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 January, 2006
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 x 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 x
Attached hereto and incorporated by reference herein is Registrant’s press release dated December 31st, 2005 announcing Registrant’s fourth quarter financial results.
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: January 30, 2006
EARNINGS RELEASE
FOR IMMEDIATE RELEASE
SILICOM REPORTS RECORD Q4 AND 2005
RESULTS: BEST-EVER QUARTER AND BEST -
EVER YEAR
– After Rising for 8th Consecutive Quarters, Revenues Reach $3.1M
for Q4 & $10.9M for 2005 –
– 4th Profitable Quarter in a Row Yields
Record $0.11 EPS for Q4, $0.30 EPS for 2005 –
KFAR SAVA, Israel – January 30, 2006 – Silicom Ltd. (NASDAQ and TASE: SILC) today reported record financial results for the fourth quarter and year ended December 31, 2005.
Revenues for the fourth quarter of 2005 were $3,126,000, an increase of 98% compared with $1,581,000 for the fourth quarter of 2004, and an increase of 10% compared with $2,832,000 for the third quarter of 2005. These are the highest quarterly revenues in Silicom’s history and the Company’s eighth consecutive quarter of rising revenues.
Net income for the quarter was $473,000, or $0.11 per share (basic and diluted), a new record for the Company, compared with a net loss of ($87,000), or ($0.02) per share for the fourth quarter of 2004.
Revenues for the year ended December 31, 2005 rose to an all-time high of $10,876,000, an increase of 139% compared with $4,559,000 for 2004. The Company’s net income from the year’s four profitable quarters was $1,322,000, or $0.30 per diluted share, compared to a net loss of ($1,240,000), or ($0.30) per diluted share for 2004.
Commenting on the results, Shaike Orbach, President and CEO, said, “We are proud to report the best quarter in our history, a strong end for a successful 2005 with four quarters of rising revenues and profits. For the first time ever, our yearly sales have crossed the $10 million milestone and we have posted a 12% net margin.
“These satisfying results demonstrate the quantum leap forward that Silicom achieved in 2005. Throughout the year, our momentum intensified, with early customers ramping up their order volumes significantly and a growing number of new customers giving us new significant Design Wins, such as the two Design Wins with Fortune 100 companies announced during the fourth quarter alone. Now, with more than 30 Design Wins and more than 100 potential customers in the pipe line, we have established presence in the security, storage, load balancing, traffic management and other industries and are positioned to benefit from their growth.”
Mr. Orbach continued, “In light of increased Israeli interest in our share, we have recently dual-listed the Company on the Tel Aviv Stock Exchange, a move we hope will expand our liquidity and trading volumes. In addition, we have recently completed an oversubscribed public offering of shares and options, raising approximately $6 million dollars. We are gratified by this vote of confidence and pledge to continue working to build the Company and shareholder value.”
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, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. 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.
Contact:
Eran Gilad, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: erang@silicom.co.il
– FINANCIAL TABLES FOLLOW –
Silicom Ltd.
Consolidated Summary of Results
(Unaudited)
U.S. dollars, in thousands, except for per share amounts
| Three-month period ended December 31, |
Full Year ended December 31, |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 (Unaudited) |
2004 (Unaudited) |
2005 (Unaudited) |
2004 (Audited) | |||||||||||
| Sales | $ | 3,126 | $ | 1,581 | $ | 10,876 | $ | 4,559 | ||||||
| Cost of sales | 1,855 | 954 | 6,507 | 2,999 | ||||||||||
| Gross profit | 1,271 | 627 | 4,369 | 1,560 | ||||||||||
| Research and development costs, gross | 398 | 374 | 1,561 | 1,596 | ||||||||||
| Less - royalty bearing participations | (27 | ) | (42 | ) | (98 | ) | (145 | ) | ||||||
| Research and development costs, net | 371 | 332 | 1,463 | 1,451 | ||||||||||
| Selling and marketing expenses | 241 | 205 | 903 | 718 | ||||||||||
| General and administrative | 184 | 156 | 695 | 614 | ||||||||||
| 796 | 693 | 3,061 | 2,783 | |||||||||||
| Operating income (Loss) | 475 | (66 | ) | 1,308 | (1,223 | ) | ||||||||
| Financial income (expenses), net | (2 | ) | (21 | ) | 14 | (17 | ) | |||||||
| Income (Loss) before taxes on income | 473 | (87 | ) | 1,322 | (1,240 | ) | ||||||||
| Taxes on income | --- | --- | --- | --- | ||||||||||
| Net income (Loss) | $ | 473 | $ | (87 | ) | $ | 1,322 | $ | (1,240 | ) | ||||
| Basic income (Loss) per share | $ | 0.11 | $ | (0.02 | ) | $ | 0.31 | $ | (0.30 | ) | ||||
| Weighted average number of shares | ||||||||||||||
| outstanding - Basic EPS (in thousands) | 4,301 | 4,199 | 4,256 | 4,190 | ||||||||||
| Diluted income (Loss) per share | $ | 0.11 | $ | (0.02 | ) | $ | 0.30 | $ | (0.30 | ) | ||||
| Weighted average number of shares | ||||||||||||||
| outstanding - Diluted EPS (in | ||||||||||||||
| thousands) | 4,463 | 4,199 | 4,364 | 4,190 | ||||||||||
Silicom Ltd.
Consolidated Balance Sheets
(U.S. dollars, in thousands)
| December 31, 2005 (Unaudited) |
December 31, 2004 (Audited) | |||||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,276 | $ | 1,086 | ||||
| Short term investments | - | 519 | ||||||
| Trade receivables | 2,395 | 741 | ||||||
| Other receivables | 453 | 337 | ||||||
| Inventories | 2,994 | 1,994 | ||||||
| 8,118 | 4,677 | |||||||
| Severance pay fund | 587 | 559 | ||||||
| Property and equipment, net | 292 | 232 | ||||||
| Other assets | 48 | 57 | ||||||
| Total assets | $ | 9,045 | $ | 5,525 | ||||
| Liabilities and shareholder's equity | ||||||||
| Current liabilities | ||||||||
| Short-term bank credit | 500 | - | ||||||
| Trade payables | 2,020 | 1,008 | ||||||
| Other payables and accrued liabilities | 822 | 522 | ||||||
| Total current liabilities | 3,342 | 1,530 | ||||||
| Liability for severance pay | 1,031 | 957 | ||||||
| Total liabilities | 4,373 | 2,487 | ||||||
| Shareholders' Equity | ||||||||
| Share capital and additional paid in | ||||||||
| capital | 5,964 | 5,652 | ||||||
| Treasury stock | (38 | ) | (38 | ) | ||||
| Retained earnings (deficit) | (1,254 | ) | (2,576 | ) | ||||
| 4,672 | 3,038 | |||||||
| Total liabilities and shareholders equity | $ | 9,045 | $ | 5,525 | ||||