6-K 1 d40463.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 January, 2004

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, 2004 announcing Registrant’s fourth 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: January 26th, 2004

EARNINGS RELEASE

FOR IMMEDIATE RELEASE

SILICOM REPORTS FOURTH QUARTER
AND FULL YEAR 2003 RESULTS

        KFAR SAVA, Israel–January 26, 2004 – Silicom Ltd. (NASDAQ:SILCF) today reported financial results for the fourth quarter and full year ended December 31, 2003.

        Revenues for the fourth quarter of 2003 were $1,020,000, an increase of 28% compared to $795,000 for the fourth quarter of 2002. Net loss for the quarter was ($282,000), or ($0.07) per share, compared to ($674,000), or ($0.16) per share for the fourth quarter of 2002.

        Revenues for 2003 were $3,725,000, an increase of 37% compared to $2,726,000 for 2002. Net loss for 2003 was ($1,509,000), or ($0.37) per share, compared to ($2,485,000), or ($0.60) per share, for 2002.

        Commenting on the results, Shaike Orbach, President and CEO, said, “We are pleased to report improved revenues, margins, and net loss for both the three-month and twelve-month periods. These encouraging results are due primarily to the emerging sales of our strategic Server/Storage Networking adapters, which now represent a significant portion of our revenues. The initial orders that we have received for these new products, including the latest design wins with a first-tier and several second-tier server manufacturers, have also served to validate our technology and target markets. We continue with intensive sales efforts, and are making progress in discussions with many additional potential customers. However, with the long sales cycles typical of these products, it remains difficult to predict when and to what extent these discussions will transform into sales.”

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

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

Three-month period
ended December 31,
(Unaudited)		 Full year
ended December 31,
(Audited)
 
2003
 2002
 2003
 2002
Sales     $ 1,020   $ 795   $ 3,725   $ 2,726  
Cost of sales     569    578     2,160    2,091  
Gross profit     451    217     1,565    635  
Research and development costs,  
gross     407    446     1,647    1,523  
Less - royalty bearing participations     (48 )  49     (150 )  15  
Research and development costs, net     359    495     1,497    1,538  
   
Selling and marketing expenses     230    250     1,006    1,022  
General and administrative     148    175     598    712  
      737    920     3,101    3,272  
Operating income (loss)     (286 )  (703 )   (1,536 )  (2,637 )
   
Financial income (expenses), net     4    29     27    152  
Income (Loss) before taxes on income     (282 )  (674 )   (1,509 )  (2,485 )
Taxes on income     ---    ---     ---    ---  
Net income (loss)   $ (282 ) $ (674 ) $ (1,509 ) $ (2,485 )
Basic and diluted earnings (loss) per  
share   $ (0.07 ) $ (0.16 ) $ (0.37 ) $ (0.60 )
Weighted average number of shares  
outstanding - Basic and Diluted (in  
thousands)     4,112    4,110     4,112    4,110  

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

December 31, 2003
(Audited)
 December 31, 2002
(Audited)
Assets            
   
Current assets   
Cash and cash equivalents   $ 1,811   $ 861  
Short term investments     767    3,799  
Trade receivables     628    504  
Other receivables     290    277  
Inventories     1,225    1,221  
      4,721    6,662  
   
Long-term investments      549    -  
Severance pay fund      504    408  
Property and equipment, net      277    257  
Other assets      67    77  
Total assets    $ 6,118   $ 7,404  
Liabilities and shareholder's equity   
   
Current liabilities   
Trade payables     558    561  
Other payables and accrued liabilities     488    415  
Total current liabilities     1,046    976  
   
Liability for severance pay      895    743  
Total liabilities      1,941    1,719  
Shareholders' Equity   
Share capital and additional paid in  
capital     5,551    5,550  
Treasury stock     (38 )  (38 )
Retained earnings (deficit)     (1,336 )  173  
      4,177    5,685  
Total liabilities and shareholders equity    $ 6,118   $ 7,404