Core Viewpoint - Silicom Ltd. will release its fourth quarter and full year 2025 results on January 29, 2026, and will host a conference call to discuss these results and answer investor questions [1][2]. 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 [4]. - 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 such as NFV, SD-WAN, and Cyber Security [4]. - Silicom's products are utilized by major Cloud players, service providers, telcos, and OEMs, serving as components in their infrastructure offerings [5]. Customer Relationships - 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 [6].

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $15.6 million, a 6% increase from $14.8 million in Q3 2024 [21] - Gross profit was $5 million, with a gross margin of 31.8%, compared to $4.2 million and a gross margin of 28.8% in Q3 2024 [23] - Operating loss for Q3 2025 was $2.4 million, slightly higher than the $2.3 million loss in Q3 2024 [24] - Net loss for the quarter was $2.1 million, compared to a net loss of $1.7 million in Q3 2024, with a loss per share of $0.36 [24] Business Line Data and Key Metrics Changes - The company achieved eight major new design wins year-to-date, with three significant wins in Q3 alone [10][11] - Design wins span across all product lines, including FPGA Solutions, Smart NICs, and Edge Networking Systems [12][17] Market Data and Key Metrics Changes - Geographical revenue breakdown: North America 75%, Europe and Israel 17%, Far East and rest of the world 8% [21] - One customer accounted for approximately 14% of revenues over the last 12 months [21] Company Strategy and Development Direction - The company aims for double-digit revenue growth starting in 2026, with a target of achieving seven to nine new design wins in 2026 [18][19] - Focus on building long-term customer relationships and expanding the design win funnel to support sustainable growth [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for returning to double-digit revenue growth in 2026 and beyond, supported by a strong balance sheet of $114 million in working capital and marketable securities [11][18] - The company is well-positioned for 2026 with unique technologies and a growing customer base [20] Other Important Information - The company has no debt and maintains a strong financial position, with $76 million in cash and cash equivalents [24] - Management highlighted the importance of design wins as a key indicator of progress and future growth potential [10][17] Q&A Session Summary Question: How can Silicom fit into the AI-native narrative? - Management sees opportunities across multiple product lines, particularly in high-speed NICs and FPGA solutions, which can bridge gaps in AI systems [26][27] Question: What is the spending environment in the telecom industry? - Management noted positive discussions with service providers, indicating a need for next-generation products to support their customers, suggesting good opportunities for design wins [29][31]

Company Overview & Strategy - The company is a leading provider of Data Center & Edge Computing solutions[4] - The company aims to achieve EPS of $3+ as revenues return to $150-160 million[14] - The company plans to achieve double-digit annual growth rates starting from 2026[14] - The company focuses on Edge Systems, Smart NICs, and FPGAs product lines[14] Financial Performance & Position - Q3 2025 revenues were $15.6 million, with a gross profit of $5.0 million (31.8% of revenues) and a net loss of $2.1 million (13.3% of revenues)[29] - Q1-Q3 2025 revenues totaled $45.0 million, with a gross profit of $14.1 million (31.3% of revenues) and a net loss of $6.1 million (13.7% of revenues)[30] - The company has cash & cash equivalents of $75.8 million and no debt[6, 31] - The company's working capital is $93.0 million, and shareholders' equity is $119.6 million[5, 31] Market Segmentation - North America accounts for 75% of the company's last twelve-month revenues[12, 13] - EMEA accounts for 17% of the company's last twelve-month revenues[12, 13] - APAC accounts for 8% of the company's last twelve-month revenues[12, 13]

Core Viewpoint - Silicom Ltd. reported a revenue increase in Q3 2025, with expectations for double-digit growth in 2026 and beyond driven by strategic design wins in PQC and Edge solutions [1][5]. Financial Results - Q3 2025 revenues were $15.6 million, up from $14.8 million in Q3 2024, marking a year-over-year increase of approximately 5.4% [2]. - On a GAAP basis, the net loss for Q3 2025 was $2.8 million, or $0.49 per share, compared to a net loss of $2.6 million, or $0.44 per share in Q3 2024 [2]. - Non-GAAP net loss for Q3 2025 was $2.1 million, or $0.36 per share, compared to a loss of $1.7 million, or $0.28 per share in Q3 2024 [3]. - For the first nine months of 2025, revenues totaled $45.0 million, up from $43.6 million in the same period of 2024 [3]. - GAAP net loss for the first nine months of 2025 was $8.9 million, or $1.57 per share, compared to a loss of $7.6 million, or $1.24 per share in the first nine months of 2024 [4]. Guidance - Management projects Q4 2025 revenues to be between $15 million and $16 million [5]. - The company aims for an EPS above $3 on annual revenues of $150 to $160 million by 2026 [5]. Management Comments - The CEO highlighted strong execution in Q3 2025, with eight design wins achieved, indicating robust future growth potential [5][6]. - The company is particularly focused on PQC-related solutions, which are expected to differentiate it in the market as quantum computing becomes more prevalent [5][6]. - Silicom anticipates 7 to 9 new design wins across all product lines in 2026, leveraging its unique technologies and strong customer relationships [6][7]. Company Overview - Silicom Ltd. specializes in high-performance networking and data infrastructure solutions, primarily for Cloud and Data Center environments [10]. - The company has established long-term relationships with over 200 customers and has more than 400 active design wins [12].

Financial Performance - Silicom's Q3 2025 revenues were $15.6 million, a 5.4% increase from $14.8 million in Q3 2024[2] - The company's GAAP net loss for Q3 2025 was $2.8 million, or $0.49 per share, compared to a loss of $2.6 million, or $0.44 per share in Q3 2024[2] - On a non-GAAP basis, the net loss for Q3 2025 was $2.1 million, or $0.36 per share, compared to a loss of $1.7 million, or $0.28 per share in Q3 2024[3] - For the first nine months of 2025, Silicom's revenues were $45.0 million, up from $43.6 million in the same period of 2024[3] - The GAAP net loss for the first nine months of 2025 was $8.9 million, or $1.57 per share, compared to a loss of $7.6 million, or $1.24 per share in the first nine months of 2024[4] Future Projections - Management projects Q4 2025 revenues to be between $15 million and $16 million[5] - Silicom achieved eight Design Wins in 2025, nearing its target range, and anticipates double-digit growth in 2026 and beyond[6] - The company aims for 7 to 9 new Design Wins across all product lines in 2026, including FPGAs and Edge solutions[7] Assets and Cash Position - Silicom's cash and cash equivalents as of September 30, 2025, were $38.4 million, down from $51.3 million at the end of 2024[18] - Total assets increased to $151.2 million as of September 30, 2025, compared to $150.4 million at the end of 2024[18] Profitability Metrics - GAAP gross profit for the three-month period ended September 30, 2025, was $4,897 million, an increase from $4,163 million in 2024, representing a growth of 17.6%[22] - Non-GAAP net loss for the nine-month period ended September 30, 2025, was $6,147 million, compared to a loss of $4,884 million in 2024, indicating a deterioration of 25.8%[22] - GAAP net loss for the three-month period ended September 30, 2025, was $2,802 million, slightly higher than the loss of $2,630 million in 2024[22] - Non-GAAP basic and diluted loss per share for the three-month period ended September 30, 2025, was $0.36, compared to a loss of $0.28 in 2024, reflecting an increase of 28.6%[22] - GAAP operating loss for the nine-month period ended September 30, 2025, was $9,451 million, an improvement from a loss of $9,700 million in 2024[22] - Non-GAAP operating loss for the three-month period ended September 30, 2025, was $2,432 million, compared to a loss of $2,254 million in 2024, indicating a decline of 7.9%[22] Expense Management - Share-based compensation expenses for the three-month period ended September 30, 2025, amounted to $64 million, down from $82 million in 2024, a decrease of 22%[22] - Adjustments for Non-GAAP research and development expenses for the nine-month period ended September 30, 2025, were $939 million, compared to $986 million in 2024, a reduction of 4.8%[22] - Total GAAP net income (loss) for the nine-month period ended September 30, 2025, was $(8,945) million, worsening from $(7,578) million in 2024[22] - The company reported a gross profit adjustment of $64 million for the three-month period ended September 30, 2025, compared to $82 million in 2024, reflecting a decrease of 22%[22]

Core Insights - Silicom Ltd. has secured a Design Win from a leading SASE solutions provider, indicating strong demand for its Edge Networking system and NIC products [1][2][3] Financial Impact - The initial orders from the customer amount to approximately $500,000, with a projected run-rate of about $3 million per year upon full deployment, suggesting significant revenue potential [2] - There is additional upside potential if certain deals materialize, indicating a positive outlook for future orders [2] Market Position - Silicom's CEO highlighted the company's strong relationship with the customer and its expertise in wired and wireless connectivity solutions, emphasizing the importance of SASE as a growth driver [3] - The company is currently collaborating with several SASE leaders, leveraging synergies across its product lines to deliver innovative solutions [3] Product Offering - Silicom provides high-performance networking and data infrastructure solutions designed to enhance performance and efficiency in Cloud and Data Center environments [4] - The company's products are utilized by major cloud players, service providers, telcos, and OEMs, reinforcing its position as a key player in the connectivity and performance sector [4][5] Customer Relationships - Silicom has established long-term relationships with over 200 customers globally and boasts more than 400 active Design Wins, positioning it as a preferred partner for technology leaders [5]

Core Viewpoint - Silicom Ltd. is set to release its third quarter 2025 results on October 30, 2025, and will host a conference call to discuss these results with investors [1][2]. 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 [4]. - 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 such as NFV, SD-WAN, and Cyber Security [4]. - Silicom's products are utilized by major Cloud players, service providers, telcos, and OEMs, serving as components in their infrastructure offerings [5]. Customer Relationships - 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 [6].

Core Insights - Silicom Ltd. has secured a Design Win for an advanced FPGA Smart Card from a leading application delivery market player, aimed at enhancing SSL hardware acceleration and Post-Quantum Cryptography (PQC) capabilities [1][3][4] - Expected revenues from this Design Win are projected to reach $2 million annually at full ramp-up, scheduled throughout 2026 [2] - The selection of Silicom's technology is attributed to its cutting-edge features and the company's established reputation as a trusted supplier [3][4] Financial Projections - Revenues related to the Design Win are anticipated to reach $2 million per year once fully operational [2] Technology and Market Position - Silicom's FPGA-based Smart Card technology is recognized for its ability to process high volumes of network traffic in real-time, which is critical for SSL acceleration and PQC [4] - The company has established long-term relationships with over 200 customers and has more than 400 active Design Wins, positioning it as a preferred partner in the connectivity and performance sector [7] Future Opportunities - Discussions are ongoing between Silicom and the customer regarding the potential use of a next-generation platform, which could present a significantly larger opportunity than the current Design Win [2] - The increasing demand for quantum-resistant algorithms due to rising quantum computing threats is expected to drive further interest in Silicom's PQC-ready solutions [4]

Core Insights - Silicom Ltd. has secured a new design win that is expected to increase annual sales to a key customer to approximately $4 million [1] - The partnership with the customer has expanded over time, showcasing the value of Silicom's diverse product portfolio [2][3] 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 [4] - The company's solutions are designed to improve throughput, reduce latency, and enhance the performance of servers and networking appliances [4] Product and Market Position - Silicom's products are utilized by major Cloud players, service providers, telcos, and OEMs, serving as components in their infrastructure offerings [5] - The company has established long-term relationships with over 200 customers globally, with more than 400 active design wins and over 300 product SKUs [6]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $15 million, a 4% increase from $14.5 million in Q2 2024 [20] - Gross profit was $4.8 million, with a gross margin of 31.9%, compared to $4.3 million and 29.7% in the previous year [21] - Operating loss remained at $2.4 million, with a net loss of $2 million compared to a net loss of $900,000 in Q2 2024 [22][23] Business Line Data and Key Metrics Changes - The company secured three significant design wins across its major product lines, including FPGA SmartNICs and high-performance NICs, indicating strong performance across all sectors [10][11] - The design wins reflect the breadth of the product portfolio and the depth of customer relationships, contributing to a solid growth foundation [11][14] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 74%, Europe and Israel at 16%, and the Far East and rest of the world at 10% [20] - The company reported a 110% plus customer contributing about 15% of revenues, indicating strong customer retention and growth potential [20] Company Strategy and Development Direction - The company aims for double-digit revenue growth in 2026 and beyond, supported by a robust pipeline of design wins and strong cash flow [9][18] - The focus on core product lines and deepening customer relationships is expected to create reliable and diversified revenue streams [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the cybersecurity market's growth and its impact on business opportunities, indicating no negative effects from market consolidation [26][27] - The company is also exploring opportunities in the AI infrastructure market, with products designed for new AI architectures [31][32] Other Important Information - The company maintains a strong balance sheet with $80 million in cash and no debt, allowing for continued investment in growth [10][23] - The expected revenue range for 2025 is between $15 million and $16 million, with growth anticipated in the low single digits for the year [17][18] Q&A Session Summary Question: Changes in the security market and impact on opportunities - Management noted that the cybersecurity market continues to grow, with no negative impacts from recent consolidations [26][27] Question: Impact of ADC market shifts towards hardware solutions - Management acknowledged the trend towards hardware solutions and highlighted upcoming products for the ADC market [28][29] Question: Effects of AI on market opportunities - Management indicated that AI could significantly affect market opportunities, with ongoing discussions about products tailored for AI architectures [31][32] Question: Competitive environment and gross margin expectations - Management reported no significant shifts in the competitive environment affecting gross margin expectations [33]