Silicom .(US:SILC) Prnewswire·2024-07-29 12:15Core Viewpoint - Silicom Ltd. reported a significant decline in revenues and net income for the second quarter and first half of 2024 compared to the same periods in 2023, while management remains optimistic about future growth opportunities despite current challenges [19][20][26]. Financial Performance - For the second quarter of 2024, Silicom's revenues were $14.5 million, down from $38.1 million in the second quarter of 2023 [20]. - The net loss for the second quarter of 2024 was $(1.5) million, or $(0.25) per ordinary share, compared to a net income of $3.8 million, or $0.56 per ordinary share, in the same quarter of 2023 [7][21]. - For the first half of 2024, revenues totaled $28.9 million, a decrease from $75.3 million in the first half of 2023 [8]. - The non-GAAP net loss for the first half of 2024 was $(3.2) million, or $(0.52) per ordinary share, compared to a net income of $8.6 million, or $1.27 per diluted share, for the first half of 2023 [9][22]. Strategic Outlook - Management projects third-quarter revenues to range from $14 million to $15 million, with expectations that the second half of 2024 will mirror the first half's performance [24]. - The company has extended its Strategic Plan by one year, anticipating annual growth rates of 20%-30% starting in 2026, leading to over $3 Earnings Per Share (EPS) on annual revenues of $150 - $160 million [26]. - Silicom's pipeline includes opportunities that could generate annual revenues of $5 - $20 million each, indicating potential for future growth despite current market challenges [11][26]. Cash Management - During the first half of 2024, the company generated over $13 million in cash and invested approximately $6.6 million in share repurchases, aligning with its Strategic Plan to acquire a total of 1.6 million shares [23][25]. - The company currently holds $78 million in cash, which is crucial for navigating the ongoing economic challenges [12]. Market Position - Silicom is recognized as a leading provider of high-performance networking and data infrastructure solutions, serving over 200 customers globally and maintaining more than 400 active Design Wins [15][37].