Welcome!

News Feed Item

Blowout Quarter & Best-Ever Year Take Silicom to Whole New Level: $25M Sales & $0.94 EPS for Q4, $73M Sales & $2.45 EPS for 2013

Silicom Ltd. (NASDAQ:SILC) (TASE:SILC), an industry-leading provider of high-performance networking and data infrastructure solutions, today reported all-time-record financial results for the fourth quarter and full year ended December 31, 2013.

Financial Results

Q4 2013:
Revenues for the fourth quarter increased by 52% to a record $25.4 million from $16.7 million in the fourth quarter of 2012.

On a GAAP basis, net income for the period totalled a record $6.7 million, or $0.91 per diluted share ($0.94 per basic share), a 120% increase compared with $3.0 million, or $0.43 per diluted share ($0.44 per basic share), for the fourth quarter of 2012.

On a non-GAAP basis (as described and reconciled below), net income totalled a record $6.8 million, or $0.94 per diluted share ($0.96 per basic share), a 100% increase compared with $3.4 million, or $0.49 per diluted and basic share, for the fourth quarter of 2012. This represents a record net margin of 27%.

Full Year 2013:
Revenues for 2013 increased by 50% to a record $73.3 million from $48.7 million in 2012.

On a GAAP basis, net income for the year totalled a record $17.1 million, or $2.36 per diluted share ($2.40 per basic share), up 73% compared with $9.9 million, or $1.42 per diluted and basic share, for 2012.

On a non-GAAP basis (as described and reconciled below), net income for the year totalled a record $17.8 million, or $2.45 per diluted share ($2.50 per basic share), a 68% increase compared with $10.6 million, or $1.52 per diluted share ($1.53 per basic share), for 2012. This represents a record net margin of 24.2%.

Comments of Management

Commenting on the results, Shaike Orbach, Silicom’s President and CEO, said, “Q4 was a breakthrough quarter that capped off our best year on record, demonstrating the power of the ‘Silicom Formula for Growth’ to drive our sales, profits and margins to ever higher levels.”

Mr. Orbach continued, “Our record of growing the Company by 50% quarter after quarter confirms our ability to create essential products for some of IT’s hottest Big-Data-driven markets, including SDN, virtualization and cloud computing. With over 90 OEM customers, including most of the market leaders, we have become the ‘de facto’ standard for OEMs in these sectors, all of whom are looking for a performance boost and an ‘edge’ for their server-based offerings.

“For example, during the quarter we launched an innovative offload product line based on the Intel® Communications Chipset, a solution that addresses one of the virtualized data center’s major pain points and that is already under evaluation by several key virtualized cloud market players. In addition, we achieved our first major Design Win with a leading storage virtualization player, positioning Silicom as a one-stop-shop provider for virtualized data centers with a comprehensive offering for this exploding market. We believe these developments indicate the potential scale of our Cloud business model and its power to become one of Silicom’s major new growth drivers.”

Mr. Orbach concluded, “With continued success in the markets that have driven us to this point and exciting new markets ahead, we believe Silicom is positioned for continued faster-than-market growth. We consider our Q4 and 2013 results a validation of our strong positive momentum and the growth opportunities before us. With a firm base, significant growth engines, a healthy pipeline of opportunities and new market trends working in our favor, we are on track with our plans to continue scaling the business.”

##

Conference Call Details

Silicom’s Management will host an interactive conference today, January 23rd, 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 6689141

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.

##

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 throughput 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 Application Delivery, WAN Optimization, Security and other mission-critical segments within the fast-growing virtualization, cloud computing and big data markets. Silicom’s product portfolio includes multi-port 1/10 Gigabit Ethernet server adapters, Intelligent Bypass solutions, Encryption accelerators and a variety of 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.

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 granted to directors, officers and employees, one-time costs related to an aborted acquisition, as well as amortization 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.

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, those detailed in the Company's periodic filings with the Securities and Exchange Commission. The Company disclaims any duty to update such statements.

-- FINANCIAL TABLES FOLLOW –

Silicom Ltd. Consolidated Balance Sheets

(US$ thousands)

 

December 31,
2013

   

December 31,
2012

Assets

Current assets
Cash and cash equivalents $12,997 $13,306
Short-term bank deposits 3,000 2,527
Marketable securities 14,871 12,583
Accounts receivables: Trade, net 14,866 12,391
Accounts receivables: Other 2,460 2,234
Inventories 28,778 14,795
Deferred tax assets 274 47
Total current assets 77,246 57,883
 
Marketable securities 24,370 28,469
Assets held for employees’ severance benefits

1,543

1,377

Deferred tax assets 439 114
Property, plant and equipment, net

Intangible assets, net

1,479

180

1,190

-

 
Total assets $105,257 $89,033

Liabilities and shareholders' equity

                                   
Current liabilities
Trade accounts payable $6,814 $7,875
Other accounts payable and accrued expenses        

5,134

       

3,914

Total current liabilities 11,948 11,789
 
Liability for employees’ severance benefits        

2,618

       

2,278

 
Total liabilities         14,566         14,067
 
Shareholders' equity
Ordinary shares and additional paid-in capital

38,647

36,086

Treasury shares (38) (38)
Retained earnings         52,082         38,918
Total Shareholders' equity         90,691         74,966

Total liabilities and shareholders' equity

       

$105,257

       

$89,033

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,
2013     2012 2013     2012
Sales $25,353 $16,693 $73,298 $48,729
Cost of sales 15,267 10,407 43,865 28,849
Gross profit 10,086 6,286 29,433 19,880
 
Research and development expenses 1,571 1,290 5,465 4,401
Selling and marketing expenses 1,101 1,002 3,818 3,081
General and administrative expenses 709 805 2,572 2,369
Total operating expenses 3,381 3,097 11,855 9,851
 
Operating income 6,705 3,189 17,578 10,029
 
Financial income, net 124 128 404 752
Income before income taxes 6,829 3,317 17,982 10,781
Income taxes 164 286 905 910
Net income $6,665 $3,031 $17,077 $9,871
 
 

Basic income per ordinary share (US$)

$0.94

$0.44

$2.40

$1.42

 

Weighted average number of ordinary shares used
to compute basic income per share (in thousands)

 

7,119

 

6,947

 

7,103

 

6,934

 

Diluted income per ordinary share (US$)

$0.91

$0.43

$2.36

$1.42

 

Weighted average number of ordinary shares used
to compute diluted income per share (in thousands)

 

7,289

 

7,006

 

7,246

 

6,968

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,
2013     2012 2013     2012

GAAP gross profit

$10,086

$6,286

$29,433

$19,880

(1) Share-based compensation (*) 26 28 103 45
Non-GAAP gross profit $10,112 $6,314 $29,536 $19,925

GAAP operating income

$6,705

$3,189

$17,578

$10,029

(1) Share-based compensation (*)

(2) Aborted acquisition related expenses

(3) Amortization of intangible assets

166

-

17

224

165

-

668

-

20

544

165

-

Non-GAAP operating income $6,888 $3,578 $18,266 $10,738

GAAP net income

$6,665

$3,031

$17,077

$9,871

(1) Share-based compensation (*)

(2) Aborted acquisition related expenses

(3) Amortization of intangible assets

166

-

17

224

165

-

668

-

20

544

165

-

Non-GAAP net income $6,848 $3,420 $17,765 $10,580

 

GAAP basic income per ordinary share (US$)

 

$0.94

 

$0.44

 

$2.40

 

$1.42

(1) Share-based compensation (*)

(2) Aborted acquisition related expenses

(3) Amortization of intangible assets

0.02

-

-

0.03

0.02

-

0.10

-

-

0.08

0.03

-

Non-GAAP basic income per ordinary share (US$)

$0.96

$0.49

$2.50

$1.53

GAAP diluted income per ordinary share (US$)

 

$0.91

 

$0.43

 

$2.36

 

$1.42

(1) Share-based compensation (*)

(2) Aborted acquisition related expenses

(3) Amortization of intangible assets

0.03

-

-

0.03

0.03

-

0.09

-

-

0.08

0.02

-

Non-GAAP diluted income per ordinary share (US$)

$0.94

$0.49

$2.45

$1.52

(*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R))

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
This is going to be a live demo on a production ready CICD pipeline which automate the deployment of application onto AWS ECS and Fargate. The same pipeline will automate deployment into various environment such as Test, UAT, and Prod. The pipeline will go through various stages such as source, build, test, approval, UAT stage, Prod stage. The demo will utilize only AWS services including AWS CodeCommit, Codebuild, code pipeline, Elastic container service (ECS), ECR, and Fargate.
Behera Rasananda is a technologist, a leader, a key note speaker has more than 20 years experience in across Government, Financial, Heath Care and Insurance Verticals. Mr. Behera has vast experience in Enterprise Cloud and Big Data solutions and Enterprise Architecture. Currently he works closely for Government Solutions on Enterprise Cloud for Federal Government Agency. Scientist Behera managed and partner with clients to make complete end to end solution and Migration to cloud both private sec...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As Enterprise business moves from Monoliths to Microservices, adoption and successful implementations of Microservices become more evident. The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Documenting hurdles and problems for the use of Microservices will help consultants, architects and specialists to avoid repeating the same mistakes and learn how and when to use (or not use) Microservices at the enterprise level. The circumstance w...