Silicom Posts Outstanding Quarter to Cap Record Year: Q4 Sales of $5.0M Yield $1.1M of Net Profit Monday January 29, 8:28 am ET Momentum Continues: 3 Straight Years of Quarterly Revenue Growth; New Quarterly and Annual Records Set for Sales, Operating Income & Net Income
KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ and TASE: SILC) today reported record revenues, operating income and net income for the fourth quarter and full year ended December 31, 2006. Revenues for the fourth quarter of 2006 were $5.0 million, an increase of 60% compared with $3.1 million in the fourth quarter of 2005 and 20% compared sequentially to the third quarter of 2006. This is the Company's twelfth consecutive quarter of increasing revenues and its highest quarterly revenues on record. Operating income for the quarter was $950,000, an increase of 100% compared to the parallel quarter of 2005 and 53% compared sequentially to the third quarter of 2006. Net income for the quarter increased by 125%, reaching $1.1 million, or $0.20 per diluted share ($0.21 per basic share), compared to $473,000, or $0.11 per share (basic and diluted) for the fourth quarter of 2005. This represents a 60% increase in net income compared sequentially with the third quarter of 2006.
Revenues for the full year of 2006 increased by 48% to a record $16.1 million compared with $10.9 million for 2005. Net income for the period increased by 97% to $2.6 million, or $0.49 per diluted share ($0.51 per basic share), compared with $1.3 million, or $0.30 per diluted share ($0.31 per basic share) for 2005.
Commenting on the results, Shaike Orbach, President and CEO, said, "We are proud to report an outstanding fourth quarter as the climax of the best year in our history. After crossing the $4 million revenue milestone in Q3, during the final three months of the year our sales grew by an additional 20%, giving us quarterly revenues above $5 million and a 100% year-over-year increase in operating income.
"This exceptional performance is attributable to two exceptionally strong growth engines. As we have indicated in the past, the platform of 40+ Design Wins that we have accumulated over the past several years represents a continuously expanding source of orders, and we have been adding new Design Wins to the base each quarter. In addition, during the fourth quarter we began to see an exponential ramp up in the order volumes of some of our customers - particularly those in the exploding WAN Optimization arena - in response to the incredible growth of their markets."
Mr. Orbach concluded, "Looking forward into 2007, we believe that the momentum of both these growth engines will continue to accelerate, driving continued strong growth for our company. With strong traction and a favorable environment, we are working to achieve our full potential and to create additional value for our shareholders."
Quarterly Conference Call
Silicom's senior management will be hosting a conference call today, January 29th, at 9am EST (6am Pacific Time; 4pm Israel Time) to review and discuss the results and to answer investor questions. To participate, please call one of the following teleconferencing numbers 10 minutes before the conference call commences.
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 in the investor relations section of Silicom's website at: www.silicom.co.il.
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