Silicom Reports Q4 2020 & Full Year 2020 Financial Results

    Author microcapwatchPosted on Categories TechTags , , , , , , , , , , , , , , , , , ,

    <br /> Silicom Reports Q4 2020 & Full Year 2020 Financial Results<br />

    Silicom Reports Q4 2020 & Full Year 2020 Financial Results

    – $33.9M Q4 Revenues Demonstrate Growing Momentum of Company’s New Product Lines –

    PR Newswire

    KFAR SAVA,

    Israel

    ,

    Jan. 28, 2021

    /PRNewswire/ —

    Silicom Ltd.

    (NASDAQ: SILC), a leading provider of high-performance networking and data infrastructure solutions, today reported its financial results for the fourth quarter and full year ended

    December 31, 2020

    .

    Silicom_Ltd_Logo


    Financial Results



    Fourth Quarter:


    Silicom’s revenues for the fourth quarter of 2020 totalled

    $33.9 million

    , up 33% compared with

    $25.5 million

    for the fourth quarter of 2019, and up 19% compared with

    $28.4 million

    for the third quarter of 20

    20

    .

    On a GAAP basis, net income for the quarter totalled

    $0.8 million

    , or

    $0.12

    per share (basic and diluted), compared with

    $2.4 million

    , or

    $0.33

    per share (basic and diluted), for the fourth quarter of 2019.

    On a non-GAAP basis (as described and reconciled below), net income for the quarter totalled

    $4.0 million

    , or

    $0.56

    per diluted share (

    $0.57

    per basic share), compared with

    $3.1 million

    , or

    $0.41

    per share (basic and diluted).



    Full Year:


    Silicom’s revenues for the twelve months ended

    December 31, 2020

    totalled

    $107.4 million

    compared with

    $105.2 million

    for 2019.

    On a GAAP basis, net income for the year totalled

    $5.7 million

    , or

    $0.80

    per share (basic and diluted), compared with

    $10.2 million

    , or

    $1.35

    per diluted share (

    $1.36

    per basic share), for 2019.

    On a non-GAAP basis (as described and reconciled below), net income for the year totalled

    $11.0 million

    , or

    $1.54

    per share (basic and diluted), compared with

    $12.5 million

    , or

    $1.65

    per diluted share (

    $1.66

    per basic share), for 2019.



    Guidance for the First Quarter

    While remaining cautious due to the continued uncertainty of the macro environment, Management projects revenues of

    $28

    to

    $29 million

    for the first quarter of 2021. The midpoint of this range represents approximately 30% growth over the first quarter of 2020.


    Comments of Management


    Shaike Orbach

    , Silicom’s President and CEO

    ,

    commented, “We are pleased to report another strong quarter, with above-guidance revenues driven primarily by our Smart Platforms and Smart Cards, the focus of our strategy for capitalizing on the industry’s powerful Decoupling and Disaggregation trends. These are the trends we foresaw already a few years ago, and for which we have been building our strategy, capabilities and new product lines: advanced offerings that leverage our unique integrated expertise in networking, acceleration, FPGAs and platforms.”

    Mr. Orbach continued, “Today, the Decoupling and Disaggregation trends have become a reality in many market segments, including O-RAN for mobile 5G infrastructure deployments, and we believe they will grow according to a strong, multi-year trajectory. These trends were the drivers behind our most recent 4G/5G related strategic announcements, our sale of SD-WAN and NFV Smart Platforms to a variety of customers, and our sale of Smart Cards to a significant Cloud player. In parallel, with more and more telcos choosing the disaggregated/decoupled O-RAN approach for their new 4G/5G infrastructure deployments, there has been an explosion of interest and demand for our differentiated solutions, which are recognized as key enablers. Both our recent FEC card win with a major telco and the Distributed Unit field trial that we are carrying out with another major telco confirm the soundness of our strategy and the huge future potential of this emerging market.”

    Mr. Orbach concluded, “We are extremely well positioned to take advantage of these opportunities. With a growing range of best-of-breed products, close cooperations with Intel and leading software vendors, strong relationships with key industry players and excellent initial traction, we feel confident that the Cloud, the Telco market for SD-WAN and NFV solutions, and the overall O-RAN-based mobile infrastructure market will be driving our growth throughout 2021 and far beyond.”


    Conference Call Details


    Silicom’s Management will host an interactive conference today,

    January 28


    th

    , at

    9am Eastern Time

    (

    6am Pacific Time

    ,

    4pm

    Israel Time) to review and discuss the results.

    To participate, investors may either listen via a webcast link hosted on Silicom’s website or via the dial-in. The link is under the investor relations’ webcast section of Silicom’s website at

    Webcasts


    For those that wish to dial in via telephone, one of the following teleconferencing numbers may be used:

    US: 1 866 860 9642


    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, taxes on amortization of acquired intangible assets, lease liabilities – financial expenses (income), as well as impairment 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 improve performance and efficiency in Cloud and Data Center environments, Silicom’s solutions increase throughput, decrease latency and boost the performance of servers and networking appliances, the infrastructure backbone that enables advanced Cloud architectures and leading technologies like NFV, SD-WAN and Cyber Security. Our innovative solutions for high-density networking, high-speed fabric switching, offloading and acceleration, which utilize a range of cutting-edge silicon technologies as well as FPGA-based solutions, are ideal for scaling-up and scaling-out cloud infrastructures.

    Silicom products are used by major Cloud players, service providers, telcos and OEMs as components of their infrastructure offerings, including both add-on adapters in the Data Center and stand-alone virtualized/universal CPE devices at the edge.

    Silicom’s long-term, trusted relationships with more than 170 customers throughout the world, its more than 400 active Design Wins and more than 300 product SKUs have made Silicom a “go-to” connectivity/performance partner of choice for technology leaders around the globe.

    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, Silicom’s increasing dependence for substantial revenue growth on a limited number of customers in the evolving cloud-based, SD-WAN, NFV and Edge markets, the speed and extent to which solutions are adopted by these markets, likelihood that Silicom will rely increasingly on customers which provide solutions in these evolving markets, resulting in an increasing dependence on a smaller number of larger customers, difficulty in commercializing and marketing of Silicom’s products and services, maintaining and protecting brand recognition, protection of intellectual property, competition, disruptions to our manufacturing and development along with general disruptions to the entire world economy relating to the spread of the novel coronavirus (COVID-19) and other factors detailed in the company’s periodic filings with the Securities and Exchange Commission. These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. In light of significant risks and uncertainties inherent in forward-looking statements, the inclusion of such statements should not be regarded as a representation by the company that it will achieve such forward-looking statements. The company disclaims any duty to update such statements, whether as a result of new information, future events, or otherwise.




    Company Contact:



    Eran Gilad, CFO



    Silicom Ltd.



    Tel: +972-9-764-4555



    E-mail:



    [email protected]




    Investor Relations Contact:



    Ehud Helft



    GK Investor Relations



    Tel: +1 646 201 9246



    E-mail:



    [email protected]


    — FINANCIAL TABLES FOLLOW –



    Silicom Ltd. Consolidated Balance Sheets


    (US$ thousands)



    December 31,



    December 31,



    2020



    2019



    Assets



    Current assets


    Cash and cash equivalents



    $



    20,676


    $


    16,469


    Short-term bank deposits



    5,000


    13,542


    Marketable securities



    35,117


    14,045


    Accounts receivables: Trade, net



    21,660


    24,936


    Accounts receivables: Other



    6,126


    4,964


    Inventories



    47,650


    36,491



    Total current assets



    136,229


    110,447



    Marketable securities



    15,281


    46,542



    Assets held for employees’ severance benefits



    1,833


    1,640



    Deferred tax assets



    1,790


    1,798



    Property, plant and equipment, net



    4,110


    3,574



    Intangible assets, net



    1,170


    1,718



    Right of Use



    9,913


    3,783



    Goodwill



    25,561


    25,561



    Total assets



    $



    195,887


    $


    195,063



    Liabilities and shareholders’ equity



    Current liabilities


    Trade accounts payable



    $



    14,610


    $


    16,419


    Other accounts payable and accrued expenses



    13,076


    8,823


    Lease Liabilities



    1,813


    1,090



    Total current liabilities



    29,499


    26,332



    Lease Liabilities



    8,282


    2,693



    Liability for employees’ severance benefits



    3,256


    2,910



    Deferred tax liabilities



    13


    205



    Total liabilities



    41,050


    32,140



    Shareholders’ equity


    Ordinary shares and additional paid-in capital



    60,139


    57,152


    Treasury shares



    (24,807)


    (8,009)


    Retained earnings



    119,505


    113,780



    Total shareholders’ equity



    154,837


    162,923



    Total liabilities and shareholders’ equity



    $



    195,887


    $


    195,063



    Silicom Ltd. Consolidated Statements of Operations


    (US$ thousands, except for share and per share data)



    Three-month period



    Twelve-month period



    ended December 31,



    ended December 31,



    2020


    2019



    2020


    2019


    Sales


    $



    33,898


    $


    25,507


    $



    107,398


    $


    105,240


    Cost of sales



    24,289


    16,651



    73,632


    69,146


    Gross profit



    9,609


    8,856



    33,766


    36,094


    Research and development expenses



    5,396


    3,723



    17,244


    15,075


    Selling and marketing expenses



    1,608


    1,751



    6,209


    6,647


    General and administrative expenses



    1,106


    1,087



    4,065


    4,159


    Total operating expenses



    8,110


    6,561



    27,518


    25,881


    Operating income



    1,499


    2,295



    6,248


    10,213


    Financial income (loss), net



    (575)


    560



    1,034


    1,646


    Income before income taxes



    924


    2,855



    7,282


    11,859


    Income taxes



    78


    432



    1,557


    1,623


    Net income


    $



    846


    $


    2,423


    $



    5,725


    $


    10,236


    Basic income per ordinary share (US$)


    $



    0.12


    $


    0.33


    $



    0.80


    $


    1.36


    Weighted average number of ordinary shares used to compute basic income per share (in thousands)



    6,955


    7,400



    7,118


    7,520


    Diluted income per ordinary share (US$)


    $



    0.12


    $


    0.33


    $



    0.80


    $


    1.35


    Weighted average number of ordinary shares used to compute diluted income per share (in thousands)



    7,013


    7,452



    7,157


    7,573



    Silicom Ltd. Reconciliation of Non-GAAP Financial Results


    (US$ thousands, except for share and per share data)



    Three-month period



    Twelve-month period



    ended December 31,



    ended December 31,



    2020


    2019



    2020


    2019


    GAAP gross profit



    $



    9,609


    $


    8,856



    $



    33,766


    $


    36,094


    (1) Share-based compensation (*)



    127


    107



    535


    437


    (2) Impairment of intangible assets



    1,657


    –



    1,657


    –


    Non-GAAP gross profit



    $



    11,393


    $


    8,963



    $



    35,958


    $


    36,531


    GAAP operating income



    $



    1,499


    $


    2,295



    $



    6,248


    $


    10,213


    Gross profit adjustments



    1,784


    107



    2,192


    437


    (1) Share-based compensation (*)



    633


    461



    2,176


    1,918


    Non-GAAP operating income



    $



    3,916


    $


    2,863



    $



    10,616


    $


    12,568


    GAAP net income



    $



    846


    $


    2,423



    $



    5,725


    $


    10,236


    Operating income adjustments



    2,417


    568



    4,368


    2,355


    (3) Lease liabilities – financial expenses (income)



    625


    –



    625


    –


    (4) Taxes on amortization of acquired intangible assets



    68


    68



    270


    (74)


    Non-GAAP net income



    $



    3,956


    $


    3,059



    $



    10,988


    $


    12,517


    GAAP net income



    $



    846


    $


    2,423



    $



    5,725


    $


    10,236


    Adjustments for Non-GAAP Cost of sales



    1,784


    107



    2,192


    437


    Adjustments for Non-GAAP Research and development expenses



    265


    218



    959


    900


    Adjustments for Non-GAAP Selling and marketing expenses



    186


    118



    602


    493


    Adjustments for Non-GAAP General and administrative expenses



    182


    125



    615


    525


    Adjustments for Non-GAAP Financial income (loss), net



    625


    –



    625


    –


    Adjustments for Non-GAAP Income taxes



    68


    68



    270


    (74)


    Non-GAAP net income



    $



    3,956


    $


    3,059



    $



    10,988


    $


    12,517


    GAAP basic income per ordinary share (US$)



    $



    0.12


    $


    0.33



    $



    0.80


    $


    1.36


    (1) Share-based compensation (*)



    0.11


    0.07



    0.38


    0.31


    (2) Impairment of intangible assets



    0.24


    –



    0.23


    –


    (3) Lease liabilities – financial expenses (income)



    0.09


    –



    0.09


    –


    (4) Acquisition-related adjustments



    0.01


    0.01



    0.04


    (0.01)


    Non-GAAP basic income per ordinary share (US$)



    $



    0.57


    $


    0.41



    $



    1.54


    $


    1.66


    GAAP diluted income per ordinary share (US$)



    $



    0.12


    $


    0.33



    $



    0.80


    $


    1.35


    (1) Share-based compensation (*)



    0.11


    0.07



    0.38


    0.31


    (2) Impairment of intangible assets



    0.23


    –



    0.23


    –


    (3) Lease liabilities – financial expenses (income)



    0.09


    –



    0.09


    –


    (4) Acquisition-related adjustments



    0.01


    0.01



    0.04


    (0.01)


    Non-GAAP diluted income per ordinary share (US$)



    $



    0.56


    $


    0.41



    $



    1.54


    $


    1.65


    (*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R))

    Cision
    View original content:

    http://www.prnewswire.com/news-releases/silicom-reports-q4-2020–full-year-2020-financial-results-301217073.html

    SOURCE Silicom Ltd.

    PR Newswire
    January 28, 2021 – 5:15 AM PST