profit for the first quarter of 2015 was $81 million, and 81% improvement from the $45 million reported in the first quarter of 2014 representing a very strong gross profit margin of 36%. EBITDA which is akin to non-GAAP operating profit was $51 million for the first quarter, 86% higher than in the first quarter of 2014, reflecting an analyzed EBITDA run rate exceeding $200 million. Non-GAAP net profit for the quarter was $50 million or $0.78 per share, representing 22% net profit margin. This is an increase of 2.5x compared to the $20 million or 15% net profit margin reported in the first quarter of 2014 and higher than the $46 million or 20% net profit margin of the previous quarter. Gross profit on a GAAP basis for the first quarter of 2015 was $33 million, a significant increase…

Thank you, Oren. Before we open up the call to the Q&A session, I would like now to add the general and legal statement to our own results in regards to statements made and to be made during this call. Please note that the first quarter of 2015 financial results have been prepared in accordance with US GAAP and the financial tables in today's earnings include financial information that may be considered non-GAAP financial measures and Regulation G and related reported requirement for the established with Securities and Exchange Commission as they apply to our company. Namely this release also presented financial data which is reconciled as indicated by the footnote below the table on a non-GAAP basis after deducting one, depreciation and amortization, two, compensation expenses in respect to option grants, and three, finance expenses net other than interest accrued such that non-GAAP financial expenses net include only interest accrued during the resulted period. Non-GAAP financial measures should be evaluated in conjunction with and are not substitute for our GAAP financial measure. The tables also contained comparable GAAP financial measure to the non-GAAP financial measures as well the reconciliation between the non-GAAP financial measures and the most comparable GAAP financial measures. EBITDA is presented is defined in our quarterly financial release. EBITDA is not required GAAP financial measure and may not be comparable to a similarly titled measure and provided by other companies. EBITDA and the non-GAAP financial information presented herein should not be considered in relation or as a substitute for operating income net, income or loss, cash flows provided by operating, investing and financing activities, per share data or other income or occasional statement that are prepared in accordance with GAAP and is not necessarily consistent with the non-GAAP data presented in previous filings. I would now like to turn the call over to the operator. Operator?

[Operator Instructions] The first question from Cody Acree of Ascendiant Capital. Please go ahead.

Thanks guys for taking my questions and congratulations on another good quarter. Russell, maybe if we could start with new revenue contribution to this quarter. And then for your guidance, you went through -- and thank you for the details on the different divisions. But could you just go through the magnitude or rank order of strength that you are seeing from each division? How are you -- did you see that contributing margin? And what are you expecting for June?

So as we stated before we don't breakdown the revenue of Panasonic into the specific business units that would serve -- that we would break up into as it gets too specific to what we have from one single customer. As far as the overall revenue in the company and the breakdown of that ex TPSCo it is still pretty much the same as the last time we spoke in the last conference call. Somewhere about 35% is related to the RFHPA and somewhere about 16% -18% as the CMOS image sensor, probably about 16% -18% is also the TOPS business that we have, power management is somewhere about 10%, mixed signal CMOS activities are up about 12% and then we have scattering of small activities including the A&D.

Let me ask that a different way. What I guess I'm trying to get at is a level of activity not necessarily revenue generation. But you talked about new customers, new designs, mask sets coming in. If you just had to put a growth rate on that or a trajectory on activity, are those rank ordered in the same versus revenue contribution or are you seeing some standout?

On absolute dollars, the RF SOI is the biggest driver on dollars itself. On percentage and probably everything is pretty much on par with each other. The 30% that we see in the organic growth I think it is pretty well averaged over all the business units. But obviously if one of them is 35% of the revenue the absolute dollar is higher. But as I stated and I tried to point it out strongly the growth itself is pretty well shared over both of our business units which are something that we are actually very, very pleased with. That we are not as far as the growth engines of the company over leveraged in one area versus another.

And Oren you made pretty good progress on gross margins, couple hundred basis points outside this quarter. What were the drivers of that gross margin upside and then contribution expectations for the next few quarters?

Yes. So indeed as compared to the 27% upon establishment of TPSCo in Q2 last year, 27% non-GAAP gross margin that we achieve the 36% in Q4 and this quarter again 36% indeed we were expecting to start this year with 34% and reach to Q4, 2016 with 38% and then Russell even made it a target to be 40%. So from 34% to 40% and indeed Q1 was better than expectation than we over achieved to the 36% in Q1. One of the reasons is that slightly better mix in terms of profitable business over less profitable business that we had mixing in the revenue and the other thing is high utilization than expected. So we really see increased demand as one also can see the forecast for Q2 the guidance is better than maybe others expected. So this means that Q1 had more utilization than expected more activity so that we at the end of the line and middle of the line is higher, which means that more cost can be attributed over the wafers which means that it creates better gross margin of course.

And then lastly, Russell, you mentioned Intel and gesture recognition and then another couple customers that you are working with. Do you have any other color that you can give us on just expectations for how big of a contribution that kind of business might end up being for you? And any color on expected timing of not maybe one customer but just those customers that you're dealing with as a whole?

We believe that the gesture business itself is a very large business. And that we are well positioned to be able to take a major portion of it. I am slightly sensitive to give a real number right now as we press release only customer and that's Intel and I wouldn't want people to think that I am correlating and I certainly wouldn't want Intel to think that I am correlating their forecast into what I am telling the Street. But certainly the gesture market is large; I think that in the end it is possible for us within the whole gesture market to have a reasonable share. And I don't know somewhere $100 million, $150 million of market; I don't think that's unreasonable for us to have within gesture market.

$150 million of the market --

$100 million to $15 million

That's your revenue contribution or is it size of the market?

I think that we could see it getting to $100 million to $150 million if the gesture market continues to grow to the degree that we believe it will.

The next question from Jay Srivatsa of Chardan Capital Markets. Please go ahead.

Yes, thanks for taking my question. Congrats on good numbers and guidance. Russell, there has been some reports that the Chinese smartphone market is slowing down. And there's also some concern about the wireless infrastructure market over there. I know some of your customers have some exposure there. Are you seeing any drop off in activity in terms of orders from those customers, or is this more of a temporary phenomenon that you think will pass? What is your read on that market?

I can only state what we are seeing on the demand and our demand had stayed strong is actually getting stronger. So I don't see that we have any tail off at all. And as far as the specific end customers that our customers are selling to, that isn't 100% granular to me. There are certain models that I know would be going into some major branded companies. But overall again our demand is not slowing down whatsoever. If anything it is increased in the infrastructure demand, has increased very, very strongly.

Okay. In terms of Panasonic, where are you at in terms of transferring process flows into the fabs? Meaning have you been able to get them new customers or existing customers transferred from other fabs into the Panasonic fabs? Or are you still running purely the Panasonic product? And if that's the case, what are the some of the steps you are taking to get more products or more customers into the existing fabs at Panasonic?

So we press released maybe four months ago or so Fairchild and so Fairchild is a press release customer that we brought up in Panasonic. I mentioned during the call that on average we had a new product entering to the factory every three days. So obviously there is a lot of activity going on there. The platforms that have been transferred itself are the power management platform so we have the -- what we call TS18 and stated that allows us flexibility as far as where we load products. We have very, very high demand for RF SOI that gives us flexibility than to have the power management not in Migdal HaEmek fab2 but to have it in TPSCo factory and to be able to allow customers now greater capacity with Newport beach fab3 and fab2 supporting the RF SOI beat. So that certainly is a place that we are tapping out going, others additional capabilities that we've take out to for third party. I mentioned Himax very specifically that was a PR. And that's moving and in addition to Himax we has acquired I mean other four highly integrated smartphone cameras. We have another customer that is tapping out to us as well. So there are a lot of activities happening in the 300 mm. But yes we have I think very substantial amount of activity going on in TPSCo. I had stated that we would expect to see several tens of millions of dollars of third party revenue in the second half of this year. And I believe we are still on track with that.

Okay. That's very good. Help us understand where things are with the Indian project. Any update there?

Not really. The project has been moving along or not moving along for over three years. There was a change off government in the meantime. New empowered committee was formed from the first time that the consortium got together and agreed to be working together; a lot of time has passed. A lot of things have changed. The only update is possibly that one of the members of the consortium has sent a letter to the government and possibly will be having face to face meeting with the empowered committee over the next month. But there is nothing specific to report on other than -- it is really -- it is something if and when it happens would be an accretive event for the company. It is certainly not something that is within our annual plan; it is not within our multiyear plan. But it would be an additional benefit especially on the bottom line as the money would be coming in a very high margin.

Well I guess the question is, is there delays just due to political issues there or is the government not planning on proceeding with the project anytime soon? Or are they still undecided on who the providers are going to be? What level -- where is it in terms of the status of the project?

Again Jay from what we've heard there have been consortiums that have been selected. I don't believe that there is any question in their minds about who is being selected. I believe as far as what is the status and where things at, how are quickly does the government move, that's really not something that I could answer. I have not been informed of any major stumbling block from the government but not been informed, that we are moving forward either.

Okay. Switching topics, just -- if we take a high-level view here in terms of your future growth, where do you see that coming from? Are you seeing more integrated device manufacturers going fabless or fabless light? Or are you seeing more customers coming away from your competitor to your fabs? Where are things at in terms of where you see the future growth of the business going?

Our TOPS business is 100% driven off the fact of IDMs going fab light, that was the press release from Fairchild where they were consolidating internal capabilities and moving capabilities outside of Fairchild in a fab light type of format. So certainly that business is a fab light type business. In the case of our RF SOI and as well the silicon germanium, those are capabilities that maybe some IDMs never had, if you were to consider front end module makers as IDMs to the fact that they have their own gallium arsenide, they have their own filters but they did not have RF CMOS, so is it a fab light model for them or is it fabless model it depends how you want to define it. But I would not see any of them at this point spending the billion plus dollars to bring up a factory but they themselves might not be able fully utilize. So again is that a fab light or is it fabless model I really don't know. But the RF space is from a most part served -- we serve customers that do not have the RF CMOS capability themselves. So that's now in the case of the imaging, in all cases we are dealing with fabless companies or companies that maybe have a few fabs but not in that area. I mean that is just a market itself that is growing. I think one of the big trends that they are, I mean people call the internet things but I am not sure that term is used properly. But for the internet of things it is not just the fact that seamless connectivity, it is really the fact of smart systems. So you have to have internet of things that everything truly is connected. Their systems become more self diagnosing and that really is done through sensors, so that's basically a huge drive. The whole wireless, seamless connectivity is the big drive. So that's why that's growing. And our portion of that isn't from people that are making their own devices. Power management is a place that there are very, very strong IDM, are we gaining from that from IDM, I don't think our growth there is from IDM at all, I think IDM have been in most stayed as IDM. Our growth within the power management is really from a lot of fabless companies. And maybe in a few cases of fab light model but for the most part it are fabless companies.

All right. Maybe one last question for Oren. Given the increasing margin profile you talked about and the drop-off in the interest is it fair to assume that GAAP profitability could continue for the rest of the year, or do you expect any non-cash items to change that profile?

Yes. So it is a good question. I related to it in my script basically if you compare to previous model or expectations, we would have recorded an average of about $13 million every quarter in the coming three quarters of 2015 and about $8 million in each quarter in 2016, comprised from in 2015 for example the $13 million from $3.2 million from interest payable on those bonds that will converted plus about $10 million in non cash financing. So this is a $13 million saving that we'll accrue. And based on that indeed the model show that one may expect nice profit. The only specific issue about you like mentioned is possibility that the remainder of bonds will be converted which is of course were reasonable and since only $35 million remaining, the impact will not be big but it can be an amount of up to $12 million throughout the end of 2016. So if there will be no further conversion we will have about $2 million every quarter now of non cash financing. And we can overcome that and be net profitable like we said. At a specific quarter that it will be converted this can be again an accelerated conversion, we accelerated the pulling of the expenses which is a good thing for the future. So if I can repeat it up so it means that if in Q2 for example this quarter, there is no more conversion and so far there was no conversion, and it will enable to --from that-- it will not be converted before Q4 and then in the scenario and Q2 structure is possible to achieve net profit. And also Q3 and only Q4 if indeed there will be conversion it can be the opposite direction. However, if conversion we look over in Q3, 2015 or Q3, 2015 will have these effects. And Q2, 2015 will be profitable, four will be profitable. And same goes for 2016. So basically the structure excluding any one time impact enables sustainable net profit and what we said, it was stated, excluding of course one time event.

The next question from Richard Shannon of Craig-Hallum. Please go ahead

Russell and Oren, thank you for taking my questions. And I will echo the congratulations on a good start to the year. I guess my first question regarding your RF HPA segments -- probably a little bit more detail on that RF and SOI versus more optical -- I guess the silicon germanium there. Can you give us a sense of the split between those two basic buckets there? And are the growth profiles for those going forward? Are they markedly different?

I think at present the growth of the RF SOI is very strong and very big. And a very accelerated and aggressive roadmap. Is the growth profile similar? I'd really have to look at and see, I have not done the breakdown. I would think that RF SOI probably has a bit higher growth profile than does the optical switch; optical switch however is going strong. And I think over the next year has a very trajectory. The optical switch is a very, very high margin part. It is very advanced, very difficult to duplicate. But I'd really have to get back with on the specific growth of the silicon germanium versus the RF SOI. I don't have that off the top of my head.

Okay. Russell, would you have any idea how much the split of revenues between those two currently?

I can back get on; I would think it is probably somewhere 65:35, 60:40 in that range.

Okay. That's fair enough. Just a rough guess is great. Let's see a couple of questions on the TPSCo fab. I didn't -- unless I missed it I didn't hear any update on any kind of revenue potential you see in 2016 and 2017. As I recall I think you said upwards of $200 million for 2017 specifically. Can you give us an update on those estimates please?

Others did not change. What we've said is that we have at these opportunities that have been worked on design wins that we have had. That could be running $150 million to $200 million on incremental revenue in the 2017 timeframe. And we are still sitting with that. It could be accelerated. There are a lot new activities that are come on board. But $150 million to $200 million is I think a very good number for the 2017 timeframe of third party revenue.

Just perfect. And just a follow-up question on the topic of TPSCo. You mentioned in your prepared comments about some -- some exposure and interest level coming from Japan. I wondered if you could segment the interest level here a couple different ways related to that JV. One is Japan versus outside of it. And also if you can give us a sense of any of your end markets that you are getting materially more interesting contributions from like Matt said for design win activity perspective than others.

As far as the biggest interest that we have and that we have been driving is within the CMOS image sensors. It is not solely coming out of Japan. But it is the CMOS image sensor activity that we have -- they have very strong capability on the technical platforms. The most recent activities incremental to that have been in the order of TOPS where we take the customer flows and bring them into the factories. Now I stated before that we are very selective on the customers we choose for that because it takes lot of work and those flows are really-- and isolated to proprietary to the customer itself. So every IDM flow that we take on into a factory be at the Migdal HaEmek the new port be should be now in TPSCo. We really want to make sure that it is strategic customer that it makes sense. And that it will be viable as far as the volume. But we have a lot of demand in -- a lot of growth is happening there within the TOPS groups from in particular two large customers. One of them having them press released and that are Fairchild. The other area that I mentioned that we are driving growth in is that of power management where we have a platform that is now in the final stages of qualification and then qualifying customers into that platform for dual sourcing from Migdal HaEmek into TPSCo. In addition, we have very high volume activities going on in TPSCo in the RF space from Japanese customers.

The next question from Lisa Thompson of Zacks Investment Research. Please go ahead.

I just wanted to clarify on the interest expense on the converts. How much interest did you pay for the converts this quarter, so that we can do fully diluted earnings per share?

We didn't pay any coupon payment on the bonds that were converted and also will not pay because whatever bond order that chose to convert lost the right to get the coupon. So we paid no payment.

Okay. Right, but of the $3.6 million in interest, did any of that -- that must go to other convertible.

No. There are two numbers which are $3.6 million, $3.6 million that I mentioned in the script is the future saving and also was the saving already in Q1, that we don't need to pay this as coupon to bundle the F that converted and this is really zero, it is not -- was not paid, that's a future cost reduction. The $3.6 million reported as payment this quarter is semiannually coupon for the Jazz note holder for the notes that are due December 2018.

Okay, so that's all the convert. The Jazz notes, the convertible. Right?

Yes.

All right. So if I take that out of EBITDA to net income I can get my fully diluted income.

Yes.

Okay. And then next quarter, that should be zero?

Next quarter for the Jazz notes it will be zero because it is semi annual payment. There will be though our payment to the bond series B and F which are remaining the small amount, that's remain which is $2 million total of interest payment. That's all.

Okay. So in the third quarter you get the $2 million and another $3.6 million?

No. On the Q3 we have only the $3.6 million of Jazz, again so maybe I'll clarify. Jazz notes which are due December 2018, they are paying the coupon semiannually in Q1 and Q3. And that is really bond DNS are paying also semiannually but in Q2 and Q4. So it means that under the new more simplified structure of debt that we have, we have extra $4 million interest payment in Q1, $2 million in Q2, $4 million in Q3 and again $2 million in Q4.

The next question from David Duley of Steelhead Securities. Please go ahead.

Thanks for taking my questions. You mentioned you moving the SOI business to your Panasonic factories of 300 millimeter. What kind of capacity increase do you think this represents? Or is that the wrong we look at it? You are just managing your capacity. It seems like that's a very rapidly growing market and it appears that you are putting a lot more capacity on -- added.

Actually the 300 mm capability is one that isn't presently needed. The performance that we are getting out of it is also not presently needed. The point of having done the activity is really providing very strong customers with a long-term roadmap. And assuring them that they can stay with us not just on this breakthrough technology that is being tapped out to presently but on something that gives significantly better performance for the future. The TPSCo 300 mm factory is small to mid size 300 mm factory that we will probably really focused on for the fact of the CMOS image sensors. The fact of having that factory enables us to develop platform customer need for an advanced roadmap. And then probably would allow us to look at that and get into other 300 mm factory prior to the time that we would see the demand for the SOI. But if we move forward and customers move forward and the roadmap to be several years down the road, we would be bringing on additional 300 mm capacity for that specific technology. But the point of doing it now is as I state to show customers our capability, allow them to stay with us long term because of that capability and then should there be additional demand to be able to, through whatever type of the business model move into additional 300 mm capacity with the ability to load it quite quickly. And we did have independent of TPSCo an opportunity few years back to get involved in the 300 mm facility. That would have loading agreement. But we had no internal 300 mm capability and our customers that were driving that. So beyond the time of loading agreement we would have been very much hurt by having a running cost that we would have been needed to pay for out of the company because the fab itself wouldn't have been able to be cash positive. At this point the drive and the growth of 300 mm for SOI would really be that at the time that we would have another opportunity which may or may not been looked at any given time. We would be in a position to be able to take that opportunity but not have a fear that after whatever loading agreement you would have from the seller that you would run into a strong cash negative due to running cost. Is that understandable answer?

Yes. Maybe just in that segment of business now though it's a rapidly growing segment. There have been some capacity issues with one of competitors. Could you just give us a commentary about what you see the trajectory of that business for you guys and perhaps an update on the overall size of the market and your market share?

I think the market is somewhere on RF SOI about $400 million, maybe $500 million in that range. Probably, presently by shipments or maybe 25% of the market share. And we would like to bring that up nicely into major portion of it, 40%, 50%, 55%, 60% whatever it might be, so that's what we would be targeting to bring our share of that business too. I did mention that we have put out a new platform where three lead customers are involved, and two of them have tapped out into it and other one is -- we call we have design win, we don't have masthead yet. But so I think we have a long-term roadmap there. I don't think I know we have a long-term roadmap there. And customer interest to continue to grow with it. We are building out capabilities for additional 200 mm capacity. And part of that is through the off load of the power management and other technologies into the TPSCo to be able to maximize the footprint of Migdal HaEmek in factory to be able to do more and more SOI. And we've had -- we've made some strong commitments to customers for SOI capacity for 2016.

Okay. And switch gears a little bit on the image sensor business. There's been a lot of chatter with on the vision being purchased and Sony and Samsung selling some stuff outside but mostly using their capacity internally. But this kind of a stores in that business now, particularly for a lot of Chinese customers. And I was just wondering how that industry dynamic is impacting you guys. You've talked a lot about image sensor business but I was just wondering if you get a little bit more specific and dig into some of those details.

Certainly. The sensor business is very interesting because there are a huge, huge variety of applications. We have a very strong market share within for example dental x-ray, these are stitched dye, they are very large dye, it is bigger than the photo field itself, so you are stitching fields together. We are looking at engagements for removing more directly into medical systems and medical panels. Since we had had some customers and activities there but we are now looking at a much stronger engagement into medical panels themselves. Those markets are strong markets as it is change with maybe a better performance against TFT type solutions presently. You have the high end camera area, studio cameras that I think we have a good market share in presently. And there is as well, if you look at the smaller point and shoot cameras, that market is really diminishing fairly strongly and why because the cell phone camera itself has very, very good performance. So the high end cell phone camera, the 14 mega pixels and beyond, that's the area that we are engaged now through the TPSCo 300 mm 65 nanometer flow this 1.12 micro pixel. And I think that we are in a very unique position there in order to gain market share. And that is our major focus dealing with the 300 mm factory is to be able to do these smaller pixel very advanced cameras. So we are driving that very, very strong. There are other areas such as industrial and cameras there, many, many different readers for industrial and global pixel cameras and we are in strong position there. So the overall image sensor market has many, many diversified applications. And I think the strong growth ones were pretty involved in with leading customers and aligned on meeting customer roadmaps.

Have you seen an increase in let's say the Chinese handset guys or other handset customers looking for image sensor capacity?

I am not sure that I've seen in directly from the handset provider itself. I've seen it from the camera module maker for the handset suppliers.

Okay, excuse me. I didn't ask the question right way.

Yes, definitely. I mentioned that in China the advanced cameras for smartphones, the high end camera, high mega pixel cameras, we are seeing a lot of demand for that presently.

There are no further questions at this time. Mr. Ellwanger, would you like to make closing statement?

Certainly. Firstly, thank you very much for your interest, your time. I personally have very much enjoyed this past decade at TowerJazz. And as I look back on what we've achieved we really have a lot to celebrate together. As I move into my second decade with the company, I think we are standing now at the strongest point that we've ever been. And I really believe that 2015 will begin a very fruitful harvest of the effort of the past years. I look forward to continually updating as we move forward to closer to the target of the 40% non-GAAP margin in Q4, $200 million quarterly run rate. This will be very exciting update on. And then the really the mid term target of 50% non-GAAP margin in 2017. So I really look forward to this and to continue to update and speak. I believe we are having a pretty good presence at difference conference in the US. We have participation tomorrow May 14 in the B Riley Conference in Los Angeles. Dr. Racanelli will be presenting and meeting with investors. In addition on May 28, I'll be participating in the Craig-Hallum conference in Minneapolis. We would be very pleased to meet anybody there. In the meanwhile obviously any question time that you like to have with Ms. Noit Levi, the VP of Investor Relations or Oren Shirazi or myself, please email and we will set up the time and spend time with you. I think that more that you as investor base and analyst understand our business and where we are going, the more excited you will be about the company and we look forward to keeping you update in that. So just lastly really thank our customers for their trust in us as long-term partner. Our investors who believe in our management business model. And very specially our employees for their capability, dedication and passion. And that's really what's driven us to be the number one specialty foundry in the world. Thank you very much.