KFAR SAVA, Israel, Jan. 28, 2021 /PRNewswire/ -- Silicom Ltd.
(NASDAQ: SILC), a leading provider of high-performance networking
and data infrastructure solutions, today reported its financial
results for the fourth quarter and full year ended December 31, 2020.
Financial Results
Fourth Quarter: Silicom's revenues for the fourth
quarter of 2020 totalled $33.9
million, up 33% compared with $25.5
million for the fourth quarter of 2019, and up 19% compared
with $28.4 million for the third
quarter of 2020.
On a GAAP basis, net income for the quarter totalled
$0.8 million, or $0.12 per share (basic and diluted), compared
with $2.4 million, or $0.33 per share (basic and diluted), for the
fourth quarter of 2019.
On a non-GAAP basis (as described and reconciled below), net
income for the quarter totalled $4.0
million, or $0.56 per diluted
share ($0.57 per basic share),
compared with $3.1 million, or
$0.41 per share (basic and
diluted).
Full Year: Silicom's revenues for the twelve
months ended December 31, 2020
totalled $107.4 million compared with
$105.2 million for 2019.
On a GAAP basis, net income for the year totalled $5.7 million, or $0.80 per share (basic and diluted), compared
with $10.2 million, or $1.35 per diluted share ($1.36 per basic share), for 2019.
On a non-GAAP basis (as described and reconciled below), net
income for the year totalled $11.0
million, or $1.54 per share
(basic and diluted), compared with $12.5
million, or $1.65 per diluted
share ($1.66 per basic share), for
2019.
Guidance for the First Quarter
While remaining cautious due to the continued uncertainty of the
macro environment, Management projects revenues of $28 to $29 million
for the first quarter of 2021. The midpoint of this range
represents approximately 30% growth over the first quarter of
2020.
Comments of Management
Shaike Orbach, Silicom's
President and CEO, commented, "We are pleased to
report another strong quarter, with above-guidance revenues driven
primarily by our Smart Platforms and Smart Cards, the focus of our
strategy for capitalizing on the industry's powerful Decoupling and
Disaggregation trends. These are the trends we foresaw already a
few years ago, and for which we have been building our strategy,
capabilities and new product lines: advanced offerings that
leverage our unique integrated expertise in networking,
acceleration, FPGAs and platforms."
Mr. Orbach continued, "Today, the Decoupling and Disaggregation
trends have become a reality in many market segments, including
O-RAN for mobile 5G infrastructure deployments, and we believe they
will grow according to a strong, multi-year trajectory. These
trends were the drivers behind our most recent 4G/5G related
strategic announcements, our sale of SD-WAN and NFV Smart Platforms
to a variety of customers, and our sale of Smart Cards to a
significant Cloud player. In parallel, with more and more telcos
choosing the disaggregated/decoupled O-RAN approach for their new
4G/5G infrastructure deployments, there has been an explosion of
interest and demand for our differentiated solutions, which are
recognized as key enablers. Both our recent FEC card win with a
major telco and the Distributed Unit field trial that we are
carrying out with another major telco confirm the soundness of our
strategy and the huge future potential of this emerging
market."
Mr. Orbach concluded, "We are extremely well positioned to take
advantage of these opportunities. With a growing range of
best-of-breed products, close cooperations with Intel and leading
software vendors, strong relationships with key industry players
and excellent initial traction, we feel confident that the Cloud,
the Telco market for SD-WAN and NFV solutions, and the overall
O-RAN-based mobile infrastructure market will be driving our growth
throughout 2021 and far beyond."
Conference Call Details
Silicom's Management will host an interactive conference today,
January 28th, at
9am Eastern Time (6am Pacific Time, 4pm Israel Time) to review and discuss the
results.
To participate, investors may either listen via a webcast link
hosted on Silicom's website or via the dial-in. The link is under
the investor relations' webcast section of Silicom's website at
https://www.silicom-usa.com/webcasts/
For those that wish to dial in via telephone, one of the
following teleconferencing numbers may be used:
US: 1 866 860 9642
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, taxes
on amortization of acquired intangible assets, lease
liabilities - financial expenses (income), as well as
impairment of 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
improve performance and efficiency in Cloud and Data Center
environments, Silicom's solutions increase throughput, decrease
latency and boost the performance of servers and networking
appliances, the infrastructure backbone that enables advanced Cloud
architectures and leading technologies like NFV, SD-WAN and Cyber
Security. Our innovative solutions for high-density networking,
high-speed fabric switching, offloading and acceleration, which
utilize a range of cutting-edge silicon technologies as well as
FPGA-based solutions, are ideal for scaling-up and scaling-out
cloud infrastructures.
Silicom products are used by major Cloud players, service
providers, telcos and OEMs as components of their infrastructure
offerings, including both add-on adapters in the Data Center and
stand-alone virtualized/universal CPE devices at the edge.
Silicom's long-term, trusted relationships with more than 170
customers throughout the world, its more than 400 active Design
Wins and more than 300 product SKUs have made Silicom a "go-to"
connectivity/performance partner of choice for technology leaders
around the globe.
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, Silicom's increasing dependence for substantial revenue
growth on a limited number of customers in the evolving
cloud-based, SD-WAN, NFV and Edge markets, the speed and extent to
which solutions are adopted by these markets, likelihood that
Silicom will rely increasingly on customers which provide solutions
in these evolving markets, resulting in an increasing dependence on
a smaller number of larger customers, difficulty in commercializing
and marketing of Silicom's products and services, maintaining and
protecting brand recognition, protection of intellectual property,
competition, disruptions to our manufacturing and development along
with general disruptions to the entire world economy relating to
the spread of the novel coronavirus (COVID-19) 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.
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
|
-- FINANCIAL TABLES FOLLOW –
Silicom Ltd.
Consolidated Balance Sheets
|
(US$
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
20,676
|
|
$
|
16,469
|
Short-term bank
deposits
|
|
5,000
|
|
|
13,542
|
Marketable
securities
|
|
35,117
|
|
|
14,045
|
Accounts receivables:
Trade, net
|
|
21,660
|
|
|
24,936
|
Accounts receivables:
Other
|
|
6,126
|
|
|
4,964
|
Inventories
|
|
47,650
|
|
|
36,491
|
Total current
assets
|
|
136,229
|
|
|
110,447
|
|
|
|
|
|
|
Marketable
securities
|
|
15,281
|
|
|
46,542
|
Assets held for
employees' severance benefits
|
|
1,833
|
|
|
1,640
|
Deferred tax
assets
|
|
1,790
|
|
|
1,798
|
Property, plant
and equipment, net
|
|
4,110
|
|
|
3,574
|
Intangible assets,
net
|
|
1,170
|
|
|
1,718
|
Right of
Use
|
|
9,913
|
|
|
3,783
|
Goodwill
|
|
25,561
|
|
|
25,561
|
Total
assets
|
$
|
195,887
|
|
$
|
195,063
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade accounts
payable
|
$
|
14,610
|
|
$
|
16,419
|
Other accounts
payable and accrued expenses
|
|
13,076
|
|
|
8,823
|
Lease
Liabilities
|
|
1,813
|
|
|
1,090
|
|
|
|
|
|
|
Total current
liabilities
|
|
29,499
|
|
|
26,332
|
|
|
|
|
|
|
Lease
Liabilities
|
|
8,282
|
|
|
2,693
|
Liability for
employees' severance benefits
|
|
3,256
|
|
|
2,910
|
Deferred tax
liabilities
|
|
13
|
|
|
205
|
|
|
|
|
|
|
Total
liabilities
|
|
41,050
|
|
|
32,140
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary shares and
additional paid-in capital
|
|
60,139
|
|
|
57,152
|
Treasury
shares
|
|
(24,807)
|
|
|
(8,009)
|
Retained
earnings
|
|
119,505
|
|
|
113,780
|
Total
shareholders' equity
|
|
154,837
|
|
|
162,923
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
|
195,887
|
|
$
|
195,063
|
|
|
|
Silicom Ltd.
Consolidated Statements of Operations
|
(US$ thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
period
|
|
Twelve-month
period
|
|
ended December
31,
|
|
ended December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Sales
|
$
|
33,898
|
|
$
|
25,507
|
|
$
|
107,398
|
|
$
|
105,240
|
Cost of
sales
|
|
24,289
|
|
|
16,651
|
|
|
73,632
|
|
|
69,146
|
Gross
profit
|
|
9,609
|
|
|
8,856
|
|
|
33,766
|
|
|
36,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
5,396
|
|
|
3,723
|
|
|
17,244
|
|
|
15,075
|
Selling and marketing
expenses
|
|
1,608
|
|
|
1,751
|
|
|
6,209
|
|
|
6,647
|
General and
administrative expenses
|
|
1,106
|
|
|
1,087
|
|
|
4,065
|
|
|
4,159
|
Total operating
expenses
|
|
8,110
|
|
|
6,561
|
|
|
27,518
|
|
|
25,881
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
1,499
|
|
|
2,295
|
|
|
6,248
|
|
|
10,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(loss), net
|
|
(575)
|
|
|
560
|
|
|
1,034
|
|
|
1,646
|
Income before income
taxes
|
|
924
|
|
|
2,855
|
|
|
7,282
|
|
|
11,859
|
Income
taxes
|
|
78
|
|
|
432
|
|
|
1,557
|
|
|
1,623
|
Net income
|
$
|
846
|
|
$
|
2,423
|
|
$
|
5,725
|
|
$
|
10,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per
ordinary share (US$)
|
$
|
0.12
|
|
$
|
0.33
|
|
$
|
0.80
|
|
$
|
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used to compute basic income per share
(in thousands)
|
|
6,955
|
|
|
7,400
|
|
|
7,118
|
|
|
7,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
ordinary share (US$)
|
$
|
0.12
|
|
$
|
0.33
|
|
$
|
0.80
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used to compute diluted income per share
(in thousands)
|
|
7,013
|
|
|
7,452
|
|
|
7,157
|
|
|
7,573
|
|
|
|
Silicom Ltd.
Reconciliation of Non-GAAP Financial Results
|
(US$ thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
period
|
|
Twelve-month
period
|
|
ended December
31,
|
|
ended December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
9,609
|
|
$
|
8,856
|
|
$
|
33,766
|
|
$
|
36,094
|
(1) Share-based
compensation (*)
|
|
127
|
|
|
107
|
|
|
535
|
|
|
437
|
(2) Impairment of
intangible assets
|
|
1,657
|
|
|
-
|
|
|
1,657
|
|
|
-
|
Non-GAAP gross
profit
|
$
|
11,393
|
|
$
|
8,963
|
|
$
|
35,958
|
|
$
|
36,531
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
1,499
|
|
$
|
2,295
|
|
$
|
6,248
|
|
$
|
10,213
|
Gross profit
adjustments
|
|
1,784
|
|
|
107
|
|
|
2,192
|
|
|
437
|
(1) Share-based
compensation (*)
|
|
633
|
|
|
461
|
|
|
2,176
|
|
|
1,918
|
Non-GAAP operating
income
|
$
|
3,916
|
|
$
|
2,863
|
|
$
|
10,616
|
|
$
|
12,568
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
846
|
|
$
|
2,423
|
|
$
|
5,725
|
|
$
|
10,236
|
Operating income
adjustments
|
|
2,417
|
|
|
568
|
|
|
4,368
|
|
|
2,355
|
(3) Lease liabilities
- financial expenses (income)
|
|
625
|
|
|
-
|
|
|
625
|
|
|
-
|
(4) Taxes on
amortization of acquired intangible assets
|
|
68
|
|
|
68
|
|
|
270
|
|
|
(74)
|
Non-GAAP net
income
|
$
|
3,956
|
|
$
|
3,059
|
|
$
|
10,988
|
|
$
|
12,517
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
846
|
|
$
|
2,423
|
|
$
|
5,725
|
|
$
|
10,236
|
Adjustments for
Non-GAAP Cost of sales
|
|
1,784
|
|
|
107
|
|
|
2,192
|
|
|
437
|
Adjustments for
Non-GAAP Research and development expenses
|
|
265
|
|
|
218
|
|
|
959
|
|
|
900
|
Adjustments for
Non-GAAP Selling and marketing expenses
|
|
186
|
|
|
118
|
|
|
602
|
|
|
493
|
Adjustments for
Non-GAAP General and administrative expenses
|
|
182
|
|
|
125
|
|
|
615
|
|
|
525
|
Adjustments for
Non-GAAP Financial income (loss), net
|
|
625
|
|
|
-
|
|
|
625
|
|
|
-
|
Adjustments for
Non-GAAP Income taxes
|
|
68
|
|
|
68
|
|
|
270
|
|
|
(74)
|
Non-GAAP net
income
|
$
|
3,956
|
|
$
|
3,059
|
|
$
|
10,988
|
|
$
|
12,517
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic income per
ordinary share (US$)
|
$
|
0.12
|
|
$
|
0.33
|
|
$
|
0.80
|
|
$
|
1.36
|
(1) Share-based
compensation (*)
|
|
0.11
|
|
|
0.07
|
|
|
0.38
|
|
|
0.31
|
(2) Impairment of
intangible assets
|
|
0.24
|
|
|
-
|
|
|
0.23
|
|
|
-
|
(3) Lease liabilities
- financial expenses (income)
|
|
0.09
|
|
|
-
|
|
|
0.09
|
|
|
-
|
(4)
Acquisition-related adjustments
|
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
|
(0.01)
|
Non-GAAP basic income
per ordinary share (US$)
|
$
|
0.57
|
|
$
|
0.41
|
|
$
|
1.54
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted income
per ordinary share (US$)
|
$
|
0.12
|
|
$
|
0.33
|
|
$
|
0.80
|
|
$
|
1.35
|
(1) Share-based
compensation (*)
|
|
0.11
|
|
|
0.07
|
|
|
0.38
|
|
|
0.31
|
(2) Impairment of
intangible assets
|
|
0.23
|
|
|
-
|
|
|
0.23
|
|
|
-
|
(3) Lease liabilities
- financial expenses (income)
|
|
0.09
|
|
|
-
|
|
|
0.09
|
|
|
-
|
(4)
Acquisition-related adjustments
|
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
|
(0.01)
|
Non-GAAP diluted
income per ordinary share (US$)
|
$
|
0.56
|
|
$
|
0.41
|
|
$
|
1.54
|
|
$
|
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Adjustments
related to share-based compensation expenses according to ASC topic
718 (SFAS 123 (R))
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/silicom-reports-q4-2020--full-year-2020-financial-results-301217073.html
SOURCE Silicom Ltd.