Silicom Reports Financial Results for Q3 and 1st Nine Months of 2008
biz.yahoo.com
Monday October 27, 8:15 am ET
- Company Returns to Growth with a 19% Sequential Increase in Revenues and $0.14 EPS -
KFAR SAVA, Israel--(BUSINESS WIRE)--Silicom Ltd. (NASDAQ and TASE: SILC) today reported its financial results for the third quarter and nine months ended September 30, 2008.
Revenues for the third quarter of 2008 were $6.1 million, a 19% increase compared sequentially with revenues of $5.2 million recorded in the second quarter of 2008 and an 8% decrease compared year-over-year with revenues of $6.6 million recorded in the third quarter of 2007. Net income for the third quarter of 2008 was $0.9 million, or $0.14 per share (basic and diluted), a 192% increase compared sequentially with $0.3 million, or $0.05 per share (basic and diluted) for the second quarter of 2008, and a 43% decrease compared year-over-year with net income of $1.6 million, or $0.25 per share (basic and diluted), for the third quarter of 2007.
Revenues for the first nine months of 2008 were $19.0 million compared with $19.3 million for the parallel period of 2007. Net income for the nine-month period was $3.0 million, or $0.44 per diluted share ($0.45 per basic share), compared with $4.5 million, or $0.72 per diluted share ($0.75 per basic share), for the first nine months of 2007.
Commenting on the results, Shaike Orbach, President and CEO, said, “We are pleased to report significant sequential growth in our revenues and profits for the third quarter – especially given the challenges inherent in today’s volatile macro market environment. This success derives from the on-track overall performance of our business, resulting in new revenues that have mitigated the effect of the appliance configuration change implemented recently by one of our significant customers. We are especially encouraged by two positive developments:
* The increased purchases of our Fortune 100 WAN Optimization customer. Throughout the quarter, this major manufacturer increased its purchases of Silicom products in preparation for rolling out its next-generation WAN Optimization appliances, and has ‘designed in’ our BYPASS card as a standard component in one of them.
* The steady addition of new business with new and current customers. We continue to make headway in our sales efforts, through which we continue to secure new customers and increase the range of products that we sell to existing customers. We have recently added an important new security appliance customer who we believe has the potential to become a significant customer in the future.
“These developments have enabled us to continue building our business despite the difficult market environment, making us optimistic regarding our long-term prospects.” |
