EX-99 5 exhibit_4.htm

6-K

EXHIBIT 4

Silicom Ltd. and its Consolidated Subsidiary

Consolidated Balance Sheets at December 31

						2005			2004
			Note			U.S. dollars in thousands			U.S. dollars in thousands
Assets
Current assets
Cash and cash equivalents				3			2,276			1,086
Investment securities				4			-			519
Receivables:
Trade				11A			2,395			741
Other				11B			453			337
Inventories				11C			2,994			1,994
Total current assets							8,118			4,677
Assets held for severance benefits				6			587			559
Property, plant and equipment				5
Cost							1,857			1,657
Less - accumulated depreciation							1,565			1,425
Net, property and equipment							292			232
Other assets				7			48			57
Total assets							9,045			5,525

By: /s/ Avi Eizenman
——————————————
Avi Eizenman
Chairman of the Board of Directors

By: /s/ Shaike Orbach
——————————————
Shaike Orbach
Chief Executive Officer

By: /s/ Eran Gilad
——————————————
Eran Gilad
Chief Financial Officer

Kfar-Saba, Israel: April 24, 2006

Silicom Ltd. and its Consolidated Subsidiary

Consolidated Balance Sheets at December 31

						2005			2004
			Note			U.S. dollars in thousands			U.S. dollars in thousands
Liabilities and shareholders' equity
Current liabilities
Short-term bank credit				13			500			-
Trade accounts payable							2,020			1,008
Other accounts payable and accrued expenses				11D			822			522
Total current liabilities							3,342			1,530
Long-term liability
Liability for employees severance benefits				6			1,031			957
Total liabilities							4,373			2,487
Commitments and contingencies				8
Shareholders' equity				9
Ordinary shares, NIS 0.001 par value;
authorized 10,000,000 shares;
issued and outstanding 4,351,050 shares as of
December 31, 2005 and 4,213,550 as of December 31, 2004							14			14
Additional paid in capital							5,950			5,638
Treasury shares (at cost) - 14,971 ordinary shares as at
December 31, 2005 and 2004							(38	)		(38	)
Retained deficit				9D			(1,254	)		(2,576	)
Total shareholders' equity							4,672			3,038
Total liabilities and shareholders' equity							9,045			5,525

Silicom Ltd. and its Consolidated Subsidiary

Consolidated Statements of Income for the Year Ended December 31,

						2005			2004			2003
			Note			U.S. dollars in thousands except for per share data
Sales				12A			10,876			4,559			3,725
Cost of sales				12B			6,507			2,999			2,160
Gross profit							4,369			1,560			1,565
Research and development costs				12C
Total costs							1,561			1,596			1,647
Less: royalty-bearing participations, net				8A			(98	)		(145	)		(150	)
Research and development costs, net							1,463			1,451			1,497
Selling, marketing, general and
administrative expenses
Selling and marketing expenses				12D			903			718			1,006
General and administrative expenses							695			614			598
							1,598			1,332			1,604
Operating income (loss)							1,308			(1,223	)		(1,536	)
Financial (expenses) income, net				12E			14			(17	)		27
Net income (loss) for the year							1,322			(1,240	)		(1,509	)
Income (loss) per share:
Basic income (loss) per ordinary share							0.311			(0.296	)		(0.367	)
Weighted average number of ordinary
shares used to compute basic income
(loss) per share (in thousands)							4,256			4,190			4,112
Diluted income (loss) per ordinary share							0.303			(0.296	)		(0.367	)
Weighted average number of ordinary
shares used to compute diluted income
(loss) per share (in thousands)							4,364			4,190			4,112