Silicom Reports Q4 2024 Results

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].