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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 press releases and 8-K filings for SILC.
- Q1 2025 Financials: Reported revenues of $14.4 million, gross profit of $4.4 million; GAAP net loss of $2.8 million ($0.49/share) and non‑GAAP net loss of $2.1 million ($0.37/share)
- Guidance & Future Growth: Q2 revenue projected between $14.5 million and $15.5 million with expectations of low single‑digit growth in 2025 transitioning to double‑digit growth from 2026 ; long‑term targets of $150–160 million in revenue and EPS above $3
- Strategic Focus: Emphasizing core product lines in Edge Systems, Smart NICs, and FPGAs
- Balance Sheet Strength: Holding $119 million in working capital and marketable securities, including $77 million in cash
- Operational Wins: Achieved 3 design wins with key U.S. cybersecurity and network testing companies, building a robust pipeline
- Share Buyback: Repurchased over 700,000 shares over the past 5 quarters (with fewer than 100,000 shares in Q1) and approximately $8 million remaining in the buyback program
- Silicom Ltd. announced a strategic partnership with Eideticom to jointly develop an advanced cryptographic and compression solutions suite, leveraging Silicom’s FPGA-based platforms and Eideticom’s NoLoad® technology.
- The integrated solution, based on Altera’s Agilex™ 7 FPGAs, is designed to enhance network, data center, telecommunications, storage, and edge computing security, and to address both current and post-quantum cryptography demands.
- The announcement was made on April 24, 2025, demonstrating the company's commitment to innovation in high-performance networking infrastructure.
- Global network test equipment giant selects Silicom's high-speed 100 gigabit NICs for its next-generation platform, confirming strong demand for its advanced networking solutions.
- The customer has initiated an order for New Product Introduction with mass deployment expected in early 2026, potentially growing annual business to $2.5 million.
- Silicom Ltd. (NASDAQ: SILC) will release its First Quarter 2025 results on April 28, 2025 with a conference call scheduled for 9:00 AM ET.
- The release provides webcast and dial-in details for U.S., Israel, and international participants, with a replay available for three months.
- This announcement is issued via a Form 6-K for April 2025, formally communicating the upcoming results release.
- Independent auditors confirmed that the consolidated financial statements as of December 31, 2024, fairly present the Company's financial position, with effective internal controls over financial reporting.
- Revenue performance declined sharply in 2024, with sales dropping to US$ 58,114K from US$ 124,131K in 2023 due to excess customer inventory and reduced activity, impacting net income.
- Liquidity remains strong with working capital of US$ 114,698K and cash & cash equivalents of US$ 51,283K as of December 31, 2024, supported by positive operating cash flows.
- Silicom LTD announced that a US-based cyber security company has selected its next-gen FPGA Smart Card for a new network monitoring solution, with the first order scheduled for delivery this year.
- The project is expected to ramp up to $3 million per year, highlighting Silicom's advanced engineering capabilities and integrated product offerings.
- This design win reinforces Silicom's strategic momentum in providing high-performance networking and data infrastructure solutions.