Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $15.6 million, a 6% increase from $14.8 million in Q3 2024 [21] - Gross profit was $5 million, with a gross margin of 31.8%, compared to $4.2 million and a gross margin of 28.8% in Q3 2024 [23] - Operating loss for Q3 2025 was $2.4 million, slightly higher than the $2.3 million loss in Q3 2024 [24] - Net loss for the quarter was $2.1 million, compared to a net loss of $1.7 million in Q3 2024, with a loss per share of $0.36 [24] Business Line Data and Key Metrics Changes - The company achieved eight major new design wins year-to-date, with three significant wins in Q3 alone [10][11] - Design wins span across all product lines, including FPGA Solutions, Smart NICs, and Edge Networking Systems [12][17] Market Data and Key Metrics Changes - Geographical revenue breakdown: North America 75%, Europe and Israel 17%, Far East and rest of the world 8% [21] - One customer accounted for approximately 14% of revenues over the last 12 months [21] Company Strategy and Development Direction - The company aims for double-digit revenue growth starting in 2026, with a target of achieving seven to nine new design wins in 2026 [18][19] - Focus on building long-term customer relationships and expanding the design win funnel to support sustainable growth [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for returning to double-digit revenue growth in 2026 and beyond, supported by a strong balance sheet of $114 million in working capital and marketable securities [11][18] - The company is well-positioned for 2026 with unique technologies and a growing customer base [20] Other Important Information - The company has no debt and maintains a strong financial position, with $76 million in cash and cash equivalents [24] - Management highlighted the importance of design wins as a key indicator of progress and future growth potential [10][17] Q&A Session Summary Question: How can Silicom fit into the AI-native narrative? - Management sees opportunities across multiple product lines, particularly in high-speed NICs and FPGA solutions, which can bridge gaps in AI systems [26][27] Question: What is the spending environment in the telecom industry? - Management noted positive discussions with service providers, indicating a need for next-generation products to support their customers, suggesting good opportunities for design wins [29][31]

Core Viewpoint - Silicom Ltd. reported a revenue increase in Q3 2025, with expectations for double-digit growth in 2026 and beyond driven by strategic design wins in PQC and Edge solutions [1][5]. Financial Results - Q3 2025 revenues were $15.6 million, up from $14.8 million in Q3 2024, marking a year-over-year increase of approximately 5.4% [2]. - On a GAAP basis, the net loss for Q3 2025 was $2.8 million, or $0.49 per share, compared to a net loss of $2.6 million, or $0.44 per share in Q3 2024 [2]. - Non-GAAP net loss for Q3 2025 was $2.1 million, or $0.36 per share, compared to a loss of $1.7 million, or $0.28 per share in Q3 2024 [3]. - For the first nine months of 2025, revenues totaled $45.0 million, up from $43.6 million in the same period of 2024 [3]. - GAAP net loss for the first nine months of 2025 was $8.9 million, or $1.57 per share, compared to a loss of $7.6 million, or $1.24 per share in the first nine months of 2024 [4]. Guidance - Management projects Q4 2025 revenues to be between $15 million and $16 million [5]. - The company aims for an EPS above $3 on annual revenues of $150 to $160 million by 2026 [5]. Management Comments - The CEO highlighted strong execution in Q3 2025, with eight design wins achieved, indicating robust future growth potential [5][6]. - The company is particularly focused on PQC-related solutions, which are expected to differentiate it in the market as quantum computing becomes more prevalent [5][6]. - Silicom anticipates 7 to 9 new design wins across all product lines in 2026, leveraging its unique technologies and strong customer relationships [6][7]. Company Overview - Silicom Ltd. specializes in high-performance networking and data infrastructure solutions, primarily for Cloud and Data Center environments [10]. - The company has established long-term relationships with over 200 customers and has more than 400 active design wins [12].

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]

Financial Results - Silicom's revenues for Q1 2025 were $14.4 million, unchanged from Q1 2024 [2] - The GAAP net loss for Q1 2025 was $2.8 million, or $0.49 per share, compared to a net loss of $3.4 million, or $0.55 per share in Q1 2024 [2] - On a non-GAAP basis, the net loss for Q1 2025 was $2.1 million, or $0.37 per share, compared to a net loss of $2.4 million, or $0.38 per share in Q1 2024 [3] Guidance - Management projects Q2 2026 revenues to range from $14.5 million to $15.5 million [4] - Growth for 2025 is expected to be in the low single digits, with double-digit growth anticipated starting in 2026 [4] Management Comments - The CEO highlighted strong execution in Q1 2025, with significant Design Win momentum and a growing pipeline expected to accelerate revenue growth in 2026 and beyond [5] - The company secured three important new Design Wins from cybersecurity leaders and a global network test equipment company, indicating strong customer relationships and potential for recurring revenues [5] - The CEO expressed expectations to secure at least 4-6 additional Design Wins in 2025, contributing to future growth [5] Company Overview - Silicom Ltd. is a provider of high-performance networking and data infrastructure solutions, primarily aimed at improving performance in Cloud and Data Center environments [8] - The company's products are utilized by major Cloud players, service providers, telcos, and OEMs, enhancing their infrastructure offerings [9] - Silicom maintains long-term relationships with over 200 customers globally and has more than 400 active Design Wins [10]