Financial Results - Silicom's revenues for Q2 2025 were $15.0 million, a 3.4% increase from $14.5 million in Q2 2024 [2] - On a GAAP basis, the net loss for Q2 2025 was $3.3 million, or $0.59 per share, compared to a net loss of $1.5 million, or $0.25 per share, in Q2 2024 [2] - On a non-GAAP basis, the net loss for Q2 2025 was $2.0 million, or $0.35 per share, compared to a net loss of $0.9 million, or $0.14 per share, in Q2 2024 [3] - For the first half of 2025, revenues were $29.4 million, up from $28.9 million in the first half of 2024 [3] - The GAAP net loss for the first half of 2025 was $6.1 million, or $1.08 per share, compared to a loss of $4.9 million, or $0.80 per share, in the first half of 2024 [4] - On a non-GAAP basis, the net loss for the first half of 2025 was $4.1 million, or $0.71 per share, compared to a loss of $3.2 million, or $0.52 per share, in the first half of 2024 [4] Guidance - Management projects Q3 2025 revenues to range from $15 million to $16 million [5] - Growth for 2025 is expected to be in the low single digits, with a double-digit annual growth rate anticipated to begin gradually in 2026 [5] Management Comments - The President and CEO highlighted strong Design Win momentum and success across all product lines, achieving 5 major new Design Wins since the beginning of the year [6] - The company has a strong balance sheet, with working capital and marketable securities representing approximately $20 per share [6] - The Design Win funnel is broad, with opportunities for Edge systems, Smart NICs, and FPGA-based solutions [6] - The company expects to achieve double-digit revenue growth in 2026 and aims for an EPS above $3 on revenues of $150 to $160 million [6]

Core Insights - Silicom Ltd. has secured its first Design Win with a US-based provider of Edge-based networking solutions, which is expected to generate an annual run rate of approximately $1 million, with potential for significant multi-million-dollar scale-up [1][2][3] Group 1: Design Win and Revenue Potential - The customized Edge device is set to enhance scalability, security, and efficiency for the customer, with deployment expected by the end of 2025 and full ramp-up in 2026 [2] - The customer is pursuing additional sizeable projects using the same Silicom Edge device, each with potential revenues of $1 million or more, indicating a strong opportunity for revenue growth [3][4] - The ongoing discussions for another customized Edge product could represent additional sales potential of several million dollars per year [4] Group 2: Company Background and Market Position - Silicom Ltd. is recognized as a leading provider of high-performance networking and data infrastructure solutions, primarily aimed at improving performance and efficiency in Cloud and Data Center environments [5] - The company has established long-term relationships with over 200 customers globally and has more than 400 active Design Wins, positioning it as a preferred partner for technology leaders [6][7]