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 ...

Financial Performance - Sales in 2023 decreased by 17.6% to US$ 124,131 thousand compared to US$ 150,582 thousand in 2022, primarily due to excess customer inventories and a global economic slowdown [222]. - Gross profit in 2023 was US$ 28,689 thousand, representing 23.1% of sales, down from 34.5% in 2022, attributed to a US$ 5.3 million impairment of intangible assets and changes in product mix [224]. - Net loss in 2023 was US$ 26,413 thousand, compared to net income of US$ 18,306 thousand in 2022, primarily due to impairments and decreased sales activity [240]. Expenses - Research and development expenses in 2023 increased by 0.4% to US$ 20,638 thousand, influenced by a decrease in capitalization of internal software development costs [226]. - Sales and marketing expenses in 2023 decreased by 0.8% to US$ 6,935 thousand, mainly due to currency fluctuations impacting expenses incurred in New Israeli Shekels and Danish Krone [229]. - General and administrative expenses in 2023 decreased by 5.5% to US$ 4,229 thousand, attributed to currency fluctuations and an increase in payroll-related expenses [231]. - An impairment charge of US$ 25,561 thousand was recorded for goodwill in 2023, compared to no impairment in 2022 [234]. - Financial income, net in 2023 amounted to US$ 1,372 thousand, down from US$ 2,464 thousand in 2022, influenced by currency fluctuations and changes in investment income [235]. - Current income tax expenses in 2023 were US$ 1,122 thousand, a decrease from US$ 2,963 thousand in 2022, mainly due to lower taxable income [237]. Cash Flow and Working Capital - Cash provided by operating activities in 2023 amounted to US$ 31,924 thousand, a significant increase from cash used in operating activities of US$ 4,090 thousand in 2022 [249]. - As of December 31, 2023, the company had working capital of US$ 122,251 thousand and a current ratio of 10.49 [245]. - Cash and cash equivalents increased by US$ 16,238 thousand to US$ 46,972 thousand compared to US$ 30,734 thousand as of December 31, 2022 [245]. - Trade receivables decreased to US$ 25,004 thousand as of December 31, 2023, down from US$ 27,258 thousand as of December 31, 2022, primarily due to decreased sales [246]. - Inventories decreased to US$ 51,507 thousand as of December 31, 2023, compared to US$ 87,985 thousand as of December 31, 2022, due to reduced inventory purchasing [248]. - The company has experienced a decrease in trade payables to US$ 4,139 thousand as of December 31, 2023, down from US$ 15,922 thousand as of December 31, 2022, due to reduced inventory purchases [247]. Investment and Funding - The company has received funding from the IIA amounting to approximately US$ 4,388,000 and has paid US$ 1,428,000 in royalties related to these grants [263]. - As of December 31, 2023, the investment portfolio consisted of approximately US$ 24.6 million invested in corporate and government debt securities, all classified as "held to maturity" and in fixed-rate instruments [541]. - The company was not required to adjust the carrying value of its investment securities, indicating stability in its investment portfolio [543]. Currency and Risk Management - The company does not currently engage in hedging to manage foreign currency exchange rate risks but may consider it in the future [243]. - The company is not engaged in any hedging or transactions to manage risks related to foreign currency exchange rate or interest rate fluctuations [550]. - The company does not have any short or long-term interest-bearing loans or debts, thus having no exposure to interest rate risk [543]. - A hypothetical 10% weakening of the U.S. Dollar relative to the NIS would have resulted in an increase in operating expenses of approximately US$ 1,876 thousand for the year ended December 31, 2023 [549]. - A hypothetical 10% weakening of the U.S. Dollar relative to the DKK would have resulted in an increase in operating expenses of approximately US$ 213 thousand for the year ended December 31, 2023 [549]. - In 2023, a 3.07% increase in the Dollar exchange rate to the NIS resulted in an aggregate decrease in the fair value of assets by US$ 289 thousand and liabilities by US$ 380 thousand [546]. - The company had accounts receivable in NIS amounting to US$ 6,264 thousand, with a potential decrease of US$ 569 thousand estimated from a hypothetical 10% increase in the year-end Dollar exchange rate [545]. - The company had accounts payable in NIS amounting to US$ 5,241 thousand, with a potential increase of US$ 582 thousand estimated from a hypothetical 10% decrease in the year-end Dollar exchange rate [545]. Strategic Focus - The company announced a 5-year plan focusing on Server Adapter and Edge solution portfolios while ceasing certain non-core product lines [276]. - The company expects to continue investing in research and development, with 120 employees engaged in these activities as of March 31, 2024 [264]. - The top three ultimate customers accounted for approximately 38% of revenues in 2023, indicating a concentration risk in customer base [552].

Financial Performance - Total sales for 2023 were $124.1 million, a decrease of 17.6% compared to $150.6 million in 2022[20] - Gross profit for 2023 was $28.7 million, representing a gross margin of 23.1%, down from $51.9 million in 2022[20] - Operating loss for 2023 was $28.7 million, compared to an operating income of $19.9 million in 2022[20] - Net loss for 2023 was $26.4 million, compared to a net income of $18.3 million in 2022[20] - Cash flows from operating activities for 2023 were $31,925 thousand, a significant increase from a cash outflow of $4,090 thousand in 2022[24] - The income (loss) before income taxes for 2023 was a loss of US$ 27,302 thousand, compared to a profit of US$ 22,390 thousand in 2022[169] - The total income tax expense (benefit) for 2023 was a benefit of US$ (889) thousand, reflecting a significant decline from US$ 4,084 thousand in 2022[172] Assets and Liabilities - Total current assets decreased to $135.1 million in 2023 from $153.6 million in 2022, a decline of 12%[17] - Total assets decreased to $167.7 million in 2023 from $216.2 million in 2022, a decline of 22.4%[17] - Total liabilities decreased to $19.5 million in 2023 from $36.9 million in 2022, a decline of 47.2%[18] - Shareholders' equity decreased to $148.3 million in 2023 from $179.3 million in 2022, a decline of 17.3%[18] - Cash and cash equivalents at the end of 2023 were $46,972 thousand, up from $30,734 thousand at the end of 2022[24] - Inventory decreased from $87,985 thousand in 2022 to $51,507 thousand in 2023, with inventory write-downs recorded at $6,433 thousand for 2023[95] - Property, plant, and equipment net value decreased from $4,488 thousand in 2022 to $3,552 thousand in 2023, with accumulated depreciation increasing from $19,472 thousand to $21,684 thousand[96] - Intangible assets net value decreased from $6,710 thousand in 2022 to $2,253 thousand in 2023, with an impairment loss of $5,264 thousand recorded in 2023[97] Shareholder Information - The company purchased treasury shares totaling $9,320 thousand in 2023, following purchases of $3,428 thousand in 2022 and $14,291 thousand in 2021[24] - The company’s total ordinary shares outstanding decreased to 6,405,523 as of December 31, 2023, from 6,738,706 in 2022[21] - The weighted average number of ordinary shares used in the basic earnings per share calculation for 2023 was 6,699,813, a slight increase from 6,696,671 in 2022[74] - Basic earnings per ordinary share for 2023 was reported at (US$ 3.942), a decrease from US$ 2.733 in 2022[74] - The aggregate intrinsic value of Restricted Share Units (RSUs) outstanding as of December 31, 2023, is US$ 1,701 thousand, down from US$ 2,403 thousand in 2022[138] Research and Development - Research and development expenses for 2023 were $20.6 million, slightly up from $20.6 million in 2022[20] - The company’s research and development costs are expensed until technological feasibility is established, after which costs are capitalized until the product is ready for general release[65] Impairments and Write-downs - The company recorded an impairment loss of $5,264 thousand for intangible assets and a goodwill impairment loss of $25,561 thousand in 2023[52] - The company experienced a write-down of obsolete inventory amounting to $6,433 thousand in 2023, compared to $3,002 thousand in 2022[24] - The Company recorded a goodwill impairment charge of US$ 25,561 thousand for the year ended December 31, 2023, due to a decline in market capitalization[178] Taxation - The corporate tax rate in Israel is 23%, applicable to taxable income of Israeli companies[150] - As of December 31, 2023, approximately US$ 48,135 thousand of the Company's retained earnings are tax-exempt under the "Approved Enterprise" and "Benefited Enterprise" status[161] - The Company anticipates an income tax liability of up to approximately US$ 12,034 thousand if tax-exempt income is distributed as dividends[161] - The federal corporate income tax rate for Silicom Inc. is 21%, with an average state corporate tax rate of approximately 8%[164] Other Financial Information - The company recorded interest income of US$ 1,254 thousand for the year ended December 31, 2023, an increase from US$ 230 thousand in 2022[148] - The total deferred tax assets decreased from US$ 3,043 thousand in 2022 to US$ 2,959 thousand in 2023[170] - The unrecognized deferred tax liability associated with temporary differences was approximately US$ 2,083 thousand at December 31, 2023[165]

Financial Data and Key Metrics Changes - Revenues for Q4 2023 were $18.8 million, down from $45.2 million in Q4 2022, resulting in a net loss of $0.5 million compared to a net income of $6.6 million in the same quarter last year [14][30][21] - Gross profit for Q4 2023 was $5.3 million, representing a gross margin of 28%, compared to a gross profit of $15.1 million and a gross margin of 33.5% in Q4 2022 [30][14] - Operating expenses in Q4 2023 were $6.8 million, down from $7.2 million in Q4 2022, leading to an operating loss of $1.5 million compared to an operating income of $7.9 million in the previous year [30][14] Business Line Data and Key Metrics Changes - The company faced significant headwinds due to customer inventory adjustments, leading to reduced ongoing purchases and lower revenue levels [6][8] - Two large design wins from previous years are currently not generating additional purchase orders due to customers digesting existing inventory slowly [7][8] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America accounted for 85% of revenues, Europe and Israel 13%, and the Far East and Rest of the World 2% [14] - The company had one customer contributing over 10% of revenues, with the top three customers accounting for approximately 38% of total revenues [14] Company Strategy and Development Direction - The company initiated a new 5-year strategic plan aimed at generating significant shareholder value, focusing on returning to revenue growth and reducing expenses [8][13] - The strategic plan includes a focus on core server adapter and Edge solutions, discontinuing non-core programs such as O-RAN [35][36] - The company plans to repurchase approximately 1.6 million shares over the next two years, reflecting confidence in its financial position [26][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the global economic headwinds will ease in 2024, with Q1 2024 revenue expected to be between $14 million and $17 million [9][24] - The company expects to achieve about $70 million in revenue for 2024, impacted by current headwinds [24] - Long-term goals include increasing earnings per share to about $3 by 2028, with a gradual improvement in EPS expected [24][36] Other Important Information - The company reported a strong balance sheet with cash equivalents and marketable securities totaling $71.5 million and no debt [15][10] - An impairment charge of $9.6 million was recorded due to the termination of two programs, which is not included in non-GAAP numbers [38][30] Q&A Session Summary Question: What is left on the buyback? - The company has approximately $6 million left on the current buyback plan, which is scheduled to end in April 2024 [40] Question: Is there further trimming going to happen in the current quarter? - The company has completed the reduction of personnel from 310 to 240, and no further cuts are planned [42][43] Question: Have there been outright cancellations of projects? - There have been no outright cancellations, but demand has been reduced due to changes in customer focus [49] Question: What is the expected revenue trajectory for Q1? - The forecast for Q1 is between $14 million and $17 million, with expectations for better performance in the second half of the year [54]

Financial Data and Key Metrics Changes - Revenues for Q3 2023 were $30.1 million, a 23% decrease from $39.2 million in Q3 2022 [32] - Net profit for Q3 2023 was $2.1 million, down from $6.9 million in Q3 2022, with earnings per diluted share of $0.30 compared to $1.01 in the previous year [59] - Gross profit for Q3 2023 was $9.3 million, representing a gross margin of 31.1%, down from 36% in Q3 2022 [33] Business Line Data and Key Metrics Changes - The higher portion of Edge Systems sold in the quarter, combined with price pressures from customers, contributed to the decline in gross margin [33][59] - Recent design wins are ramping up more slowly than anticipated, affecting revenue conversion [17] Market Data and Key Metrics Changes - Geographical revenue breakdown: North America accounted for 82%, Europe and Israel 15%, and the Far East and rest of the world 3% [32] - The company has two customers contributing over 10% of revenues, with the top three customers accounting for about 35% of total revenues [32] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet with a cash position of $67 million and no debt, allowing for continued investments in growth areas [26][28] - Focus areas include server adapters, FPGA-based products, and Edge Systems, which are expected to drive future growth [26][54] - The company plans to continue share repurchases under a $15 million plan, reflecting confidence in long-term value [34][55] Management's Comments on Operating Environment and Future Outlook - Management expects 2024 to be a challenging year due to economic headwinds and limited visibility, but anticipates a return to double-digit growth in 2025 [25][30] - The company is adjusting expenses to align with current revenue expectations while maintaining investments in key growth areas [52][53] Other Important Information - The company has experienced a reversal in inventory trends, with customers drawing on existing stock rather than placing new orders [23] - The geopolitical situation, including the war in Israel, has not impacted operations or manufacturing, but employee safety remains a priority [29][56] Q&A Session Summary Question: Can the company sustain profitability in the upcoming quarters? - Management aims to remain break-even or profitable on an annual basis, despite potential quarterly losses [61] Question: What portion of the customer base is at risk of shifting to integrators? - Management indicated that the risk is modest and not a large factor affecting the business [41] Question: What are the reasons for the decline in gross margin? - The decline is attributed to a higher mix of lower-margin Edge products and price pressures from customers [81] Question: How does the company plan to manage costs while investing in growth? - The company is evaluating R&D and marketing programs to focus on growth areas while managing discretionary costs [52][87] Question: What is the outlook for revenue in 2024? - Management expects Q4 revenues between $20 million and $21 million, with a challenging year ahead [51]

Ehud Helft Unless otherwise stated, it should be assumed that financials discussed in this conference call will be on a nonGAAP basis. Non-GAAP financial measures discussed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial conditions and operating results. These measures are not in accordance with or a substitute for GAAP. A full reconciliation of non-GAAP to GAAP financial measures is included in today's earning ...

Silicom Ltd. (NASDAQ:SILC) Q1 2023 Earnings Conference Call May 1, 2023 9:00 AM ET Company Participants Kenny Green - GK Global Investor Relations Liron Eizenman - Chief Executive Officer Eran Gilad - Chief Financial Officer Conference Call Participants Alex Henderson - Needham & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the Silicom First Quarter 2023 Results Conference Call. All participants are at present in listen-only mode. Following management’s formal presentation, i ...

Financial Performance - Silicom reported Q1 2023 revenues of $37.2 million, a 16% increase from $32.1 million in Q1 2022[2] - Non-GAAP EPS for Q1 2023 was $0.61, up 38% from $0.44 in Q1 2022[3] - GAAP net income for Q1 2023 was $3.5 million, representing a 63% increase compared to $2.2 million in Q1 2022[2] - Silicom's gross profit for Q1 2023 was $11.8 million, with a gross margin of approximately 31.7%[19] - GAAP gross profit for the three-month period ended March 31, 2023, was $11,785 million, an increase from $10,890 million in the same period of 2022, representing a growth of 8.2%[21] - Non-GAAP net income rose to $4,161 million for Q1 2023, compared to $3,001 million in Q1 2022, reflecting a year-over-year increase of 38.7%[21] - GAAP operating income increased to $4,051 million in Q1 2023, up from $2,432 million in Q1 2022, marking a significant growth of 66.6%[21] - Non-GAAP basic income per ordinary share was $0.62 for Q1 2023, compared to $0.45 in Q1 2022, indicating a year-over-year increase of 37.8%[21] - GAAP net income for Q1 2023 was $3,537 million, up from $2,173 million in Q1 2022, which is an increase of 62.7%[21] - Non-GAAP diluted income per ordinary share reached $0.61 in Q1 2023, compared to $0.44 in Q1 2022, reflecting a growth of 38.6%[21] - The company reported a GAAP basic income per ordinary share of $0.52 for Q1 2023, compared to $0.33 in Q1 2022, which is an increase of 57.6%[21] Future Projections - Management projects Q2 2023 revenues to be between $38 million and $39 million, indicating a 13% year-over-year growth[4] Shareholder Value - The company announced a share buyback plan of up to $15 million to enhance shareholder value[5] Market Demand and Growth Drivers - Silicom experienced high demand for its Edge Networking solutions, securing three new design wins from major players in SD-WAN and SASE[6] - Recent design wins from a cybersecurity giant highlight the ongoing strength of Silicom's traditional product lines[7] - The company emphasizes its expanding total addressable market and proven design win momentum as key growth drivers[7] Asset Management - Total assets as of March 31, 2023, were $217.6 million, slightly up from $216.2 million a year earlier[17] Cost Management - Adjustments for Non-GAAP research and development expenses were $306 million in Q1 2023, down from $375 million in Q1 2022, showing a reduction of 18.4%[21] - Share-based compensation expenses were $114 million in Q1 2023, a decrease from $161 million in Q1 2022, representing a decline of 29.2%[21] - The total adjustments for Non-GAAP cost of sales were $114 million in Q1 2023, down from $161 million in Q1 2022, indicating a decrease of 29.2%[21]

Financial Performance - Sales in 2022 increased by 17.2% to US$ 150,582 thousand compared to US$ 128,460 thousand in 2021, driven by high demand for Smart Edge products [225]. - Gross profit in 2022 was US$ 51,956 thousand, with a gross profit margin of 34.5%, slightly down from 34.6% in 2021 [227]. - Net income in 2022 was US$ 18,306 thousand, representing a 73.7% increase compared to US$ 10,541 thousand in 2021 [241]. - Financial income, net in 2022 amounted to US$ 2,464 thousand, a significant increase from financial expenses of US$ 152 thousand in 2021 [237]. Expenses - Research and development expenses in 2022 increased by 2.3% to US$ 20,563 thousand, influenced by a decrease in capitalization of internal software development costs [229]. - Sales and marketing expenses in 2022 rose by 5.9% to US$ 6,990 thousand, reflecting continued investment in networking and data infrastructure solutions [232]. - General and administrative expenses in 2022 decreased by 3.5% to US$ 4,477 thousand, primarily due to a strengthening of the US Dollar against the New Israeli Shekel and the Danish Krone [234]. - Cash used in operating activities in 2022 amounted to US$ 4,090 thousand, compared to cash provided of US$ 1,079 thousand in 2021, primarily due to increased inventory and decreased trade accounts payable [250]. Research and Development - Research and development expenses were US$ 20,563 thousand in 2022, constituting approximately 13.66% of sales, compared to US$ 20,091 thousand and 15.64% in 2021 [266]. - The increase in research and development expenses in 2022 was mainly due to a decrease in capitalization of internal software development costs, which amounted to US$ 2,547 thousand in 2022, down from US$ 3,562 thousand in 2021 [267]. - The company expects to continue investing in research and development, with 136 employees engaged in these activities as of March 31, 2023 [266]. Assets and Liabilities - Working capital as of December 31, 2022, was US$ 126,505 thousand, with a current ratio of 5.67 [245]. - Cash and cash equivalents increased by US$ 1,449 thousand to US$ 30,734 thousand as of December 31, 2022 [245]. - The company recorded a net decrease of US$ 11,407 thousand in short-term and long-term marketable securities, attributed to treasury share purchases and investments in property and equipment [245]. - Trade receivables decreased to US$ 27,258 thousand as of December 31, 2022, from US$ 31,120 thousand as of December 31, 2021, due to shorter customer payment cycles [247]. - Trade payables decreased to US$ 15,922 thousand as of December 31, 2022, from US$ 29,918 thousand as of December 31, 2021, attributed to reduced material purchases in the second half of 2022 [248]. - Inventories increased to US$ 87,985 thousand as of December 31, 2022, compared to US$ 75,753 thousand as of December 31, 2021, due to increased inventory purchasing to support customer delivery expectations [249]. Market and Customer Insights - The company anticipates that trends such as Cloud adoption and Disaggregation will impact demand for its products, with a potential decrease in demand for Server Adapters but an increase for Smart Cards and CPE devices [273][275]. - The sales cycles for the company's products are long, but each Design Win represents an opportunity for sustained long-term revenues [278]. - The company’s top four ultimate customers accounted for approximately 33% of revenues in 2022, indicating a concentration risk [549]. Risk Management - As of December 31, 2022, there were no short or long-term interest-bearing loans or debts, resulting in no exposure to interest rate risk [540]. - The company is not engaged in any hedging or transactions to manage risks related to foreign currency exchange rate or interest rate fluctuations as of December 31, 2022 [547]. - A hypothetical 10% weakening of the U.S. Dollar relative to the NIS would have increased operating expenses by approximately US$ 2,166 thousand for the year ended December 31, 2022 [546]. - Inflation in Israel and fluctuations in the U.S. Dollar exchange rate resulted in a decrease in the fair value of assets by US$ 1,671 thousand in 2022 [543]. Investment Portfolio - As of December 31, 2022, the investment portfolio consisted of approximately US$ 19.2 million invested in corporate and government debt securities classified as "held to maturity" [537]. - The company was not required to adjust the carrying value of its investment securities as of December 31, 2022, indicating stability in its investment portfolio [538]. - A hypothetical 10% increase in the year-end Dollar exchange rate would decrease the accounts receivable balance by US$ 550 thousand [542]. Indemnification Agreements - The maximum liability under the Indemnification Agreements for any monetary obligation imposed on an officer or director is currently US$ 3,000,000 for each instance of a covered scenario [285].

Exhibit 1 SILICOM LTD. NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS June 14, 2023 Notice is hereby given that an Annual General Meeting (the "Meeting") of Shareholders of Silicom Ltd. (the "Company") will be held, at the offices of the Company at 14 Atir Yeda Street, Kfar Sava 4464323, Israel, on June 14, 2023, at 14:00 Israel time. The Company is an Overseas Company, as such term is defined in the Israeli Companies Regulations (Concessions for Public Companies Traded on Stock Markets Outside of Israel) ...