6-K 1 d30203.htm 6-k

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 July, 2003

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 July 21st, 2003 announcing Registrant’s second quarter financial results.


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/ Ilan Erez
——————————————
Ilan Erez
Chief Financial Officer

Dated: July 21st, 2003




EARNINGS RELEASE

FOR IMMEDIATE RELEASE

SILICOM REPORTS SECOND
QUARTER AND FIRST HALF 2003 RESULTS

        KFAR SAVA, Israel—July 21, 2003 — Silicom Ltd. (NASDAQ:SILCF) today reported financial results for the second quarter and first six months ended June 30, 2003.

        Revenues for the second quarter of 2003 were $700,000 compared to $765,000 for the second quarter of 2002. Net loss for the quarter was ($544,000), or ($0.13) per fully diluted share, compared to ($536,000), or ($0.13) per fully diluted share, for the second quarter of 2002.

        For the first six months ended June 30, 2003, revenues were $2,025,000, compared to $1,419,000 for the first six months of 2002. Net loss for the period was ($767,000), or ($0.19) per fully diluted share, compared to ($1,135,000), or ($0.28) per fully diluted share, for the first half of 2002.

        Commenting on the results, Shaike Orbach, President and CEO, said, “Low visibility continues to characterize all our markets, resulting in significant revenue fluctuation from quarter to quarter. While we recorded a slight year-over-year decrease in the second quarter of 2003, there was a year-over-year growth in the first half.

        “Nonetheless, we are making progress in sales efforts related to our strategic new Server/Storage Networking Cards, and discussions with a number of potential customers for these high-performance solutions are underway. The sales cycle for these products is long. To help expedite it, we have recently recruited a second storage/server-industry sales professional, who will operate from our new sales office in California, complementing the sales efforts of both our offices on the East Coast. At the same time, we continue with aggressive R&D in several fronts to take full advantage of the opportunity.”


Silicom Ltd. is an industry-leading provider of communications connectivity solutions and advanced enabling technologies, making it the preferred time-to-market and performance partner to many of the industry’s significant players. With core expertise in high performance, innovative technologies for networking and operating systems, the Company develops high-performance networking solutions for manufacturers of storage, Internet traffic management, security, and other types of server-based systems characterized by multi-port high-performance environments. Silicom also offers an extensive range of PC Cards, PCI cards and USB products. 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.

Contact:

Ilan Erez, CFO
Silicom Ltd.
Tel: +972-9-764-4555
E-mail: ilane@silicom.co.il

FINANCIAL TABLES FOLLOW


Silicom Ltd. Consolidated Summary of Results
(Unaudited)

U.S. dollars, in thousands, except for per share amounts

Three-month period
ended June 30,
 Six-month period
ended June 30,
2003
 2002
2003
 2002
Sales     $ 700   $ 765   $ 2,025   $ 1,419  
Cost of sales    478    563    1,155    1,116  
Gross profit    222    202    870    303  
Research and development costs,                      
gross    438    322    837    734  
Less - royalty bearing participations    (66 )  (51 )  (66 )  (134 )
Research and development costs, net       372     271    771    600  
Selling and marketing expenses    235    259    576    530  
General and administrative    156    241    306    387  
     763    771    1,653    1,517  
Operating loss    (541 )  (569 )  (783 )  (1,214 )
Financial income (expenses), net    (3 )  33    16    79  
Loss before taxes on income     (544 )  (536 )   (767 )  (1,135 )
Taxes on income    ---    ---    ---    ---  
Net loss     $ (544 ) $ (536 ) $ (767 ) $ (1,135 )
Basic and diluted loss per share   $ (0.13 ) $ (0.13 ) $ (0.19 ) $ (0.28 )
Weighted average number of shares                      
outstanding - Basic EPS (in thousands)    4,110    4,110    4,110    4,110  
Weighted average number of shares                      
outstanding - Diluted EPS (in                      
thousands)       4,110     4,110     4,110     4,110  

Silicom Ltd. Consolidated Balance Sheets
(U.S. dollars, in thousands)

June 30, 2003
(Unaudited)
 December 31, 2002
(Audited)
Assets

         
Current assets            
Cash and cash equivalents   $ 1,494   $ 861  
Short term investments    2,032    3,799  
Trade receivables    284    504  
Other receivables    253    277  
Inventories    1,158    1,221  
     5,221    6,662  
 
Long-term investments     502    -  
Severance pay fund       484    408  
Property and equipment, net     298    257  
Other assets     73    77  
Total assets    $ 6,578   $ 7,404  

Liabilities and shareholder's equity

Current liabilities            
Trade payables       311    561  
Other payables and accrued liabilities    499    415  
Total current liabilities    810    976  
Liability for severance pay     850    743  
Total liabilities    1,660    1,719  
Shareholders' Equity   
Share capital and additional paid in  
capital    5,550    5,550  
Treasury stock    (38)    (38)  
Retained earnings (deficit)    (594 )  173  
     4,918    5,685  
Total liabilities and shareholders equity    $ 6,578   $ 7,404