Loading...
01/10 05:14
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals stable financial performance with unchanged revenue and improved margins, but still operating at a loss. The shareholder return plan and design wins are positive, yet geopolitical and economic risks, along with vague management responses, temper optimism. The Q&A highlights demand in product lines and ongoing share buybacks, but uncertainty remains. The absence of a strong catalyst and mixed signals lead to a neutral stock price prediction.
Revenue $14.4 million, unchanged year-over-year from Q1 2024.
Gross Profit $4.4 million, up from $4.1 million in Q1 2024, resulting in a gross margin of 30.3%, compared to 28.5% in Q1 2024.
Operating Expenses $6.7 million, down from $6.8 million in Q1 2024.
Operating Loss $2.4 million, improved from an operating loss of $2.7 million in Q1 2024.
Net Loss $2.1 million, improved from a net loss of $2.4 million in Q1 2024.
Loss Per Share $0.37, compared to a loss per share of $0.38 in Q1 2024.
Working Capital and Marketable Securities $119 million, including $77 million in cash and no debt.
Design Wins: Silicom has achieved three significant design wins in 2025, including a $2.5 million per year contract with a U.S.-based global provider of advanced network testing equipment, a $3 million per year contract with a U.S.-based cybersecurity leader, and a $2 million per year contract with a major U.S. cybersecurity customer.
Revenue Guidance: Silicom projects revenues between $14.5 million and $15.5 million for Q2 2025, with expectations of low-single-digit growth for 2025 and double-digit growth anticipated for 2026.
Financial Position: Silicom's working capital and marketable securities total $119 million, including $77 million in cash and no debt, allowing for continued investment in growth.
Strategic Goals: Silicom aims for an EPS above $3 based on revenues of $150 million to $160 million, with a focus on achieving seven to nine design wins in 2025.
Customer Dependence: Silicom's increasing dependence for substantial revenue growth on a limited number of customers poses a risk to its financial stability.
Market Adoption: The speed and extent to which Silicom solutions are adopted by relevant markets is uncertain, which could impact revenue growth.
Commercialization Challenges: Difficulties in the commercialization and marketing of Silicom’s products and services may hinder growth.
Brand Recognition: Maintaining and protecting brand recognition is crucial, and any failure could affect customer trust and sales.
Intellectual Property Protection: Protection of intellectual property is essential, and any breaches could lead to competitive disadvantages.
Competition: Intense competition in the industry could pressure pricing and market share.
Manufacturing Disruptions: Disruptions to manufacturing and sales and marketing activities could impact product availability and revenue.
Geopolitical Risks: The impact of war in Israel and Ukraine may affect operations and market conditions.
Economic Factors: Rising inflation, changing interest rates, and volatile exchange rates could negatively impact customer demand.
COVID-19 Impact: Continuing effects from the COVID-19 pandemic may lead to customers exercising greater caution in IT investments.
Design Wins: Silicom aims to achieve between seven and nine new design wins in 2025, with three already secured, indicating strong progress in their strategic plan.
Revenue Growth: The company is on track to return to solid double-digit growth rates starting from 2026, with a target of $150 million to $160 million in revenues.
EPS Target: Silicom targets an EPS above $3 based on the projected revenues.
Pipeline Opportunities: The company has a broad pipeline of opportunities across all products, including Edge systems, Smart NICs, and FPGAs, which are expected to convert into design wins.
2025 Revenue Guidance: Silicom projects low-single-digit growth for 2025, with expected revenues between $14.5 million and $15.5 million for Q2.
2026 Revenue Growth: Double-digit growth is expected for 2026, driven by the design wins and pipeline opportunities.
Gross Margin Expectations: Short to mid-term expected gross margin range is between 27% to 32%, with potential for increase as revenues grow.
Shareholder Return Plan: The company aims to create significant value for shareholders with a target EPS of above $3 based on annual revenues of $150 million to $160 million.
Cash Position: As of March 31, 2025, Silicom has $77 million in cash, deposits, and highly rated bonds, representing about $21 per share.
Design Wins: The company is on track to achieve between seven and nine new design wins in 2025, with three already secured, which are expected to contribute to future revenue growth.
The earnings call presents a mixed picture: positive financial performance with revenue and gross margin growth, but ongoing net losses and increased operating expenses due to currency fluctuations. The company's long-term growth prospects are promising, particularly in AI and PQC, but risks such as dependency on a few customers and macroeconomic challenges remain. The Q&A session didn't reveal any major concerns, but also didn't provide any strong catalysts for a stock price increase. Overall, the sentiment is neutral, balancing positive long-term potential against current financial and operational challenges.
The earnings call revealed a mixed financial performance with increased revenues but higher operating expenses leading to a net loss. Despite strong execution, uncertainties in customer dependency, market adoption, and geopolitical risks pose significant challenges. The Q&A highlighted opportunities in hardware solutions and AI clusters, but management's vague responses on competition and margin expectations create uncertainty. The lack of strong positive catalysts and the increase in net loss suggest a negative market reaction.
The earnings call presents mixed signals. Financial performance shows slight improvement, with stable revenue and improved margins, but the company is still operating at a net loss. The shareholder return plan is positive, yet unclear management responses in the Q&A raise concerns. Geopolitical and economic risks add uncertainty. The design wins and cash position are positives, but overall, the sentiment is neutral due to the lack of strong catalysts and ongoing risks.
The earnings call reveals stable financial performance with unchanged revenue and improved margins, but still operating at a loss. The shareholder return plan and design wins are positive, yet geopolitical and economic risks, along with vague management responses, temper optimism. The Q&A highlights demand in product lines and ongoing share buybacks, but uncertainty remains. The absence of a strong catalyst and mixed signals lead to a neutral stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
