Silicom Reports Continued Strong Momentum in Q1 2013: Revenues up 49% to $15M; EPS up 54% to $0.46 (Non-GAAP) -

  Silicom Reports Continued Strong Momentum in Q1 2013: Revenues up 49% to
  $15M; EPS up 54% to $0.46 (Non-GAAP) -

Business Wire

KFAR SAVA, Israel -- April 22, 2013

Silicom Ltd. (NASDAQ:SILC) (TASE:SILC), an industry-leading provider of
high-performance networking and data infrastructure solutions,  today reported
strong year-over-year growth in revenues and profits for the first quarter
ended March 31, 2013.

Financial Results

Silicom’s revenues for the first quarter of 2013 rose by 49% to $15.0 million
from $10.1 million in the first quarter of 2012.

On a GAAP basis, net income for the quarter increased 57% to a record $3.1
million, or $0.43 per diluted share ($0.44 per basic share), compared with
$2.0 million, or $0.28 per diluted share ($0.29 per basic share), in the first
quarter of 2012.

On a non-GAAP basis, net income for the quarter increased 57% to $3.3 million,
or $0.46 per diluted and basic share, compared with $2.1 million, or $0.30 per
diluted and basic share, for the first quarter of 2012.

Cash Position: As of March 31, 2013, the Company’s cash, cash equivalents,
bank deposits and marketable securities totalled $56.4 million, or $7.93 per
outstanding share.

Comments of Management

Commenting on the results, Shaike Orbach, President and CEO, said, “We are
very pleased to report a 49% year-over-year rise in revenues and a 57%
increase in net income for the first quarter, strong results that demonstrate
the continued growth-driving power of our 90+ top-tier customers, our
expanding portfolio of unique, need-driven products, and our focus on some of
the industry’s strongest markets.

“We believe that we will be able to compound this accelerated growth in the
future - both through the continued success and expansion of our existing
businesses, and through new growth engines, as demonstrated by the
announcements made during the past several months. We are extremely excited to
have launched our first product within Silicom’s new Intelligent Nano
Time-Stamping NIC product line, a breakthrough offering whose sales we believe
will ramp up to $15-$20 million within just a few years. We are also proud
that one of the world’s largest networking companies - one of our first volume
SETAC customers - has now also become a customer for our SETAC modules, the
more significant, higher-priced components of the SETAC solution, a
development which we expect to gradually boost this customer’s orders by
several million dollars per year.”

Mr. Orbach continued, “As a concrete demonstration of our confidence, and in
light of our significant cash reserves, we have recently paid out our first
dividend as a channel for sharing our success more directly with our
shareholders. We are proud that we have been able to deliver on all the
promises that we have made over the past several years, confirming our ‘read’
of the market, our considerable technology advantage, our superb customer
service and our exceptional customer relationships. With active customer
relationships with so many of the industry’s top players, a growing portfolio
of needed products for virtually unlimited markets and a track record of
making good on our promises, we are excited about our potential and continue
working to accelerate our growth for the benefit of our shareholders.”

                                      ##

Conference Call Details

Silicom’s Management will host an interactive conference today, April 22^nd,
at 9:00am Eastern Time (6:00am Pacific Time, 16:00 Israel Time). On the call,
management will review and discuss the results, and will also be available to
answer investors’ questions.

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, 16:00 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.

                                      ##

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.

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 granted to
directors, officers and employees. 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.

      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)

                                          March 31, 2013  December 31, 2012
Assets
                                                             
Current assets
Cash and cash equivalents                   $11,452          $13,306
Short-term bank deposits                    -                2,527
Marketable securities                       17,809           12,583
Accounts receivables: Trade, net            12,016           12,391
Accounts receivables: Other                 1,293            2,234
Inventories                                 18,529           14,795
Deferred tax assets                         89               47
Total current assets                        61,188           57,883
                                                             
Marketable securities                       27,165           28,469
Assets held for employees’ severance        1,413            1,377
benefits
Deferred tax assets                         130              114
Property, plant and equipment, net          1,289            1,190
                                                             
Total assets                                $91,185          $89,033
                                                             
                                                             
Liabilities and shareholders' equity
                                                             
Current liabilities
Trade accounts payable                      $5,112           $7,875
Other accounts payable and accrued          3,960            3,914
expenses
Total current liabilities                   9,072            11,789
                                                             
Liability for employees’ severance          2,455            2,278
benefits
                                                             
Total liabilities                           11,527           14,067
                                                             
Shareholders' equity
Ordinary shares and additional paid-in      37,675           36,086
capital
Treasury shares                             -38              -38
Retained earnings                           42,021           38,918
Total Shareholders' equity                  79,658           74,966
                                                             
Total liabilities and shareholders'         $91,185          $89,033
equity

                          Silicom Ltd. Consolidated
                           Statements of Operations

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

                                                           Three-month period
                                                            ended March 31,
                                                            2013      2012
Sales                                                       $15,030    $10,101
Cost of sales                                               9,001      5,938
Gross profit                                                6,029      4,163
                                                                       
Research and development expenses                           1,244      1,091
Selling and marketing expenses                              849        634
General and administrative expenses                         614        532
Total operating expenses                                    2,707      2,257
                                                                       
Operating income                                            3,322      1,906
                                                                       
Financial income, net                                       118        240
Income before income taxes                                  3,440      2,146
Income taxes                                                337        169
Net income                                                  $3,103     $1,977
                                                                       
                                                                       
Basic income per ordinary share (US$)                       $0.44      $0.29
                                                                       
Weighted average number of ordinary shares used to                    
compute basic income per share (in thousands)
                                                            7,063      6,928
                                                                       
Diluted income per ordinary share (US$)                     $0.43      $0.28
                                                                       
Weighted average number of ordinary shares used to                    
compute diluted income per share (in thousands)
                                                            7,166      7,022

                        Silicom Ltd. Reconciliation of
                          Non-GAAP Financial Results

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

                                            Three-month period
                                             ended March 31,
                                             2013                2012
GAAP gross profit                            $6,029               $4,163
(1) Share-based compensation (*)             25                   4
Non-GAAP gross profit                        $6,054               $4,167
GAAP operating income                        $3,322               $1,906
(1) Share-based compensation (*)             165                  98
Non-GAAP operating income                    $3,487               $2,004
GAAP net income                              $3,103               $1,977
(1) Share-based compensation (*)             165                  98
Non-GAAP net income                          $3,268               $2,075
                                                                

GAAP basic income per ordinary share         $0.44                $0.29
(US$)
(1) Share-based compensation (*)             0.02                 0.01
Non-GAAP basic income per ordinary           $0.46                $0.30
share (US$)
GAAP diluted income per ordinary                                 
share (US$)
                                             $0.43                $0.28
(1) Share-based compensation (*)             0.03                 0.02
Non-GAAP diluted income per ordinary         $0.46                $0.30
share (US$)


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

Contact:

Company Contact:
Eran Gilad, CFO, Tel: +972-9-764-4555
Silicom Ltd.
E-mail: erang@silicom.co.il
or
Investor relations contact:
Kenny Green / Ehud Helft, Tel: +1 646 201 9246
CCG Israel Investor Relations
E-mail : silicom@ccgisrael.com
 
Press spacebar to pause and continue. Press esc to stop.