Financial Data and Key Metrics Changes - For Q3 2024, the company reported revenues of $14.8 million, a decline from $30.1 million in Q3 2023 [28] - The net loss for the quarter was $1.7 million, compared to a net income of $2.1 million in the same quarter last year [31] - Gross profit was $4.2 million, with a gross margin of 28.8%, down from a gross profit of $9.3 million and a gross margin of 31.1% in Q3 2023 [30] - Operating expenses decreased to $6.5 million from $7.4 million in Q3 2023 [31] - The company maintained a strong balance sheet with working capital and marketable securities amounting to $125 million, including $77 million in cash and no debt [15][32] Business Line Data and Key Metrics Changes - The company continues to face challenges due to excess inventory held by customers, impacting sales [11] - The revenue mix includes strong segments in cybersecurity (31%), platforms and infrastructure (31%), network appliances (26%), finance (7%), and others (5%) [35] Market Data and Key Metrics Changes - Geographical revenue breakdown shows North America contributing 78%, Europe and Israel 16%, and the Far East and Rest of the World 6% [28] - The company relies on a few large customers, with three customers accounting for approximately 36% of revenues over the last 12 months [28] Company Strategy and Development Direction - The company aims for an EPS above $3 with revenues between $150 million and $160 million [12] - Strategic focus includes expanding the pipeline, acquiring new customers, and driving long-term revenue growth [13] - The company anticipates low single-digit revenue growth in 2025, with potential for strong annual compound growth of 20% to 30% from 2026 onwards [17] Management Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges from customer inventory issues but expects gradual resolution through 2025 [11] - The company is optimistic about its long-term prospects, citing a broad pipeline of opportunities and significant design wins [22][24] - Management emphasizes maintaining tight control over expenses with minimal increases planned for 2025 and beyond [12][39] Other Important Information - The company has generated over $14 million in cash during the first three quarters of 2024, with $8.6 million used for share repurchases [16][32] - The company has a strong design win roster with Tier 1 customers and a robust pipeline of opportunities [26] Q&A Session Summary Question: Current revenue run rate and vertical mix - Management noted a mix of OEMs and service providers, with strong segments in cybersecurity and network monitoring [34] Question: Progress on customer inventory and confidence in rebound - Management indicated that customers are selling products, albeit slower than expected, and anticipates resolution of inventory issues by 2025 [36][38] Question: Cash burn and operating expenses - Management expects operating expenses to remain flat with slight increases, and revenue growth to be low single-digit next year [39][40]

onnectivity Solutions Innovative Solutions Tailor Made Solutions 13 0 Off-the-shelf Products Investor Presentation October 31, 2024 2 Safe Harbor Guidelines & Legal Notes The information presented today contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, anticipated future financial and operating results and Silicom's outlook and prospects. Those statements are based on management's current beliefs, expe ...

Financial Results - Silicom's revenues for Q3 2024 were $14.8 million, a decrease from $30.1 million in Q3 2023, representing a decline of approximately 51% [2] - On a GAAP basis, the net loss for Q3 2024 was $2.6 million, or $0.44 per share, compared to a net income of $1.2 million, or $0.18 per share, in Q3 2023 [2] - On a non-GAAP basis, the net loss for Q3 2024 was $1.7 million, or $0.28 per share, compared to a net income of $2.1 million, or $0.30 per share, in Q3 2023 [3] - For the first nine months of 2024, revenues were $43.6 million, down from $105.4 million in the same period of 2023 [3] - The GAAP net loss for the first nine months of 2024 totaled $7.6 million, or $1.24 per share, compared to a net income of $8.6 million, or $1.26 per share, in the first nine months of 2023 [4] - On a non-GAAP basis, the net loss for the first nine months of 2024 was $4.9 million, or $0.80 per share, compared to a net income of $10.7 million, or $1.57 per share, in the same period of 2023 [5] Guidance - Management projects Q4 2024 revenues to range from $14 million to $15 million [6] - Growth in 2025 is expected to be in the low single digits, with a projected compound annual growth rate of 20%-30% starting from 2026 [6] Management Comments - The President and CEO noted ongoing challenges due to excess inventories from specific customers but anticipates improvement in 2025 [7] - Significant milestones have been achieved with core products expected to drive revenue growth in 2026 and beyond, including a service provider standardizing on Silicom's Edge products [7] - The company has repurchased over half a million shares during the first three quarters of 2024, reflecting a strong financial position [8]

Core Viewpoint - Silicom Ltd. is set to release its third quarter 2024 results on October 31, 2024, and will host a conference call to discuss these results and answer investor questions [1][2]. Group 1: Company Overview - Silicom Ltd. is a leading provider of high-performance networking and data infrastructure solutions, primarily aimed at enhancing performance and efficiency in Cloud and Data Center environments [5]. - The company's solutions are designed to increase throughput, decrease latency, and improve the performance of servers and networking appliances, which are essential for advanced Cloud architectures and technologies like NFV, SD-WAN, and Cyber Security [5]. - Silicom's products are utilized by major Cloud players, service providers, telcos, and OEMs, serving as components in their infrastructure offerings [6]. Group 2: Customer Relationships and Market Position - Silicom has established long-term relationships with over 200 customers globally, with more than 400 active Design Wins and over 300 product SKUs, making it a preferred connectivity and performance partner for technology leaders [7].

Financial Performance - The company reported revenues of $14.5 million for Q2 2024, a significant decline from $38.1 million in Q2 2023, with a net loss of $0.9 million compared to a net income of $4.5 million in the same quarter last year [5][19][38] - Gross profit for Q2 2024 was $4.3 million, resulting in a gross margin of 29.7%, down from a gross profit of $12.3 million and a gross margin of 32.2% in Q2 2023 [20][38] - The company expects revenues for Q3 2024 to remain between $14 million and $15 million, reflecting ongoing challenges such as prolonged sales cycles and a global economic slowdown [6][12] Business Lines and Market Data - The geographical revenue breakdown shows North America contributing 83%, Europe and Israel 14%, and the Far East and rest of the world 3% [19] - The company has a strong balance sheet with $131 million in working capital and marketable securities, including $78 million in cash and cash equivalents [11][21] - The company is engaging with major new customers and expanding its product offerings, including FPGAs and Smart NICs, which could potentially generate annual revenues of $5 million or more from each engagement [14][32] Company Strategy and Industry Competition - The company has extended its strategic plan by one year due to longer sales cycles and design win processes, now expecting annual growth rates of 20% to 30% to materialize in 2026 [12][29] - The strategic plan includes a focus on stabilizing operating expenses and leveraging a strong cash position for share buybacks, with plans to reduce the share count by 1.6 million shares [30][36] - The company is optimistic about its long-term prospects, citing a diverse and expanding pipeline of design wins with both existing and potential customers [16][35] Management Commentary on Operating Environment and Future Outlook - Management noted that the current economic environment and high inventory levels among customers are causing delays in decision-making and product launches, impacting revenue recovery timelines [6][47][63] - The company anticipates that it will not reach breakeven until 2026, with expected operating losses of around $10 million in 2025 [40][53] - Management remains confident in the quality of its inventory and receivables, indicating no significant risks associated with these assets [23][25] Other Important Information - The company has no debt and has increased its cash position by over $13 million compared to the end of 2023, partly due to share repurchases [21][30] - The management emphasized the importance of smaller and medium design wins, which can evolve into larger opportunities over time [63] Q&A Session Summary Question: What is the risk associated with inventory levels? - Management expressed confidence in the quality of inventory, indicating no significant risk of write-downs [23] Question: How long until the company reaches breakeven? - Management indicated that breakeven is expected in 2026, with 2024 and 2025 projected to remain unprofitable [40] Question: What are the expectations for tax expenses in the future? - Management expects very low annual tax expenses of about $0.1 million, indicating minimal tax impact on future earnings [42] Question: How does the company view its revenue recovery timeline? - Management acknowledged that the recovery is slower than anticipated due to longer design cycles and customer inventory issues [47][63] Question: Is the shift to smaller design wins affecting recovery? - Management clarified that the slower recovery is primarily due to macroeconomic factors and customer inventory levels, not the shift in strategy [63]

CPE devices at the edge. Silicom Ltd. | --- | --- | --- | --- | --- | |------------------------------------------------------------------------|----------------------------------------------|------------|------------------------------------------|------------| | | Three-month period \nended June 30, \n2024 | \n2023 | Six-month period \nended June 30, \n2024 | 2023 | | GAAP gross profit | $ 4,263 | $ 12,162 | $ 8,302 | $ 23,947 | | (1) Share-based compensation (*) | 50 | 104 | 111 | 218 | | Non-GAAP gross pr ...

- Conference Call Scheduled for Monday, July 29, 2024 at 9:00am ET - For those that wish to dial in via telephone, one of the following teleconferencing numbers may be used: The Company will be hosting a conference call on that same day at 9:00am Eastern Time. On the call, management will review and discuss the results, and will also be available to answer investors' questions, following the prepared remarks. US: 1 866 860 9642 INTERNATIONAL: +972 3 918 0609 It is advised to connect to the conference call a ...

Silicom Ltd. (NASDAQ:SILC) Q1 2024 Earnings Conference Call May 2, 2024 9:00 AM ET Company Participants Kenny Green - EK Global Investor Relations Liron Eizenman - President and CEO Eran Gilad - CFO Conference Call Participants Alex Henderson - Needham & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the Silicom First Quarter 2024 Results Conference Call. All participants are at present in listen-only mode. Following management's formal presentation, instructions will be given ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Silicom Reports Q1 2024 Results & Progress of Strategic 5-Year Plan - $13M positive operating cash flow for the quarter - - Company announces new one-year $15m share buyback program - KFAR SAVA, Israel, May 2, 2024 - Silicom Ltd. (NASDAQ: SILC), a leading provider of high-performance networking and data infrastructure solutions, today reported its financial results for the first quarter ended March 31, 2024, together with its progress to date executing the 5-Year Strategic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 Or ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or Date of event requiring this shell company report.................... For the transition period from to Commission File number: 000-23288 SILICOM LTD. (Exact name of Registrant as specified in its ...