Silicom Ltd. (SILCF)

[midastouch017]

I’ll end today’s review with Silicom Ltd. (Nasdaq:SILC; TASE:SILC), one of my favorite small companies which staged a comeback after the tsunami of 2000. The move that helped Silicom bounce back from the crisis was its decision to focus on what are known as “bypass” switches which ensure that network traffic continues to flow in case the appliance fails or loses power. The company’s veteran chairman (and founder) Avi Eizenman brought in a top-rate manager and marketing executive, Shaike Orbach, and the two men are leading the company forward with the utmost professionalism, a fact that has not gone unnoticed by the market.

Silicom’s results for the fourth quarter and 2006 as a whole quite definitely justify the rise in the company’s market cap from $800,000 four years ago ($0.20 a share) to $72 million ($13.8) a share today. According to figures for 2006, the company posted earnings per share of $0.20 for the fourth quarter and $0.49 for the year as a whole.

Published by Globes [online], Israel business news - www.globes.co.il - on January 30, 2007

http://www.globes.co.il/serveen/globes/docview.asp?did=1000178004&fid=1052