Silicom posts 9th consecutive quarter of rising revenue
Revenue for the first quarter of 2006 was $3.28 million, up 44% from $2.28 million for the first quarter of 2005.
Globes correspondent 24 Apr 06 18:01
Server/appliances networking solutions provider Silicom Ltd. (Nasdaq:SILC; TASE:SILC) today reported its highest quarterly sales ever, and the company's ninth consecutive quarter of rising revenue.
Net profit for the quarter was a record $548,000, or $0.11 per share (basic and diluted), more than triple the net profit of $150,000, or $0.04 per share (basic and diluted), recorded in the first quarter of 2005, and an increase of 16% compared with $473,000, or $0.11 per share (basic and diluted) for the fourth quarter of 2005.
Revenue for the first quarter of 2006 was $3.28 million, an increase of 44% compared with $2.28 million for the first quarter of 2005, and an increase of 5% compared with $3.126 million for the fourth quarter of 2005.
Cash and cash equivalents at the end of the quarter totaled $7.8 million compared to $1.8 million at the end of the fourth quarter of 2005. Silicom stated that this reflected the contribution of the public offering completed in January 2006 and the quarter's positive cash flow.
Silicom president and CEO Shaike Orbach said, "During the quarter, we recorded strategic design wins with two new customers, a major manufacturer of traffic management/load balancing appliances and an industry-leading provider of Internet security appliances. Also during the quarter we dual-listed the company on the Tel Aviv Stock Exchange and completed a $6 million public offering, moves that have increased the liquidity of our share and increased our working capital.
"Taken as a whole, with strong cash reserves, a growing range of superb products, an expanded foundation of about 35 design wins and a strong presence in the security, storage, load balancing, traffic management and other industries, we believe that we are well positioned to achieve new records in our 2006 revenues and net income."
The company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and 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.
Published by Globes [online], Israel business news - www.globes.co.il - on April 24, 2006