Silicom .(US:SILC)2023-05-01 12:00Financial 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]