In This Article:
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Revenue: $14.8 million for Q3 2024, down from $30.1 million in Q3 2023.
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Net Loss: $1.7 million for Q3 2024, compared to net income of $2.1 million in Q3 2023.
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Gross Margin: 28.8% for Q3 2024, compared to 31.1% in Q3 2023.
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Operating Expenses: $6.5 million for Q3 2024, down from $7.4 million in Q3 2023.
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Operating Loss: $2.3 million for Q3 2024, compared to operating income of $1.9 million in Q3 2023.
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Loss Per Share: 28 for Q3 2024, compared to diluted earnings per share of 30 in Q3 2023.
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Working Capital and Marketable Securities: $125 million as of September 30, 2024.
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Cash and Equivalents: $77 million with no debt.
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Share Repurchase: $8.6 million used for repurchasing 560,000 shares in the first three quarters of 2024.
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Q4 2024 Revenue Guidance: Expected to be between $14 and $15 million.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Silicom Ltd (NASDAQ:SILC) made continuous progress towards its mid and long-term goals to generate shareholder value.
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The company anticipates improvement in sales through 2025, with full resolution of inventory issues expected by the end of that year.
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Silicom Ltd (NASDAQ:SILC) maintains a strong balance sheet with $125 million in working capital and marketable securities, including $77 million in cash and no debt.
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The company has a broad and deep pipeline of opportunities, with potential for faster ramp-up than expected, which could accelerate progress towards financial goals.
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Silicom Ltd (NASDAQ:SILC) has secured significant milestones, including a service provider customer selecting its edge products and a network equipment OEM choosing its high-speed 400 gig FPGA smart card.
Negative Points
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Silicom Ltd (NASDAQ:SILC) reported a revenue decline to $14.8 million in Q3 2024 from $30.1 million in the same quarter last year.
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The company experienced a net loss of $1.7 million for the third quarter of 2024.
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Sales continue to be impacted by excess inventory built up by customers in prior years, affecting near-term performance.
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Gross margin decreased to 28.8% in Q3 2024 from 31.1% in the same quarter of 2023.
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Revenue growth is expected to be low single-digit in 2025 due to lingering inventory issues with customers.
Q & A Highlights
Q: Can you comment on the mix across different verticals in terms of your current revenue run rate? Is the service provider still the main vertical, or are you seeing traction in enterprise or other areas? A: We don't see a huge difference from what we've seen in the past. It's a mix of OEMs and service providers. In OEMs, strong segments include cybersecurity, network monitoring, and the SD-WAN markets for our edge boxes. Cybersecurity and platforms/infrastructure each account for about 31% of revenue, network appliances 26%, and the rest is 5-7%.