MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The information contained in this section should be read in conjunction with (1) our unaudited condensed
interim consolidated financial statements as of June 30, 2010 and for the six months then ended and
related notes included in this report and (2) our consolidated financial statements and related notes
included in our Annual Report on Form 20-F for the year ended December 31, 2009 and the other
information contained in such Annual Report, particularly the information in Item 5 - “Operating and
Financial Review and Prospects”. Our financial statements have been prepared in accordance with
generally accepted accounting principles in United States (“US GAAP”).
Results of Operations
The following table sets forth certain statement of operations data as a percentage of total revenues for
the periods indicated.
Six Months Ended June 30, 2010 Compared to the Six Months Ended June 30, 2009
Revenue . Revenue for the six months ended June 30, 2010 amounted to $239.5 million compared to
$118.6 million for the six months ended June 30, 2009. Such 102% increase in revenues is mainly due to higher
shipments following the global increased demand in the semiconductor industry and specialty foundry business in
the six months ended June 30, 2010 as compared to the same period in 2009 which was influenced by the
worldwide economic downturn and due to our focus in specialty products and our specific product offering.
Cost of Total Revenue s. Cost of revenues for the six months ended June 30, 2010 amounted to $201.5
million, as compared to $146.3 million for the six months ended June 30, 2009. Our increase in cost of revenues
of 38% is lower than the 102% revenues increase primarily due to the higher utilization of the manufacturing
facilities and continuing efforts of the cost reduction plan executed by the Company and synergies captured
through the integration o