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Silicom Ltd. (SILC) is a leading provider of high-performance networking and data infrastructure solutions. The company focuses on enhancing performance and efficiency in Cloud, Data Center, Telco, and Mobile Deployment Infrastructure environments. Silicom Ltd. sells advanced networking products designed to increase throughput, decrease latency, and improve the performance of servers and networking appliances, supporting technologies such as NFV, SD-WAN, SASE, 5G, and Cybersecurity.
- Server Network Interface Cards (Server Adapters) - Facilitate communication between servers and switches with high-speed Ethernet capabilities, used in networking appliances for Cloud and Edge environments.
- Smart Cards - Programmable cards with features like encryption, acceleration, and data compression, primarily used in servers within Cloud, Telco, and Enterprise Data Centers.
- Smart Platforms (Edge Products) - Include virtualized and universal Customer-Premises Equipment, targeting SD-WAN, SASE, Telco routers, and NFV deployments.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Shaike Orbach ExecutiveBoard | Executive Vice Chairman | None | Former CEO of Silicom (2001-2022), now Executive Vice Chairman. Previously CEO of Opgal Ltd. and General Manager of Edusoft. Holds a B.Sc. in Mechanical Engineering (Technion). | |
Eran Gilad Executive | Chief Financial Officer (CFO) and Company Secretary | None | CFO of Silicom since 2005 and Company Secretary since 2012. CPA in Israel. Holds an M.A. in Economics and a B.A. in Accounting and Economics (Tel Aviv University). | |
Avi Eizenman Board | Active Chairman of the Board | None | Co-founder of Silicom (1987), served as CEO until 2001, and has been Active Chairman since then. Holds a B.Sc. in Electrical Engineering (Technion) and an MBA (Tel Aviv University). | |
Ayelet Aya Hayak Board | Director | Financial consultant; Director in other companies | Director at Silicom since 2013. Former CEO of an automation company. Holds a BA in Accounting and Business Administration (Tel Aviv College of Management) and is a CPA. | |
Eli Doron Board | Director | Co-founder and CTO of Carteav; Founder and CEO of Connesta Ltd. | Director at Silicom. Co-founder of Carteav and Connesta. Former CTO and President of Radvision Ltd. Holds a B.Sc. in Electronics and Computer Science (Ben-Gurion University) and an MBA. | |
Ilan Erez Board | Director | CFO and General Manager of AlgoSec Inc. | Director at Silicom since 2010. Former CFO and VP Operations at Silicom (1998-2005). Holds a B.A. in Accounting and Economics and an MBA. |
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Given the sharp decline in revenues from $30.1 million to $14.8 million year-over-year, can you elaborate on the specific challenges causing this downturn and how you plan to reverse this trend?
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With excess inventory at your key customers still impacting sales and expected to linger through 2025, what strategies are you implementing to expedite inventory reduction and mitigate the risk of product obsolescence?
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You anticipate only low single-digit revenue growth in 2025 before a projected 20%-30% compound annual growth in 2026 and beyond; what factors give you confidence in this significant acceleration, and how realistic are these growth targets?
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Considering that three customers account for about 36% of your revenues, how are you addressing the risks associated with such customer concentration, and what efforts are underway to diversify your customer base?
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Your gross margin has decreased to 28.8% from 31.1% last year, and operating expenses remain flat or slightly increasing; what measures are you taking to improve profitability and manage costs in the face of declining margins?
Recent developments and announcements about SILC.
Earnings
New Earnings (Q4 2024)
·Jan 30, 2025, 10:08 PMView full earnings summary →Silicom’s design wins set the stage for double-digit revenue growth from 2026, with new deals potentially boosting annual sales by $3M. But near-term growth stalls at low single digits for 2025. Watch for higher margins from the FPGA push boosting profitability.