midastouch017
17 years ago
Silicom sales up 48% in 2006
The company’s fourth quarter 2006 revenue totaled $5 million, a 60% increase over the corresponding quarter.
Shiri Habib 29 Jan 07 16:59
Silicom Ltd. (Nasdaq:SILC; TASE:SILC) has published its financial reports for the fourth quarter of 2006 and the year as a whole. Revenue for 2006 increased by 48% to a record $16.1 million compared with $10.9 million for 2005. Net profit in 2006 increased by 97% to $2.6 million, or $0.49 per diluted share ($0.51 per basic share), compared with $1.3 million or $0.30 per diluted share ($0.31 per basic share) in 2005.
Silicom also posted quarterly revenue growth for the 12th consecutive quarter. Revenue for the fourth quarter of 2006 rose 60% totaled $5 million, an increase of 60% compared with $3.1 million in the fourth quarter of 2005, and 20% compared to the third quarter of 2006. Gross profit amounted to $2 million, 39.8% of turnover, lower than in the corresponding quarter in 2005. Operating profit for the quarter totaled $950,000, a 100% increase over the corresponding quarter. Net profit, including income from financing activity and tax returns, totaled $1.1 million, a 125% increase over the corresponding quarter.
Silicom president and CEO Shaike Orbach said, “We are proud to report an outstanding fourth quarter as the climax of the best year in our history. After crossing the $4 million revenue milestone in Q3, during the final three months of the year our sales grew by an additional 20%, giving us quarterly revenues above $5 million. The platform of 40+ design wins that we have accumulated over the past several years represents a continuously expanding source of orders, and we have been adding new design wins to the base each quarter. In addition, during the fourth quarter we began to see a ramp up in the order volumes of some of our customers - particularly those in the WAN Optimization arena - in response to the incredible growth in their markets.”
Published by Globes [online], Israel business news - www.globes.co.il - on January 29, 2007
midastouch017
17 years ago
Silicom Posts Outstanding Quarter to Cap Record Year: Q4 Sales of $5.0M Yield $1.1M of Net Profit
Monday January 29, 8:28 am ET
Momentum Continues: 3 Straight Years of Quarterly Revenue Growth; New Quarterly and Annual Records Set for Sales, Operating Income & Net Income
KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ and TASE: SILC) today reported record revenues, operating income and net income for the fourth quarter and full year ended December 31, 2006.
Revenues for the fourth quarter of 2006 were $5.0 million, an increase of 60% compared with $3.1 million in the fourth quarter of 2005 and 20% compared sequentially to the third quarter of 2006. This is the Company's twelfth consecutive quarter of increasing revenues and its highest quarterly revenues on record. Operating income for the quarter was $950,000, an increase of 100% compared to the parallel quarter of 2005 and 53% compared sequentially to the third quarter of 2006. Net income for the quarter increased by 125%, reaching $1.1 million, or $0.20 per diluted share ($0.21 per basic share), compared to $473,000, or $0.11 per share (basic and diluted) for the fourth quarter of 2005. This represents a 60% increase in net income compared sequentially with the third quarter of 2006.
Revenues for the full year of 2006 increased by 48% to a record $16.1 million compared with $10.9 million for 2005. Net income for the period increased by 97% to $2.6 million, or $0.49 per diluted share ($0.51 per basic share), compared with $1.3 million, or $0.30 per diluted share ($0.31 per basic share) for 2005.
Commenting on the results, Shaike Orbach, President and CEO, said, "We are proud to report an outstanding fourth quarter as the climax of the best year in our history. After crossing the $4 million revenue milestone in Q3, during the final three months of the year our sales grew by an additional 20%, giving us quarterly revenues above $5 million and a 100% year-over-year increase in operating income.
"This exceptional performance is attributable to two exceptionally strong growth engines. As we have indicated in the past, the platform of 40+ Design Wins that we have accumulated over the past several years represents a continuously expanding source of orders, and we have been adding new Design Wins to the base each quarter. In addition, during the fourth quarter we began to see an exponential ramp up in the order volumes of some of our customers - particularly those in the exploding WAN Optimization arena - in response to the incredible growth of their markets."
Mr. Orbach concluded, "Looking forward into 2007, we believe that the momentum of both these growth engines will continue to accelerate, driving continued strong growth for our company. With strong traction and a favorable environment, we are working to achieve our full potential and to create additional value for our shareholders."
Quarterly Conference Call
Silicom's senior management will be hosting a conference call today, January 29th, at 9am EST (6am Pacific Time; 4pm Israel Time) to review and discuss the results and to answer investor questions. To participate, please call one of the following teleconferencing numbers 10 minutes before the conference call commences.
US: 1 888 281 1167 (toll free)
UK: 0 800 917 9141 (toll free)
ISRAEL: 03 918 0609
INTERNATIONAL: +972 3 918 0609
For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call in the investor relations section of Silicom's website at: www.silicom.co.il.
http://biz.yahoo.com/bw/070129/20070129005700.html?.v=1
midastouch017
17 years ago
Silicom Builds Momentum in Exploding WAN Optimization Market: Additional Two Design Wins Achieved
Monday December 18, 8:11 am ET
KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ & TASE: SILC) today announced that it has achieved two new Design Wins with major players in the fast-growing WAN Optimization market. One of the Design Wins is with one of the largest companies in the networking industry and a worldwide leader in networking for the Internet, whose new Wan Optimization product line gives an indication of the importance of this emerging market sector. The other Design Win is with a rapidly-growing provider of intelligent IP service optimization solutions.
The potential of this market segment for Silicom is demonstrated by the continuously increasing flow of orders that it has been receiving over the past year after achieving a Design Win with another WAN Optimization pioneer and a current market leader. The fact that Silicom has now achieved Design Wins with three strong WAN Optimization appliance players establishes Silicom's BYPASS adapters as critical enablers for this rapidly growing market segment.
WAN Optimization appliances are devices deployed in data centers, branch offices and remote sites to overcome network performance problems and accelerate application delivery. In this mission-critical environment, it is vitally important to assure continuous traffic flow, and to safeguard against network disruption of any kind. As such, BYPASS functionality, which automatically reroute traffic around non-functioning components in the event of appliance disruption, are necessary components of practically all WAN Optimization appliances. As the industry's leading supplier of high-performance BYPASS adapters with a proven track record in the WAN Optimization market, Silicom is emerging as the BYPASS adapter supplier of choice to this emerging market.
A variety of respected market surveys and analyst reports are predicting a dramatic increase in revenues from the WAN Optimization appliance sales over the next few years, with one optimistic report even projecting a tenfold growth from 120,000 units in 2006 to 1,120,000 units in 2008. The sector has been characterized by a high level of M&A activity over the past year, and has produced two successful Nasdaq IPOs during the past four months -- Riverbed (Nasdaq:RVBD - News) and Allot (Nasdaq:ALLT - News).
"The WAN Optimization market is exploding, and we have begun to benefit," said Mr. Shaike Orbach, President and CEO of Silicom. "As we look into the market, we see dramatic growth in demand for WAN Optimization appliances, most of which will need a BYPASS solution. Having achieved three major Design Wins in this market, we are now clearly positioned as its leading provider of BYPASS solutions, and believe that demand for our BYPASS adapters will grow in step with overall WAN Optimization appliance sales. We are excited to begin building momentum in this emerging market and believe it represents a huge incremental opportunity for Silicom."
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
http://biz.yahoo.com/bw/061218/20061218005468.html?.v=1
midastouch017
18 years ago
Silicom Reports Record Revenues for 2nd Quarter & 1st Half 2006
Thursday August 3, 9:43 am ET
Q2 Revenues Rise for 10th Straight Quarter to Record $3.6M
Momentum Continues to Build With New Design Wins and Penetration into Strategic New Markets
KFAR SAVA, Israel--(BUSINESS WIRE)--Aug. 3, 2006--Silicom Ltd. (NASDAQ and TASE: SILC) today reported financial results for the second quarter and six months ended June 30, 2006.
Revenues for the second quarter of 2006 were $3.6 million, an increase of 38% compared with $2.6 million in the second quarter of 2005, the Company's highest on record. This is the Company's tenth consecutive quarter of increasing revenues, and growth of 11% compared sequentially to the first quarter of 2006. Net income for the quarter was $319,000, or $0.06 per share (basic and diluted) compared with $315,000, or $0.07 per share (basic and diluted), for the second quarter of 2005.
Revenues for the first half of 2006 increased by 41% to a record $6.9 million compared with $4.9 million for the first six months of 2005. Net income for the period increased by 86% to $867,000, or $0.16 per diluted share ($0.17 per basic share), compared with $465,000, or $0.11 per share (basic and diluted) for the first half of 2005.
Commenting on the results, Shaike Orbach, President and CEO, said, "Our business momentum continues to accelerate, as demonstrated by our success in achieving another quarter of record revenues and important new Design Wins while continuing to expand our product lines and increase our market penetration. During the quarter, we achieved two prestigious new Design Wins, one from a $10 billion North American networking/communications company, and another from a top-tier Japanese server manufacturer, our first-ever Design Win in Japan. These successes position us even more firmly as a major industry player.
"Our focus going forward is to build our revenues to the next level, primarily by diversifying our sales mix, increasing our market reach and extending our product portfolio. During the quarter, we began to enjoy increased demand for our 'lower-end' offerings in addition to the 'higher-end' solutions that originally attracted many of our current customers. We view this as a testament to the high regard with which existing and potential customers view our technology, quality and service capabilities and a significant incremental opportunity.
"Our close customer relationships are also paying off via the insight that they give us into unmet market needs. During the second quarter we launched a significant R&D effort to develop a new line of specialized encryption products that will expand the range of solutions we can offer existing and potential security/networking appliance customers. We also made important one-time R&D investments to extend our ROHS (Reduction Of Hazardous Substances) compliant product lines and to secure additional regulatory approvals. In parallel, we are working to penetrate important emerging markets, including China, and to capitalize on the opportunities that our prestigious new Design Wins are opening up for us in Japan and other regions."
Mr. Orbach concluded, "Taken as a whole, we are following a strategy that we believe will build the Company to the next level, and pleased with our progress to date. With clear technological leadership, a top-tier customer base and a growing portfolio of superb products that addresses the needs of significant untapped markets, we believe we are well positioned and continue working to achieve our full potential."
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company's control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission. The Company disclaims any duty to update such statements.
-- FINANCIAL TABLES FOLLOW --
Silicom Ltd. Consolidated
Summary of Results
U.S. dollars, in thousands, except for per share amounts
Three-month period Six-month period
ended June 30, ended June 30,
2006 2005 2006 2005
========= ======== ======== =======
Sales $3,635 $2,638 $6,922 $4,918
Cost of sales 2,317 1,589 4,285 2,964
--------- -------- -------- -------
Gross profit 1,318 1,049 2,637 1,954
--------- -------- -------- -------
Research and development costs,
gross 508 364 908 768
Less - royalty bearing
participations (3) 8 (3) 44
--------- -------- -------- -------
Research and development costs, net 511 356 911 724
Selling and marketing expenses 276 212 496 446
General and administrative 208 189 414 346
--------- -------- -------- -------
995 757 1,821 1,516
--------- -------- -------- -------
Operating income (Loss) 323 292 816 438
Financial income (expenses), net (4) 23 51 27
--------- -------- -------- -------
Income (Loss) before taxes on
income 319 315 867 465
Taxes on income --- --- --- ---
--------- -------- -------- -------
Net income (Loss) $ 319 $ 315 $ 867 $ 465
========= ======== ======== =======
Basic income (Loss) per share $ 0.06 $ 0.07 $ 0.17 $ 0.11
========= ======== ======== =======
Weighted average number of shares
outstanding - Basic EPS (in
thousands) 5,198 4,247 5,077 4,223
========= ======== ======== =======
Diluted income (Loss) per share $ 0.06 $ 0.07 $ 0.16 $ 0.11
========= ======== ======== =======
Weighted average number of shares
outstanding - Diluted EPS (in
thousands) 5,418 4,397 5,312 4,331
========= ======== ======== =======
Silicom Ltd. Consolidated Balance Sheets
(U.S. dollars, in thousands)
June 30, 2006 December 31, 2005
(Unaudited) (Unaudited)
================= =================
Assets
Current assets
Cash and cash equivalents $ 3,511 $ 2,276
Short term investments 509 -
Trade receivables 2,906 2,395
Other receivables 385 453
Inventories 3,652 2,994
----------------- -----------------
10,963 8,118
Long term investments 3,287 -
Severance pay fund 667 587
Property and equipment, net 338 292
Other assets 44 48
----------------- -----------------
Total assets $15,299 $ 9,045
================= =================
Liabilities and shareholder's equity
Current liabilities
Short-term bank credit - 500
Trade payables 2,055 2,020
Other payables and accrued
liabilities 741 822
----------------- -----------------
Total current liabilities 2,796 3,342
Liability for severance pay 1,127 1,031
----------------- -----------------
Total liabilities 3,923 4,373
----------------- -----------------
Shareholders' Equity
Share capital and additional paid
in capital 11,801 5,964
Treasury stock (38) (38)
Retained earnings (deficit) (387) (1,254)
----------------- -----------------
11,376 4,672
----------------- -----------------
Total liabilities and shareholders
equity $15,299 $ 9,045
================= =================
http://biz.yahoo.com/bw/060803/20060803005512.html?.v=1
Dubi
midastouch017
18 years ago
Silicom Announces Another Security-Appliance Design-Win at a Top Networking and Communications Company
Tuesday May 30, 6:20 am ET
KFAR SAVA, Israel--(BUSINESS WIRE)--May 30, 2006--Silicom Ltd. (NASDAQ & TASE: SILC) today announced that it has achieved a new design win with a top-tier North-American based, networking and communications equipment company. The company will be using Silicom's ROHS (Reduction Of Hazardous Substances) compliant, multi-port server adapters in its security appliances. Silicom's products will be replacing those of a major competitor, which this particular company was previously installing in its security appliances. Initial orders have already been received and partial shipments against these purchase orders have already been made.
This design win follows a rigorous year-long evaluation process in which the customer scrutinized every aspect of Silicom's ROHS compliant multi-port server adapters before approving them for use in its appliances.
"Beyond the potential represented by this design win for the client's security appliances, our initial entry into a company with over $10 billion in annual revenues, creates future opportunities for us and makes it easier to market and sell our products for use in additional types of equipment from this customer," said Mr. Shaike Orbach, President and CEO of Silicom. "Also, as we have seen with many of the 35 design wins that we have accumulated over the past two years, we believe this one will lead to a steady flow of sales, as well as further diversify our dependence on any one customer and their particular purchase cycles."
"We are particularly proud that our solution won over that of our leading competitor, and we see this as a testament to the added-value and superior cost-performance of our adapters," concluded Mr. Orbach.
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
http://biz.yahoo.com/bw/060530/20060530005403.html?.v=1
Dubi
midastouch017
18 years ago
Silicom Penetrates Japan: Major Design Win with World Leading, Top Tier Japanese Server Manufacturer
Monday May 1, 8:32 am ET
KFAR SAVA, Israel--(BUSINESS WIRE)--May 1, 2006--Silicom Ltd. (NASDAQ & TASE: SILC) today announced a major new Design Win from one of the world's top tier server manufacturers, representing its first Japanese Design Win. The Design Win followed a rigorous 30-month discussion, evaluation and qualification process during which the customer scrutinized Silicom's manufacturing and support capabilities together with all aspects of the Silicom copper and fiber Gigabit Server adapters that the customer intends to use within its server systems.
Silicom has already delivered first shipments of the Company's server adapters to the customer per its initial production orders and received additional orders for future deliveries.
"The selection of our product by such a large and prestigious company - especially one that is known for its extreme standards for quality, reliability and performance -- takes our credibility to a new level and paves the way towards additional penetration of the strategic Japanese market," said Mr. Shaike Orbach, President and CEO of Silicom. "Beyond the significant potential represented by this Design Win, we will now begin marketing additional products within the same division, as well as to the other divisions of this customer's worldwide organization which have indicated an interest in our products. In addition, the Design Win is already making it easier for us to gain entry into other major Japanese manufacturers.
"As such, this Design Win is an important boost to the momentum that we have been building steadily over the past two years. We are proud to have recently posted another record quarter with the highest sales and profits in our history. With growing markets, a base of about 35 existing Design Wins, a top-quality reputation and a strong track record with the industry's largest players, we are more excited than ever regarding our future prospects."
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
http://biz.yahoo.com/bw/060501/20060501005601.html?.v=1
Dubi
midastouch017
18 years ago
Silicom posts 9th consecutive quarter of rising revenue
Revenue for the first quarter of 2006 was $3.28 million, up 44% from $2.28 million for the first quarter of 2005.
Globes correspondent 24 Apr 06 18:01
Server/appliances networking solutions provider Silicom Ltd. (Nasdaq:SILC; TASE:SILC) today reported its highest quarterly sales ever, and the company's ninth consecutive quarter of rising revenue.
Net profit for the quarter was a record $548,000, or $0.11 per share (basic and diluted), more than triple the net profit of $150,000, or $0.04 per share (basic and diluted), recorded in the first quarter of 2005, and an increase of 16% compared with $473,000, or $0.11 per share (basic and diluted) for the fourth quarter of 2005.
Revenue for the first quarter of 2006 was $3.28 million, an increase of 44% compared with $2.28 million for the first quarter of 2005, and an increase of 5% compared with $3.126 million for the fourth quarter of 2005.
Cash and cash equivalents at the end of the quarter totaled $7.8 million compared to $1.8 million at the end of the fourth quarter of 2005. Silicom stated that this reflected the contribution of the public offering completed in January 2006 and the quarter's positive cash flow.
Silicom president and CEO Shaike Orbach said, "During the quarter, we recorded strategic design wins with two new customers, a major manufacturer of traffic management/load balancing appliances and an industry-leading provider of Internet security appliances. Also during the quarter we dual-listed the company on the Tel Aviv Stock Exchange and completed a $6 million public offering, moves that have increased the liquidity of our share and increased our working capital.
"Taken as a whole, with strong cash reserves, a growing range of superb products, an expanded foundation of about 35 design wins and a strong presence in the security, storage, load balancing, traffic management and other industries, we believe that we are well positioned to achieve new records in our 2006 revenues and net income."
The company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products.
Published by Globes [online], Israel business news - www.globes.co.il - on April 24, 2006
Dubi
midastouch017
18 years ago
Thu: What makes Silicom run?
More than technology and results, it's a matter of who has been buying the shares.
Shlomo Greenberg
My travels through the land of small-cap stocks with potential has taken me (or brought me back) to Silicom Ltd. (Nasdaq:SILC; TASE:SILC). I’ll start by saying that I know no stock that has risen more than Silicom from October 2002 to today. In December 2002, the stock plummeted to $0.20 a share. This week, it crossed the $11.5 level. This represents a 57-fold rise. Orckit Communications (Nasdaq: ORCT; TASE: ORCT), for example, rose to a value 25 times that of its all time low, while Aladdin Knowledge Systems (Nasdaq: ALDN; TASE: ALDN) “only” managed a seventeen-fold rise . Anyone who knows of another Israeli stock that has risen 57 times in value since 2002, is invited to step forward; I don’t.
Let’s try and fathom out what it is that makes Silicom run. First I should note that Silicom is one of the veteran Israeli companies on Wall Street. It was issued back in 1994 at a price, if my memory serves me correctly, of $5 a share. The laypersons among us would do well to watch their words when they try to define the company’s line of business. Silicom manufactures smart electronic cards that can be used as adaptors, junction boxes, re-routers and transmitters. Its cards support transmission of all types of information between computers, over networks, and some of its products have also been adapted for use in security software. If, for example, an information stream is truncated (due to a power failure or another cause) Silicom’s bypass software is activated, enabling the resumption of the information flow.
Founded in 1987 by current chairman Avi Eizenman and the Zisapel brothers, the close of the last century saw Silicom stock achieve popularity, reaching highs in excess of $20. Many other stock were also breaking records back then. The problem with Silicom was that it was, in effect, thrown out of the aircraft without a parachute. What does this mean here? Caught up in the technological euphoria of that period, Silicom abandoned its traditional lines of business and moved to a field that looked fantastic at that time, end-user connection technologies. The company developed USB connectors that were to be relevant to the development of IT. While it was still engrossed in its dreams, the market disintegrated, leaving Silicom with no business and almost no money.
The current chairman, Avi Eizenman, managed somehow to stabilize and revitalize the company. He began to look for ways in which the know-how that the veteran company had accrued could to be used to try and save its business. How Eizenman managed to take a company with no sales and $1.5 million in cash and bring it back to life is beyond me, but that is what happened. I must state that, at the end of 2002, I feared for the future of the company and its employees, since no buyers could be found for a company valued at $800,000 only. In 2001, when it looked like the company had developed a new device and had something to offer despite everything, a new CEO, Shaike Orbach, was brought in, and Eizenman stayed on as chairman. Orbach had previously served as president and CEO at Opgal, a subsidiary of Rafael Armament Development Authority Ltd.. Before that he managed Edusoft . Persuading someone like Orbach to leave Opgal for a company like Silicom must no doubt have required a bait of some sort, and it wasn’t money. From the moment he took over I realized that there was something in that company, only I don’t know exactly what it is.
The gains up to the start of 2004 were not related at all to Silicom but were instead, a function of market activity, an general revival in the technology stock indices.
The really important question is what caused a stock like Silicom to climb consistently to the enviable level it is at today, while stocks such as Top Image Systems Ltd. (Nasdaq: TISA), Mind CTI (Nasdaq: MNDO; TASE: MNDO), Eltek (Nasdaq: ELTK, or Alvarion (Nasdaq: ALVR; TASE: ALVR) have “stayed put” since the middle of 2004?
Don’t assume it has something to do with results. Silicom has achieved amazing results, but I can show you several other companies that have done equally well whose stocks have not moved.
The big question is to who do the shares go to. Speculative money abandons a stock at the first opportunity, usually after it has made a profit of 200% or more. So if it's the public that is buying the stock, and the market begins to falter, the stock will come to a halt. But if the stock falls into institutional hands that have an interest, the stock will continue to rise as the dream materializes and business results are delivered.
Let’s try now to understand this through the case of the Silicom stock.
If you have followed the progress of Silicom stock, you will find that it too came to a halt following the first quarter of 2004. From the beginning of April onwards the stock began a downward slide. By September 2004 it had fallen 33% its $2.7 level in April to $1.8. In other words, Silicom behaved, in 2004, in a similar fashion to all the other technology stocks. The stock began to climb again at the end of 2004.
What happened then? There was a string of impressive yet unclear announcements. They referred to preliminary OEM agreements with anonymous giants. True, the information provided was incomplete, but people following the company found that the aftermath of the massive gains left Silicom with a valuation in mid 2005 of $15-16 million only. This was, of course, a substantial increase on the earlier value of $800,000. My estimate is that as early as the first half of 2005, Silicom began talking to underwriters about a public offering to raise resources that it lacked. The underwriters realized the potential that Silicom had and agreed. Here again full credit must go to the company’s management. I think that, during 2005, the company’s shares transferred from private ownership - bargain hunters, speculators and a intrepid public- to the institutions.
Although the Silicom share issue in January 2006 was miniscule, raising $6 million only (excluding options), it was held on the Israeli market, which, in its hunger for shares, needed no encouragement. Note that the exercise price of the options issued, $8.63 a unit, went “into the money” within ten days of the issue. Bear in mind also that the volumes have increased at least fivefold since the end of January 2006. Anyone who has spent more than two days in the market will tell you that shares changed hands, that people converted a substantial quantity of options and many of them made money. All this can be credited to the management and the skill it demonstrated in the actions it took, including, naturally, selling the company to the underwriters. Please remember that when Silicom announced the public offering at the beginning of January 2006, nobody knew about the excellent results for the end of 2005, but I have no doubt that several entities were convinced that they would be just that and predicted that the public would return once the results were available. That is what happened.
Would it be worth investing in Silicom at its present level? Given that there as yet no indications of the type of agreements, the identity of the parties involved, and the direction they will take, it would be difficult to make a genuine assessment. One thing that is clear, however, is that the pace of business progress to date is one that most certainly does not justify a market cap as low as $48 million. It's unfortunate that no serious analyst has as yet checked this out. Despite the gains to date, I believe that the current price embodies more opportunity than risk, but it's a matter of a more long-term investment.
The above recommendations were made by a person/s working in the investment industry who may hold positions in securities mentioned in the column. This column should not be taken as advice to buy, sell or continue to hold any securities, and anyone acting on the advice of this column does so at his or her own risk.
http://www.globes.co.il/serveen/globes/docview.asp?did=1000067431&fid=1052
Dubi
midastouch017
18 years ago
Silicom Announces Additional Design Win with Leading Security Appliance Provider
Monday February 27, 6:59 am ET
KFAR SAVA, Israel--(BUSINESS WIRE)--Feb. 27, 2006--Silicom Ltd. (NASDAQ & TASE: SILC) today announced that it has secured a new Design Win from a leading Internet security solution company, the second Design Win that it has announced this month. The Design Win is for four of Silicom's advanced Multiport and Bypass Gigabit Ethernet adapters, three of which are designed for use in the customer's state-of-the-art PCI-EXPRESS-based platforms. All four Silicom products are fully compliant with the RoHS (Reduction Of Hazardous Substances) directive.
The customers' security proxy appliances provide visibility and control of Internet communications to protect against risks from spyware, web viruses, inappropriate surfing, instant messaging (IM), video streaming and peer-to-peer (P2P) file sharing while simultaneously improving web performance. It will use Silicom adapters in two of its appliances to assure high-quality wirespeed data transfer, maintain connectivity in various potential failure scenarios and to achieve maximum flexibility in their connectivity options.
"We are pleased to report our second new Design Win for the month, and to add another leading Security Industry player to our growing list of customers," said Mr. Shaike Orbach, President and CEO of Silicom. "Having built its reputation on high-throughput security proxy solutions, we are proud that this customer is turning to Silicom adapters to help it deliver on its performance and connectivity promises. As with the majority of our Design Wins, we expect that initial orders from this customer will be followed by a ramp up period until they reach mass production levels. In general, the process of securing the Design Win itself helps us build a close relationship with our customer which expands over time, leading naturally to repeat orders and to an expanded use of our products in more of their solutions. In fact, the 30+ Design Wins that we accumulated over the past two years were the primary drivers of the record revenues and profits that we posted throughout 2005."
Mr. Orbach continued, "To take full advantage of our growing market recognition, we continue working to build our penetration of the Security Appliances market, as well as additional high-growth segments including Network Acceleration, Load Balancing and others. With over 100 potential customers in the pipeline, we believe we are favorably positioned for long term growth."
Note regarding the RoHS Directive: The RoHS (Reduction Of Hazardous Substances) Directive of the European Union (EU) (commonly called the "Lead Free Law") sets maximum concentration limits on hazardous materials used in electrical and electronic equipment. Implementation of the RoHS Directive is required in all EU countries by July 1, 2006, and many states within the U.S. have adopted or are considering adoption of similar laws. Silicom is among the first companies world wide offering RoHS Compliant multi port and bypass server adapters.
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance network connectivity solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet server adapters and innovative BYPASS adapters designed to increase throughput and availability of security appliances and other mission-critical gateway applications. Silicom also offers a broad range of customizable PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
http://biz.yahoo.com/bw/060227/20060227005496.html?.v=1
Dubi
ddbl_our_buck
18 years ago
Today is a very important trading day, imjo, for Silicom. Earnings behind us, new Design win yesterday and chart ready again for a breakout to 10+/- some. We have to close higher today. Volume has increased to avg 100K for 6 weeks, a bullish sign. If we continue, we will see a 50% uptick from the shorts! I mean, in a printers' terms, a .25 increase in sh pr, will actually reflect a .375 jump and the "increase" will be overdone, by the shorts. There are only under 3 mil in the float! If we get to 10+ soon, I am taking 1/2 off. We should hit 10 within 1 1/2 month, then retrace to 8.50 - 8.80
golly, I hope I'm right at the right time :)
could I be worried about us getting "too" big?
I was hoping for some sort of forward spilt 3:2, say..can't do a buyback!
Expenses must be growing, along with Design wins.
put on the specs, all ya.
ddbl
Silicom, Ltd. (SILC) engages in the design, manufacture, and marketing of network connectivity solutions. Its products serves as communication gateways, which enable portable computers to access information and resources found on local area networks (LANs) and wide area networks (WANs). The company's products include high-end server networking cards for server networking industry, which allows servers to communicate with each other; high-end networking bypass cards, server networking cards with bypass feature; connectivity solutions, which enable portable computers to communicate with LANs and WANs; and broadband Internet access. It distributes products through a network of strategic relationships with original equipment manufacturers, installers, and integrators in the computer industry. The company was co-founded by Avi Eizenman, Yehuda Zisapel, and Zohar Zisapel in 1987. Silicom is based in Kfar Sava, Israel. With 4.28 million shares outstanding and 2,160 shares declared short as of January 10th, there is a failure to deliver in shares of SILC.
http://stockcharts.com/def/servlet/SC.web?c=SILC,uu[h,a]daclyyay[db][ph.02,.20!d20,2][vc60][iUb14!La...
midastouch017
18 years ago
Wed: If Silicom can
Companies such as MindCTI have every chance of emulating Silicom's stock market success.
Shlomo Greenberg
What makes an investment successful? What causes shares to rise the way Orckit Communications Ltd. (Nasdaq:ORCT; TASE:ORCT) and Silicom Ltd. (Nasdaq:SILC) have done? After all, the trio of Mind CTI Ltd. (Nasdaq: MNDO; TASE:MNDO), Eltek Ltd. (Nasdaq: ELTK), and Top Image Systems Ltd. (Nasdaq: TISA) have raised sales and become profitable the same way the other two did. Not on the scale of Orckit, it’s true, but definitely on the scale of Silicom.
On Monday, Silicom published its financial report for the fourth quarter of 2005 and the year as a whole. The results were astonishing, compared with the past, and with investors’ expectations at the low point in 2002. Silicom’s share justifiably rose 15% to give a market cap of $33 million. This small Kfar Saba-based company’s success in emerging from a crisis that threatened its very existence and turning into an apparently thriving business is amazing.
If Silicom is compared with the other shares mentioned above, the question arises, why haven’t they risen in the same way? Please understand, I’m not surprised that Silicom rose to a price better reflecting its value. I’m surprised that the others have not.
Mind CTI, for example, started out at $0.89 per share in October 2002, and is now worth $3.30. The company posted a profit of $330,000 on $10.8 million revenue in 2002, a profit of $3.6 million on $13 million revenue in 2003, and a net profit of $6.8 million on $17.8 million revenue in 2004. In 2005, it is expected to post a large profit on over $20 million.
True, Mind CTI’s profits and sales for the third quarter fell slightly, compared with the second, but that was corrected in the fourth quarter, at least according to the company’s guidance. How much is Mind CTI worth today on Wall Street? $71 million, including $41 million cash at the end of the third quarter (after acquiring US company Sentori Inc. for $5.1 million in cash).
In other words, the market cap for Mind CTI’s business is $30 million for a company with a net profit of $7 million. Why does this happen? After all, it is unimaginable that someone wanting to acquire this company would pay $71 million for it. That number might be alright on Wall Street, but not on Main Street.
Why do I expect Mind CTI’s share to do something like Silicom’s did? Because Mind CTI emerged from crisis with a lot of cash, and it’s in a business that has started to gather pace. Moreover, the company has begun to distribute dividends. But that's life. Silicom's stock market performance outdid Mind's in early 2006, and by a wide margin. Remember, in October 2002 Silicom was considered a corpse: no money, no product that we knew about, no market, and with nothing to interest the serious investor. I bought the share at the time, because I reckoned I couldn't lose much at $0.20 or $0.30 a share. If the technology exists, and management knows what it’s doing, the risk at that price is pretty small.
So what should one do in 2006? In terms of economic value, all the shares I’ve mentioned are in more or less the same situation. Let’s look at MER Telemanagement Solutions Ltd. (Nasdaq: MTSL), and see what it has to offer. The company has a lot of customers, a long history of technological development and accumulated know-how, and it’s under new management.
What is happening here resembles what happened to Attunity (Nasdaq: ATTU), Mind CTI, Top Image, BOS Better Online Solutions Ltd. (Nasdaq: BOSC; TASE:BOSC) and others companies that survived the crisis of 2001-02. They survived with enough strength to go on and find their places in their respective niches. All their niches are huge, so a large part of the companies’ potential depends on the current state of their management. The most interesting thing here is that even Silicom, which has provided a large percentage return since 2002, is still far from fulfilling its potential. Silicom, like the others, depends entirely on its management to lead it in 2006 the same way it led the company in 2004 and 2005.
What is the conclusion? There is no point in selling any of these shares at the moment, because nothing real has happened since October 2002, and if anything did, it was only for the better. Nevertheless, anyone who bought shares in the likes of Orckit, Aladdin Knowledge Systems Ltd. (Nasdaq: ALDN; TASE: ALDN) or Silicom in 2002, and has not yet sold some of them, either has nerves of steel or is an irredeemable optimist.
I now own about half the Silicom shares I held in 2002, despite my considered view that this company is only at the starting gate. Anyone who understood this logic could be a licensed investment advisor.
Published by Globes [online], Israel business news - www.globes.co.il - on February 1, 2006
http://www.globes.co.il/serveen/globes/docview.asp?did=1000057046&fid=1052
Dubi
midastouch017
18 years ago
Silicom Reports Record Q4 and 2005 Results: Best-Ever Quarter and Best-Ever Year
Monday January 30, 9:31 am ET
KFAR SAVA, Israel--(BUSINESS WIRE)--Jan. 30, 2006--Silicom Ltd. (NASDAQ and TASE: SILC):
After Rising for 8th Consecutive Quarters, Revenues Reach $3.1M for Q4 & $10.9M for 2005
4th Profitable Quarter in a Row Yields Record $0.11 EPS for Q4, $0.30 EPS for 2005
Silicom Ltd. (NASDAQ and TASE: SILC) today reported record financial results for the fourth quarter and year ended December 31, 2005.
Revenues for the fourth quarter of 2005 were $3,126,000, an increase of 98% compared with $1,581,000 for the fourth quarter of 2004, and an increase of 10% compared with $2,832,000 for the third quarter of 2005. These are the highest quarterly revenues in Silicom's history and the Company's eighth consecutive quarter of rising revenues.
Net income for the quarter was $473,000, or $0.11 per share (basic and diluted), a new record for the Company, compared with a net loss of ($87,000), or ($0.02) per share for the fourth quarter of 2004.
Revenues for the year ended December 31, 2005 rose to an all-time high of $10,876,000, an increase of 139% compared with $4,559,000 for 2004. The Company's net income from the year's four profitable quarters was $1,322,000, or $0.30 per diluted share, compared to a net loss of ($1,240,000), or ($0.30) per diluted share for 2004.
Commenting on the results, Shaike Orbach, President and CEO, said, "We are proud to report the best quarter in our history, a strong end for a successful 2005 with four quarters of rising revenues and profits. For the first time ever, our yearly sales have crossed the $10 million milestone and we have posted a 12% net margin.
"These satisfying results demonstrate the quantum leap forward that Silicom achieved in 2005. Throughout the year, our momentum intensified, with early customers ramping up their order volumes significantly and a growing number of new customers giving us new significant Design Wins, such as the two Design Wins with Fortune 100 companies announced during the fourth quarter alone. Now, with more than 30 Design Wins and more than 100 potential customers in the pipe line, we have established presence in the security, storage, load balancing, traffic management and other industries and are positioned to benefit from their growth."
Mr. Orbach continued, "In light of increased Israeli interest in our share, we have recently dual-listed the Company on the Tel Aviv Stock Exchange, a move we hope will expand our liquidity and trading volumes. In addition, we have recently completed an oversubscribed public offering of shares and options, raising approximately $6 million dollars. We are gratified by this vote of confidence and pledge to continue working to build the Company and shareholder value."
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.
http://biz.yahoo.com/bw/060130/20060130005635.html?.v=1
Dubi
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kumqwatt
17 years ago
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