KFAR SAVA, Israel, July 24, 2017 /PRNewswire/ --Silicom Ltd.
(NASDAQ: SILC), a leading provider of high-performance networking
and data infrastructure solutions, today reported all-time
record revenues for the second quarter and six months ended
June 30, 2017.
Financial Results
Second Quarter: Silicom's revenues for the second
quarter of 2017 totalled $30.3
million, up 16% from $26.0
million for the second quarter of 2016 and 19% compared
sequentially with the first quarter of 2017. These are the
Company's highest-ever quarterly revenues.
On a GAAP basis, net income for the quarter totalled
$4.2 million, or $0.55 per diluted share ($0.57 per basic share), up 19% compared with
$3.5 million, or $0.48 per share (basic and diluted), for the
second quarter of 2016.
On a non-GAAP basis (as described and reconciled below), net
income for the quarter totalled $5.2
million, or $0.69 per diluted
share ($0.71 per basic share), up 12%
compared with $4.7 million, or
$0.63 per diluted share ($0.64 per basic share), for the second quarter of
2016.
First Six Months: Silicom's revenues for the first
half of 2017 totalled $55.6 million,
up 17% compared with $47.4 million
for the first half of 2016. These are the Company's highest-ever
revenues for a six-month period.
On a GAAP basis, net income for the period totalled $6.8 million, or $0.90 per diluted share ($0.92 per basic share), up 25% compared with
$5.4 million, or $0.73 per diluted share ($0.74 per basic share), for the first half of
2016.
On a non-GAAP basis (as described and reconciled below), net
income for the period totalled $9.1
million, or $1.21 per diluted
share ($1.23 per basic share), up 18%
compared with $7.7 million, or
$1.04 per diluted share ($1.05 per basic share), for the first half of
2016.
Comments of Management
"We are excited to report the strongest quarter and six-month
period in our history, confirming that our business has reached an
important inflection point," commented Mr. Shaike Orbach, Silicom's President & CEO.
"The recognition that we have received for our technologies and
performance-boosting solutions, coupled with the strong demand
being created by today's booming Cloud and Cyber Security markets,
is empowering us to build our business to a new level.
"During the first quarter, this recognition helped us achieve
our largest-ever Design Win. To date, we have made significant
progress with this Design Win, recording revenues that surpassed
the $10 million mark during the first
six months of the year. We continue delivering products, the
customer continues placing new orders, and we overcome more and
more of the challenges that remain along the way. As such, we feel
increasingly confident that we will soon reach a stable deployment
status, leading to a run rate above $30
million per year. Equally exciting, the trusting
relationship that has developed with this mega-customer is enabling
us to identify expansion possibilities for both the current Design
Win, and for new opportunities."
Mr. Orbach continued, "In parallel, we continue to win
significant opportunities with Cloud, Cyber Security and other
clients – both new and existing customers - as demonstrated by our
recent Design Wins for encryption hardware acceleration cards,
bypass solutions and a proprietary front-loading compression
module. As such, we believe that we are better positioned than ever
to achieve growth in the quarters to come. With Cloud and Cyber
Security tailwinds driving demand for our products, a crystal
reputation and a growing pipeline of opportunities, we are moving
ahead rapidly and building the Company to the next stage.
Conference Call Details
Silicom's Management will host an interactive conference today,
July 24th, at 9am Eastern Time (6am
Pacific Time, 4pm Israel Time)
to review and discuss the results.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at least
10 minutes before the conference call commences. If you are unable
to connect using the toll-free numbers, try the international
dial-in number.
US: +1-888-668-9141
UK: 0-800-917-5108
ISRAEL:
03-918-0609
INTERNATIONAL: +972-3-918-0609
At: 9:00am Eastern
Time, 6:00am Pacific Time,
4:00pm Israel Time
For those unable to listen to the live call, a replay of the
call will be available for three months from the day after the call
under the investor relations section of Silicom's website.
Non-GAAP Financial Measures
This release, including the financial tables below, presents
other financial information that may be considered "non-GAAP
financial measures" under Regulation G and related reporting
requirements promulgated by the Securities and Exchange Commission
as they apply to our company. These non-GAAP financial measures
exclude compensation expenses in respect of options and RSUs
granted to directors, officers and employees, acquisition-related
expenses, adjustment of inventory step up related to acquisition,
amortization of acquired intangible assets, changes in the fair
value of contingent consideration from a business combination, as
well as taxes on amortization of acquired intangible assets.
Non-GAAP financial measures should be evaluated in conjunction
with, and are not a substitute for, GAAP financial measures. The
tables also present the GAAP financial measures, which are most
comparable to the non-GAAP financial measures as well as
reconciliation between the non-GAAP financial measures and the most
comparable GAAP financial measures. The non-GAAP financial
information presented herein should not be considered in isolation
from or as a substitute for operating income, net income or per
share data prepared in accordance with GAAP.
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance
networking and data infrastructure solutions. Designed primarily to
increase data center efficiency, Silicom's solutions dramatically
improve the performance and availability of networking appliances
and other server-based systems.
Silicom's products are used by a large and growing base of OEM
customers, many of whom are market leaders, as performance-boosting
solutions for their offerings in the Cyber Security, Network
Monitoring and Analytics, Traffic Management, Application Delivery,
WAN Optimization, High Frequency Trading and other mission-critical
segments within the fast-growing data center, enterprise
networking, virtualization, cloud computing and big data markets.
Silicom's product portfolio includes multi-port 1/10/25/40/100
Gigabit Ethernet server adapters, Intelligent Bypass solutions,
Encryption accelerators, Ultra Low Latency solutions, Time Stamping
and other innovative Smart adapters. These products are available
for incorporation directly into our OEM customers' systems, or
provided as part of Silicom's patented SETAC (Server To Appliance
Converter), a unique approach to the provision of high quality
standard platforms with modular front connectivity.
For more information, please visit: www.silicom.co.il
Statements in this press release which are not historical data
are forward-looking statements which involve known and unknown
risks, uncertainties, or other factors not under the company's
control, which may cause actual results, performance, or
achievements of the company to be materially different from the
results, performance, or other expectations implied by these
forward-looking statements. These factors include, but are not
limited to, difficulty in commercializing and marketing of
Silicom's products and services, maintaining and protecting brand
recognition, protection of intellectual property, competition and
other factors detailed in the company's periodic filings with the
Securities and Exchange Commission. These forward-looking
statements can generally be identified as such because the context
of the statement will include words, such as "expects," "should,"
"believes," "anticipates" or words of similar import. Similarly,
statements that describe future plans, objectives or goals are also
forward-looking statements. In light of significant risks and
uncertainties inherent in forward-looking statements, the inclusion
of such statements should not be regarded as a representation by
the company that it will achieve such forward-looking statements.
The company disclaims any duty to update such statements, whether
as a result of new information, future events, or otherwise.
-- FINANCIAL TABLES FOLLOW –
Silicom Ltd.
Consolidated Balance Sheets
|
|
|
|
|
|
|
(US$
thousands)
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
17,285
|
|
$
|
11,917
|
Marketable
securities
|
|
13,477
|
|
|
16,263
|
Accounts receivables:
Trade, net
|
|
33,465
|
|
|
27,722
|
Accounts receivables:
Other
|
|
6,707
|
|
|
3,113
|
Inventories
|
|
51,359
|
|
|
44,280
|
Total current
assets
|
|
122,293
|
|
|
103,295
|
|
|
|
|
|
|
Marketable
securities
|
|
-
|
|
|
7,769
|
Assets held for
employees' severance benefits
|
|
1,594
|
|
|
1,436
|
Deferred tax
assets
|
|
1,556
|
|
|
1,537
|
Property, plant
and equipment, net
|
|
4,242
|
|
|
3,915
|
Intangible assets,
net
|
|
1,975
|
|
|
2,924
|
Goodwill
|
|
25,561
|
|
|
25,561
|
|
|
|
|
|
|
Total
assets
|
$
|
157,221
|
|
$
|
146,437
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade accounts
payable
|
$
|
19,196
|
|
$
|
10,480
|
Other accounts
payable and accrued expenses
|
|
8,039
|
|
|
7,484
|
|
|
|
|
|
|
Total current
liabilities
|
|
27,235
|
|
|
17,964
|
|
|
|
|
|
|
Contingent
consideration
|
|
4,760
|
|
|
4,642
|
Liability for
employees' severance benefits
|
|
2,722
|
|
|
2,439
|
|
|
|
|
|
|
Total
liabilities
|
|
34,717
|
|
|
25,045
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares and
additional paid-in capital
|
|
48,559
|
|
|
46,855
|
Treasury
shares
|
|
(38)
|
|
|
(38)
|
Retained
earnings
|
|
73,983
|
|
|
74,575
|
Total
shareholders' equity
|
|
122,504
|
|
|
121,392
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
157,221
|
|
$
|
146,437
|
Silicom Ltd.
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$ thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
period
|
|
Six-month
period
|
|
ended June
30,
|
|
ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sales
|
$
|
30,266
|
|
$
|
26,001
|
|
$
|
55,608
|
|
$
|
47,358
|
Cost of
sales
|
|
19,142
|
|
|
16,150
|
|
|
34,899
|
|
|
29,575
|
Gross
profit
|
|
11,124
|
|
|
9,851
|
|
|
20,709
|
|
|
17,783
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
3,328
|
|
|
2,869
|
|
|
6,842
|
|
|
5,897
|
Selling and marketing
expenses
|
|
1,593
|
|
|
1,648
|
|
|
3,235
|
|
|
3,175
|
General and
administrative expenses
|
|
1,109
|
|
|
1,048
|
|
|
2,298
|
|
|
2,016
|
Total operating
expenses
|
|
6,030
|
|
|
5,565
|
|
|
12,375
|
|
|
11,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
5,094
|
|
|
4,286
|
|
|
8,334
|
|
|
6,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expenses), net
|
|
13
|
|
|
90
|
|
|
43
|
|
|
25
|
Income before income
taxes
|
|
5,107
|
|
|
4,376
|
|
|
8,377
|
|
|
6,720
|
Income
taxes
|
|
914
|
|
|
843
|
|
|
1,587
|
|
|
1,279
|
Net income
|
$
|
4,193
|
|
$
|
3,533
|
|
$
|
6,790
|
|
$
|
5,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
ordinary share (US$)
|
$
|
0.57
|
|
$
|
0.48
|
|
$
|
0.92
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used to compute basic income per share
(in thousands)
|
|
7,420
|
|
|
7,335
|
|
|
7,401
|
|
|
7,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
ordinary share (US$)
|
$
|
0.55
|
|
$
|
0.48
|
|
$
|
0.90
|
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used to compute diluted income per share
(in thousands)
|
|
7,573
|
|
|
7,414
|
|
|
7,536
|
|
|
7,404
|
Silicom Ltd.
Reconciliation of Non-GAAP Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$ thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
period
|
|
Six-month
period
|
|
ended June
30,
|
|
ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
11,124
|
|
$
|
9,851
|
|
$
|
20,709
|
|
$
|
17,783
|
(1) Share-based
compensation (*)
|
|
83
|
|
|
39
|
|
|
176
|
|
|
77
|
(2)Amortization of
acquired intangible assets
|
|
-
|
|
|
-
|
|
|
-
|
|
|
274
|
Non-GAAP gross
profit
|
$
|
11,207
|
|
$
|
9,890
|
|
$
|
20,885
|
|
$
|
18,134
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
5,094
|
|
$
|
4,286
|
|
$
|
8,334
|
|
$
|
6,695
|
Gross profit
adjustments
|
|
83
|
|
|
39
|
|
|
176
|
|
|
351
|
(1) Share-based
compensation (*)
|
|
457
|
|
|
381
|
|
|
1,125
|
|
|
787
|
(2) Amortization of
acquired intangible assets
|
|
479
|
|
|
495
|
|
|
955
|
|
|
987
|
(3) Changes in the
fair value of contingent consideration
|
|
60
|
|
|
62
|
|
|
118
|
|
|
15
|
Non-GAAP operating
income
|
$
|
6,173
|
|
$
|
5,263
|
|
$
|
10,708
|
|
$
|
8,835
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
4,193
|
|
$
|
3,533
|
|
$
|
6,790
|
|
$
|
5,441
|
Operating income
adjustments
|
|
1,079
|
|
|
977
|
|
|
2,374
|
|
|
2,140
|
(4) Taxes on
amortization of acquired intangible assets
|
|
(27)
|
|
|
174
|
|
|
(53)
|
|
|
135
|
Non-GAAP net
income
|
$
|
5,245
|
|
$
|
4,684
|
|
$
|
9,111
|
|
$
|
7,716
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
4,193
|
|
$
|
3,533
|
|
$
|
6,790
|
|
$
|
5,441
|
Adjustments for
Non-GAAP cost of sales
|
|
83
|
|
|
39
|
|
|
176
|
|
|
351
|
Adjustments for
Non-GAAP Research and development expenses
|
|
512
|
|
|
492
|
|
|
1,054
|
|
|
960
|
Adjustments for
Non-GAAP Selling and marketing expenses
|
|
272
|
|
|
258
|
|
|
620
|
|
|
537
|
Adjustments for
Non-GAAP General and administrative expenses
|
|
212
|
|
|
188
|
|
|
524
|
|
|
292
|
Adjustments for
Non-GAAP Income taxes
|
|
(27)
|
|
|
174
|
|
|
(53)
|
|
|
135
|
Non-GAAP net
income
|
$
|
5,245
|
|
$
|
4,684
|
|
$
|
9,111
|
|
$
|
7,716
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic income per
ordinary share (US$)
|
$
|
0.57
|
|
$
|
0.48
|
|
$
|
0.92
|
|
$
|
0.74
|
(1) Share-based
compensation (*)
|
|
0.07
|
|
|
0.06
|
|
|
0.18
|
|
|
0.12
|
(2-4)
Acquisition-related adjustments
|
|
0.07
|
|
|
0.10
|
|
|
0.13
|
|
|
0.19
|
Non-GAAP basic income
per ordinary share (US$)
|
$
|
0.71
|
|
$
|
0.64
|
|
$
|
1.23
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted income
per ordinary share (US$)
|
$
|
0.55
|
|
$
|
0.48
|
|
$
|
0.90
|
|
$
|
0.73
|
(1) Share-based
compensation (*)
|
|
0.07
|
|
|
0.06
|
|
|
0.17
|
|
|
0.12
|
(2-4)
Acquisition-related adjustments
|
|
0.07
|
|
|
0.09
|
|
|
0.14
|
|
|
0.19
|
Non-GAAP diluted
income per ordinary share (US$)
|
$
|
0.69
|
|
$
|
0.63
|
|
$
|
1.21
|
|
$
|
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Adjustments
related to share-based compensation expenses according to ASC topic
718 (SFAS 123 (R))
|
Company Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
Investor Relations Contact:
Ehud Helft
GK Investor Relations
Tel: +1-646-201-9246
E-mail: silicom@gkir.com
View original
content:http://www.prnewswire.com/news-releases/silicom-reports-all-time-record-revenues-for-2nd-quarter--1st-half-2017-300492713.html
SOURCE Silicom Ltd.