Financial Data and Key Metrics Changes - Revenue for Q1 2020 was reported at $22.2 million, a decrease of 26.4% from $30.2 million in Q1 2019, and aligned with the updated guidance of $21 million to $22 million [8][19] - Gross profit for Q1 2020 was $7.3 million, resulting in a gross margin of 33%, compared to a gross profit of $10.3 million and a gross margin of 34.1% in Q1 2019 [20] - Operating income decreased to $1.6 million in Q1 2020 from $4.4 million in Q1 2019, while net income was $2.3 million or 10.3% of revenues, down from $4 million or 13.3% in the previous year [20] - Earnings per diluted share were $0.31, compared to $0.52 in Q1 2019 [20] - As of March 31, 2020, the company had $79.9 million in cash and cash equivalents, with no debt, equating to $11.05 per outstanding share [21] Business Line Data and Key Metrics Changes - The company reported a strong focus on Edge compute units and FPGA solutions, which are expected to drive future growth [13][18] - A significant purchase order of $15 million for the Intelligent Bypass unit was received from a major systems integrator, indicating ongoing demand for traditional products [11][12] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America contributing 70%, Europe and Israel 23%, and the Far East and rest of the world 7% [19] - The company noted that its top three customers accounted for approximately 35% of revenues over the last 12 months [19] Company Strategy and Development Direction - The company is focusing on providing full solutions that integrate Edge compute units with FPGA and other offloading solutions, which is seen as a unique capability in the market [13][14] - Management emphasized the importance of the Telco space and the growing interest from customers in integrated hardware solutions [14][15] - The company is optimistic about long-term growth opportunities, particularly in Edge-related business and FPGA solutions for cloud and Telco data centers [18] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic, particularly in supply chain disruptions and logistics, but noted that demand has not decreased [22][24] - The company refrained from issuing guidance for Q2 2020 due to limited visibility but expressed optimism for a return to growth once pandemic-related disruptions subside [16][18] - Management highlighted the strategic potential of the new relationship with the major systems integrator, which could lead to further opportunities in government projects [12][43] Other Important Information - The company authorized a new share repurchase plan of up to $15 million, with approximately $13 million already spent on repurchasing shares in the previous plan [17] - The company reported a sequential decline in operating expenses, attributed to reduced travel costs due to the pandemic [32][34] Q&A Session Summary Question: Supply and logistics pressures due to COVID-19 - Management indicated that most issues experienced were related to supply chain delays, particularly from vendors in quarantine, and not a reduction in demand [22][24] Question: Expectations for supply constraints in the June quarter - Management noted that while supply constraints persist, it is unclear if conditions will worsen or improve in the upcoming quarter [25][26] Question: Gross margin dip in the March quarter - The dip was attributed mainly to a change in product mix, with more Edge products sold, rather than increased costs [29] Question: Update on SD-WAN demand - Management reported an increase in demand for low-end devices due to work-from-home initiatives, while higher-end units saw a decline [37] Question: Timing for shipping the $15 million order - Shipments are expected to begin in Q3 2020, contingent on resolving supply chain issues [42] Question: Stock buyback details - The company repurchased approximately $5 million in stock during Q1 2020, with an average cost of $30 per share [44][71] Question: Future demand outlook - Management expressed uncertainty about the timing of demand recovery but noted that demand has not disappeared [52]

Investor Presentation April 30, 2020 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, expectations and assumptions, which may be affected by subsequent business, political, environmental, ...

Investor Presentation January 29, 2020 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, expectations and assumptions, which may be affected by subsequent business, political, environmenta ...

Investor Presentation January 29, 2020 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, expectations and assumptions, which may be affected by subsequent business, political, environmenta ...

Financial Data and Key Metrics Changes - The company reported revenue of $25.5 million for Q4 2019, a 6% increase from $24.1 million in the prior quarter [11][38] - Net profit for the quarter was $3.1 million, growing by 21% over the previous quarter [12][41] - The company ended the year with a record cash position of $90 million and no debt, with total shareholders' equity standing at $163 million [12][13][42] Business Line Data and Key Metrics Changes - The company has transitioned from a focus on networking appliances to solutions in the Cloud era and Telco Edge computing, targeting markets such as SD-WAN, NFV, Security, and 5G [14][20] - The gross profit for Q4 2019 was $9 million, with a gross margin of 35.1%, slightly down from 35.2% in the prior quarter [40] - Operating income for Q4 2019 was $2.9 million, or 11.2% of revenues, compared to 10.4% in the prior quarter [41] Market Data and Key Metrics Changes - Geographical revenue breakdown showed North America at 73%, Europe and Israel at 20%, and the Far East and rest of the world at 7% [38] - The company’s top three customers accounted for about 35% of revenues over the last 12 months [38] Company Strategy and Development Direction - The company aims to secure more design wins to accelerate growth, with expectations for revenues between $120 million and $128 million for 2020, representing an 18% growth over 2019 [21][22] - The focus is on the Edge business and FPGA technology, with significant growth expected in the smart NIC market, projected to grow from over $1 billion in 2019 to $2.6 billion by 2022 [29][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in 2020 and beyond, driven by new market transitions and design wins [32][35] - The company anticipates a shift in business mix, with significant growth in the Edge business and early revenues from FPGA wins [46] Other Important Information - The company is conducting a share buyback program, with approximately $8 million repurchased by the end of 2019, targeting a total of $15 million within one year [63] - There are currently no acquisitions on the table, but the company is continuously looking for potential partners [65] Q&A Session Summary Question: Can you talk about the broader mechanics around your business over the course of '20? - Management indicated a significant growth in the Edge business, a potential decline in traditional business, and early revenues from FPGA wins [45][46] Question: What are you doing that is allowing you to be flat to slightly declining in the traditional business? - The company is selling more content and achieving new design wins with traditional customers, which compensates for the decline [54] Question: Can you comment on the share buyback during the quarter? - The company is progressing as planned with the buyback, having repurchased approximately $8 million by the end of 2019 [63] Question: Are there any acquisitions out there that you're looking at? - Currently, there are no acquisitions on the table, but the company is always looking for partners [65] Question: Can you provide an update on your key tier one service providers? - One provider is ramping up significantly, while the other is more stable, both representing significant potential for 2020 [72][75] Question: How do you interact with Intel and Xilinx in the FPGA market? - The company sees Intel and Xilinx as partners rather than competitors, benefiting from strong relationships and customer introductions [84][86]

Investor Presentation October 31, 2019 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, expectations and assumptions, which may be affected by subsequent business, political, environmenta ...

Investor Presentation July 25, 2019 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, expectations and assumptions, which may be affected by subsequent business, political, environmental, ...