KFAR SAVA, Israel, April 6, 2020 /PRNewswire/ -- Silicom
Ltd. (NASDAQ: SILC), a leading provider of high-performance
networking and data infrastructure solutions, today provided a
business update in light of the current COVID-19 pandemic
(Coronavirus) and its impact on Silicom's operations.
Silicom has taken steps to protect its workforce in Israel, the United
States, Denmark and
elsewhere. Steps include work from home where possible, minimizing
face-to-face meetings and utilizing video conference as much as
possible, social distancing at facilities and elimination of all
international travel. Silicom continues to comply with all local
health directives.
During the first quarter, Silicom has seen supply chain,
manufacturing and delivery interruptions due to steps taken by
authorities globally to limit the spread of the virus. As a result,
management's expectations for first quarter revenues ending
March 31, 2020, are $21-22 million. This is approximately 15% below
earlier estimates which were provided in late January, prior to the
global disruption caused by the virus. At the same time the Company
continues to expect that Q1/2020 will be profitable, the 61st
consecutive quarter (over 15 years) of continuous
profitability.
Management notes that Silicom's year-end net cash position,
which includes cash, cash equivalents, deposits and marketable
securities and zero debt, amounted to $91
million dollars (or $12.32 per
outstanding share). This provides more than enough working capital
and significant financial flexibility to weather the current
environment while continuing on Silicom's share buy-back program,
announced in May 2019, of up to
$15 million in share repurchases.
Shaike Orbach, CEO of Silicom commented, "First, I do wish
all those unwell and in hospital a speedy recovery and I thank our
health workers globally for their tireless efforts."
Mr. Orbach continued, "2020 was off to an excellent start,
before the global effects of the pandemic began. Like many of our
peers, we are currently experiencing very low visibility. While it
is impossible to predict the extent of the effect on Silicom in
2020 as a whole which will relate to duration and span of the
pandemic, we now expect that the growth we had planned for this
year will unfortunately be impacted.
"However, we are still very optimistic about the mid and longer
term, post COVID-19. We continue to make progress on new design
wins, and the underlying fundamentals of our target markets
continue to be very attractive with high growth potential. Post
pandemic, a few of these markets may become even more important and
attractive. Thus, we are optimistic that once the impact of the
pandemic is behind us, we will benefit from a few years of solid
double-digit Compound Annual Growth Rate."
First Quarter Results Release Schedule and Conference
Call
The Company will provide further commentary when it releases its
first quarter 2020 earnings results, on Thursday, April 30, 2020. The Company will be
hosting a conference call that same day at 9:00am Eastern Time, which will also provide a
questions and answer session for investors.
The dial-in numbers are as follows:
US: 1 888 668 9141
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.
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
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SOURCE Silicom Ltd.