zk1008204.htm


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 April, 2010
________________
 
SILICOM  LTD.

 (Translation of Registrant's name into English)
 
________________
 
8 Hanagar St., P.O.Box 2164, Kfar-Sava 44425, 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:
 
Form 20-F þ   Form 40-F o
 
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
 
 Yes o   No þ
 
 
 

 

Attached hereto and incorporated by reference herein is Registrant's press release dated April 26th, 2010 announcing Registrant's first quarter financial results.

This report on Form 6-K is incorporated by reference into the Registrant's Registration Statement on Form F-3, Registration Statement No. 333-143565. This report on Form 6-K is also incorporated by reference into all other effective registration statements filed by the Registrant under the Securities Act of 1933.
 
 
 

 
 
Signature

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.
 
 
 SILICOM  Ltd.
 (Registrant)
 
       
 
By:
/s/ Eran Gilad  
   
Eran Gilad
 
   
CFO
 
 
Dated:  April 26th, 2010
     
 
 
 

 
 

FOR IMMEDIATE RELEASE

EARNINGS RELEASE

SILICOM REPORTS Q1 FINANCIAL RESULTS

– $6.4M Sales Yield $1.0M Operating Income, $0.13 EPS –
 
KFAR SAVA, Israel - April 26, 2010--Silicom Ltd. (NASDAQ and TASE: SILC) today reported financial results for the first quarter ended March 31, 2010.
 
Revenues for the first quarter of 2009 were $6.4 million, a 28% increase compared with $5.0 million for the first quarter of 2009.
 
Operating income for the quarter was $1,007,000, an increase of 55% compared with $649,000 in the first quarter of 2009. Net income for the quarter was $938,000, or $0.13 per diluted share ($0.14 per basic share), an 8% increase compared with $867,000, or $0.13 per share (basic and diluted), for the first quarter of 2009.
 
As of March 31, 2010, the Company’s cash, cash equivalents, bank deposits and marketable securities totaled $43.8 million, up $0.6 million compared with the end of 2009.
 
Commenting on the results, Shaike Orbach, President and CEO, said, “The first quarter was another period of strong revenues and operating income together with significant strategic progress towards our long-term objectives. Our continued success confirms the trends we reported in the fourth quarter of 2009: early signs of recovering markets, a strong underlying need for our traditional product lines, and growing interest and sales of our latest product innovations.”
 
Mr. Orbach continued, "We are especially encouraged by a number of positive factors, each of which is representing an important potential growth engine for the company:
 
 
We are seeing a ramp-up in the orders flowing from recent design wins with large customers.
 
 
Several of our customers have integrated our products into more of their product lines, and therefore are increasing their business with us.
 
 
We are seeing increased revenues from many of the 70+ customers in our customer base, many of whom are market leaders in various networking and security market segments.
 
 
We are starting to see initial sales of our new products, as demonstrated by the significant win that we achieved during the quarter for our 10 Gbps external Intelligent Bypass Switch. This innovative new product extends our positioning as the industry’s trusted ‘one-stop shop’ for top-performing Bypass solutions.
 
 
 

 
 
 
Market traction for our SETAC (SErver To Appliance Converter) is beginning to build, as illustrated by the selection of SETAC by a leading Chinese network appliance manufacture, which is the third SETAC marketing success we have announced since our recent launch of the product.
 
Mr. Orbach concluded, “All of these achievements reflect the success of our continuous investment in innovative R&D, sales and marketing. We believe the combination of an expanding product portfolio, a satisfied customer base, recovering markets, and a reputation for technology innovation position us to continue delivering strong sales growth as we move into 2010.”
 
Conference Call Details:
 
Silicom’s Management will host an interactive conference today, April 26th, at 9am EDT (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, at: www.silicom.co.il
 
 

 
About Silicom
 
Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, WAN Optimization and security appliances and other mission-critical gateway applications. 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.
 
Company Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
Investor relations contact:
Kenny Green / Ehud Helft
CCG Israel Investor Relations
Tel: +1 646 201 9246
E-mail : silicom@ccgisrael.com  
 
-- FINANCIAL TABLES FOLLOW --
 
 
 

 

Silicom Ltd. Consolidated Balance Sheets
 (US$ thousands)
 
 
  March 31,
2010
     December 31,
2009
 
             
 Assets            
             
Current assets            
Cash and cash equivalents
  $ 7,559     $ 7,253  
Short-term bank deposits
    7,503       7,253  
Marketable securities
    11,147       10,425  
Accounts receivables: Trade, net
    5,765       5,172  
Accounts receivables: Other
    560       371  
Inventories
    5,886       4,677  
Deferred tax assets
    175       233  
Total current assets
    38,595       35,384  
                 
Marketable securities
    17,640       18,308  
Assets held for employees’ severance benefits
     1,126        1,105  
Deferred tax assets
    241       192  
Property, plant and equipment, net
    568       602  
                 
Total assets
  $ 58,170     $ 55,591  
 
Liabilities and shareholder's equity
 
Current liabilities
           
Trade accounts payable
  $ 3,785     $ 2,261  
Other accounts payable and accrued expenses
     2,108        2,138  
Total current liabilities
    5,893       4,399  
                 
Liability for employees’ severance benefits
     2,045        1,967  
                 
Total liabilities
    7,938       6,366  
                 
Shareholders' equity
               
Ordinary shares and additional paid-in capital
     34,243        34,174  
Treasury shares
    (38 )     (38 )
Retained earnings
    16,027       15,089  
Total Shareholders' equity
    50,232       49,225  
Total liabilities and shareholders equity
  $  58,170     $  55,591  
 
 
 

 

Silicom Ltd. Consolidated
Statements of Income
 (US$ thousands, except for share and per share data)
 
   
Three-month period
 
   
ended March 31,
 
   
2010
   
2009
 
Sales
  $ 6,400     $ 5,018  
Cost of sales
    3,698       3,078  
Gross profit
    2,702       1,940  
                 
Research and development expenses
    837       637  
Selling and marketing expenses
    498       379  
General and administrative expenses
    360       275  
Total operating expenses
    1,695       1,291  
                 
Operating income
    1,007       649  
                 
Financial income, net
    141       344  
Income before income taxes
    1,148       993  
Income taxes
    210       126  
Net income
  $ 938     $ 867  
                 
                 
 
Basic income per ordinary share
  $  0.14     $  0.13  
                 
Weighted average number of ordinary shares used to compute basic income per share (in thousands)
     6,809        6,694  
                 
 
Diluted income per ordinary share
  $  0.13     $  0.13  
                 
Weighted average number of ordinary shares used to compute diluted income per share (in thousands)
     6,964        6,791