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, 2009
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 January 26th, 2009 announcing Registrant’s fourth quarter financial results.
This report on Form 6-K is incorporated by reference into the Registrant’s Registration Statement on Form F-3, Registration Statement No. 333-143565. This report on Form 6-K is also incorporated by reference into all other effective registration statements filed by the Registrant under the Securities Act of 1933.
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 26th, 2009
FOR IMMEDIATE RELEASE
EARNINGS RELEASE
SILICOM REPORTS
FINANCIAL RESULTS FOR
Q4 AND FULL YEAR 2008
– Sequential Growth Caps Off
Challenging Year: Q4 Revenues Up 6%
Sequentially to $6.5M, Earnings Up 74% Sequentially to
$0.24 Per Diluted
Share
KFAR SAVA, Israel – January 26, 2009 – Silicom Ltd. (NASDAQ and TASE: SILC) today reported its financial results for the fourth quarter and full year ended December 31, 2008.
Revenues for the fourth quarter of 2008 were $6.5 million, a 6% increase compared sequentially with revenues of $6.1 million recorded in the third quarter of 2008, and a 13% decrease compared year-over-year with revenues of $7.5 million recorded in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was $1.6 million, or $0.24 per diluted share ($0.25 per basic share), a 74% increase compared sequentially with $0.9 million, or $0.14 per share (basic and diluted) for the third quarter of 2008, and a 10% decrease compared year-over-year with net income of $1.8 million, or $0.27 per diluted share ($0.28 per basic share), for the fourth quarter of 2007.
Revenues for the full year ended December 31, 2008 were $25.6 million, a 5% decrease compared with $26.8 million for 2007. Net income for the year was $4.6 million, or $0.69 per share (basic and diluted), compared with $6.3 million, or $1.00 per diluted share ($1.03 per basic share), for 2007.
As of December 31, 2008, the Company’s cash, cash equivalents and marketable securities totaled $39.2 million, an increase of $1.8 million compared with its balance at the end of the third quarter of 2008, and an increase of $6.3 million compared with its balance at the end of 2007.
Commenting on the results, Shaike Orbach, President and CEO, said, “We are pleased to report another quarter of sequential growth. In line with our work plan, during the quarter we added several new customers and expanded the range of products sold to several existing customers, both significant achievements in today’s uncertain market environment. We continue to see signs that the industry differentiates Silicom in terms of our technology, customization and service capabilities. In fact, we have recently reported a milestone order from one of the world’s three largest server manufacturers, an achievement which represents a third-party confirmation of our products, business platform and financial stability. We are proud of this vote of confidence and believe it will prove strategic to our long-term sales efforts.”
Mr. Orbach concluded, “As we move into 2009, our visibility continues to be low due to the macro environment slowdown, and our results – together with those of the overall IT industry – may be impacted. In the face of this reality, our strategy is to continue executing a sound plan that has proven itself in the past, including the systematic and aggressive pursuit of sales; the provision of top-tier service; and continuous product innovation to meet the needs of a changing industry.”
Conference Call Details
The Company will host a conference call to discuss these results today, Monday, January 26th, at:
| 9:00 a.m. Eastern Standard Time |
| 6:00 a.m. Pacific Standard Time |
| 16:00 Israel Time |
To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, try the international dial-in number.
US: 1 866 345 5855
UK: 0 800 404 8418
ISRAEL: 03 918 0609
INTERNATIONAL: +972 3 918 0609
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 under the investor relations section of Silicom’s website, at: www.silicom.co.il
About Silicom
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, WAN Optimization and security appliances and other mission-critical gateway applications. 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.
| Company Contact: | Investor relations contact: |
| Eran Gilad, CFO | Kenny Green / Ehud Helft |
| Silicom Ltd. | GK Investor Relations |
| Tel: +972-9-764-4555 | Tel: 1-646-201-9246 |
| E-mail: erang@silicom.co.il | E-mail : info@gkir.com |
– FINANCIAL TABLES FOLLOW –
Silicom Ltd.
Consolidated
Statements of Income
(US$ thousands, except for share and per share data)
| Three-month period ended December 31, |
Twelve-month period ended December 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 |
2007 |
2008 |
2007 | |||||||||||
| Sales | $ | 6,538 | $ | 7,478 | $ | 25,554 | $ | 26,784 | ||||||
| Cost of sales | 4,041 | 4,470 | 15,405 | 16,094 | ||||||||||
| | | |||||||||||||
| Gross profit | 2,497 | 3,008 | 10,149 | 10,690 | ||||||||||
| | | |||||||||||||
| Research and development costs | 573 | 621 | 3,048 | 2,208 | ||||||||||
| Selling and marketing expenses | 352 | 390 | 2,093 | 1,537 | ||||||||||
| General and administrative expenses | 276 | 331 | 1,427 | 1,189 | ||||||||||
| | | |||||||||||||
| Total operating expenses | 1,201 | 1,342 | 6,568 | 4,934 | ||||||||||
| | | |||||||||||||
| Operating income | 1,296 | 1,666 | 3,581 | 5,756 | ||||||||||
| Financial income, net | 384 | 307 | 1,188 | 956 | ||||||||||
| | | |||||||||||||
| Income before income taxes | 1,680 | 1,973 | 4,769 | 6,712 | ||||||||||
| Income tax expense | 38 | 153 | 124 | 432 | ||||||||||
| | | |||||||||||||
| Net income | $ | 1,642 | $ | 1,820 | $ | 4,645 | $ | 6,280 | ||||||
| | | |||||||||||||
| Basic income per ordinary share | $ | 0.25 | $ | 0.28 | $ | 0.69 | $ | 1.03 | ||||||
| | | |||||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| used to compute basic income per share (in | ||||||||||||||
| thousands) | 6,694 | 6,560 | 6,685 | 6,122 | ||||||||||
| | | |||||||||||||
| Diluted income per ordinary share | $ | 0.24 | $ | 0.27 | $ | 0.69 | $ | 1.00 | ||||||
| | | |||||||||||||
| Weighted average number of ordinary shares | ||||||||||||||
| used to compute diluted income per share (in | ||||||||||||||
| thousands) | 6,750 | 6,760 | 6,780 | 6,309 | ||||||||||
| | | |||||||||||||
Silicom Ltd. Consolidated Balance
Sheets
(US$ thousands)
| December 31, 2008 |
December 31, 2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 14,568 | $ | 14,216 | ||||
| Marketable securities | 8,426 | 3,516 | ||||||
| Accounts receivables: Trade, net | 4,849 | 6,545 | ||||||
| Accounts receivables: Other | 353 | 338 | ||||||
| Inventories | 5,269 | 4,078 | ||||||
| Deferred tax assets | 444 | 73 | ||||||
| Total current assets | 33,909 | 28,766 | ||||||
| Marketable securities | 16,204 | 15,210 | ||||||
| Assets held for employees' severance benefits | 1,066 | 952 | ||||||
| Property, plant and equipment, net | 795 | 675 | ||||||
| Other assets, net | - | 39 | ||||||
| Total assets | $ | 51,974 | $ | 45,642 | ||||
| Liabilities and shareholder's equity | ||||||||
| Current liabilities | ||||||||
| Trade accounts payable | $ | 2,681 | $ | 2,997 | ||||
| Other accounts payable and accrued expenses | 2,054 | 1,715 | ||||||
| Total current liabilities | 4,735 | 4,712 | ||||||
| Liability for employees' severance benefits | 1,905 | 1,596 | ||||||
| Total liabilities | 6,640 | 6, 308 | ||||||
| Shareholders' equity | ||||||||
| Ordinary shares and additional paid-in capital | 33,102 | 31,747 | ||||||
| Treasury shares | (38 | ) | (38 | ) | ||||
| Retained earnings | 12,270 | 7,625 | ||||||
| Total Shareholders' equity | 45,334 | 39,334 | ||||||
| Total liabilities and shareholders equity | $ | 51,974 | $ | 45,642 | ||||