Silicom Ltd 6-K, filed Jul 29, 2020
Silicom Ltd. (SILC)
6-K
2020-07-29
For: 2020-07-29
View Original
Added on
April 06, 2026
About this 6-K
Silicom Ltd filed this 6-K on July 29, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16
OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2020
Commission File Number 000-23288
SILICOM LTD.
(Translation of Registrant’s name into English)
14 Atir Yeda St., P.O.Box 2164, Kfar-Sava 4464323, Israel
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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Form 20-F ☒ Form 40-F ☐
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):___
On July 29, 2020, the Registrant issued a press release announcing the Registrant's second quarter 2020 financial
results. Attached hereto are the following exhibits:
The US GAAP information set forth on the Consolidated Balance Sheet and Consolidated Statement of Operations in the
financial tables on Pages _5_ and _6_ of Exhibit 99.1 is hereby
incorporated by reference into all effective registration statements filed by the registrant under the Securities Act of 1933.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
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SILICOM LTD.
(Registrant) |
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Date: July 29, 2020
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By
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/s/ Eran Gilad
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Eran Gilad
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Chief Financial Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
EARNINGS RELEASE
Silicom
Reports Q2 2020 Financial Results
KFAR SAVA, Israel, July 29, 2020 -
Silicom Ltd. (NASDAQ: SILC), a leading provider of high-performance networking and data infrastructure solutions, today today reported its financial results for the second quarter and six months ended June 30, 2020.
Financial Results
Second Quarter:
Silicom’s revenues for the second quarter of 2020 totalled $23.0 million compared with $25.4 million compared for the second quarter of 2019.
On a GAAP basis, net income for the quarter totalled $1.3 million, or $0.18 per share (basic and diluted), compared with $2.3
million, or $0.30 per share (basic and diluted), for the second quarter of 2019.
On a non-GAAP basis (as described and reconciled below), net income for the quarter totalled $1.8 million, or $0.26 per share (basic
and diluted), compared with $2.9 million, or $0.38 per share (basic and diluted), for the second quarter of 2019.
First Six
Months: Silicom’s revenues for the first half of 2020 totalled $45.1 million compared with $55.6 million for the first half of 2019.
On a GAAP basis, net income for the period totalled $2.8 million, or $0.38 per diluted share ($0.39 per basic share), compared with
$5.9 million, or $0.77 per diluted share ($0.78 per basic share), for the first half of 2019.
On a non-GAAP basis (as described and reconciled below), net income for the period totalled $4.1 million, or $0.57 per share (basic
and diluted), compared with $6.9 million, or $0.91 per share (basic and diluted), for the first half of 2019.
Guidance for the Third Quarter
While remaining cautious due to the continued uncertainty of the market environment, improved visibility leads Management to project
sequential double digit growth in revenues for the third quarter of 2020 as compared with the second quarter of 2020, totaling approximately $26 to $27 million.
Comments of Management
Shaike Orbach, Silicom’s President and CEO, commented, “The second quarter was another period of solid revenues and profits despite
the ongoing COVID-19 disruptions to our supply chain and logistics. While the uncertainty of the situation may still lead to short-term delays in telco and cloud infrastructure investments, the booming demand for network capacity is leading to
long-term acceleration of their SD-WAN, NFV, Security and 5G network build-out plans. We believe that this is a fundamental market change that will increase
long-term demand for our innovative enabling solutions, which increase network flexibility and capacity while reducing network costs.
“The increased demand for capacity is already having an
impact on our target markets, both new and traditional. For example, our Intelligent Bypass solutions were selected in April to maximize the throughput of a massive governmental broadband network, resulting in a $15 million Design Win. The fact
that the project’s integrator expects additional similar projects over time is just one demonstration of the continuous pipeline of opportunities that we see in each of our target markets.”
Mr. Orbach concluded, “While the environment remains uncertain, with a long list of design wins, a healthy cash balance, solid
baseline activities and strong market fundamentals, we are well positioned and optimistic about our long-term prospects. As such, we continue to project that we will achieve a double-digit CAGR (Compound Annual Growth Rate) for several years
ahead - once our markets return to normal.”
Conference Call Details
Silicom’s Management will host an interactive conference today, July 29th, 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 https://www.silicom-usa.com/webcasts/
For those that wish to dial in via telephone, one of the following teleconferencing numbers may be used:
US: 1 888 407 2553
ISRAEL: 03 918 0610
INTERNATIONAL: +972 3 918 0610
At: 9:00am Eastern Time, 6:00am Pacific Time, 4:00pm Israel Time
It is advised to connect to the conference call a few minutes before the start.
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 above-mentioned webcast 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 taxes on amortization of acquired 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.
2
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.
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Company Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
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Investor Relations Contact:
Ehud Helft
GK Investor Relations
Tel: +1 646 201 9246
E-mail: silicom@gkir.com
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-- FINANCIAL TABLES FOLLOW –
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Silicom Ltd. Consolidated Balance Sheets
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(US$ thousands)
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June 30,
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December 31,
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|||||||
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2020
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2019
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Assets
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Current assets
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Cash and cash equivalents
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$
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27,689
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$
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16,469
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Short-term bank deposits
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5,000
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13,542
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Marketable securities
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34,715
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14,045
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Accounts receivables: Trade, net
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16,650
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24,936
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Accounts receivables: Other
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8,910
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4,964
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Inventories
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45,684
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36,491
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Total current assets
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138,648
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110,447
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Marketable securities
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25,798
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46,542
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Assets held for employees’ severance benefits
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1,638
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1,640
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Deferred tax assets
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1,784
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1,798
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Property, plant and equipment, net
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3,645
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3,574
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Intangible assets, net
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2,548
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1,718
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Right of Use
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3,484
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3,783
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Goodwill
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25,561
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25,561
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Total assets
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$
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203,106
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$
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195,063
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Liabilities and shareholders' equity
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Current liabilities
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Trade accounts payable
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$
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13,751
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$
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16,419
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Other accounts payable and accrued expenses
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24,700
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8,823
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Lease Liabilities
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1,247
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1,090
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Total current liabilities
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39,698
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26,332
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Lease Liabilities
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2,202
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2,693
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Liability for employees’ severance benefits
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2,992
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2,910
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Deferred tax liabilities
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272
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205
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Total liabilities
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45,164
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32,140
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Shareholders' equity
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Ordinary shares and additional paid-in capital
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58,387
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57,152
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Treasury shares
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(17,017
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)
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(8,009
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)
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Retained earnings
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116,572
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113,780
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Total shareholders' equity
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157,942
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162,923
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Total liabilities and shareholders' equity
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$
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203,106
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$
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195,063
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5
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Silicom Ltd. Consolidated Statements of Operations
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(US$ thousands, except for share and per share data)
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Three-month period
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Six-month period
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ended June 30,
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ended June 30,
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2020
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2019
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2020
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2019
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Sales
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$
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23,045
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$
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25,402
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$
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45,115
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$
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55,629
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Cost of sales
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15,321
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16,728
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30,272
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36,775
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Gross profit
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7,724
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8,674
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14,843
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18,854
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Research and development expenses
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3,862
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3,659
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7,662
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7,479
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Selling and marketing expenses
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1,396
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1,692
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2,935
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3,321
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General and administrative expenses
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979
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1,054
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1,892
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2,077
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Total operating expenses
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6,237
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6,405
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12,489
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12,877
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Operating income (loss)
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1,487
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2,269
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2,354
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5,977
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Financial income, net
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209
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430
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1,240
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725
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Income (Loss) before income taxes
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1,696
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2,699
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3,594
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6,702
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Income taxes
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392
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421
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802
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784
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Net income (loss)
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$
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1,304
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$
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2,278
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$
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2,792
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$
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5,918
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Basic income (loss) per ordinary share (US$)
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$
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0.18
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$
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0.30
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$
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0.39
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$
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0.78
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Weighted average number of ordinary shares used to compute basic income per share (in thousands)
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7,153
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7,587
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7,231
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7,587
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Diluted income (loss) per ordinary share (US$)
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$
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0.18
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$
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0.30
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$
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0.38
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$
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0.77
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Weighted average number of ordinary shares used to compute diluted income per share (in thousands)
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7,168
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7,635
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7,265
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7,644
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Silicom Ltd. Reconciliation of Non-GAAP Financial Results
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(US$ thousands, except for share and per share data)
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Three-month period
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Six-month period
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|||||||||||||||
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ended June 30,
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ended June 30,
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|||||||||||||||
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2020
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2019
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2020
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2019
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GAAP gross profit
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$
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7,724
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$
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8,674
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$
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14,843
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$
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18,854
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||||||||
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(1) Share-based compensation (*)
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109
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106
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280
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222
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Non-GAAP gross profit
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$
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7,833
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$
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8,780
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$
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15,123
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$
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19,076
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GAAP operating income (loss)
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$
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1,487
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$
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2,269
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$
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2,354
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$
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5,977
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||||||||
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Gross profit adjustments
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109
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106
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280
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222
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||||||||||||
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(1) Share-based compensation (*)
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357
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457
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908
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995
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||||||||||||
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Non-GAAP operating income
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$
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1,953
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$
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2,832
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$
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3,542
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$
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7,194
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||||||||
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GAAP net income (loss)
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$
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1,304
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$
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2,278
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$
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2,792
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$
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5,918
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||||||||
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Operating income adjustments
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466
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563
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1,188
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1,217
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(2) Taxes on amortization of acquired intangible assets
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67
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67
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134
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(211
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)
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Non-GAAP net income
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$
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1,837
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$
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2,908
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$
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4,114
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$
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6,924
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||||||||
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GAAP net income (loss)
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$
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1,304
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$
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2,278
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$
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2,792
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$
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5,918
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||||||||
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Adjustments for Non-GAAP cost of sales
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109
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106
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280
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222
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Adjustments for Non-GAAP Research and development expenses
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181
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217
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428
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463
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||||||||||||
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Adjustments for Non-GAAP Selling and marketing expenses
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86
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117
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230
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256
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||||||||||||
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Adjustments for Non-GAAP General and administrative expenses
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90
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123
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250
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276
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||||||||||||
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Adjustments for Non-GAAP Income taxes
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67
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67
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134
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(211
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)
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|||||||||||
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Non-GAAP net income
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$
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1,837
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$
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2,908
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$
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4,114
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$
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6,924
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||||||||
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GAAP basic income (loss) per ordinary share (US$)
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$
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0.18
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$
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0.30
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$
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0.39
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$
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0.78
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||||||||
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(1) Share-based compensation (*)
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0.07
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0.07
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0.16
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0.16
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||||||||||||
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(2) Acquisition-related adjustments
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0.01
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0.01
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0.02
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(0.03
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)
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Non-GAAP basic income per ordinary share (US$)
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$
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0.26
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$
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0.38
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$
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0.57
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$
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0.91
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||||||||
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GAAP diluted income (loss) per ordinary share (US$)
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$
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0.18
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$
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0.30
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$
|
0.38
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$
|
0.77
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||||||||
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(1) Share-based compensation (*)
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0.07
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0.07
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0.17
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0.16
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||||||||||||
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(2) Acquisition-related adjustments
|
0.01
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0.01
|
0.02
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(0.02
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)
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|||||||||||
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Non-GAAP diluted income per ordinary share (US$)
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$
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0.26
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$
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0.38
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$
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0.57
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$
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0.91
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||||||||
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(*) Adjustments related to share-based compensation expenses according to ASC topic 718 (SFAS 123 (R))
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7