Silicom Ltd. (SILCF)

[midastouch017]

Silicom Q2 net profit soars 392%
The company posted $6.6 million in sales up 82% over the corresponding quarter.
Michal Yoshai 24 Jul 07 10:20
Network hardware company Silicom Ltd. (Nasdaq:SILC; TASE:SILC) published its financial report for the second quarter of 2007 yesterday, in which it posted a net profit of $1.6 million, or $0.25 per share, a 392% increase on its profit of $319,000 in the corresponding quarter in 2006. The company beat the consensus estimate, which predicted earnings per share of $0.20.
Sales for the second quarter rose 82% to $6.6 million, from $3.6 million in the corresponding quarter. These are the Silicom's highest revenues on record and its 14th consecutive quarter of rising sales, representing 9% growth over the first quarter of the year. Here too, the company beat the consensus estimate, which predicted $6.5 million in revenue.

Operating profit soared 346% to $1.4 million over the corresponding quarter, representing more than 20% of revenue.

Silicom posted a net profit of $2.8 million, or $0.47 per share on $12.7 million revenue for the first half of 2007.

Silicom president and CEO Shaike Orbach said, " The second quarter was another period of growing sales and profits for Silicom. We are particularly proud of the above-20% operating margins that we have achieved for both the quarter and the six-month period, a result of our ability to leverage our current cost structure to support a higher level of sales. Taken as a whole, we are pleased with our progress and are working to build the company for the benefit of our shareholders."

Published by Globes [online], Israel business news - www.globes.co.il - on July 24, 2007