- Company On Track With 2014 Guidance &
Long-Term Growth Plan -
Silicom Ltd. (NASDAQ:SILC) (TASE:SILC), an
industry-leading provider of high-performance server/appliances
networking solutions, today reported its financial results for the
third quarter and nine months ended September 30, 2014.
Financial Results
Q3 2014: Revenues for the third quarter totalled $15.9
million compared with $17.2 million in the third quarter of
2013.
On a GAAP basis, operating income for the quarter totalled $3.1
million compared with $4.1 million in the third quarter of 2013.
Net income for the quarter totalled $2.5 million, or $0.34 per
diluted share ($0.35 per basic share), compared with $4.0 million,
or $0.55 per diluted share ($0.57 per basic share), in the third
quarter of 2013.
On a non-GAAP basis (as described and reconciled below),
operating income for the quarter totalled $3.5 million compared
with $4.2 million in the third quarter of 2013. Net income was $3.0
million, or $0.41 per basic and diluted share, compared with $4.2
million, or $0.58 per diluted share ($0.59 per basic share), in the
third quarter of 2013.
First Nine Months of 2014: Revenues for the first nine
months of 2014 increased by 10% to $52.8 million from $47.9 million
in the first nine months of 2013.
On a GAAP basis, operating income for the period totalled $11.6
million compared with $10.9 million in the first nine months of
2013. Net income totalled $9.9 million, or $1.35 per diluted share
($1.38 per basic share), compared with $10.4 million, or $1.44 per
diluted share ($1.47 per basic share), in the first nine months of
2013.
On a non-GAAP basis (as described and reconciled below),
operating income for the period totalled $12.5 million compared
with $11.4 million in the first nine months of 2013. Net income
totalled $10.8 million, or $1.48 per diluted share ($1.51 per basic
share), compared with $10.9 million, or $1.51 per diluted share
($1.54 per basic share), in the first nine months of 2013.
Comments of Management
Commenting on the results, Shaike Orbach, President and CEO,
said, “We continue to develop the Company in line with our model
for both the short-term and the long-term, positioning us to
achieve our financial and strategic objectives. During the quarter,
we were very pleased to announce a breakthrough Coleto Creek win as
well as a significant design win with a leading Application
Delivery provider, achievements that are enhancing the Company’s
penetration of its target markets. In parallel, we continue working
to deliver on the full potential of our multiple growth engines –
especially our 100+ customer base, industry insight, superior core
technologies and extensive existing product portfolio.”
##
Conference Call DetailsSilicom’s Management will host an
interactive conference today, October 23rd, at 9am Eastern Time
(6am Pacific Time, 4pm Israel Time) to review and discuss the
results.
To participate, please call one of the following
teleconferencing numbers. Please begin placing your calls at least
10 minutes before the conference call commences. If you are unable
to connect using the toll-free numbers, try the international
dial-in number.
US: 1 888 668 9141
UK: 0 800-917-5108
ISRAEL: 03 918 0609
INTERNATIONAL: +972 3 918 0609
At: 9:00am Eastern Time, 6:00am Pacific Time,
4:00pm Israel Time
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
under the investor relations section of Silicom’s website.
***
Non-GAAP Financial Measures
This release, including the financial tables below, presents
other financial information that may be considered "non-GAAP
financial measures" under Regulation G and related reporting
requirements promulgated by the Securities and Exchange Commission
as they apply to our company. These non-GAAP financial measures
exclude compensation expenses in respect of options and RSUs
granted to directors, officers and employees, as well as
amortization of intangible assets. Non-GAAP financial measures
should be evaluated in conjunction with, and are not a substitute
for, GAAP financial measures. The tables also present the GAAP
financial measures, which are most comparable to the non-GAAP
financial measures as well as reconciliation between the non-GAAP
financial measures and the most comparable GAAP financial measures.
The non-GAAP financial information presented herein should not be
considered in isolation from or as a substitute for operating
income, net income or per share data prepared in accordance with
GAAP.
About Silicom
Silicom Ltd. is an industry-leading provider of high-performance
networking and data infrastructure solutions. Designed primarily to
increase data center efficiency, Silicom’s solutions dramatically
improve the throughput and availability of networking appliances
and other server-based systems.
Silicom’s products are used by a large and growing base of OEM
customers, many of whom are market leaders, as performance-boosting
solutions for their offerings in the Application Delivery, WAN
Optimization, Security and other mission-critical segments within
the fast-growing virtualization, cloud computing and big data
markets. Silicom’s product portfolio includes multi-port 1/10
Gigabit Ethernet server adapters, Intelligent Bypass solutions,
Encryption accelerators and a variety of innovative Smart adapters.
These products are available for incorporation directly into our
OEM customers' systems, or provided as part of Silicom’s patented
SETAC (Server To Appliance Converter), a unique approach to the
provision of high quality standard platforms with modular front
connectivity.
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 Balance Sheets
(US$ thousands)
September 30,
December 31, 2014 2013 Assets
Current assets Cash and cash equivalents
$
19,572 $ 12,997 Short-term bank deposits
- 3,000
Marketable securities
15,449 14,871 Accounts receivables:
Trade, net
15,045 14,866 Accounts receivables: Other
682 2,460 Inventories
26,531 28,778 Deferred tax
assets
498 274
Total current
assets 77,777 77,246
Marketable securities
23,469 24,370
Assets held for employees’ severance
benefits 1,494 1,543
Deferred tax assets
390 439
Property, plant and equipment, net
2,415 1,479
Intangible assets, net
130 180
Total assets $
105,675 $ 105,257
Liabilities and
shareholders' equity Current liabilities Trade
accounts payable
$ 3,144 $ 6,814 Other accounts
payable and accrued expenses
4,913
5,134
Total current liabilities 8,057 11,948
Liability for employees’ severance benefits
2,528 2,618
Total
liabilities 10,585 14,566
Shareholders' equity Ordinary shares and additional
paid-in capital
40,346 38,647 Treasury shares
(38)
(38) Retained earnings
54,782
52,082
Total shareholders' equity
95,090 90,691
Total liabilities and
shareholders' equity $ 105,675 $
105,257
Silicom Ltd. Consolidated Statements of Operations
(US$
thousands, except for share and per share data)
Three-month period Nine-month period ended
September 30, ended September 30, 2014 2013
2014 2013 Sales $
15,866 $ 17,200 $
52,788 $
47,945 Cost of sales
9,432
10,183
31,428 28,598 Gross
profit
6,434 7,017
21,360 19,347 Research and development
expenses
1,668 1,305
4,712 3,894 Selling and
marketing expenses
1,034 1,004
3,096 2,717 General
and administrative expenses
673
636
1,958 1,863 Total operating
expenses
3,375 2,945
9,766 8,474 Operating income
3,059 4,072
11,594 10,873 Financial income,
net
7 100
170 280 Income before income taxes
3,066 4,172
11,764 11,153 Income taxes
558 152
1,881
741 Net income $
2,508 $ 4,020 $
9,883 $ 10,412 Basic income per
ordinary share (US$) $
0.35 $ 0.57 $
1.38 $ 1.47
Weighted average number of ordinary shares
used tocompute basic income per share (in thousands)
7,183 7,115
7,180 7,098 Diluted income per
ordinary share (US$) $
0.34 $ 0.55 $
1.35 $ 1.44
Weighted average number of ordinary shares
used tocompute diluted income per share (in thousands)
7,290 7,276
7,323 7,238
Silicom Ltd. Reconciliation of
Non-GAAP Financial Results
(US$ thousands, except for share and
per share data)
Three-month period Nine-month
period ended September 30, ended September 30,
2014 2013
2014 2013 GAAP gross profit
$
6,434 $ 7,017
$ 21,360 $ 19,347 (1)
Share-based compensation (*)
39
26
98 77 Non-GAAP gross profit
$ 6,473 $ 7,043
$
21,458 $ 19,424 GAAP operating income
$
3,059 $ 4,072
$ 11,594 $ 10,873 (1)
Share-based compensation (*)
433 170
900 502 (2)
Amortization of intangible assets
17
3
50 3 Non-GAAP operating
income
$ 3,509 $ 4,245
$
12,544 $ 11,378 GAAP net income
$
2,508 $ 4,020
$ 9,883 $ 10,412 (1) Share-based
compensation (*)
433 170
900 502 (2) Amortization of
intangible assets
17 3
50 3 Non-GAAP net income
$
2,958 $ 4,193
$ 10,833 $
10,917 GAAP basic income per ordinary share
(US$)
$ 0.35 $ 0.57
$ 1.38 $ 1.47 (1)
Share-based compensation (*)
0.06 0.02
0.12 0.07 (2)
Amortization of intangible assets
-
-
0.01 - Non-GAAP basic
income per ordinary share (US$)
$ 0.41 $
0.59
$ 1.51 $ 1.54
GAAP diluted income per ordinary share (US$)
$ 0.34 $
0.55
$ 1.35 $ 1.44 (1) Share-based compensation (*)
0.07 0.03
0.12 0.07 (2) Amortization of intangible
assets
- -
0.01 - Non-GAAP diluted income per ordinary
share (US$)
$ 0.41 $ 0.58
$
1.48 $ 1.51 (*) Adjustments
related to share-based compensation expenses according to ASC topic
718 (SFAS 123 (R))
Eran Gilad, CFOSilicom Ltd.Tel: +972-9-764-4555E-mail:
erang@silicom.co.ilorInvestor relations contact:Kenny Green / Ehud
HelftGK Investor RelationsTel: +1 646 201 9246E-mail :
silicom@gkir.com
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