Financial Performance - In Q1 2025, revenues were $14.4 million, with a gross profit of $4.4 million representing 30.3% of revenues[27] - Q1 2025 operating loss was $2.4 million, or (16.6)% of revenues, and net loss was $2.1 million, or (14.6)% of revenues, with an EPS (diluted) of $(0.37)[27] - In 2024, revenues reached $58.1 million, with a gross profit of $16.9 million, which is 29.0% of revenues[28] - 2024 operating loss was $10.1 million, or (17.4)% of revenues, and net loss was $10.0 million, or (17.2)% of revenues, with an EPS (diluted) of $(1.66)[28] Financial Position - The company has a strong balance sheet with $77 million in cash and cash equivalents[6,29] - The company's working capital stands at $113.7 million[29] - Total shareholders' equity is $124.7 million[6,29] - The company has no debt[6,29] Strategic Outlook - The company aims to achieve an EPS of $3+ as revenues return to $150-160 million[13] - The company plans to achieve double-digit annual growth rates starting from 2026[13] Market and Customer Base - The company has a large global customer base with 400+ active Design Wins and 200+ customers[7] - North America accounts for 78% of the last twelve-month revenues, followed by EMEA at 14% and APAC at 8%[12]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $14,400,000, consistent with targets and the same as Q1 2024 [10][23] - Gross profit was $4,400,000, representing a gross margin of 30.3%, up from $4,100,000 and 28.5% in Q1 2024 [24] - Operating loss decreased to $2,400,000 from $2,700,000 year-over-year, while net loss improved to $2,100,000 from $2,400,000 [25] Business Line Data and Key Metrics Changes - The company reported significant design win momentum, with three new design wins in 2025, including contracts with cybersecurity leaders and a global network test equipment company [12][13][14] - The design wins are expected to generate annual revenues of $2,500,000, $3,000,000, and $2,000,000 respectively at full ramp-up [13][14][16] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 70.8%, Europe and Israel at 14%, and the Far East and Rest of the World at 8% [23] - The top 210%+ customers accounted for about 24% of revenues over the last twelve months [23] Company Strategy and Development Direction - The company aims for a return to solid double-digit growth rates starting in 2026, with long-term financial goals of achieving EPS above $3 based on revenues between $150,000,000 and $160,000,000 [11][19] - A robust pipeline of design wins is expected to drive future growth, with a focus on building long-term relationships with customers [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in 2026 and beyond, citing a strong pipeline and successful design wins [9][20] - The company anticipates low single-digit growth for 2025, with double-digit growth expected for 2026 [20] Other Important Information - The company has a strong balance sheet with $119,000,000 in working capital and marketable securities, including $77,000,000 in cash and no debt [10][25] - The share buyback program saw the purchase of nearly 100,000 shares in Q1 2025, with approximately $8,000,000 remaining in the program [45][46] Q&A Session Summary Question: What milestones are tracked for design wins? - Management outlined milestones including customization, shipping samples, and mass production readiness [28][30][31] Question: Is there increased demand for FPGA-based products? - Management confirmed strong demand across all product lines, particularly in FPGA, and highlighted a strategic partnership for cybersecurity solutions [32][33] Question: What is the impact of tariffs? - Currently, the company's products are exempt from tariffs, and management is monitoring the situation closely [34][35][36] Question: Update on share buyback program? - The company purchased nearly 100,000 shares in Q1 2025, with over $8,000,000 remaining in the buyback program [46][48] Question: Are customers reordering after working off excess inventory? - Management noted some relief in excess inventory issues, with varying responses from customers, and ongoing monitoring of the situation [50][51][52]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $14,400,000, consistent with targets and the same as Q1 2024 [8][23] - Gross profit was $4,400,000, representing a gross margin of 30.3%, up from $4,100,000 and 28.5% in Q1 2024 [24] - Operating loss decreased to $2,400,000 from $2,700,000 year-over-year, while net loss improved to $2,100,000 from $2,400,000 [25] Business Line Data and Key Metrics Changes - The company reported significant design win momentum, with three new design wins in 2025, including contracts with cybersecurity leaders and a global network test equipment company [10][12][15] - The focus on core product lines and deep customer relationships has created a solid pipeline for future growth [9][16] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 70.8%, Europe and Israel at 14%, and the Far East and Rest of the World at 8% [23] - The top 210%+ customers accounted for about 24% of revenues over the last twelve months [23] Company Strategy and Development Direction - The company aims for a return to solid double-digit growth rates starting in 2026, with long-term financial goals of achieving EPS above $3 based on revenues between $150,000,000 and $160,000,000 [9][20] - A robust pipeline of opportunities across various product lines is expected to drive future growth, with a focus on building long-term relationships with customers [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue growth in 2026 and beyond, supported by a strong balance sheet and no debt [8][21] - The company anticipates low single-digit growth for 2025, with double-digit growth expected for 2026 [19] Other Important Information - The company has a strong balance sheet with $119,000,000 in working capital and marketable securities, including $77,000,000 in cash [8][25] - The share buyback program saw the purchase of nearly 100,000 shares in Q1 2025, with about $8,000,000 remaining in the program [44][48] Q&A Session Summary Question: What milestones are tracked for design wins? - Management outlined milestones including customization development, shipping samples, and mass production readiness [28][29][30] Question: Is there increased demand for FPGA-based products? - Management confirmed strong demand across all product lines, including FPGA, and highlighted a recent strategic partnership for cybersecurity solutions [31][32] Question: What is the impact of tariffs? - Currently, the company's products are exempt from tariffs, and management is monitoring the situation closely [33][34][36] Question: Update on share buyback program? - The company purchased nearly 100,000 shares in Q1 2025, with over $8,000,000 remaining in the buyback program [44][48] Question: Are major customers reordering after excess inventory? - Management noted some relief in excess inventory issues, with some customers beginning to reorder, but the situation varies by customer [50][51][52]

Financial Results - Silicom's revenues for Q1 2025 were $14.4 million, unchanged from Q1 2024 [2] - The GAAP net loss for Q1 2025 was $2.8 million, or $0.49 per share, compared to a net loss of $3.4 million, or $0.55 per share in Q1 2024 [2] - On a non-GAAP basis, the net loss for Q1 2025 was $2.1 million, or $0.37 per share, compared to a net loss of $2.4 million, or $0.38 per share in Q1 2024 [3] Guidance - Management projects Q2 2026 revenues to range from $14.5 million to $15.5 million [4] - Growth for 2025 is expected to be in the low single digits, with double-digit growth anticipated starting in 2026 [4] Management Comments - The CEO highlighted strong execution in Q1 2025, with significant Design Win momentum and a growing pipeline expected to accelerate revenue growth in 2026 and beyond [5] - The company secured three important new Design Wins from cybersecurity leaders and a global network test equipment company, indicating strong customer relationships and potential for recurring revenues [5] - The CEO expressed expectations to secure at least 4-6 additional Design Wins in 2025, contributing to future growth [5] Company Overview - Silicom Ltd. is a provider of high-performance networking and data infrastructure solutions, primarily aimed at improving performance in Cloud and Data Center environments [8] - The company's products are utilized by major Cloud players, service providers, telcos, and OEMs, enhancing their infrastructure offerings [9] - Silicom maintains long-term relationships with over 200 customers globally and has more than 400 active Design Wins [10]

Core Viewpoint - Silicom Ltd. has secured a significant contract with a global provider of advanced network testing equipment, which will enhance its revenue and market presence in the networking solutions sector [1][2][3]. Company Overview - Silicom Ltd. is a leading provider of high-performance networking and data infrastructure solutions, focusing on improving performance and efficiency in Cloud and Data Center environments [4]. - The company's solutions are designed to increase throughput, decrease latency, and enhance the performance of servers and networking appliances, supporting advanced Cloud architectures and technologies like NFV, SD-WAN, and Cyber Security [4]. Recent Developments - An existing customer has placed an initial purchase order for Silicom's 100 gigabit NICs, with mass deployment expected to begin in early 2026, potentially increasing annual business with this customer to $2.5 million [2][3]. - The CEO of Silicom emphasized the importance of innovation and reliability in their NICs, which has led to this renewed partnership [3]. Strategic Focus - The company aims to build long-term relationships with customers, contributing to a diversified revenue stream and increasing shareholder value [3]. - Silicom has established trusted relationships with over 200 customers globally and has more than 400 active Design Wins, positioning itself as a preferred partner for technology leaders [6].

Company Overview - Silicom Ltd. is an industry-leading provider of high-performance networking and data infrastructure solutions, primarily designed to enhance performance and efficiency in Cloud and Data Center environments [4][5] - The company's solutions aim to increase throughput, decrease latency, and boost the performance of servers and networking appliances, which are essential for advanced Cloud architectures and technologies like NFV, SD-WAN, and Cyber Security [4] Upcoming Financial Results - Silicom Ltd. will release its first quarter 2025 results on April 28, 2025, at 9:00am Eastern Time [1][2] - A conference call will be held on the same day to review and discuss the results, with management available to answer investors' questions [2] Participation Details - Investors can participate in the conference call via a webcast link on Silicom's website or by dialing in using provided teleconferencing numbers [2] - A replay of the call will be available for three months following the event on the company's website [3] 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 significant design win with a US-based cyber security leader, resulting in an initial order for its Altera-based 400G FPGA Smart Card, with full ramp-up expected to generate $3 million annually [1][3]. Group 1: Design Win and Collaboration - The design win is the result of extensive collaboration between Silicom and the customer, focusing on fine-tuning the product's features and performance [2]. - Silicom's engineering team is viewed as an extension of the customer's R&D, highlighting the value of hands-on collaboration [2]. Group 2: Product and Market Position - The next-generation FPGA smart card is recognized as being at the forefront of networking technology innovation, affirming Silicom's competitive edge [3]. - Silicom positions itself as a full-service supplier, providing a comprehensive solution that includes advanced technology and rapid development capabilities [3]. Group 3: Long-term Strategy and Customer Relationships - The design win contributes to Silicom's momentum in securing multi-year deals, aligning with its strategic plan to enhance long-term revenue visibility [3]. - Silicom maintains trusted relationships with over 200 customers globally and has achieved more than 400 active design wins, establishing itself as a preferred partner in connectivity and performance [6].

Core Viewpoint - Silicom Ltd. reported a significant decline in revenues for both the fourth quarter and full year of 2024, while also showing improvements in net loss compared to the previous year, indicating ongoing challenges but potential for future growth driven by strategic initiatives and customer engagements [2][4][7]. Financial Results - Fourth quarter revenues for 2024 were $14.5 million, down from $18.8 million in Q4 2023 [2]. - The GAAP net loss for Q4 2024 was $4.4 million, or $0.76 per share, compared to a net loss of $35.0 million, or $5.35 per share, in Q4 2023 [2]. - On a non-GAAP basis, the net loss for Q4 2024 was $3.4 million, or $0.58 per share, compared to a net loss of $0.5 million, or $0.07 per share, in Q4 2023 [3]. - For the full year 2024, revenues were $58.1 million, down from $124.1 million in 2023 [3]. - The GAAP net loss for 2024 was $12.0 million, or $1.99 per share, compared to a net loss of $26.4 million, or $3.94 per share, in 2023 [4]. - On a non-GAAP basis, the net loss for 2024 was $8.3 million, or $1.37 per share, compared to net income of $10.2 million, or $1.52 per share, in 2023 [4]. Cash Generation and Share Repurchase - In 2024, the company generated approximately $17.3 million in cash and invested over half of that, around $10 million, in repurchasing approximately 650,000 shares [5]. Guidance - Management projects first quarter 2025 revenues to range from $14 million to $15 million, with low single-digit growth expected in 2025 and strong double-digit growth anticipated from 2026 [6]. Management Comments - The President and CEO highlighted progress in strategic plans and design win momentum, indicating potential for mid-to-long-term revenue growth despite short-term challenges [7]. - Recent customer engagements are expected to lead to recurring revenues, providing a solid foundation for future growth [7]. - The company aims for an EPS above $3 based on annual revenues of $150 - $160 million, supported by a strong financial platform and ongoing share repurchase initiatives [7].

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 ...